andre2
join:2005-08-24
Brookline, MA | reply to espaeth
Re: That's the whole point said by espaeth:said by Dogfather:ISPs aren't afraid of traffic. They're afraid of video competition. Only if they don't have someone on staff with basic algebra skills to show why they don't need to be worried about it anytime soon. Since for many people content is more important than HD quality, services like Hulu, which can easily be accomodated by most existing broadband connections, are posing a threat right now. It's not necessary for the perfect substitute to come along for them to lose a large number of potential subscribers. |
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 espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
 ·Clear Wireless
| said by andre2:Since for many people content is more important than HD quality, services like Hulu, which can easily be accomodated by most existing broadband connections, are posing a threat right now. The numbers don't really support that.
In May, Hulu served 80 million video streams and 411 million total minutes of video, according to Nielsen's VideoCensus, meaning each stream was 5.1 minutes in length, time in most cases for just one ad exposure. And according to ComScore, Hulu users spent an average of 6.6 minutes on the site per visit in May. Source: »www.alleyinsider.com/2008/7/hulu···business
Certainly there are some people watching large quantities of content on Hulu, but the vast majority are not. I think if you did a serious poll you'd also find the average Hulu viewer uses the service to augment their existing TV service, not replace it. |
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andre2
join:2005-08-24
Brookline, MA | said by espaeth:Certainly there are some people watching large quantities of content on Hulu, but the vast majority are not. I think if you did a serious poll you'd also find the average Hulu viewer uses the service to augment their existing TV service, not replace it. You'd have to include not only Hulu, but Abc.com, Cbs.com, etc. And then there's unauthorized sources such as Youtube, bittorrent, etc. (which are probably largely responsible for the fact that legal sources exist at all).
I'm sure you're right about augmenting as opposed to replacing existing TV service, but in the present economic downturn, that can mean a lot of people who decide to use their existing flat-rate broadband more, as opposed to subscribing to an extra service. |
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 DogfatherPremium
join:2007-12-26
Laguna Hills, CA
1 edit | reply to espaeth
We're not talking about replacing "TV". These online vendors taking MSO VOD PPV revenues is enough to scare the MSOs into this defensive posture. |
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