Re: Network end users to pull down 2 gigabytes a day, continuously?

[Marshall Eubanks <tme () multicasttech com>]

On Jan 13, 2007, at 7:36 AM, Mikael Abrahamsson wrote:

> On Sat, 13 Jan 2007, Marshall Eubanks wrote:
>
> > A technical issue that I have to deal with is that you get a 30  
> > minute show (actually 24 minutes of content) as 30 minutes, _with  
> > the ads slots included_. To show it without ads, you actually have  
> > to take the show into a video editor and remove the ad slots,  
> > which costs video editor time, which is expensive.
>
> Well, in this case you'd hopefully get the show directly from  
> whoever is producing it without ads in the first place, basically  
> the same content you might see if you buy the show on DVD.

I do get it from the producer; that is what they produce. (And the  
video editor time referred to is people time, not machine time, which  
is trivial.)

> > In the USA at least, the cable companies make you pay for  
> > "bundles" to get channels you want. I have to pay for 3 bundles to  
> > get 2 channels we actually want to watch. (One of these bundle is  
> > apparently only sold if you are already getting another, which we  
> > don't actually care about.) So, it actually costs us $ 40 + /  
> > month to get the two channels we want (plus a bunch we don't.) So,  
> > it occurs to me that there is a business selling solo channels on  
> > the Internet, as is, with the ads, for order $ 5 - $ 10 per  
> > subscriber per month, which should leave a substantial profit  
> > after the payments to the networks and bandwidth costs.
>
> There is zero problem for the cable companies to immediately  
> compete with you by offering the same thing, as soon as there is  
> competition. Since their channel is the most established, my guess  
> is that you would have a hard time succeeding where they already  
> have a footprint and established customers.
Yes, and that has the potential of immediately reducing their income  
by a factor of 2 or more.

I suspect that they would compete at first by putting pressure on the
channel aggregators not to sell to such businesses. (note : this is  
NOT a business I am pursuing at present.)

What I do conclude from this is that the oncoming wave of IPTV and  
Internet Television is going to be very disruptive.

> Where you could do well with your proposal, is where there is no  
> cable TV available at all.

Regards

> --
> Mikael Abrahamsson    email: swmike () swm pp se