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  "documentTitle": "Magnite, Inc. (MGNI)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-01-07 00:00:00",
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  "notes": "The slide uses a Q&A format to present a negative customer sentiment regarding the company's value proposition.",
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      "kind": "callout",
      "text": "Do you use Magnite's CTV platform. What are the pros and cons you see?",
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      "text": "There's simply not enough inventory at the prices we need. Magnite is aggregating long tail CTV inventory – the niche content.",
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      "text": "In early January 2021, Spruce Point interviewed a Magnite customer with 20+ years of media planning industry experience. The customer oversees between $15m - $20m of annual advertising spending with Magnite and shared his insights.",
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      "kind": "quote",
      "text": "Through early August of last year, we could buy CTV cheaper on our own without Magnite... There's simply not enough inventory at the prices we need. Magnite is aggregating long tail CTV inventory – the niche content. Why pay Magnite?",
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      "text": "Through early August of last year, we could buy CTV cheaper on our own without Magnite, then we started using Magnite's platform for some spend. We had mostly a legacy relationship with Rubicon going back. Transparency, cost and data would all have to be there for us to increase our use of Magnite for CTV. There's no way if I moved all of my CTV spend to them, could they deliver for me at the price we need. There's simply not enough inventory at the prices we need. Magnite is aggregating long tail CTV inventory – the niche content. Will Magnite be able to get quality inventory? That needs to be debated. It may be tough for them. Let me give you an example. Let's say Lifetime has digital enabled content they are developing and allow Magnite to sell it. Magnite's fee probably can't exceed 15%. As scale increases, volumes go up, and their 15% take rate will certainly go down. To do more volume, they need more inventory. But, there may be a stage where Lifetime says, hang on a second, we are paying such a large amount of fees, that maybe we should be doing this ourselves. Why pay Magnite? I think that is the fundamental challenge of the model. They need scale, but scale could then make customers think about leaving. — Magnite Customer",
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      "kind": "title",
      "text": "Magnite Customer Interview #3",
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