From a purely Business perspective (without a dog in the fight) solution:
- Feeders get a choice of whether to feed to RR or Broadcastify.
- RR feeders get no perks at Broadcastify and Broadcastify feeders get no perks at RR.
- RR Terms of Service altered to say all feeds can be resold or re-used by other approved businesses. Vice-versa also applies if desired. (I'm guessing not.)
- RR licenses (at $2.95/mo to cover RR's costs) all feeds to Broadcastify to do with as they see fit.
- Broadcastify covers licensing costs to RR for feeds that don't move over.
Surely if both businesses are capable of standing on their own, that's a reasonable solution to the whole problem.
- Content providers that want the $2.95 perk, get that one. Providers that want the $6.95 perk, get the other. Both types of content vendor are happy.
Having built similar infrastructure for Net businesses, the server farm could literally be the same farm, although that breaks the "separate books" rule.
(A third LLC that owns the server infrastructure that contracts to both RR and BC is the behind-the-scenes solution to that simple problem. It's all the same bookkeeper or another sheet in QuickBooks.
(The "front-ends" that receive the feeds would have different DNS names. They'd literally be the same physical server platform, rebranded. That platform is worth something too, which is essentially what I think you're saying about Broadcastify. You could host other communities completely unrelated or even competitors to RR and Broadcastify on the platform. It has intrinsic value.)
If the true goal is two healthy separate stand-alone businesses, there's plenty of ways to make that happen and still provide the original perk.
Napkin analysis:
I don't know the number of feeds, but let's say there's 1500. Let's also for a business discussion assume the worst -- that all feeders really want the RR perk.
Broadcastify then owes RR $4425/mo on opening day.
If it's properly capitalized, that shouldn't be any problem at all, and is probably less expensive than the monthly telecom and data center Operational charges already budgeted. Knowing what I know about hosting providers. (I was in that biz.)
(Certainly less than the cost of the server and storage hardware but that's a CapEx and can't be compared to Operating costs on the balance sheet. Having built this stuff, I must also assume that you're not using Commercial Operating Systems or the OpEx of those would be eating you alive. So you're running on a shoestring with talented coders. Great start.)
There need be no "mixing" of the books.
Licensing of one business' independent contractor provided vendor's content to another handles that nicely with no risk whatsoever to ANY of the content feeds.
And, if Broadcastify can truly charge $6.95/mo to her customers (and I believe she maybe can. Certainly $4.95), licensing RR's content is cheap. Cheap. Cheap. Cheap.
(Especially considering that some feeders would want to move over and get the Broadcastify perk instead of the RR perk.)
So, for fun... and more numbers analysis... Call it 50/50. Broadcastify owes RR $2212.5/mo on opening day.
Broadcastify also now has zero risk of losing any percentage of the content it relies on for it's business model.
A graph of all possible scenarios from 0% moving over to 100% moving over can be made easily, since it's a linear function. The fuzzy part is what damage and risk are done if Broadcastify loses 10%, 20%, 30% etc of the existing feeds to an easily built alternative community-run venture.
Seems from a risk-analysis standpoint to be a no-brainer.
Lots of assumptions here, but Broadcastify does better overall with more feeds, to a point. Especially if the goal is to have tons of feeds sitting mostly idle but enough to capture any "large" event. That seems to be the goal from reading between the lines. If the goal is high-quality feeds, the de-motivation of just a few of those hurts more than losing 100 weak feeds.
However you slice up the risk analysis crystal ball, Broadcastify paying RR $2.95/mo in licensing fees for any feeder wishing to retain their RR perk, seems utterly reasonable and significantly less risky and detrimental to the health of the new business venture than possibly running off an unknown percentage of feeds on opening day.
It also leaves a cleaner exit strategy if it flops with RR remaining the stronger of the two.
Those claiming the straw man of "your local community will suffer if you take your feed down!" haven't seen the Internet at large route around problems.
The Internet at large would build a community-driven solution. It's how RR got its start, and it can and does happen. Every community project eventually "forks" whenever a significant portion of the community feels disenfranchised.
Content is King on the Internet. You already understand this if you're venturing into Broadcastify. RR should simply license the content it receives from its independent contractors to Broadcastify and let Broadcastify sink or swim on its own. I suspect it could swim.
Merge the tech platform behind the scenes if that makes business sense for both businesses. Transparently. No one ever needed to know other than TOS wording changes.
Cakewalk. Everyone's happy except maybe Broadcastify who has to work a little harder to sell subscriptions to cover costs of content licensing to RR. RR becomes an even stronger business than it already is. Broadcastify has day-one Sales motivation. Strong. OpEx will pull it under if it doesn't sell.
Either way, with shared ownership the value of both businesses combined is up, and that's a stronger business decision.
The risk falls on the new venture not the old.
Now, if the goal was really is to inject capital into Broadcastify, assuming every person wanted the Broadcastify perk and all feeders instantly started paying for RR DB access, $4425/mo ain't enough to properly capitalize an Internet startup these days. IMHO. If you can pull that off, you're doing really good work there.
$53K a year minus taxes doesn't even cover one salary. It probably doesn't even make Broadcastify profitable in EBITDA terms, let alone truly profitable for a good long while.
Don't get me wrong, I love small business and love that you're venturing out into a new one. And I say 100% you can make whatever decision you like. They're your businesses.
Personally I would say if Broadcastify can stand alone, let it. Passing the capitalization costs along to customers of the other owned business by saying "this is for your own good", just isn't good risk management and it's even worse customer relations.
Just my opinion. Think creatively. They're separate businesses. Truly make them separate.