Sunday, January 30, 2011
Amazon Cloud Storage Traffic Soars
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Business Model Change for Hulu?
Hulu originally hoped to create an advertising-supported online video site that essentially was an archive for television programming, operating much as a digital video recorder service.
But ad revenue has been disappointing, and the owners disagree on what to do about the service. So now it isn't so clear what Hulu might become.
Some spectulate that Hulu might in the future become a sort of online cable service. Instead of a warehouse of episodic content, Hulu could become a full-fledged online cable operator. That means live shows and video on demand, all accessed through Hulu.
That might work for the content providers, but it won't help multichannel video entertainment providers.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Mark Zuckerberg on SNL
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Amazon Prepping Netflix-Like Streaming Service:
Amazon.com appears to be readying a service that would make 5,000 movies and TV shows available to watch instantly, at no incremental charge, for members of the online retailer's $79-per-year "Prime" free-shipping membership program.
The service would provide "unlimited, commercial-free, instant streaming" of 5,000 movies and TV shows' with content similar to what is available through Netflix's streaming component. Amazon's service, though, would be limited to standard-definition video.
The notable observation here is that Amazon will try to create a business model that does not rely directly on incremental revenue, but rather on increasing subscribers to another existing service Amazon deems important. That's similar to Apple selling music and video to sell iPods and iPads. Netflix, Comcast and others, on the other hand, have less wiggle room, since their video businesses are about selling video.
Comcast, of course, also is trying the Amazon tactic, tying a fixed-line cable subscription to its mobile and untethered online video service. Still, it always is dangerous when a new competitor proposes to give away what another company sells.
Amazon Prime is a membership program that provides free two-day shipping as well as one-day shipping for $3.99 per item on certain purchases.
Currently Amazon offers a selection of more than 75,000 movie and TV show rentals or purchases through PCs, Microsoft's Xbox 360 and connected-TV devices, including those from TiVo, Samsung, Sony, Panasonic, Vizio and Roku.
Amazon.com's agreement to buy full ownership of LoveFilm, a European DVD rental and movie-streaming service, confirms the e-commerce giant intends to beef up its digital-video offering.
Operating in the U.K., Scandinavia and more recently Germany, LoveFilm's service is very similar to that of Netflix in the U.S. But it is well behind the American company, both in subscribers—1.6 million versus 17 million—and in the amount of streaming content it has licensed.
The service would provide "unlimited, commercial-free, instant streaming" of 5,000 movies and TV shows' with content similar to what is available through Netflix's streaming component. Amazon's service, though, would be limited to standard-definition video.
The notable observation here is that Amazon will try to create a business model that does not rely directly on incremental revenue, but rather on increasing subscribers to another existing service Amazon deems important. That's similar to Apple selling music and video to sell iPods and iPads. Netflix, Comcast and others, on the other hand, have less wiggle room, since their video businesses are about selling video.
Comcast, of course, also is trying the Amazon tactic, tying a fixed-line cable subscription to its mobile and untethered online video service. Still, it always is dangerous when a new competitor proposes to give away what another company sells.
Amazon Prime is a membership program that provides free two-day shipping as well as one-day shipping for $3.99 per item on certain purchases.
Currently Amazon offers a selection of more than 75,000 movie and TV show rentals or purchases through PCs, Microsoft's Xbox 360 and connected-TV devices, including those from TiVo, Samsung, Sony, Panasonic, Vizio and Roku.
Amazon.com's agreement to buy full ownership of LoveFilm, a European DVD rental and movie-streaming service, confirms the e-commerce giant intends to beef up its digital-video offering.
Operating in the U.K., Scandinavia and more recently Germany, LoveFilm's service is very similar to that of Netflix in the U.S. But it is well behind the American company, both in subscribers—1.6 million versus 17 million—and in the amount of streaming content it has licensed.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Netflix Now Boasts More Subscribers Than Showtime, Starz, HBO Next?
Netflix added 3.1 million subscriptions during the fourth quarter of 2010, and now has more than 20 million subscribers. That's more than the total subscribers of premium channels Starz and Showtime, which have 17.3 million and 18.2 million subscribers, respectively.
Netflix now estimates it will expand to as many as 22.8 million subscribers in the coming quarter, a possible uptick of 14 percent. Meanwhile, the subscriber base for HBO, which ended its last quarter with 28.55 million subscribers, fell to its lowest levels in four years, and dropped 1.9 percent from the last quarter.
What that means is that Netflix is competing with the premium cable channels, not basic cable (ad-supported channels such as ESPN).
Netflix now estimates it will expand to as many as 22.8 million subscribers in the coming quarter, a possible uptick of 14 percent. Meanwhile, the subscriber base for HBO, which ended its last quarter with 28.55 million subscribers, fell to its lowest levels in four years, and dropped 1.9 percent from the last quarter.
Netflix may someday more directly threaten basic cable service. For the moment, it seems to be doing just fine cannibalizing premium TV networks. In response, cable and other networks will have to start cannibalizing their own premium channels as well, since video-on-demand essentially replicates the Netflix streaming service.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Netflix Beats, Worry Grows (Insert "Apple" and You Know the Story)
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Netflix Really Becomes "Net Flicks"
The issue now is whether Netflix has put so much distance between itself and others that the others cannot catch up.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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