From the Silicon Valley Insider
Economics of Online Video 1: One Tough Business
Revenue is an improvement on the industry's experience to date, but it's time for a detailed look at streaming economics. Specifically, what's the bottom line? Can streaming video make money? Can YouTube?
Economics of Online Video 2: Unit Cost Structure
Streaming video has a similar cost structure to many text- and graphics-based Internet businesses, with three significant additional costs: bandwidth, storage, and transcoding. Each of these items increases the costs associated with video streaming relative to that of static content--without a reliable offset in terms of additional revenue.
Thursday, February 21, 2008
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