I think your math here using different assumptions than he would.
"This was largely paid for by the tickets bought by the audiences at both shows."
Otherwise he would have been able to simply pocket 170,000 dollars worth of tickets, as if he had done a regular show.
So to him, that's a net loss of 170k, you don't get to add it back in at the beginning.
So, 550 - 170 - 30 = 350k
You've also got to assume that his time is worth something, he could probably be working on something else instead of arranging his own marketing blitz... Also have to assume he pays for his own travel expenses etc.
I can see that being an expensive proposition if he, for example, has to fly cross country, miss out on potential shows, etc. If he misses out on 2 shows, that's a couple hundred thousand right there (apparently).
The point being, if he had done this through a media conglomerate, he probably could have had time for other stuff that would have made him money.
"I only heard of Louis C.K. from watching one of his stand-up shows on TV on an airline, so even if he didn't get payed directly, there's still publicity value in them."
Same, except it was YouTube. There's even publicity value for him in piracy.
If he can afford to sell this thing for $5 and make a profit, he only needs something like 1/15th of people to become fans, buy a ticket and see him live.
"This was largely paid for by the tickets bought by the audiences at both shows."
Otherwise he would have been able to simply pocket 170,000 dollars worth of tickets, as if he had done a regular show.
So to him, that's a net loss of 170k, you don't get to add it back in at the beginning.
So, 550 - 170 - 30 = 350k
You've also got to assume that his time is worth something, he could probably be working on something else instead of arranging his own marketing blitz... Also have to assume he pays for his own travel expenses etc.
I can see that being an expensive proposition if he, for example, has to fly cross country, miss out on potential shows, etc. If he misses out on 2 shows, that's a couple hundred thousand right there (apparently).
The point being, if he had done this through a media conglomerate, he probably could have had time for other stuff that would have made him money.
Bandwidth costs money too. > 100,000 GB isn't particularly cheap.
"I only heard of Louis C.K. from watching one of his stand-up shows on TV on an airline, so even if he didn't get payed directly, there's still publicity value in them."
Same, except it was YouTube. There's even publicity value for him in piracy. If he can afford to sell this thing for $5 and make a profit, he only needs something like 1/15th of people to become fans, buy a ticket and see him live.