Before I take this report seriously I need to clarify a few points:
Define active – what is the frequency of user activity that makes them active ? Once a month? Once a week ? – train companies define an arrival being on time with a 7minute window either side of the expected time.
2.5 million subscribers, with 1 million “active” – that’s only about 40% of people taking an interest – how many of the other 1.5 million non active subscribers are just paying monthly because they cannot be bothered to cancel the subscription ?
What is the user retention of the service ?
Worrying paragraph alert:
“Over the weekend OnLive CEO Steve Perlman blamed huge server running costs for pushing the company into the red, saying: "If you've got 8,000 servers and 1,600 [concurrent] users, how could we ever get to cash flow positive, right?
There you have it …this “CEO” has blamed the servers for costing too much – did he not realise how much they would cost to use/ run before launching the service ?? and 1,600 concurrent users…compare that to the “1million active” users into a percentage – that’s grim, real grim.
Then to say “how could we ever get to cash flow positive” – that is worrying, he sounds like a man out of his depth. Time to move on and let someone take over who knows how much it costs to run a server
What is Onlive's plan to increas user uptake / retention and to turn the 1.5 million "inactive" accounts into "active" accounts ? All they have done is shift the responsibility of debt and not much else.....shocking
Duncan Bannatyne says “im out”