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Streaming Media's Dirty Little Secret -- And I Do Mean Dirty |
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AnchorDesk Staff ZDNet AnchorDesk Wednesday, December 13, 2000 |
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Streaming is on the rise:
- Usage was up 65% this November over last.
- 36% of all Web users accessed some form of streaming media in November
- 50 million people will get content via the stream next year
The big players in the race for streaming are, of course, Microsoft and RealNetworks, who continue a game of one-upmanship. Microsoft is demonstrating improvements to the image quality of its Windows Media Player. The newest version can produce images near the quality of digital-videodisk movies at a transmission speed of 500 kilobits per second (broadband). RealNetworks will introduce a new version of its streaming media software. The RealSystem IQ efficiently routes traffic around network failures and serve larger audiences without expanding networks. It will also link with satellite-based networks and enables media delivery to a range of devices, which Microsoft is also aiming for. On a smaller scale: TuneTo.com has a technique for delivering songs to pocket computers equipped with wireless modems. Loudeye Media will offer a new media subscription service to manage digital content. The company has also signed a licensing deal with Bertelsmann's BMG Entertainment which will enable Loudeye to put BMG's music in digital format and story songs. SO WHAT'S THE PROBLEM?
There are three main problems that cloud streaming video's future.
- Broadband. Quality streaming absolutely relies on broadband. But this year, only 2 million homes were equipped with fat pipes. Although that is increasing quickly, it will take four years for broadband to reach one-third of homes in the U.S.
- Image Quality Microsoft claims aside, the herky-jerky nature of streaming video may be acceptable for some analyst meetings or special announcements in which clients are willing to pay to stram their event online. But it's still hard to imagine consumers other than porn jockeys paying to watch an itty-bitty picture. And until the technology is better and broadband is widespread (see number 1.), that's the way it is.
- Profits. The market for getting people to pay in advance for streaming video looks bleak, although some are testing it. . If you can't get consumers to pay to watch an itty-bitty picture, you've got to place ads on the site. Where, and how much will advertisers be willing to pay? Nobody has that figured out yet.
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