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Video Business Models - P2P is Necessary
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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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...
Like what you're reading? Subscribe to my feed.
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Movable Type 3.31 Everything here is my personal opinion.