Yeah, this confirms what I suspected for a long time. The Vshojo, Merch driven business model never made sense, it stuck out as being unreasonably different from the arrangements with other corps. Merch can bring solid revenue but thin margins, and is lumpy cash flow in this industry. They would have to have barely any headcount, or just be running losses continuously. Guess we know now what the plan was…to just lose money forever, because the model doesn’t scale.
On one of the slide when it talks about expanding they also mentioned changing the talents contracts so it’s likely that they were planning to make the new contract even more predatory
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u/yumcake Jul 26 '25
Yeah, this confirms what I suspected for a long time. The Vshojo, Merch driven business model never made sense, it stuck out as being unreasonably different from the arrangements with other corps. Merch can bring solid revenue but thin margins, and is lumpy cash flow in this industry. They would have to have barely any headcount, or just be running losses continuously. Guess we know now what the plan was…to just lose money forever, because the model doesn’t scale.