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Not sure how much Vimeo cares to keep their most expensive loss leaders. The algorithm seems like it would work well though if there's some retention. You lose
by tedunangst 5y ago
Not sure how much Vimeo cares to keep their most expensive loss leaders. The algorithm seems like it would work well though if there's some retention. You lose 0.75% off the top. Then again, and again a few times, but after a few iterations you've identified a top 1% that's willing to pay, and still have the other 99% for word of mouth advertising.
- nhoughto 5y agointeresting idea, expect vimeo would be paying for bandwidth as a flat rate per GB/sec not per GB transferred. So their costs vs what they are charging would be quite different, also if their bandwidth costs are roughly flat (not based on transfer) then culling/causing churn in the 1% reduces the utilisation of their fixed cost.. or maybe they are running a very high utilisation and culling the top 1% every month gives them more headroom =)