April 26, 2007 | Filed under: Internet TV

Revver has made the inevitable decision to begin using P2P to for video content downloads. I suppose I have a unique perspective on this because I have both done the business planning to launch a new video content business and I was CTO of Kazaa - a humungous P2P network.

The video distribution business is a very tough one. Not only do viewers generally expect the content to be free, creators (rightfully) expect to get a cut of ad revenue. Of course, this is no different to any kind of user-generated-content business, but video is more difficult due to expensive bandwidth bills, processsing requirements (to render correct formats etc), copyright filtering, etc. Revver must be spending bucket loads of money.

Now Google Video and YouTube are united and underwritten by Google's revenues from elsewhere, Revver needs to move towards making money and differentiate itself by offering more of a payback to content creators in the hope of attracting the best stuff.

Problems they are going to face:

1) Getting users to install a P2P application. Most video viewers are snatching a few minutes to watch something someone sent them. They will be difficult to convince to install.

2) Managing the value equation for users. Downloads are cheaper for Revver because users pay for the uploads. Will they be compensated? Will uploaded MB per user have a ceiling? 

I'll be interested to see if its mandatory or an optional component with some payoff for the user. e.g. get higher quality downloads if you use P2P.

Anyone know what happened to Dijjer? I am pretty sure Revver originally used Dijjer as a P2P platform before YouTube went large and Revver needed to compete without problems 1 and 2 above. 

Beet.TV has the scoop.

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