Challenges of High Quality Video DeliveryBased on my observations of startup universe, I believe that every startup needs to have at minimum two success factors, one on profit side and one on cost side, to succeed.
GridNetworks, what's my Interest? Part one.
GridNetworks, what's my interest? Part two
Profit-side Success Factor
For GridNetworks (GN), the profit-side success factor is dependent on the number of distributors of high-quality content willing to pay for using GN infrastructure, irrespective of whether they are well-known content distributors with large content library like Disney or niche distributors leveraging long tail phenomena like Reeltime.
Some might argue advertising may be a viable option. I seriously doubt viability of an infrastructure intensive play like distributing high quality video solely based on advertising. Capturing $10 in advertising while paying $28 for delivery doesn't look like a viable business proposition to me. See, Comment on A-List Blog may result in high traffic and Internet Video Business Challenges.
A subscription based viewer model may become viable option for predictable delivery quality once the delivery infrastructure has achieved a critical mass of viewers, content, participatory nodes and content distributors. Most probably, only to be realized in next phase of GN.
To be continued ...