Michael Litt

So we're streaming in excess of 50 million videos a day.

And we subscribe to the Netflix model of throttling our CDN and serving...

or service providers based on the latency of loading an asset.

So when you click play, it needs to be within a certain threshold to fetch that video from the service, otherwise we're moving the content and the bandwidth to another CDN provider.

And over time, things get cheaper.

Each new customer you add decreases the cost of serving all of your customers as you negotiate economies of scale downward.

Now that works for us today.

Initially, the way we developed a high gross margin was by making sure that we provisioned a ton of value in the services and features and functionality around the basic hosting of the video.

Because again, if you're just hosting video for a company, you're competing against status quo, which is YouTube or Vimeo, which is free and monetized based on ads.

And so there needs to be a whole...

much more in the package that justifies value beyond just video hosting anyways.

And so because of that, it kind of shifted our mindset from a product development perspective to make sure that we were delivering value that allowed us to sell the product at an aggressive margin.

You know, it's interesting.

Yeah, this is not a typical answer.

I've got a myriad of these if you want to keep diving into this.

Give me a few.

One of the most recent things, so email is kind of the victim of its own success, right?

Email automation became such a productive part of a business that we started to celebrate 1% click-through rates.

And I saw Gary Vaynerchuk talk at a Rise conference in Hong Kong last week, two weeks ago, two weeks ago now.

You talked about how his email list in the 90s had a 90% click through rate on 250,000 subscribers, right?