Reading too much into the 10% = 70% if income

daveymck · #1 10-12-2005, 09:00 AM

According to this article on the BBC Party has moved its 9 million customer to the new network.

So if they have 9 million accounts then the 10% is 900,000 which means we are not talking about just multitablers we are talking about the average joe who plays regular maybe once or twice a week every month as well.

If this is the case (I cant find any other published figures on number of accounts) then I still think many here are overvaluing the role the multitable pros have to party and maybe adds some context to the discussions going on here.

#2 10-12-2005, 09:22 AM

I'm not even sure if that figure is reliable (10%/70%). I haven't been able to find the original source, it's only referred to in another post of a Party press release (and was clearly added in).

But I agree, the top 10% is a lot of players, and maybe 1% of these (or less) have even heard of rakeback. Even less care enough to play elsewhere.

daveymck · #3 10-12-2005, 09:31 AM

Going off the 2004 figures they are making around $54 million profit a month this probably includes the casino and bingo but even the people paying the most rake here individually would have no impact on this profit if they went elsewhere.

As I said yesterday some companies are quite prepared to do things that piss off some of their bigggest customers especially when they account for such a small percentage of their profit and know that a lot of them will stay customers anyway.

MaxPower · #4 10-12-2005, 10:13 AM

It depends on how they define customer. So you are rigth that it is hard to interpret that number. There are lots of play money accounts and dormant accounts.

I don't think the 10% would include just multitablers. It would include a lot of people who just play often. But the multitablers still would contribute a disproportionate percentage of that rake.

The fact is that none of us really know the specifics. From my experience in business, my impression is that most companies get the majority of their revenue from a small percentage of customers.

daveymck · #5 10-12-2005, 10:16 AM

Yes we always had the Oracle Pyramid the ones at the tip being the major ones they wanted to focus on the rest were thrown to the partners.

I still dont understand why everyone is still so up in arms about whats happening though, affiliates and those surviving on rakeback excepted the hysteria round here from a lot of people if ridiculous.

Freudian · #6 10-12-2005, 10:24 AM

While you are right that 10% of their player population is a lot of people the article also said:

"So players have the choice between playing on PartyGaming’s site or playing in PartyGaming’s room via a third-party site and explicitly having some of their rake returned to them. PartyGaming indicated that one of the problems this year had been a reduced frequency of play among their bigger players."

It should be obvious that Party has been suffering from player poaching and that the separation from the skins, introduction of 10-table limit and reintroduction of rakeback (even if they call it something else) is done to get those players back.

daveymck · #7 10-12-2005, 10:31 AM

Which they brought upon themselves once they closed the mgr stats for their affiliates then it was obvious people would move on. I think its combined with the open nature of rakeback now the knowledge and penetration of rakeback numbers goes way deeper than in the past.

But as long as they bring back a lot of those players even with the odd few pissed ones never returning they have strenthened their position which I am sure is the whole point o fthe excercise, getting more players purely for them and getting more money out of them with the extra tables.

Freudian · #8 10-12-2005, 10:36 AM

And don't underestimate the importance of size when it comes to growing. A lot of players want to play on the biggest poker site, not only good players. Being the biggest sends out the signal that it will be around, that your money is safe etc.

Previously the skins have been able to use the "join the biggest poker site" in their advertising. Now only Party itself can.

Sniper · #9 10-12-2005, 02:50 PM

[ QUOTE ]
According to this article on the BBC Party has moved its 9 million customer to the new network.

[/ QUOTE ]

Don't believe everything you read in the news [img]/images/graemlins/smile.gif[/img]

Here's the link to Party's Financials

And the stock market forum thread with Empires financials and other news

daveymck · #10 10-12-2005, 05:25 PM

Thanks for that the 9m a way over estimation.

The most interesting thing for me was that the skins only generated 3.6% of parties income and they beleived it no longer optimal so it was even more obvious that they were going to pull the skins at some point.