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Quick Jump Menu to this Issue’s ArticlesMarch 31st, 2004 OverviewDigital Hollywood – Too Much Good Content – Part 1:Importance of Content ProtectionMTA and ‘the Wonderful World of Color’
THE VIODI VIEW
by Ken Pyle ([email protected]), Viodi, LLC
In this Issue: D-Hollywood, Content Protection, VoIP @ MTA…….March 31st, 2004 Issue
You know you’re traveling too much when you are home for a week and it feels like a vacation. I’m on the road again; this time in Los Angeles for the Digital Hollywood Conference and for a few meetings. I am looking forward to moderating a panel later today at Digital Hollywood today titled, The Telco-Entertainment Partnership – From TV to Broadband Services.
The Digital Hollywood conference, thus far, has continued to mix Hollywood and technology players. A recurring theme of the show has been the evolving business model for how content will be created. The traditional television advertising methods are on the decline, thanks to the technology. No one seems to be clear what the exact replacement will be, but the general concensus is that “brands” will take a bigger role in the direct creation and financing of projects. Along these lines, representatives from Volkswagon, Daimler-Chrysler and Pepsi were in attendance at Digital Hollywood. To read more about this conference, please click here.
Yesterday, I had the honor to be a panelist on a NTCA webinar regarding content protection. This was a good primer on the subject of content protection. The session defined terms like Digital Rights Management and why these topics are of import to any telco that is considering the deployment of IPTV services. The good news is that one of the online polls suggested that most telcos believe that content protection is necessary. To read why I believe content protection is important, please click here.
While I was lounging at home last week, Roger Bindl was at the Minnesota Telephone Association’s trade show investigating what’s going on with independent telcos and video. Turns out, he did find some interesting things regarding telcos and video, but the real hot topic was Voice Over Internet Protocol (VoIP). I welcome Roger Bindl and his unique perspective as a content producer who has been involved with independent telcos in various ways for a long time. To see his comments regarding video and VoIP and to find out why he is calling his article, MTA and ‘the Wonderful World of Color’ please click here.
One of the things I have learned on this spring’s IP Video Seminar tour is that video is often times a catalyst for telcos to form an integrated marketing plan that encompasses all of their service offerings. Many of the telcos are looking for a good marketing framework to create such a plan. Thus, I am pleased to announce that Viodi has licensed the Video Catalyst Group’s JumpStart Video Marketing Strategy program. This program helps a telco speed their time to market, while maximizing the effectiveness of their product launch. To learn more of this program, click here.
The Korner: Is that 10K per Subscriber?
I am going to take the risk of delving into the wonderful world of mathematics (I ignited a mini-controversy with my use or misuse of the word of inflection a few issues ago). I saw a note in the California Telephone Association’s newsletter the other day that Cal-Ore telephone in Northern California is in the process of being purchased by Lynch Interactive Corporation for twenty-one million dollars.
Here is where the math comes into the equation. Cal-Ore has 2,500 access lines. Doing some simple math, this works out to $8,400 per access line. Further, assuming 1.2 access lines per customer (which used to be a reasonable number), then the sale price is approximately $10,000 per customer. Wow, this seems like a valuation from the boom of few years ago – crazy…and congratulations to the Edgar family.

Bob Hensley, Cal-Ore Telephone, source Viodi archives
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