Sunday, May 23, 2010

Bandwidth Implications of Online Video

It remains to be seen whether more use of Internet delivery for today's video entertainment programming is a good thing for access providers, whatever it may mean for other contributors to the video ecosystem.

The reason is the sheer cost impact of supplying enough bandwidth to support even a part of today's viewing requirements.

Video, in fact, is the chief reason there is a growing gap between ISP revenue from providing access services and the revenue that can be earned by providing such access (click image for larger view).
To be sure, multiple approaches will be taken to better match demand and supply. Price increases, retail price plans better tailored to actual consumption, wireless offload to fixed networks, signal compression and other efforts are likely.

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