Tag Archives: on-the-downside

Show Me The Video

Just how mainstream online video has become is well covered in this NY Times article. They say a picture is worth a thousand words. So, what price a video ?

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Show Me The Video

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Kill YouTube

Google Video is no more. And how long before YouTube follows ?

Google is a young company full of hubris and hope. These are great convictions and the company is amongst the most admired in the world as a result.
However, the company needs to stop, single handedly, subsidising the delivery of most video content online. It is not doing itself any favours, and is actually returning zero benefit to content owners. 
Any player that has more than 25% of a market is considered to be moving towards a monopoly, so the regulatory authorities in the UK and US should help to put Google out of their video misery if they will not do it themselves…
As DivX did before, Google should shut down YouTube, or at the very least run it as  a commercial service by cutting out any non-revenue generating content, or charging for the service (which would actually kill it anyway…).
My estimate is that Google is generating well under $100m of revenue from YouTube (it could be as low as $30m in  pure terms), with $1.2bn of costs. If you include all hosting costs, e.g. power, then the real costs may be closer to $1.8bn p.a. in my estimation.

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Kill YouTube

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High Connections

As this blog has previously reported, it seems that Lord Carter's report on the future of telcoms is going to force through universal broadband.

Living in a rural area, I have long campaigned for this.

However, there 's one further word I'd like to see added – the word 'uncontended'.

Having 2Mbps is great, but hopeless if you're trying to share it with 200 schoolkids, just arrived home, as you try and get an important site update done at 4.30pm.

In France the aspiration is universal 20Mbps broadband. Why shouldn't we aim for this in our much smaller countries ?

A second factor is the impact this is likely to have on net neutrality. Expect the likes of MSN and Google to have to bear some of the cost.

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High Connections

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Big Head, Very Long Tail

Here is a roundup of the latest comScore Video Metrix fisgures for online video viewing. It shows the absolute dominance of YouTube – although I suspect the UK figures will have skewed in favour of the BBC and some of the other video services (indeed, I would go as far as to question comScore’s methodology in sourcing these statistics).



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Big Head, Very Long Tail

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The Village iDIOT

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The Village iDIOT

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