Strands is a life streaming service that helps users discover new things based on what their friends like and do, and allows them to see what’s hot among the people they care about.
Strands is a life streaming service that helps users discover new things based on what their friends like and do, and allows them to see what’s hot among the people they care about.
FOR IMMEDIATE RELEASE:
FrostWire.com — The last of the 4.17.x FrostWire series is finally out. The following is a list of the most important updates made for this release, which irons out most of the complains received from the community in regards to 4.17.0.
The new FrostWire will allow us to distribute twice the number of installers using the same bandwidth employed by 4.17.0, The new FrostWire installer has been reduced in sized more than 50% by using the latest in compression technology.
FrostWire, a BitTorrent/Gnutella Peer-to-Peer client, is a collaborative effort from many Open Source developers and contributors from all around the world. In late 2005, concerned developers of LimeWire’s open source community announced the start of a new project fork “FrostWire” that would protect the developmental source code of the LimeWire client and any improvements to the Gnutella protocol design. The developers of FrostWire give high regard and respect to the GNU General Public License and consider it to be the ideal foundation of a creative and free enterprise market.
Netflix is the company that fixed the annoying rules of movie rentals, you make a queue of movies you want to see, and then they’re delivered in batches of 1,3 or more movies depending on how much you pay every month, you can then keep the movies all you want since there are no late-return fees.
This article is about why I think they will be the real winners of Internet Video, with a different business model than the free/ad based approach of Hulu and Joost.
Their current business model
I’ll attempt to disect their current business model, which has proven to work, they now have over 8 million subscribers and a catalog of over 100,000 movies, revenues of over $1.2 billion, and a net income of $66.9 million last year.
But the goal has always been to deliver the movies instantly, the technology wasn’t there, but now it seems to be here, and probably it’s also gotten to the point that the bandwidth of delivering a movie is cheaper than the associated current costs of delivering a real DVD to your door.
Being a customer for many years, I can guess some of the costs involved per movie are:
Somehow, Reed Hastings and his team figured out a way to make money after these costs, maybe from the people that pay every month who don’t really have the time to watch 12 or more movies a week.
Let’s do the actual numbers to get the average customer price.
REVENUE PER CUSTOMER:
$1,200,000,000 revenues /8,000,000 subscribers = $150 a year avg. revenue per subscriber
$150/12 months = $12.5 avg. subscriber monthly rev.
NET INCOME PER CUSTOMER:
$66,900,000 net income / 8,000,000 subscribers = $8.36 a year avg. cost per subscriber
$8.36 / 12 months = $0.7 avg. subscriber monthly rev.
If we substract the net income from the revenue, we’ll get the average costs monthly per user, that’s
$11.8 a month, in costs.
Estimated Cost Per Movie (Now, CDs shipped)
The company ships on average, 1.9 million discs a day, that’s 57 million discs a month. They have 8 million users, that makes the average user watch around 7 movies a month. (I watch at least 3 a week, that’s 12 movies a month, 3 times more than the average user).
So, let’s say the average subscriber watches only 3 movies per week, that’s at least 12 movies every month. We grab those $11.8 and divide it by 12 movies
Average Cost per Movie $11.8/7.125 movies monthly = $1.65
The Online Business Model
Netflix has understood that the key to evolution on the TV/Movie business does not lie on the browser, it’s right there on the TV Room where we have been trained to sit and be entertained for hours. Only us early adopters, or people with no TV really have the adaptation capabilities to watch content on our computer screens, or we know that we need an HDMI cable and can do the whole setup to get our computers to play video on the living room.
This means the audiences for video on the internet are considerably smaller (Today) than those of TV, the best way to put it is by grabbing the numbers of the biggest internet video audience so far, The 2008 summer olympics… they only generated $6 million in ads, vs $1 BILLION that the broadcast generated… why? cause the big audience lies right there in the confort of the Living Room, or wherever you have your tv.
Netflix knows that there’s a great deal of people that have:
– Other video game consoles
They made a first step when they came out with the RoKU, their own way of putting Netflix on a box in your living room. They’re cutting out deals with Samsung to put the same technology on Blu-ray players.
They will come out this Nov. 19th on the revamped Xbox Live which sits already on 10 million households with XBox Live Gold Subscriptions. I already have a Netflix subscription, but my guess is that at least 4 million of those 10 million XBox live subscribers don’t have it, and they will be tempted to subscribe. If Microsoft and Netflix are smart, they will allow those users to give it a try, and once they see the benefits, those $9.99 will be worth their while.
Xbox Live gets to keep the user base that’s doubting if its time to buy that PS3 and toss the subscription. Netflix on the other hand will almost double it’s customer base, if it manages to convince 1/2 of Xbox Live subscribers to give this a try.
(I wonder where Boxee stands in all this, they could also cut a deal with Netflix if they amass a millions of users at some point, although they seem to be doing something with Apple, and this would compete against the Apple Store per per view model, which BLOWS!)
At what price?
Here’s where the analysis gets tough. Microsoft has huge infrastructure, and Netflix just announced another partnership with TiVO (see, they know the war is won in your living room), but someone has to pay for all this bandwidth.
Engadget also confirmed that their streaming quality will be nothing but HD! (only 300 titles to start though)
So we estimated that currently netflix has about an average cost $1.65 per movie shipped (might be less if the average user watches less than 12 movies a month) and we see that bandwidth costs are dropping. Let’s take Amazon EC3 (which is expensive to me, given we can do it at a much lower price at MyBloop.com):
“Over 150 TB per Month $0.10 per GB”
If you’ve ever watched a movie compressed in DivX, you know you can get a feature film at very good quality eating up only 700Mb… let’s say that Netflix will actually do this in HD, and they had films in double the DivX quality, and each film would be 1.5Gb, it would only cost them $0.15, hell, even if it was 3 Gb or even 5 Gb per movie, you’re still below the 50 cent price, add to that royalties and other costs, at you are still way below the $1.65 cost per movie of today. Let’s say it’ll cost $0.65 per movie streamed.
That’s a saving of $1 per movie, however this convenience will make the number of movies delivered (streamed) to increase, but this might mean they’ll cut better deals in bandwidth getting the costs even lower.
Not to mention the savings to the environment, less DVDs would need to be printed, less paper and ink wasted in envelopes, no gas burnt by USPS, and all the carbon emissions generated in each step of the CD delivery process.
What this means also, is that Netflix will probably get rid of many of its +2000 employees, bringing costs further down, I will add less and less DVDs to my queue as the online catalog grows.
Helps fight Piracy
Another big plus of a full blown catalog (maybe available a few years from now) is movie piracy mitigation. Instead of the MPAA suing their customers, or making things hard for everyone being forced to distribute content with DRM based solutions that never work, what you need to do is have your product easily accessible to as many people, legally. I strongly believe most people are good, otherwise you couldn’t go out on the street and make it back in one piece every day. As a side note, I find it very funny that the MPAA is always asking Internet Video distributors (including netflix) to add DRM to their streams, but they don’t put DRM on their DVDs, anyone could get the 6 DVD subscription to Netflix and copy all the DVDs, there’s just no need to do it, cause Netflix makes it so convenient for you to get more and more movies.
So Why do I care?
I’m just very interested in what happens with TV, how it will manage to survive or evolve, but in this case, there’s a financial incentive.
So the question is, what’s gonna be the price of NFLX a few months or years from now? I’ll leave that answer to Henry Blodget, I think it all depends on execution (get XBox right and then expand to other services and the user base will easily double or triple for Netflix, then go international), they’re targeting the biggest audience ever, the living room audience, the one that makes billions of dollars in the Olympics, the one that’s fed up with the passive entertainment model and who wants to see what they want whenever they want, to share this experiences with friends.
I also care since I no longer have cable TV and I’m constantly looking for legal video entertainment of professional quality. Companies like Hulu and Joost should follow the same steps and try to go to our living room, Netflix not only has a great catalog of movies, but they have entire shows, some you can already watch, for example I got to stream 2 seasons of the office back to back on Netflix, before they were available on Hulu.
(Hulu || Joost) for Free TV streaming on the living room
As for Joost, they should probably acknowledge they’ve lost a great deal to Hulu, which streams 100 million videos a month, it would take a major breakthrough in content to beat Hulu, and even though Hulu is putting big numbers, they just can’t compare with the ad revenue that you can generate on the living room. For Joost (if Hulu didn’t start already) there’s still the opportunity to port their tecnology to PS3, to Wii, why not even come out with an Xbox free download that will allow you to watch Joost on your living room. There’s certainly going to be a lot of people not willing to sign up for Netflix, and the Free TV offer Joost has would be of interest to this audience. If I were Michael Volpi I’d try to use a considerable part of my resources geared in this direction, If Hulu gets in the living room before Joost, it’s game over.
I just received this from the Free Press organization, warning me about how New Yorkers won’t be able to use the whitespace signals next year for Internet Connectivity, given the Wireless communication mafia is trying to get a hold of the spectrum, and if we don’t do something about it, we’ll loose the spectrum. We’ll ALL benefit by having this spectrum, it would enable ubiquitous wireless internet access, benefiting every business on the internet with more users. That would surely make cellphone companies scared, imagine a phone that would use that spectrum and communicate via the internet instead (with skype, for free for example, international calls free, access to MyBloop files anywhere, etc.)
With your help, we can deliver high-speed Internet access to more New Yorkers.
What if I told you we could use empty TV channels to connect tens of thousands of New Yorkers to the Internet?
The technology exists today. But some members of the New York City Council are trying to stop us from using it.
The Council has bought into a corporate misinformation campaign, and is now holding a public hearing next Monday to consider a resolution that would keep this technology from the New Yorkers who need it most.
You can help the Council make the right decision by speaking out at the hearing:
WHAT: NYC City Council Hearing on White Spaces
WHEN: Monday, Sept. 29, 10 a.m.
WHERE: City Hall Committee Room, enter at the Intersection of Centre and Worth Streets
The latest front in the battle over universal Internet access is “white spaces” — empty frequencies between TV channels on the public airwaves. In New York City, 20 percent of these television airwaves sit idle. New technology can open this unused spectrum to powerful high-speed Internet services, bringing ubiquitous and affordable broadband to tens of thousands of New Yorkers now left off the grid.
Here’s the problem: Councilmember Gale Brewer and Speaker Christine Quinn have sponsored a draft resolution claiming white space devices could harm the Broadway industry in New York City. They, along with the Broadway League, maintain that white space devices will disrupt the wireless microphones used for Broadway shows. Numerous tests conducted by the FCC show, however, that this is not true.
Meanwhile, lobbyists for the National Association of Broadcasters and cell phone companies have been blitzing federal, state and local governments with misinformation to prevent white spaces from bringing the benefits of broadband to millions of people. They want to hoard this spectrum to stifle innovation and competition. If they win, we all lose.
Too many in this city have been left on the wrong side of the digital divide. The answer to getting New Yorkers connected is right in front of us:
The hearing will be open to public testimony. Please come and urge the City Council to reject the resolution and speak out for opening up white spaces for a better Internet.
With your help on Monday, we can help deliver the Internet for everyone in New York City.
1. Learn more about white spaces at www.freepress.net/whitespaces
Please correct me if I’m wrong, but I didn’t read any mention of Browser extensions on the chrome document, I read about plugins (these are more like Flash plugin and what not), but nothing about extensions.
This probably means:
– No StumbleUpon toolbar 🙁 (I’m a stumbleupon.com addict, I feel crippled with chrome because of this)
– No Cool Iris
– No Twitter extensions
– No weather extensions
– No firebug-like extensions
– No toolbars of any kind
– No Synced bookmarks
This means a lot of businesses would die if people were to embrace an extension-less browser. I think it’s a little scary when you allow one of the most important websites of the world to run the browser industry. Let’s hope people will stay distributed around IE, Mozilla, Safari and chrome, and that they don’t become the defacto browser, cause then they would really run the show.
Remember Google, don’t be evil, right?
Confirmed, no extensions as of this writing are available.
Taken from the Chromium developer FAQ:
Q. How can I develop extensions for Chromium like in Firefox?
A. Chromium doesn’t have an extension system yet. This is something we’re interested in adding in a future version.
To Mac Geeks
If you want to build it for mac, you can (supposedly, I’m in the process off, I’ll post screenshots or video if I manage to do it sucessfully)
The internet has changed the life of many people, you’re probably an example since you’re reading this geeky blog that’s mostly intended for geeks, the curious, and technology lovers.
But the internet won’t really reach it’s maximum potential, that is, until it’s almost everywhere just like electricity or TV.
In February 2009, by order of the Federal Communications Commission (FCC) all TV transmissions currently being done over VHF have to cease, and all those TV channels will go only through digital signals. This means that one of the most versatiles spectrums will be up for grabs.
This spectrum (ranging anywhere from the 55MHz to 88MHz if I’m not mistaken) has the power to reach much larger distances than your 2.4GHz WIFI router, the distance actually depends on the height of antennas and somewhat visibility (you can see the formulas for theoretical distances on wikipedia)
Google, Motorola, Microsoft, Philips and many companies are asking the FCC to keep all this “white space” spectrum to be freed for anyone to use, just like WiFI’s 2.5GHz, which has extended somewhat the accessibility to the internet.
There are other companies however that want to license the spectrum and have it exclusively for them, an example are the companies that make wireless microphones (which didn’t seem to have any problem with whoever was broadcasting TV, so interference can clearly be fixed). Google has even proposed to keep an open geographical database of whatever signals are allowed to license smaller frequency ranges of the spectrum, so whatever transmission your computer will make will not interfere with them.
This would probably mean that smaller tv stations could transmit locally without interfering with anyone if they had license a subrange.
Anyway, I just ask you to sign this petition to the FCC and spread the word out for other to sign it, so that we can have internet everywhere we go on top of VHF signals, or as how they’re calling it WiFI 2.0
Here’s a video from google in case you didn’t understand me.
Just imagine how many more visits your site will have if EVERYONE will have access to the internet from anywhere. It will truly change our lifes in one way or another.
Everytime I try to do a query with more than two keywords, Cuil says:
We didn’t find any results for “apple google microsoft”
Some reasons might be…
* a typo. Please check your spelling.
* your search includes a term that is very rare. Try to find a more common substitute.
* too many search terms. Please try fewer terms.
Finally, try to think of different words to describe your search.
Does this have anything to do with the way they index content (supposedly cheaper and faster than google), or just a small bug on their logic once keywords are received?
I tried Jaiku, Pwnce, FriendFeed and Twitter, and stayed with Twitter. I’m actually proud to say that I’ve sent 6,801 Twitts that have landed me 390 twitter followers, and this is probably the hardest thing about switching from Twitter to another competitor, as good as it may be.
But from last week I’ve been hearing about Plurk, and today after some good web-reputable friends joined I decided to give it a try (see the power of web-prestige?), before they joined I just thought… “another twitter competitor”.
The added functionality might make things better, it’s probably the evolution of micro-blogging happening, and twitter needs better competition in order to get better.
It doesn’t take a genius to figure out scribd.com has something big in their hands:
– Flash based document viewer (for any document format)
– Unlimited uploads
The result, what I call a “YouTube of Books”.
Just check this out, and see why Amazon has a little bit of market to loose (those who don’t really care about reading books on screen, and having the ability to search a book in seconds…)
Look for yourself
I foresee these guys being bought by Google sometime within the next two years, they certainly provide with the vision of Google, that of organizing information, and what not, and they have the same copyright issues as YouTube did, something which didn’t stop google from acquiring them at the time.
All we need now, is to be able to use that Scribd viewer with PDFs hosted anywhere, I would love to have that document viewer installed in MyBloop.com
Last night I had the opportunity to attend to my first NYPHP.org meetup. In this ocassion, Philip Antoniades formerly MySQL’s Sales Engineering Manager, now Sun-MySQL’s Sales Engineering Manager gave a talk related to Sun’s recent purchase of MySQL for USD $1,000,000,000.
I must say at the beginning of the presentation he switched from talking about the MySQL acquisition to selling us a new version of Open Solaris called Project Indiana, which seems to be led by no less than Ian Murdock creator of Debian. I suppose its his job now to sell sun and he had to do it, but things got a lot more interesting specially in the Q&A.
So for Project Indiana, as you can imagine having someone like Ian Murdock there means Open Solaris will have apt capabilities (like Debian or Ubuntu).
The other thing that caught my eye about Project Indiana (coming from the Linux world) is that Sun will require all drivers to be open sourced, otherwise they won’t be accepted to the distribution. I’m not sure if this has done anything for projects like Debian where they’re really strict, but Sun is a monster with a lot of corporate influence, maybe their new Open source approach will help things change (manufacturers releasing drivers with open licenses), and finally we’ll get lots of drivers available for Linux as well.
They also mentioned an “open source” license called CDDL (“cuddle” as they call it), no clue about its differences, if its good or bad, it seems to me there might be something weird behind it, but I’m just talking out of my ass here, I’ve not read it yet. It’d be good if someone could complement this article with their thoughts on CDDL vs GPL2 vs LGPL vs others…
How things have changed
“Basically we have an influx of cash”
MySQL AB went from a 400 employee company to being part of an organization of about 34,000 employees, and now they have a lot more cash, the purchase according to Antoniades was mostly paid in cash (and you know cash is king baby!).
Philip even mentioned they’re hiring 2 SysAdmins for their New York office, (contact him if you’re interested), also, when they need a feature, they just don’t put it in the wish list, if its important enough they get 30 engineers from Sun to help them.
He made a lot of emphasis about how they already got a guru focused on optimization of MySQL and how they’re pushing for more threading (parallel programming) on MySQL. He said that Sun has a lot of DB experience, that they basically helped Oracle in getting their DB to run spotless on Solaris and they have the knowledge about DB development problems as well as a lot of smart people to help them.
On the Q&A session I finally learned that Yes there’s plans between Java/MySQL integration (stored procedures in java could be a project to come, and they mentioned that a couple of the MySQL AB engineers had already done something along those lines, and as the acquisition was happening the people from Sun brought up the fact they knew about such efforts. MySQL AB has always been a good Java shop, and they claimed their jdbc driver was always one of their best products). MySQL basically wants to learn a little more of that engineering discipline from Sun, and it seems like a nice blend between 2 very different cultures.
Other interesting topics of conversation during Q&A were about using Memcached as a storage Engine, so that you can use MySQL as a client for Memcached, maybe it sounds as an extra layer with a certain overhead, but you could certainly do a lot of more complex stuff just by using SQL, seems interesting, didn’t know you could actually do that (actually opens a lot of possibilities in my mind for stuff we need in MyBloop.com that we were planning to use raw key-value-approach on memcached)
Also learned about a new storage engine called Maria, that will be the successor of Innodb.
So I think that now, we can be sure that MySQL will be churning out a lot more fixes (in shorter periods, maybe MySQL 6.0 will come out sooner now) given the cash and new added man power, probably the folks using MySQL enterprise will be even more benefited by this, they talked about a lot of enterprise tools to optimize queries, analyze queries, very interesting stuff.