Telehouse Boot Camp
December 9th, 2006Our friends over at Telehouse often host conferences, and we attended one this morning. The end-goal of the conference is to learn how media is changing, and how this is going to affect us in the technology sector, and ultimately all of us.
The first speaker was Co-founder of Limelight Networks, Michael Gordon. With all due respect to all our partners in the technology sector, it is not often we find some as well-spoken and capable of holding a crowd’s interest as Michael Gordon.
Michael begins with a simple question: Did Google pay too much for Youtube? I was one of the few who actually said they did, but that’s because have more than a few friends who practice Intellectual Property law. Let’s just say they’re extremely successful because of the kind of suits that await Google & Youtube.
At Limelight, they don’t think so. In fact, Michael believes they under-paid. Why? Ultimately, he thinks it’s a fundamental change in the way media is delivered. I couldn’t agree more on this point. He gives two specific reasons: massive amounts of content online, and users accessing this content from here. His first example is from the legacy of music hitting the internet; in 2003, 1% of music sales were done online. In 2006, it was 10%. With the astounding success of Apple, iTunes, and the iPod, it’s hard to see this will do anything but grow.
Next, consider this: 10% of original xboxes attached Internet. Now with the Xbox360, 60% percent attached to internet. In May of 2006 NBC test launched online streaming video of one of their TV shows: 11 million streamed online. A couple of months later, ABC did the same, with 20 million delivered online in first two weeks. What’s also interesting is that broadcast viewership goes up (not down) when content is delivered online.
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