I think there’s precedence out there in the marketplace from other companies during these economic times. And I believe there are significant savings that we can have. And we’re getting down to literally like the logistics at Honey Birdette. And so, when you think about our warehouse operations, you think about how we ship product out, eliminate a box and going to a polybag, these are hundreds of thousands of dollars of savings, and we are literally rebuilding everything from the ground up.
Alex Fuhrman: Okay. That’s really helpful. Thank you very much.
Operator: Our next question comes from the line of Mike Hickey with The Benchmark Company. Please proceed with your question.
Mike Hickey: Hey, Ben, Lance, Ashley, and Ashley, thanks for taking my question, guys. I guess, first, Ben, on your creator platform. Obviously, you seem very excited here with some early success. Obviously, it’s still early days, but it feels like this is like we’re exceeding your expectations, hear if that’s true or not. And then on the GMV, can you sort of — maybe a little bit more granular on drilling down on what that actually means in terms of revenue generation. And I’ve got a follow-up.
Ben Kohn: Sure. So, I think we have something that is truly differentiated from any of the competition we have seen. So, when you think about the Playboy brand, the one thing we have heard from creators from day one is they want to be on the pages to Playboy. And so, if you look at the recent changes we’re making, and there’s a lot of technology work being done in the background that has not rolled out or might not be visible to the consumer. But I think we have something truly differentiated with our brand. When I look at the business and how it is scaling, we — since we relaunched in mid-September are growing at a 9% weekly CAGR, that CAGR has increased over the last four weeks to 18%. And if you annualized your weekly GMV today with no growth.
So, you just took the weekly GMV and annualized it, you would be in excess of $15 million. If you actually applied the 9% weekly growth, and we’re not assuming that continues, but if it did continue, you would get to roughly $135 million plus for the year of GMV. And then we take 20% of that. And so, as we said, our direct fixed costs associated with the business are roughly $500,000 a month, depending on what that GMV turns out to be for the year, we believe the business will be cash flow neutral to positive and then continue to scale from there. And so, there’s a lot of stuff that we have planned from a product perspective. But when we started this and we decided to replatform the business last year, the benchmark or the baseline that we thought we had to be at was to have a product from a technology perspective that was as good as the competitors.
And I believe that over time, we will have a technology platform that will be better than the competitors based on the team we have, the way it is built and what we can do with it moving forward. And then when you add that secret sauce of bringing back that digital magazine, that can be a huge traffic driver to the platform, just like it was historically for the company because you are working with mainstream celebrities to be on the pages to Playboy. And when you start to think about the traffic that generates, we’ve already brought in and signed up 1.4 million people have registered on the creator platform. And we’ve spent no money marketing versus when you look at the consumer products business, what you’re spending to acquire customers.
Over time this year, our creators will become affiliates for the consumer product business on both Playboy and Honey Birdette.
