Archive for August 18th, 2009

One of the promises of the internet has always been the collapsing of the pipeline between content creators and content consumers. We have already witnessed this phenomonen in the newspaper industry as the cost of distributing news fell from over $100 per subscriber per year to fractions of a penny.

As internet technology improves the same will happen to movies and television. Vuze, formerly Azureus, is a Silicon Valley startup that is at the forefront of this trend. By utilitizing peer-to-peer Bittorrent technology, Vuze has inverted the usual relationship in video streaming between scale and performance. Most internet streaming video degrades less than gracefully as more users watch a given stream. With peer-to-peer technology, the more people who watch the same show as you, the better your quality will be. Not only that, as more viewers join the network, the cost of delivering a high definition video stream to your TV, iPod or laptop declines to zero. With millions of concurrent users at any one time on the Vuze HD network (as of July 2009), you can be sure that someone will be watching what you are.

Just as the newspaper empires took over a decade to crumble, it’s likely that the large production studios will defend their fortresses for as long as possible. But in the long run, creative producers and quality content will gravitate to the cheapest distribution network. Consumers will pay less for their television shows, and the people who create the shows we watch will keep more of the profit.