John Janedis: Yes, sure. Hey, Jim, it’s John. I’ll start with the subscriber fees. Look, it’s a combination, but I’d say the vast majority is on a per sub basis. But we also have, I’d say, a fair amount of flat fee. So, it’s a combination. But again, the vast majority of the total fee would be on a per sub basis. There also are some situations where there is some flexibility in terms of pricing based on volume. Okay, and Jim what was the second part. Okay, Sorry.
Operator: Your next questions comes from the line of Brett Knoblauch from Cantor Fitzgerald. Please go ahead.
Brett Knoblauch: Hi guys, thanks for taking my question. It’s a nice thing, the sequential gross margin improvement, and I was just curious if you can provide any color as to how that will trend throughout the year. And then, maybe as a follow-up, is it possible for you guys maybe launch a, call it skinny bundle of your own with the most relevant sports channels that you guys currently distribute? Or is that kind of against the policies or contracts that you have signed with, call it the big companies?
John Janedis: Brett, actually, you broke up a little bit. Can you repeat the first half of the question?
Brett Knoblauch: Yes. Can you talk about the pace of gross margin improvement we should be expecting throughout 2024?
John Janedis: Sure. All right. So, look, as I mentioned before, we saw about 1,000 basis points of improvement in 2023. We don’t guide specific to gross margin. What I would tell you though is that we continue to expect a healthy improvement throughout the course of the year, but I don’t want to be more specific than that. The problem now is rate of improvement in ’24 versus ’23, but I’d say still very healthy.
Operator: Thank you. I will now turn the call back over to Alison.
Alison Sternberg: Thank you, operator, and thank you to everyone for your very thoughtful questions. We look forward to speaking with all of you next quarter. Before I turn it back to the operator to close out the call, I did want to surface some questions related to our Say Technologies investor platform. And one question that got a lot of votes, I think this is really appropriately directed to you, David, is sort of a meta question, a very high-level question, which is what long-term strategies do you have in place to ensure the sustainable growth and success of the company?
David Gandler: Yes, very good question. I tried to hit on that during my opening remarks. One of our key goals as part of being a video aggregator is to really drive a super aggregation strategy. I think we’ve said many times now that we are not, we have no plans to be an app store. We want to create a seamless and premium experience for customers, and we look to target those customers at different points on the demand curve, which by the way will change given the seasonality of content that’s available. And so, as we said, we’re going to start to build on our strong advertising business and launch a free tier sometime in the back half of the year to leverage the 160, roughly 160 FAST channels that we already have behind the paywall.
And we’re focused on continuing to develop some technology in-house that will allow us to create more personalized experiences and upsell customers on things like TVOD and pay-per-view initially. And as we work through our content deals, we’ll hopefully get to a place where we can unbundle some of the programming, the same way the media companies would plan to do so. And I think that’s going to drive a lot of value both for customers, for our media partners as well, driving revenue for them, and our shareholders.
Alison Sternberg: Excellent. And one other question that received quite a few upvotes, not surprisingly, and you’ve addressed this throughout the course of the call, but will this new JV and sort of the associated impact or anticipated impact change our path to profitability by ’25?
David Gandler: Well, the answer is no. As you know, the last four quarters, we’ve really delivered on the bottom line. This last quarter was a really impressive move. An improvement of $100 million of free cash flow really demonstrates our commitment to achieving our profitability targets. That doesn’t mean it’s going to be an easy road, but this company has demonstrated time and time again its resilience. If that’s all, I’d like to ask one thing of all of our friendly listeners and the majority of the people that follow us is I really encourage you to visit savemysports.com in support of consumer choice. There’s a letter out there that I’ve posted, and you’ll be able to find your local congressmen and women. Feel free to reach out to them because this is a really important topic, and you’d be saving customers tens of billions of dollars a year. Thank you.
Alison Sternberg: Thank you, David. Again, thank you to everyone on the call for your thoughtful questions. I’ll turn it back over to you, operator, to conclude the call.
Operator: This does conclude today’s conference call. Thank you for your participation. And you may now disconnect.
