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2 | Zype Video Advertising (AVOD) Revenue and Expense Model for Video Streaming Infrastructure | |||||||||||||||
3 | Use this model to forecast advertising revenue and expense for a video streaming service. | Request a demo at www.zype.com | ||||||||||||||
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5 | How to use this model: | |||||||||||||||
6 | Make a copy of this model for your own use by going to File > Make a Copy or File > Download as > Microsoft Excel | |||||||||||||||
7 | The Blue highlighted cells are your assumptions. These are your manual inputs. Modify your asuumption inputs compare the two scenarios. | |||||||||||||||
8 | The assumptions include: Starting month, Hours of new content each month, Subscription Price (monthly and annual), Churn (by month of customer's subscription), Variable & Fixed Costs, | |||||||||||||||
9 | Cost of transcoding each hour or new content, Transcation Processor cost, & number of New Subscribers each month (monthly & annual). | |||||||||||||||
10 | Do not edit any cells other than the BLUE highlighted cells. | |||||||||||||||
11 | Everything you see here are estimates: YMMV, no guarantees, ask your doctor before trying, etc. | Does NOT include any volume or tier pricing discounting. In other words, actual costs will be lower at scale. | ||||||||||||||
12 | Assumptions | Starting Month | Jun '20 | |||||||||||||
13 | Hours per Month of New Content | 100 | eCPM | $15.00 | effective CPM across all distribution endpoints, regardless of ad sales channel (direct, programmatic, instream,outstream, native, etc) | |||||||||||
14 | Monthly Transcoding Allotmnent | 80 | PreRoll? | Yes | ||||||||||||
15 | Monthly Content Delivery Allotmnent | 5,000 | Average Midroll Pods per Hour | 5 | ||||||||||||
16 | Ads per Pod | 2 | Average time between ad breaks (minutes): | 12.00 | ||||||||||||
17 | Average Length of Content (minutes) | 60 | Ad fill rate per hour | 85% | Average time between ad breaks (seconds): | 720 | ||||||||||
18 | Hours watched per viewer: | 1 | Number of Playout channels | 1.0 | Potential ads per hour | 11 | ||||||||||
19 | Estimated ads per user per month: | 9 | Hours watched / mo (MRSS) | 100,000 | Estimated ads per hourl | 9 | ||||||||||
20 | Hours watched / mo (Linear / DTC) | 100,000 | Estimated revenue per user per viewing hour: | $0.14 | ||||||||||||
21 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |||||
22 | Audience Growth Rate (compounding) | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | ||||
23 | Zype Costs | |||||||||||||||
24 | Variable Costs | $0.03 | per streaming (viewing) hour to consumer | $2.00 | per hour of transcoding | |||||||||||
25 | Fixed Cost | $48,000.00 | software subscription (per year) | $0.90 | per thousand server-side ad requests | |||||||||||
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28 | Summary & Breakeven Analysis | Month | Jun '20 | Jul '20 | Aug '20 | Sep '20 | Oct '20 | Nov '20 | Dec '20 | Jan '21 | Feb '21 | Mar '21 | Apr '21 | May '21 | ||
29 | Revenue | 27,000.00 | 27,810.00 | 28,644.30 | 29,503.63 | 30,388.74 | 31,300.40 | 32,239.41 | 33,206.59 | 34,202.79 | 35,228.88 | 36,285.74 | 37,374.31 | |||
30 | Expense | 7,700.00 | 7,814.30 | 7,932.03 | 8,053.29 | 8,178.19 | 8,306.83 | 8,439.34 | 8,575.82 | 8,716.39 | 8,861.19 | 9,010.32 | 9,163.93 | |||
31 | Net Gain/Loss | 19,300.00 | 19,995.70 | 20,712.27 | 21,450.34 | 22,210.55 | 22,993.57 | 23,800.07 | 24,630.77 | 25,486.40 | 26,367.69 | 27,275.42 | 28,210.38 | |||
32 | Cumulative Net Gain/Loss | $19,300.00 | $39,295.70 | $60,007.97 | $81,458.31 | $103,668.86 | $126,662.43 | $150,462.50 | $175,093.27 | $200,579.67 | $226,947.36 | $254,222.78 | $282,433.17 | |||
33 | Breakeven Period | 1 | months | |||||||||||||
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36 | Revenue | |||||||||||||||
37 | Jun '20 | Jul '20 | Aug '20 | Sep '20 | Oct '20 | Nov '20 | Dec '20 | Jan '21 | Feb '21 | Mar '21 | Apr '21 | May '21 | ||||
38 | Hours Watched (Linear) | 100,000 | 103,000 | 106,090 | 109,273 | 112,551 | 115,927 | 119,405 | 122,987 | 126,677 | 130,477 | 134,392 | 138,423 | |||
39 | Hours Watched (MRSS) | 100,000 | 103,000 | 106,090 | 109,273 | 112,551 | 115,927 | 119,405 | 122,987 | 126,677 | 130,477 | 134,392 | 138,423 | |||
40 | Monthly Revenue | $27,000 | $27,810 | $28,644 | $29,504 | $30,389 | $31,300 | $32,239 | $33,207 | $34,203 | $35,229 | $36,286 | $37,374 | |||
41 | Hourly Revenue | $36.99 | $38.10 | $39.24 | $40.42 | $41.63 | $42.88 | $44.16 | $45.49 | $46.85 | $48.26 | $49.71 | $51.20 | |||
42 | Hours Watched | 100,000 | 103,000 | 106,090 | 109,273 | 112,551 | 115,927 | 119,405 | 122,987 | 126,677 | 130,477 | 134,392 | 138,423 | |||
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44 | Cumulative Revenue | $27,000.00 | $54,810 | $83,454 | $112,958 | $143,347 | $174,647 | $206,886 | $240,093 | $274,296 | $309,525 | $345,810 | $383,185 | |||
45 | Cumulative Hours Watched | 100,000 | 203,000 | 309,090 | 418,363 | 530,914 | 646,841 | 766,246 | 889,234 | 1,015,911 | 1,146,388 | 1,280,780 | 1,419,203 | |||
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51 | Expense | |||||||||||||||
52 | Jun '20 | Jul '20 | Aug '20 | Sep '20 | Oct '20 | Nov '20 | Dec '20 | Jan '21 | Feb '21 | Mar '21 | Apr '21 | May '21 | ||||
53 | Monthly Cost | 7,700.00 | 7,814.30 | 7,932.03 | 8,053.29 | 8,178.19 | 8,306.83 | 8,439.34 | 8,575.82 | 8,716.39 | 8,861.19 | 9,010.32 | 9,163.93 | |||
54 | Hourly Cost | 10.55 | 10.70 | 10.87 | 11.03 | 11.20 | 11.38 | 11.56 | 11.75 | 11.94 | 12.14 | 12.34 | 12.55 | |||
55 | Ad Requests/M | Count | 12,772.83 | 900 | 927 | 955 | 983 | 1,013 | 1,043 | 1,075 | 1,107 | 1,140 | 1,174 | 1,210 | 1,246 | |
56 | Cost | $11,496 | $810 | $834 | $859 | $885 | $912 | $939 | $967 | $996 | $1,026 | $1,057 | $1,089 | $1,121 | ||
57 | Streaming Hours | Count | 1,359,203 | 95,000 | 98,000 | 101,090 | 104,273 | 107,551 | 110,927 | 114,405 | 117,987 | 121,677 | 125,477 | 129,392 | 133,423 | |
58 | Cost | $40,776 | $2,850 | $2,940 | $3,033 | $3,128 | $3,227 | $3,328 | $3,432 | $3,540 | $3,650 | $3,764 | $3,882 | $4,003 | ||
59 | Transcode Hours | Count | 240 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | |
60 | Cost | $480 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | ||
61 | Software License | Cost | 48,000 | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | |
62 | Total Cost | $100,752 | $7,700 | $7,814 | $7,932 | $8,053 | $8,178 | $8,307 | $8,439 | $8,576 | $8,716 | $8,861 | $9,010 | $9,164 | ||