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Viodi View Newsletter – July 6th, 2005 <\/strong> <\/p>\n ….And Content Is Still King <\/strong><\/p>\n By Ken Pyle, Viodi, LLC<\/strong><\/p>\n \u00a0<\/p>\n It is always a blur being on a panel.\u00a0 Without overheads as a guide, I find it easy to go off on some tangent.\u00a0 One of the other challenges about being on a panel is the difficulty in taking detailed notes and really absorbing the comments of the panelists.\u00a0 As such, I cannot wait to review the video to see what I missed.\u00a0 What I do remember is that everyone was in agreement that content<\/strong> is still king and that technology<\/strong> is its queen.\u00a0 That is, the two have such a symbiotic relationship <\/strong>these days that it may be impossible to separate one from another.\u00a0 <\/p>\n \u00a0<\/p>\n The theme of my comments was that the content distribution industry, like most industries these days, is at a crossroads<\/strong>.\u00a0 Because of this theme, my comments and my research in preparation for this panel kept dealing with the rise of the Internet<\/strong> as a video content distribution medium.\u00a0 <\/p>\n \u00a0<\/p>\n The traditional cable distribution approach is truly going towards an on-demand world, as evidenced by by David Fellows<\/strong>, CTO of Comcast<\/strong>, when he suggested that Comcast will deliver over one billion on-demand<\/strong> streams this year<\/strong>.\u00a0 Impressive as this is, it pales in comparison to the more than one billion<\/strong>, on-demand<\/strong>, video streams that are being streamed monthly<\/strong> via the Internet, according to Accustream Media Research.\u00a0 <\/p>\n \u00a0<\/p>\n Content providers are increasingly moving their product directly to the Internet, as evidenced by MTV\u2019s Overdrive<\/a><\/strong> web site or the recently launched TurboNick<\/a><\/strong> site.\u00a0 Then there are the new content providers, such as ManiaTV<\/a><\/strong> designed specifically for viewing on a PC or via the television connected to the Internet through a set-top box.\u00a0 That people are watching video<\/strong> on the Internet<\/strong> is evidenced by CNN<\/strong>, which just announced that most of their content is now available at no charge (other than watching advertisements).\u00a0 <\/p>\n \u00a0<\/p>\n These streams have value, as evidenced by the advertising rates of $20 to $50 cost per thousand views rate.\u00a0 Jack Meyers 2005 Spending Forecast<\/a><\/strong> forecasts online ad sales to grow 30% to over $10 Billion, which is significantly larger than the 4.8% for the overall advertising market.\u00a0 The online video advertising portion is expected to grow more than 40%<\/strong> this year.\u00a0 <\/p>\n \u00a0<\/p>\n Netflix\u2019s CEO Reed Hasting<\/strong> predicts that this is leading to a world where the web has “5 million channels” versus the, “200 or 300 channels for IPTV”.\u00a0 Netflix is putting money behind these words, purportedly investing an estimated $5 to $10 million this year in research and development to support Hasting\u2019s vision.\u00a0 Further evidence that this market is real is provided by start-ups and organizations, such as Brightcove<\/strong>, Open Media Network<\/strong> and Akimbo<\/strong>.\u00a0 \u00a0<\/p>\n \u00a0<\/p>\n The question for the operator, which is not a new one but still relevant, is how do you avoid becoming a big dump pipe?\u00a0 <\/strong>I do not have the answer, but I think the answer is somewhere in the following C\u2019s:<\/p>\n \u00a0<\/p>\n Simply put, the customer must perceive that the operator provides a better value, regardless of whether the content is delivered via the Internet or through strings and tin cans.\u00a0 \u00a0\u00a0<\/p>\n Next Article<\/a><\/p>\n Back to Top<\/a><\/p>\n Previous Issue<\/a><\/p>\n Viodi View Subscribe<\/strong><\/p>\n CD-ROM Click Here to <\/a> <\/p>\n
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