$10.00 x (100k+200k+300k+400k+500k) = $1M + 2M + 3M + 4M + 5M = $15 million
Since CBS AA was adding 50,000 subscribers a month before it started its original programming, and then started adding 100,000 subscribers a month after, I gave
Discovery "credit" for only 50,000 of them, since I assume the other 50,000 signed up for other reasons (based on the fact that the service was getting 50,000 subs/month with no original programming).
So my result was exactly half of this: $10.00 x (50k+100k+150k+200k+250k) = $0.5M + 1M + 1.5M + 2M + 2.5M = $7.5 million
That's also not quite the formula. Assuming nobody dropped the service...
10 * 100k * 5mo + 10*200k*4 + 10*300k*30, etc. Which grosses $35 million.
Isn't this double-counting? Consider the first batch of people, who signed up in October and then paid for five months of the service. You've got every dollar they spent accounted for in the "(10 * 100k * 5mo)" term. So in the next term, where are you getting 200k from? CBS AA only added about 100k subscribers in November.
Those subscriber numbers don't jive with the statement that CBSAA has about (or more) than 2 million viewers, BTW. It likely grew at a faster rate.
No, 100,000 subs/month during
Discovery's run is roughly correct. This is the one thing in this equation we can actually be certain of, thanks to CBS's previous statements to press:
Oct 2014 - 0 subscribers (at launch)
Jul 2016 - ~1 million subscribers (
source)
Feb 2017 - 1.3 (?) million subscribers (
source)
Sep 2017 - 2 million subscribers (
source)
Feb 2018 - 2.5 million subscribers (
source)
EDIT: It's worth adding that they are meeting or exceeding their stated goals for CBSAA, so
Discovery seems to be meeting internal expectations just fine, even if it is technically losing money hand over fist.