Video Business Models - P2P is Necessary Technorati icon

October 7, 2006 | Filed under: Internet TV

Assuming that users will not pay for most content and that advertising/sponsorship is the most likely way to monetize...

Assuming an optimistic CPM of roughly $50 for show sponsorship like we are seeing from the likes of Rocketboom...

And download costs / GB at roughly $0.20 from a service like Amazon S3...

Shall we say 250MB per show so that it is decent quality...?

That means that - optimistically - each download has a variable cost of:

($50/1000) - (0.20/4) = $0 break even

So with no staff, no infrastructure, a very good CPM and a 100% inventory sale, a video site could break even.

P2P isn't a nice-to-have in this world... its a necessity.

It looks like Venice and Revver are well placed...

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Posted by Phil Morle at 12:51 PM | Permalink | Comments (0) | TrackBack (3)

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» Scobleizer: Where's the Money in Video? from Phil Morle: Adventures in Entertainment and Technology
Today Robert Scoble walked into the same wall I crashed into a couple of weeks ago.  Business models for video are challenging. For sub 10 minute, low quality, user generated content like YouTube the ad CPM is tiny or zero. For... [Read More]

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