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jmn1207
Premium
join:2000-07-19
Reston, VA
 ·Verizon FIOS
1 edit | reply to nixen
Re: and the problem is... ?
Your comparison is a bit faulty as well, and does not hit on the issue that is being brought up by the small ISP's. If ESPN actually did charge by the number of potential viewers, that business model would seem fair.
The problem is that ESPN sends their "tape" to a small sports bar that seats 50 people and demands $100 per seat, while selling the same tape to a huge bar that seats 500 people at $10 per seat. Both bars end up paying the same amount for the tape, $5000, but the smaller bar is impacted more and has to sell drinks for higher prices to recover the cost.
If the small bar refuses to pay such high prices, ESPN plasters signs outside the door telling customers to go across the street to watch the game.
I don't particularly care for this business model, and it does seem unfair. | |
nixen
Rockin' the Boxen
Premium
join:2002-10-04
Alexandria, VA
 ·Cox HSI
 ·Speakeasy
| said by jmn1207  :Your comparison is a bit faulty as well, and does not hit on the issue that is being brought up by the small ISP's. If ESPN actually did charge by the number of potential viewers, that business model would seem fair. That would be my prior reference to linear pricing (i.e., a uniform "per-seat" cost is applied)...
said by jmn1207 :The problem is that ESPN sends their "tape" to a small sports bar that seats 50 people and demands $100 per seat, while selling the same tape to a huge bar that seats 500 people at $10 per seat. ...Which would be NON-linear pricing.
said by jmn1207 :Both bars end up paying the same amount for the tape, $5000, but the smaller bar is impacted more and has to sell drinks for higher prices to recover the cost. Which is why a licensed content model with linear pricing makes the most sense (relative to content-owner delivery costs).
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The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt. -- Bertrand Russell | |
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