Zoo Digital Share Discussion Threads

[loadsamonay] 14/1/2015 09:51

I agree with MArtina and the consensus here. I think this is a slow burner. I doubt that the "crowd" will rush in anytime soon, but thats ok as it allows the opportunity to add shares when funds are available. I'm not going to go all in on this one, but will certainly add to keep a decent holding.

[philjeans] 14/1/2015 08:00

Put simply - the more data uploaded into the cloud "pot" by customers NOW, the more income EVENTUALLY earned by Zoo, when the translated material is downloaded and used in films, dvds, music etc.

You can wait until that income eventually appears in the P & L, when the share price will be up by several hundred per cent, or you can BUY ZOO now before the market understands the massive income growth, and take-over potential, here.

It's a classic early risk/reward conundrum!

[donnydave] 14/1/2015 04:58

Zookeeper try to remember what you posted on lse website.29th aug 2014. Patience people will start buying again this is only going one way I.M.H.O.

[donnydave] 13/1/2015 20:20

And why bother storing them if you don,t intend to use them eventually!

[martina pescatore] 13/1/2015 20:11

Whichever way we look at it and however and how much the company monetises each subtitle stored, the ticker has now increased by 2 million since last Friday evening, having already been adjusted downwards for daily tallying purposes.

At 2 million a week, that would be substantially ahead of last years zoo subs stored numbers by a factor of around 400% or 500% I think.

I know we haven't achieved 2 million a week, every week, yet, but the signs are encouraging I would say for a continuation in the growth trend previously reported at half year.

If last year zoo subs contributed say only $2 million to t/o, then we can do the maths and hope that the trend continues and that the company monetise it adequately.

[donnydave] 13/1/2015 19:46

hxxp://www.zoodigital.com/who-we-work-with/music-publishers/

[donnydave] 13/1/2015 17:37

Zoosubs is also used for itunes etc. and Netflix maybe not to the same extent yet but the potential could be massive.

[zooskeeper] 13/1/2015 16:34

Hi Steve,
I am just airing the discrepancies of my research to what they state. I understand the way it works and appreciate there doesn't even have to be an indictator but following subs for two years I am still unaware of the growth opportunity. One major client has delays and things stand still. Just trying to grasp the recovery and probably fustrated in have believed in the company doing something over a decade.
Gla

[rambutan2] 13/1/2015 16:17

Disney used to be by far the largest client. I know things have evened out much more as others have been taken on, but i imagine it's still the largest.

I thought of Zoo yesterday when reading an article in the FT "Disney boosted by teenage girl power". Apparently one of its big hits is a series/franchise called Violetta, about a girl who moves from Europe to Argentina. It now appears in 140 countries and has been dubbed into 15 languages, while also selling 2m albums, 3m books and 1m diaries. I wonder if Zoo have been involved any of the work?

[cyprussteve] 13/1/2015 15:12

Hi ZoosKeeper,
In their reply they did say they were going to make some changes to the site to avoid misleading anyone - not sure what more they can do.
Not every tick up means a new cash order - they are simply trying to keep investors updated - it is not financial data as such.
It would be easier for them to remove it completely, but, I think they are just trying to be open and helpful.
If you have concerns or suggestions as to how to improve it, why not drop them a line - they have a contact form on their website and usually reply fairly quickly.
Ciao
Steve

[zooskeeper] 13/1/2015 14:24

Lets hope it takes off again soon. It's heading in the right direction not arguing with that, just still don't think there is enough clarity!

[donnydave] 13/1/2015 14:13

Zoo said there would be delayed orders due to restructering at a major client.

[donnydave] 13/1/2015 14:06

That's how i see it too loadsamoney.

[loadsamonay] 13/1/2015 13:54

My understanding - the ticker counts the number of subtitles loaded into the zoosubs system. It moves at an estimated rate and is corrected to actual uploaded quantity once a day. The clients pay a fee if they download/convert any of it.

So the fact so much has been loaded on, bodes well for business.

[zooskeeper] 13/1/2015 13:48

It can't be right once a day. 3m was whipped off & never gained that much in 24hrs. Never seen it jump forward which it should do by the logic they have stated. Going from slow demand to increased. Does seem dependant on certain large customers with a swing in the ticker of 200%. Still not convinced of the snowball!

[donnydave] 13/1/2015 12:48

In other words a considerable increase in usage but not as much as we had thought. I,m happy to hold now.

[loadsamonay] 13/1/2015 12:14

This incredibly helpful. Thanks Steve. No absolute correlation with revenue then - but a correlation with "use" of their storage for sure. But, we need to remember that customers pay when they withdraw their documents from storage, not when they place it there or use it there. Nevertheless it bodes well.

[cyprussteve] 13/1/2015 11:56

Hi guys,
In order to clarify the "ticker" issue referred to above, I emailed the Company, and have just received the reply as below. As you can see the issue is quite complex and multi-faceted, and although it takes a bit of understanding and reading several times - ( for me anyway !! ) - I believe it addresses the issue as clearly and honestly as possible.
I post the exact reply below with full permission from the Company.
Hope this helps,
Regards
Steve

"Hi Steve,
The commercial terms with customers using our subtitle services vary but all are based on usage. Translation of subtitles is charged based on the run time of the content and the languages into which it is translated. For pre-existing subtitles that require conversion into a different format we charge for that conversion based on the run time of the content.
The subtitle ticker on our website counts the number of individual subtitles stored in ZOOsubs. An ‘individual subtitle’ is one sequence of words appearing on a screen at any one time, so if you can picture whilst watching some TV or film content the subtitles that flash up on the screen, whether they be one word, one sentence or more, one ‘individual subtitle’ refers to the characters that appear in that one block.
There is not a simple relationship between the number reported by the subtitle ticker and the revenue we earn. Customers pay as the subtitles they request are created and downloaded by them from ZOOsubs. In some cases we engage our network of freelance translators to create new subtitle streams into many languages, and in others ZOOsubs is used to convert existing subtitles automatically into different technical delivery formats (ZOOsubs currently supports around 50 different such formats, including those for DVD, Blu-ray, iTunes and Netfix). In the case of conversion, existing subtitles may be those we have created previously on behalf of clients, or can be subtitles created by third parties and ingested into ZOOsubs for the purpose of conversion.
Some customers use ZOOsubs as their repository for all of their subtitle data which is a very useful feature for them. ZOO generates income each time a customer requires their subtitles in a different technical format, for example, when a studio is republishing catalogue titles on iTunes, Netflix or another digital delivery platform. When the customer needs subtitles in a different format they can very quickly and easily access this data from ZOOsubs and we gain revenue from this conversion.
The recent significant uplift in the ticker is due to the ingest of a large volume of subtitles for a customer that wishes to centralise storage and management of data in ZOOsubs. In cases such as this we will not earn revenue immediately, but the downstream revenue earning potential is significant as the customer orders subtitles in future to monetise their content over different platforms.
The subtitle ticker on our website is absolutely accurate at one point each day. It has been configured so that it takes a reading from ZOOsubs once per day and at that point it automatically changes the ticker counter to the exact number. It also works out the rate at which the number of subtitles has increased since the previous day and then sets the ticker to continue to increase at that rate until the next reading is taken the following day. Whilst this means that the ticker does not give a completely accurate reading at every moment of the day it was judged to be a good way to give a sense of the velocity of data being added to our system. We have found this to be fairly accurate but it does mean that if there is a sudden increase or decrease in the rate at which subtitles are added the count will be less accurate. Towards the end of last week the volume increased considerably for a few days and this led to a distorting effect once that surge had completed, resulting in overshooting the true ZOOsubs reading. This explains why the ticker went backwards this morning. Having noticed this we intend to make some changes to the site to avoid misleading anyone.
If you have any other questions please let me know.
Kind regards"

[loadsamonay] 13/1/2015 09:20

I think they have a "dodgy ticker". There could be a number of reasons for the drop in the values. My understanding in any event is that it records "subtitles" i.e. documents stored in their cloud thing. When in the cloud you can work on the document. But the customer doesn't pay for them until they withdraw the document back out from the cloud. So for that reason alone there isn't a direct correlation between the ticker and revenue.

It may be that recent ticks up are all by one customer (they seem to have one major customer in last annual report - notes) - and perhaps they have negotiated some kind of free use for a one-off payment or whatever. So it may just be that the recent ticks up don't represent income- so they deleted them.

WHatever the reason, its clear that this side of the business is doing very well, and that is the most that can be said. The note that steve posted from the company confirmed this saying "Our most recent offering of subtitling has been extremely well received and has been a major area of growth".

That is just about as much as we can read into it I think. But at a v small market cap - its still worth buying in my view. IN fact if the share price drops a good bit, I'll top up.

[donnydave] 13/1/2015 06:54

Hope what i,ve posted helps people deecide what to do.

[donnydave] 13/1/2015 04:07

They are also advertising for staff in Sheffield and America on Zoo,s website.

[donnydave] 13/1/2015 03:40

And even Zoo,s own website states 52 week high of 12.12 and 52 week low of 5.38 so the articles figures don,t seem to be correct to me.

[donnydave] 13/1/2015 03:27

According to lse website Zoo has a 52 week high of 12.25 and a 52 week low of 5.38 .

[kingshort] 12/1/2015 20:55

I've thought for a while that the ticker is not reliable. It moves forward at a set increment (in the case of the last few days this was 181). If the ticker is driving the share price up (as it did today) then imho that's misleading as no one really knows the correlation between those numbers and financial performance (if indeed there is any). They should take it down as it's creating too much speculation, positive and negative.