CuriosityStream Inc. (NASDAQ:CURI) Q3 2023 Earnings Call Transcript

So we do kind of an accelerated amortization for the first couple of months and then straight line through the balance of the life of the license. So roughly that — for most of this content as with most of our license content typical would be three years. And so over the life of — because it’s a swap over the life of the relationship the revenue we would recognize and the content amortization would equal out over the life of the swap effectively.

Tom Forte: Excellent. All right. So then for my one follow-up question, I think I know the answer, but I’m going to ask anyway. So it seems like as a result of the solution to the writers’ strike that content cost may be going up for some and they seem to be then potentially raising prices as a result I know you already had a price increase in place but I don’t want to assume. But I suspect that you’re not going to see the cost inflation on the resolution of writers’ strike that others might.

Clint Stinchcomb: If I can — thank you for that question Tom. And obviously, we’re really happy for all the people who are involved in that that they can go back to work now. However, I do think there is risk next year of a couple of other unions associated with the production business that could choose to strike. However, what I would — the key point that, I don’t know that we can emphasize enough is a small percentage of our overall direct subscriber base has actually been exposed to our rate increase. So when you think about — we have a lot of annual customers well over 80% as we’ve said in the past. So most of them have not seen the rate increase and then as it relates to our channel store partners, all of them are either they have just announced it or are just beginning to adopt it. So it will take a while. It’s good news for 2024 for those growth areas. Peter anything to add?

Peter Westley: No. Just to the extent that there are new terms related to the settlement of the writers’ strike that effectively doesn’t impact us.

Clint Stinchcomb: I mean obviously 2024 is [indiscernible] Thank you. Thank you, Tom.

Tom Forte: Thank you.

Operator: There are no further questions at this time. This concludes today’s conference call. You may now disconnect.