Jirka Rysavy: And also said that we expect to not only offset the loss what we have this COVID clean-up, but we expect to get above our peak post COVID peak on the members.
Mark Argento: And just to clarify, so you said roughly 80% currently of your sub base is direct. Is that a good number to use?
Jirka Rysavy: We measure it in revenues. Yes, we always try to keep the direct members between like 15% and 20% of revenue. And it’s right now, let’s say, 18% or something on those range. And will probably decline a little bit as a percent — the third party, I think, direct business will grow faster than the third party members.
Operator: Our next question comes from Thierry Wuilloud with Water Tower Research.
Thierry Wuilloud: Maybe first question on the savings that you mentioned. Is that basically an unwinding of maybe inefficiencies that were caused by COVID and the inability to work at the office, or am I reading that correctly?
Paul Tarell: No, it’s correct. As the COVID came, we have this work from home Monday, we have to keep at least half of employees not being in office and that kind of get little bit in the habit. So we finally kind of terminated that and it’s the — inefficiency of the work from home was close to 30% like everybody else. And so we kind of was eliminating those things. We could basically eliminate close to 20% of the headcount. So that’s really most of the saving. There’s some other related expenses with reducing your headcount as well. But most of it is the purely salary and the overhead related.
Thierry Wuilloud: Then you mentioned maybe the COVID bump and losing some people lose signed up just during COVID. But I’m wondering if you look at the foreign language, has that dynamic there been the same or is there a difference a different dynamic between your English language subscribers and the French and the German subscribers that you mentioned? Are you like on a different trajectory with these subscribers?
Paul Tarell: Yes, we are on a different trajectory, because we didn’t really meaningfully launch marketing on those languages until this past summer. So we didn’t have the rapid growth and deflation like we saw on the English side. So it’s really been accretive in terms of net new subs. And when you look at it off of a small base, obviously, the percentage is much higher than the overall business. So we have seen positive developments there in French and German. And as Jirka mentioned in his prepared remarks, now we’ve actually been able to get Amazon, new languages and new markets interested in rolling Gaia out. And what we have seen historically over the last seven or eight years is that third party growth typically comes when you launch with a new region or a new distribution partner.
And the launch timeline is entirely out of our control. So we don’t try to bank on when those members are going to come online but we have signed with Amazon Mexico and we are getting ready to launch with them. We are in discussions with Amazon for a couple of other regions in South America and then we also have some preliminary discussions with them for New Zealand and Australia region. So that could be accretive but it’s not a primary focus.
Jirka Rysavy: And also we kind of really kind of little stepped on the pedal a little bit this year in especially French and German markets, because so far most French and German markets have lower acquisition cost and lower churn. So actually we are moving some more money to those regions. But there is definitely a limit to how much we can grow there from the overall spend, but it’s — they are definitely positive development in it for last quarter.
Thierry Wuilloud: So these markets are you — do you also have a mix of direct subscribers and indirect, or are the channels somewhat comparable to English speaking subscribers or are they more geared towards the Amazon or indirect, in general?
