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Re: Network end users to pull down 2 gigabytes a day, continuously?
On Jan 13, 2007, at 6:45 AM, Mikael Abrahamsson wrote:
Yes - you saw I made a factor of two error in this (per hour vs per half hour), but, yes, that's the size you are talking about.
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.
So question becomes whether people might be inclined to pay $1 to watch an adfree TV show? If they're paying $1.99 to iTunes for the actual download right now, they might be willing to pay $0.99 to watch it over VoD?
A business model I have wondered about is, take the network feed, pay the subscriber cost, and sell it over the Internet
as an encrypted channel _with ads_.
Would you be willing to pay $ 5 or even $ 10 per month to watch just one channel, as shown over the air ?
I would, and here's why.
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.
-- Mikael Abrahamsson email: swmike@xxxxxxxxx