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Username: David Coombs
Date/Time: Thu, November 2, 2000 at 6:24 PM GMT
Browser: Microsoft Internet Explorer V5.01 using Windows NT 5.0
Score: 5
Subject: Accounting Lesson

Message: 		 

 
                       
      Julie,

Having a background in public accounting, I may have some insights on your conspiracy theory.  Your issue seems to be that the retail prices and number of registrations sold doesn't seem to reconcile with their reported revenue numbers.  This can be explained by the accounting principle of matching, in which a company is required to match its revenue against the period the service is provided.

For example, if I subscribe to the New York Times for $200/year starting the beginning of October and send them a check at that time, they can correctly claim to have sold a $200 subscription.  However accounting standards dictate that NYT recognize the revenue over the 12 months (i.e., ~$17 for October, $17 more for November, etc.).  I believe dotTV is a fairly young company, so a public accountnant would expect the recognized revenue numbers to be significantly trailing the "reported sales" numbers.

Hope this helps.
     
     
 

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