Thursday, March 09, 2006

The high cost of video-on-demand

This article is interesting for two reasons:

BellSouth Chief Architect warns of HD VOD costs

First, the article claims that bandwidth currently costs a provider $1 per month. Pretty amazing since you are probably paying $30 or $40 for broadband service. Given that broadband service almost always piggy-backs in on an existing cable TV or phone line (meaning that there is virtually zero additional cost), this is an incredible profit margin.

Then the article makes this claim:It will be interesting to see how this gets resolved.

Robert X. Cringely talked about this with the conclusion that only peer to peer solutions would work.

Look, I download plenty of online video, as much as any reasonable person would be able to watch in a month, and it's under 10GB. It's affordable. It's fine.
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