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Caps, Embeds, and Business Models
by Andrew McCaskey
Technology for new media delivery, consumer tastes and regulatory response to political pressures are all changing rapidly. They are tied together and one thing is sure: It is going to be very hard to see until they snap into their new orbits.
Present financial crisis aside, it’s going to take a concerted effort by the next administration to keep a regulatory environment in balance to provide just enough touch on the reins to steady but not impede broadband development in the next decade. And, at the same time, keep enough regulation in place to prevent the consequences of unregulated industries running “open loop” with no regard to the needs of the public . We have quite a graphic example of how well that works.
The metered bandwidth Caps (250GB/month) are going to have a dampening effect on lots of operations. In fact, if it were not for Libsyn and RawVoice providing content hosting and bandwidth off for various SDRNews podcasts off the Comcast connection, I’d be in deep red territory already. I am still concerned that I am going to tangle with the cap tripwire once I begin to add some video content in the next few months and increase my upload by streaming some content, uploading media for later release, and going about normal activities.
Business models in the music industry have been broken for almost ten years, with television and movies not far behind. Once the bandwidth becomes available – FIOS or DOCIS 3 modems with fiber moving nodes ever closer , the business models are going to become less effective- and the caps are going to become far more relevan, especially for new media content producers.
Which brings in the third element, which the FCC is starting to address: Product placement. It’s hard to find a more convoluted opportunity for commercial speech than determining if or how product placement will be regulated. With the Tivo effect in full swing for OTA broadcast, cable and satellite, you can be sure that advertisers are going to make every effort to move into product placement, blatant and subliminal. And you can make sure that it’s going to be making some law firms a good living for the next decade, at least.
The most interesting part ? Even new media/podcasting/video is affected . One of the most popular booths at the New Media Expo last month ? Signups for product placement in Video podcasts. It’s coming, and if you look carefully, you can see which video content producers are paying attention. Stay tuned, while I enjoy another sip from the Grande sized Kenya blend, this week’s special flavor.
CES 2008 Coverage for Tech Podcast Network
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