Fred Wilson writes about a discussion on “about Video On Demand (VOD), TV delivered over phone lines (IP TV), Video on the Internet (Streaming), and Downloadable Video (Bit Torrent)”:
I believe we are going the way of downloaded TV over the long run. What should the content owners do about this? I think they should recognize that the ad sponsored content model can work in a downloaded world. They should cut ad avails into their programming, hard wire an IP address into those ad avails to pull an advertisment off of their servers, and then let the programming go wherever it will go. In an always on world, they’ll get the ad impressions they always got, and probably a lot more.
Who is going to build out the infrastructure for this new world of exploding TV? I am not sure, but I do hope they stop by our offices and tell us what they are doing. Because we want to invest in this trend.
for a large percentage of the population, VOD, especially if it expands to becoming a centralized DVR, is likely going to be the easier solution.
the battle will ultimately be played out on HDTV. The cost of HDTV is getting lower each day, and more and more people are buying HDTV-ready sets. More and more content is being delivered in HDTV format, and it won’t take too much time before people demand HDTV streams as a viewing preference. HDTV content will ultimately have a “broadcast flag” making reproduction more difficult for people, and the size of the files will increase.
video’s relationship with people [is] different than the relationship people have with music. People listen to music over and over again, but in general, video is a single use commodity for the most part. This changes the calculus slightly in that the pain to download a video has to be less than the pain to download a music track, or it doesn’t seem worth it.
content providers have an excellent opportunity to create their own services before the suffer a napster-like meltdown.