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


From: Mikael Abrahamsson <swmike () swm pp se>
Date: Sat, 13 Jan 2007 13:36:34 +0100 (CET)


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.

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.

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

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


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