The demand media era is a few steps closer to reality if you read today's news. First up, Netflix started as set up steaming servers, giving their clients the ability to skip the post office and get their content via the net.
Of course they are far from alone, many people are offering similar services. Today Apple commands over 75% of the video download market. But Netflix has a large and loyal user base and could move the market.
Also in the news today "Digital" music sales doubled last year.
If you'll allow me an aside, I hate when tech writers do this:
Digital music sales doubled in 2006LONDON - Global digital music sales almost doubled in 2006 to around $2 billion, or around 10 percent of all sales, but failed to compensate for an overall decline in sales of CDs, the global music industry trade body said Wednesday.
CDs are digital last I looked. "Digital" music sales are down. "Online" music sales have doubled. (ok I digress)
What is interesting if you follow this market and the debate over net neutrality is that the phone and cable companies are losing big right now. BellSouth has been working on the Holy Grail of delivering all of your digital content for years. It's all their people talk about.
But while they keep talking about bonding copper pairs vs pulling fiber, there is a new business model being born, the content distribution business.
Interestingly, The Blockbusters, the film studios and the networking companies are all losing the race to deliver content to your home. All the people who had inherent advantages are losing to the Apples and the Netflixs of the world.
Economies tend to not favor the middle man over time so their future is up for debate in my book but fornow they are winning the race. The telcos can probably give it up. They have enough trouble supporting the products they offer now. Bellsouth can't keep their email servers running, do I want them trying to deliver VOD? No.
Downloads now account for 10% of all music sold. Forcasters say that will increase to 25% by 2010. and that seems conservative. Video is about 3 years behind music. To be sure we have a long way to go but media on demand is coming of age.
