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The Speed of Change

It’s impossible not to get excited about the rapid innovation taking place in Web video – from Joost’s upcoming P2P service with “real” TV channels, to Sling Media’s SlingCatcher, to Apple TV. Not everything new will succeed, but even when it doesn’t, the innovation puts pressure on video industry Goliaths to deliver better products and services.

Here’s the thing though. I wonder if the rate of change we’re seeing is going to catch up with us. And here’s why:

  1. If P2P video and even basic video downloading explode they way they’re supposed to with the new services being introduced, broadband networks are going to come to a screeching halt. Okay, that’s a bit of an exaggeration, but cable operators have certainly been known to shut down individuals’ service because they’ve exceeded some acceptable bandwidth-use limit. Throw massive amounts of P2P video into the mix and lots of folks are going to be pushing those limits.

  2. Old devices aren’t making way for the new. Nothing is out on the market yet that would replace all the functionality of a DVR set-top, and until that happens, every new device is an add-on in the living room rather than a replacement. Why is that important? Statistics from the CEA show that CE unit sales declined in 2006 and will likely continue a downward trend in 2007. CE dollar spend is up, but that’s because of flat-panel TV purchases, which are tending to crowd out other devices. (*Thanks to Arnie for pointing out these stats.)

ce-unit-sales.jpg

There is clearly a big technology shift underway, but I don’t think the market is going to move as quickly as the hype suggests.

5 Responses

  1. Things have just kicked off with viewmy.tv the new internet tv service, Joost better watch out cause viewmy.tv is not only free but also has good social community features. Viewers can expect to get access to thousand of good quality live tv broadcasts from around the world.
    Producers can add their own channels, view it full screen and get comments from registered users ++

  2. [...] Web Video and The Speed of Change: Connected Home 2 Go [...]

  3. I like P2p technology, I think it’s really one of the best things that you can do in the Internet. And I also want to mention the fact that I totally agree with your second reason. Great post btw, was very interesting to read it.

  4. Hello!

    That’s such a smart and clever article and I agree with every single word of it. Very well-written and it was absolutely terrific to read. Thanks fr sharing!

  5. As for me p2p technology is so convenient and useful that I’m always grateful to the person who has invented it. Thank you very much for this amazing article it was a great pleasure to read it!

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