After finding an estimate of their yearly revenue I wondered how they got an investment for $10 million based on their revenue when the whole company isn’t worth that. I’ve come to the conclusion that they likely used “sunken cost” arguments (i.e. lifetime/yearly members won’t leave easily) to insist they have a captive audience to push content to. So they sold equity for their subscriber base.
In other words, the investors aren’t screwing with the original concept, this direction has been plex’s goal for a long time and it’s the direction they sold the investors on.
I posted this article almost 2 years ago: Fast Company profile
it’s been a long time coming.
