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Roger McNamee On Video on the Internet

plasticmillion writes "Roger McNamee, venture capitalist and author of The New Normal has just posted the third part of a fascinating series on his blog entitled "Video on the Internet". Here are parts one and two. His basic premise is that media companies are trying to treat the internet as a normal distribution channel like broadcast or DVD, but they need to learn that there are new rules to this game if they are to avoid the errors committed by the music industry. The user comments are also a must read, with luminaries like Marc Andreessen chiming in with their insights."

16 of 111 comments (clear)

  1. Spot On by ackthpt · · Score: 5, Interesting
    Akimbo believes that the internet offers a way for content owners to bypass middlemen and go directly to consumers. The company envisions its market evolving as blogs have, with a rapid proliferation of content vendors, much experimentation with business models (and content), and ultimately a substantial impact on traditional channels of distribution. I think it's too early to know if Akimbo is right, but not too early to think about the implications of the model.

    They've got that right. The bottleneck is still bandwidth into the home, but as that continues to improve, expect little grassroots content to pop-up all over the place. Of course the pr0n industry will obviously be an early adopter, but imagine being able to go out with a video camera with your friends and do your own TV shows, broadcast the local s Jr league soccer match or even your HS football games. Even ambitious people could do up their own Star-Trek shows. Those which demonstrate real promise could probably sell advertising or subcriptions or even sell out, if they have a mind to. Consider how low budget you could do your own Dr. Who.

    I think television is already losing to the internet, what'll it look like as the barriers come down to hosting your own shows? Interactive, even.

    'i don't like what he said, mod him down, enough negative points and it'll launch a rotton tomato at him!

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    A feeling of having made the same mistake before: Deja Foobar
    1. Re:Spot On by poopdeville · · Score: 3, Insightful

      While I agree with the sentiment, people demand entertainment with relatively high production values, which really limits the ability for the average Joe to start up his own television show. Moreover, with a ton of crap floating around, finding the good shows is going to be a pain the the ass--even more than television. Of course, if this starts catching on, we'll see websites and the like devoted to sorting the wheat from the chaff.

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      After all, I am strangely colored.
    2. Re:Spot On by ackthpt · · Score: 3, Insightful
      people demand entertainment with relatively high production values,

      Cough. Choke.

      I can't believe you said that. Ok, maybe slick looking, but anyone with some practice can get that down pretty well after a few tries.

      Camerawork and writing will be necessary skills. Editting you can do with Pinnacle or something else. I think a few people with some good props and some imagination are all that's needed for the next big thing. Just remember, you'll no longer need a million watt transmitter, antenna tower and FCC license to do your own broadcasting and you'll be able to appeal to audiences anywhere in the world, unlike the phoney stupid border restrictions imposed upon us by region coding!

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      A feeling of having made the same mistake before: Deja Foobar
    3. Re:Spot On by Anonymous Coward · · Score: 4, Insightful

      what'll it look like as the barriers come down to hosting your own shows?

      Pretty much what the web looks like now with people hosting their own sites: one helluva bunch of crap.

    4. Re:Spot On by ChatHuant · · Score: 3, Insightful

      people demand entertainment with relatively high production values,

      I can't believe you said that. Ok, maybe slick looking, but anyone with some practice can get that down pretty well after a few tries.


      Yet it's true; "some practice" is not enough to get something compelling. And knowing how to use the tools doesn't an artist make.

      Look at other similar forms of art where production is even easier than with movies: music, or say literature. Writing your own novel and publishing it on the web is trivially easy, yet professional authors and publishers still do good business. The reason is that an amazing amount of the material written by amateurs and available on the web is mind-numbingly bad. The extra effort required to get your book professionally published filters out a lot of the chaff; editors at publishing houses do a lot of extra filtering. As a result, published books are usually of a much higher quality than what you can find on fan web sites (of course, some exceptions do exist). The same reasoning applies here.

  2. TV on the Internet by Acius · · Score: 5, Insightful

    I would love to see TV stations offering their programs over the Internet. I'd even pay for it -- probably a higher rate for recent shows, with discounts if I buy an entire season at once, for example.

    I guess a lot of people think that, but my reason's a little different. I'm an American, but most of the TV I watch is in Japanese. It's very hard to get Japanese TV in the U.S., and for most shows there's no way to do it without breaking copyright laws. If I had a legal way of getting shows from other countries, I would be willing to pay a premium for this.

    For me, it's not a question of convenience, it's a question of being able to do legally that which I currently cannot.

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    Acius the unfamous
  3. Cable Access Vs Internet Access by bobcat7677 · · Score: 3, Interesting

    The technology is available now for cheaply producing a reasonably good internet show. Good video cameras are cheap, powerful editing computers are cheap, and there is plenty of open source software out there for making it all come together. The main bottleneck was always that dialup connection your non-geek neighbors had and their lack of internet awareness. But now that grandma is surfing the net instead of watching TV, and broadband is getting broader; how long will it be till "cable access" is obsolete and everyone just posts their shows as .torrent links to a community bulliten board/wiki/content site?

    Actually this is allready being done on a small scale in some networks. The Portland, Oregon Personal Teclo Project http://www.personaltelco.com/ offers free community wireless internet access and also has local content including news, .mp3 music and meeting minutes, common application installers (firefox, openoffice), among other things available on many of the nodes for local distribution (not to metion being fast downloads as you don't have to go over the slower internet backhaul for the content).

  4. Another P2P-like issue? by TMonks · · Score: 3, Insightful

    From TFA-
    Akimbo intends to support all video content on the web. By this I think they mean all "legitimate" content, but time will tell.

    What do they plan on doing to stop the illegitimate content from immmediately flooding the service and causing organizations (like the MPAA) to condemn it as a distributor of illegal files?

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    I, for one, welcome our new karma-whore sig writing overlords
  5. All That Glitters by Doc+Ruby · · Score: 4, Insightful

    Andreesen is a "luminary"? Maybe to venture capitalists, especially the clueless lemmings among them. But to anyone else in the know, he's just a one-hit wonder, who jumped the shark in 1993 when he invented (appropriated) the HTML tag. Since then, he had a flare as Netscape spokesmodel, while Jim Clark and an army of optioned programmers did all the heavy lifting. He's been nobody for years, and his tag is one of the worst hacks HTML inflicted on the Net. Andreesen is like a barium enema, a "luminous" tracer that radiates his promoters' ignorance and blind brand loyalty.

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    make install -not war

  6. The Secert: The Apple Concept by ducomputergeek · · Score: 4, Interesting
    When I saw people in 2001 and 2002 paying upwards of 2 Euro each for Cell Phone ringtones, I knew it would work for MP3 files too. The whole issue was a fair balance between protecting against piracy and giving people fair use. Its been said before, but Apple pretty well nailed it.

    I still say that there needs to be a system where once you purchase it you can keep it. Wether that would be buring say a physical DVD or what ever comes next or the ablity to redownload and have some kind of key to reunlock it again.

    Again I have to use Apple as an example. Two years ago I bought QuickTime pro. Well two logic boards and system wipes later, I can go into my account and get my access key online.

    I am not against DRM so long as there is a balance. No matter what your view on the media industry is, I respect the ideas of copyrights.

    Why? I work in the industry in a small company that produces 3D FX for smaller video producers using Lightwave 3D and other high price software. I have seen people try entering the market with pirated software and once they are discovered blacklisted. Why? Lightwave is about $1600 a seat. We pay for it. I didn't quite understand what people meant by "piracy hurts" until I started working in the industry and it changed my mind a little.

    Like I said, there has to be a fair balance and it will work...

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    "The problem with socialism is eventually you run out of other people's money" - Thatcher.
  7. Inefficient? by KingOfTheNerds · · Score: 3, Informative
    Streaming's inefficient use of network bandwidth is an Achilles heel.

    Streaming is not inefficient, it still transfers the same amount of information as nonstreaming. The problem does not lie in efficiency. Datagram networks (the internet) is notorious for bad streaming content because the packets can take different routes and because of network jitter. I agree that a tivo setup will dominate like he says, but that doesn't make streaming inefficient!
    --
    Want to learn about anything sexual? Check out the sex wiki:
  8. The movie industry ADAPTING? by ShatteredDream · · Score: 4, Insightful

    Fat chance of that! They are still getting used to that "VHS and DVD thang." They hire actors and actresses for as much as $20,000,000 then whine that their movies cannot make a profit at $52,000,000 in average revenue. You don't have to be an accountant to realize that there are few thespians who are worth that much money to the public. Most of the time when people react to previews of cool looking movies, the actors and actresses are only one of many variables.

    I'd like to make a bet with the CEOs of every major studio. Make only 10% of your "serious" movies each year with the big names and then do everything else with people that look really good coming out of acting school who have a passion for the job. Cut those movie tickets 50% in cost, and put just as much money into script writing, directing and special effects as the other 10%.

    I bet that within a few years, those 90% will be significantly more profitable because people will be able to not only see a cool movie, but see it for as little as $2.50 for senior citizens and not even $4.00 for mattinee in most small to medium sized towns. People under 25, who are a major part of the market, have lots of disposable income and little responsibility right now, would be able to afford to easily go see several movies a week.

    People are more likely to blow $3.00-$4.00 on a movie ticket on a whim than $8.00 which is what I pay in a town of not even $60,000 25% of which are college students. It'd give the movie studios an edge over illegal downloading because most people under 25, especially guys, wouldn't think any big deal of spending $6.00-$8.00 a few times a week on a date, but when it's say... $16-$20 before the food is factored in. My God. At that rate, a diamond is looking like a bargain by comparison...

    And lastly, where is the direct purchasing online of cheap new DVDs? Why can't I go online to a studio's website and buy a few of their new, "non-special" releases for $10.00 each before shipping and handling? It costs them $1.00 tops to make the damn thing. Why aren't they biting at the chance to scoop up $9.00 of revenue, much of which will be pure profit and will go toward making customers like buying from them? That's the solution to piracy right there. $10.00 or under on all new regular releases and you'll sell a lot thanks to an economy of scale effect.

    But then again, that'd require their CEOs to take a step outside of the ivory tower of corporate lobbying and grandstanding and want to do their jobs. Heaven forbid that they actually be really... daring. Heaven forbid they take a real risk that hurt the company badly, but that could finally end their piracy woes entirely.

    1. Re:The movie industry ADAPTING? by randomwalker · · Score: 4, Interesting

      What you says sounds interestng, but shows you have very little knowledge of how the film industry works. Each film is financed in a unique way, with different investors, with the major studios usually only serving as distributor or partial investor. Saying the studios should only make 10% of movies with celebrities of movies is like saying a pro sports team should only pay high salaries on 10% of the players and hire cheap players for the rest. Each movie is judged independently for its revenue potential. If the cost of the movie including star fees is lower than the expected revenue it will make, someone will invest and distribute.

      Hollywood is already moving towards Internet delivery. Movielink is one of many web based services that already has content available. Studios will license content to new delivery mechanisms and business models. Getting content for businesses like Akimbo is not the problem, make a good affordable user experience in home is the challenge.

      The reasons studios don't run online stores is simply its not what they are good at. Walmart and amazon may take a cut of profits, but they sell more than a studio website.

  9. Comments a must read? by pherthyl · · Score: 3, Funny

    The user comments are also a must read, with luminaries ... chiming in with their insights.

    That's one sentence you will never hear used to describe slashdot. ;)

  10. Streaming or Caching? Paper of Plastic? by Sundroid · · Score: 4, Interesting

    Historically, Hollywood has not only survived non-theatrical distribution formats such as TV, VCR, DVD, it has also benefited from them, and it will eventually figure out a way to use Internet as a distribution channel. With due respect to Mr. McNamee's convoluted theorem, I think Hollywood has no reason to fear these "gadgets of the month" like Tivo and Akimbo, and I base my observation on my 15-year experience of working in both movie studios and independent film industry. Allow me to explain.

    Hollywood has a group of loyal friends, namely, local theater owners -- all these guys have to do is to find an air-conditioned place, a projection booth, and a nice concession stand, they can sell "good times" for less than $20 per person (parking and food included). The theater owners probably don't make a lot on ticket sales, but their profits from selling popcorns and soft drinks are significant. As long as there are teenagers dying to get out of the house, lovers who are looking for a dark place to smooch, and families that need some cheap entertainment to refuel after a hard day, people will go to the movies.

    This weekend, a friend excitedly informed me that he had just gotten DSL and had been downloading movies from p2p sites, but when he said it took him "days" to download a DVD-quality movie, I knew my old coworkers at the movie studios got nothing to worry about their jobs.

    "Streaming or caching?" Mr. McNamee posed the big philosophical question. To me, it is as profound as asking "paper or plastic?" at the supermarket. That is to say, it's not a big deal. Hollywood makes movies for people so they can get out of the house. Those who like to stay indoors and fret over "streaming or caching" will always have their Web forums to yak until the cows come home.

  11. Re:Streaming or Caching? Paper of Plastic? by rho · · Score: 3, Insightful
    Your opinions also applied just a few years ago to the music industry.

    Theaters only do well with first-run movies. First-run movies are also very spotty in quality. People are starting to waidt for the DVD (the long lead times between a theatrical release and home video are down to mere weeks) so they don't get burned by high ticket prices (per viewer, no less!).

    What makes the big bucks for theaters? Family movies. Get mom and dad and the two kids in there for The Incredibles, you make a bundle. But, wait: mom and dad are now waiting for the DVD and watching it at home. $20 for the DVD (or $3 for the rental), and the kids can watch it again and again.

    Why is the theater relevant again? Only for purists.

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    Potato chips are a by-yourself food.