Wednesday, December 20, 2006
P2P to Rule Online Video
Publishers and advertisers may soon be thanking Kazaa and Bit Torrent for paving the way for digital video distribution. Peer-to-peer distribution of video content is much more efficient than centralized servers, and the television and movie content companies are looking to exploit that opportunity.VeriSign, they of domain name management fame, have developed a P2P network for distribution network, following up on last week's similar announcement from the Skype guys and the Venice Project.
VeriSign, which signed up AxiomTV as a content provider, says P2P is 40 percent cheaper than running a download site. It would be easy enough for videos to be embedded with advertisements or for P2P sites to generate money through ads since the ad networks have long been optimized for distributed delivery.
Other P2P deals with content providers include BBC teaming up with Azureus, and Bit Torrent with Fox, and Sharman networks with other several content companies.
According to Analysts NPDGroup, only 2 percent of U.S. households with Internet access paid for a video download with nearly all of them from iTunes. Only six percent of the downloads is movies. Slow download speed (and lack of selection) has contributed to the slow adoption of download services.
led the market for paid digital video downloads, with nine in 10 downloads occurring on that site, followed by Vongo (5 percent), Movielink (3 percent) and less than one percent for CinemaNow. Sixty-two percent was TV program content, 24 percent was music video content and 6 percent was mainstream movie content.
If movies of DVD quality can be quickly delivered to the hard drive and then to televisions, we may substantial growth in Internet-based movie distribution. The movie moguls may have to give thanks to file sharing companies.
Posted By John Gartner at 02:37 PM
Permanent Link: P2P to Rule Online Video
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