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Narrowstep
has already established general distribution agreements for High TV
with a multiple ISPs.
Income derived from narrowcasting services will for a large part
depend on the commercial success of the respective Channels, as income
is correlated to the number of viewers and revenue sharing agreements
with regard to sponsoring, advertising and e-commerce.
The data below clearly show the significant financial impact of the
increase of the number of daily viewers/average viewing time:
Daily viewers 20,000 200,000
Average viewing time 20 minutes 30 minutes
Ads served per viewer 6 8
Cost per 1000 views (cpm) $50 $100
Income per day $6,000 $160,000
Narrowstep currently has an extensive portfolio of potential broadband
TV channels, which are to be launched for its clients in the coming
months. The company’s recent attendance to the National Association of
Broadcasters Conference (NAB 2005) in Las Vegas and at MIPTV/Milia in
Cannes, increased Narrowstep’s profile significantly and enabled to
company to close several sales agreements with potential customers.
We believe that Narrowstep provides the commercial model that the
streaming market has been looking for. With advertisers such as Sony
Ericsson, Nissan, Nike, Hong Kong Shanghai Bank and the UK Government,
the company has proven Broadband Advertising as a business model to
support the delivery of broadband content.
The TelVOS operating system will most certainly have an impact on the
current monopoly of television media content (terrestrial or
satellite)-distribution. On the other hand, we believe that there will
be a friendly co-habitat with television , as both markets are
complementary to each other. Narrowstep clearly creates cash for its
users – whether by content ownership, channel portal, or narrowcasting
provisioning businesses. We are convinced that massive revenue
reserves that are latent in any content archive can and will be
unlocked. Narrowstep’s solution will enable this and in doing so
generate large and ongoing revenue streams, both for Narrowstep and
for its clients.
The company’s imminent stock exchange listing will enable it to
accelerate its growth, both in the number of Channels and in total
revenue generated. Unlike many other companies, Narrowstep’s corporate
progress can be followed on a daily basis, by simply tuning in to the
respective Internet TV channels mentioned in this article.
Congress Considers IP-Enabled Video Services
As part of an on-going series of public hearings about how to update
the Telecommunications Act of 1996, the U.S. House Energy and Commerce
Committee's Subcommittee on Telecommunications heard testimony on how
IP-enabled video services could transform the market. Some highlights
of the testimony.
Verizon Communications
Verizon could be delayed in bringing FiOS TV to market by outmoded
laws and a cumbersome, redundant local franchising process, said
Verizon Retail Markets President Robert Ingalls. He argued in favor of
a national broadband policy to "promote broadband deployment, new
technologies and increased investment."
"As a local telephone company, Verizon has a franchise to operate
networks," Ingalls said. "Yet we're being asked to obtain a second
franchise to use that same network to offer consumers a choice in
video. We believe this redundant franchise process is unnecessary and
will delay effective video competition for years unless a federal
solution is enacted soon."
Ingalls also said Verizon would be sensitive to the needs and concerns
of local communities regarding such matters as franchise fees, local
access and public interest content.
SBC Communications
Lea Ann Champion, senior executive vice president of IP Operations and
Services for SBC urged legislators and regulators to take a
"light-touch" approach to regulating new IP-based services.
"The FCC and Congress have so far employed a light-touch approach to
regulating the Internet and IP-based services. We need to extend this
minimal regulation approach that has been applied to VoIP — only now
the "V" stands for video," said Champion. "Only then will consumers
benefit from the innovation and choice that is just around the
corner."
"In short, we are not building a cable network, nor do we have any
interest in being a cable company offering traditional cable service.
Instead, we intend to offer customers a new total communications
experience, one that they can customize to suit their families' needs
and tastes," said Champion.
Champion also showcased an upcoming service called HomeZone, which
integrates satellite TV programming with high-speed Internet access to
provide digital video recording, video on demand, and Internet content
including photos and music via a new set-top box. The offering will be
available later this year to customers who have access to both SBC |
DISH Network and SBC Yahoo! DSL services.
Comcast
"What matters to consumers, and what should matter to this Congress,
is not the technology used to provide the services, but the services
themselves. If the consumer views the video service provided by a
phone company to be essentially the same as what they got from a cable
company, there is no basis for the law to treat them differently based
on whether they use a lot of IP, a little IP, or no IP. Like services
should be treated alike, and everyone should play by the same rules…
"Instead of having a debate about IP technology, we believe Congress
should consider how all multichannel video services should be
regulated in the future. Congress should consider the current state of
competition and the additional competition that IP video could bring
-- and, if the rules are to be changed, they should be changed for all
providers", testified David Cohen, Executive VP of Comcast.
Microsoft
"Internet services, that is, those services and products that ride
atop or connect to the underlying broadband transport services, should
remain largely unregulated and not be subject to the Communications
Act. The success of the Internet as a tool for consumers and business
has been remarkable, and Congress should proceed carefully so as to
inadvertently disturb this accomplishment.
"Consumers should be able to access any site and use any lawful
application or device with a broadband connection -- just as they have
been able to do in the narrowband world.
"If policy makers act, they should maintain a 'light touch' and act
only with respect to those services that give rise to present day
policy questions."
"Where subject to regulation, Internet services should be subject
exclusive to Federal jurisdiction and Congress should protect IP
services from conflicting and overlapping State regulation, testified
Paul Mitchell, Senior Director and General Manager of Microsoft's TV
Division.
National Association of Broadcasters
"If new technologies can override program exclusivity rights of local
(TV) stations by offering the same programs on stations imported from
other markets, or effectively block their subscribers access to local
signals, the viability of local TV stations -- and their ability to
serve their communities with the highest-quality programming -- is put
at risk. To preserve this public access to free-over-the-air
television, policy-makers must continue to support the principles of
localism and local station program exclusivity," testified Gregory
Schmidt, speaking on behalf of the National Association of
Broadcasters.
American Cable Association
"As you analyze what rules should be in place in an IP-based market
place, I believe you must review whether the current analog rules are
really providing consumers with the 'best television money can buy.'
Now is the time to discard the rules that 1) force consumers to take
programming they do not want; 2) allow media consortiums to raise
prices with no regard to what consumers value; 3) hide the reasons for
higher rates from the Congress, the FCC, the local franchising
authorities and consumers alike; and 4) fail to harness the greatest
of American tools, a free market to spur diverse and new programming,"
testified James M. Gleason, Chairman of the American Cable
Association.
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