6 thoughts on “BrightCove and the AOL Schizophrenia”

  1. om, i know bandwidth has gotten cheap, but has it gotten so cheap that serving video can really survive with the same economics as serving web pages or text?

    in other words, do you believe that all these IP-video startups (or even one) will really be able to generate more revenue-per-stream by selling ads than the cost to serve said stream?

  2. steve, i agree with you entirely. i think a lot of these video models are based on an assumption that they can scale, hardware is cheap etc. but when the bills come, especially as the service adds more than a million users things start to break down.

    it is hard for me to imagine that the operational and capital expenditures will get low enough to offer cable-tv type economics.

  3. I think you guys are missing the boat a bit – these guys are providing infrastructure and software support – they may have some models that give them a share of ad revenue, but I believe they’re working on more of an ASP software model.

  4. well, i think the issue here is that the company has not talked about the “business model” at all. i guess, that is one of the things the bothered me about the stories – no one was asking the question. i hope to catch up with JA and figure out the direction they are taking.

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