Web gAlexy.com

Google to bid on analog broadcasting exodus

Background
The US government has set a hard deadline to move from analog television transmissions to digital by April 7, 2009. Many television stations have already  made the  switch and other smaller broadcasting stations such as community/college stations are still working on the move. The technology mechanisms are very different which have certain cost implications for broadcasters.

The carrot on the stick to the television stations is that they can broadcast up to eight standard channels or one high definition (digital) signal opposed to just one.

The FCC will auction supposedly around January 2008 space on the 700Mhz spectrum.

Google wants to bid
Google has said they are interested and they state that they will put a bond of 4.6 billion only if they can resell the 700Mhz spectrum on a wholesale basis which breaks the classic monopoly model.

Google also wants to see no restrictions on what you download and use, that you can choose the wireless carrier that you prefer, and that third parties should be able to connect at any feasible point in the wireless network

Why is this interesting?
If Google was to be the owner of the 700 Mhz and apply it's famous monetization model we would see  massive access to the internet for free in the US which would create a surge in the utlisation of hand held devices to access the web...something which is costly today.

Photo copyright: Coolcaeser

A steady rise in online video consumption 2002-2007

I have recently live streamed an important event which had a reach of close to 100 countries. The US was not at the top of the list for various reasons. Extrapolating I got a serious itch to see where lately the general public in the US was going to see their video  clips which led me to compare the consumption to 5 years ago targeting broadband users (Dial up was still a player in those days..This is what I found thanks to Comscore and Pew.

In May 2007 nearly 75 percent of U.S. Internet users watched an average of 158 minutes of online video per user during the month.  Google Sites topped the monthly rankings with both the most unique video streamers and most videos streamed. Download stats.jpg

Of interest

• The average video stream duration was 2.5 minutes.

• Nearly three out of four (74.3 percent) U.S. Internet users streamed video online.

• More than one out of three (35 percent) U.S. Internet users streamed video on YouTube.com.

• The average online video viewer consumed 63 video streams, or more than two per day

The market has lots of room to grow
Having read over a 2002 US study from Pew Internet called "The Broadband difference" which reports  approx 20% of broadband users watched video online in those days compared to 75% today. Do not consider me a rocket scientist if I state that the main reason for the rise is that content producers are favoring video as a medium.

With all of this said I think it is safe to say that in the next 5 years the number of online viewers will rise compare to the number of traditional TV viewers (in the US) and the consumption time swiftly will surpass existing figures as technology will make it easier to deliver content via alternate devices such as Smart phones and Blackberries either utilising live or podcasting like features.