"New Internet TV services such as Joost and YouTube may bring the global network to its knees, Internet companies said on Wednesday, adding they are already investing heavily just to keep data flowing. Google (GOOG.O: Quote, Profile , Research), which acquired online video sharing site YouTube last year, said the Internet was not designed for TV.
It even issued a warning to companies that think they can start distributing mainstream TV shows and movies on a global scale at broadcast quality over the public Internet.
"The Web infrastructure, and even Google's (infrastructure) doesn't scale. It's not going to offer the quality of service that consumers expect," Vincent Dureau, Google's head of TV technology, said at the Cable Europe Congress." (WOW! S.)
It even issued a warning to companies that think they can start distributing mainstream TV shows and movies on a global scale at broadcast quality over the public Internet.
"The Web infrastructure, and even Google's (infrastructure) doesn't scale. It's not going to offer the quality of service that consumers expect," Vincent Dureau, Google's head of TV technology, said at the Cable Europe Congress." (WOW! S.)
"One cable chief executive, Duco Sickinghe from Belgian operator Telenet (TNET.BR: Quote, Profile , Research), said it was "the best news of the day" to hear that Google could not scale for video." (I agree, it made my day as well S.)
All it means, that day when you can sell tons of Ads in copyrighted material taken for nothing with broadcast quality will never come, YouTube means CAPEX, more CAPEX, and some more CAPEX: blades, electricity without any business model yet. But Operational Cash flow already squeezed by rising Cost and slowing rate of revenue growth (margins are falling) will not allow to do it and already in Q4 we can witness when they Trimmed Capex just to keep Free Cash Flow above the water (flat with 2005 at least with MC/CFC=95 at 501USD)
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