The Real Cost of Netflix Streaming is the movie

The Real Cost of Netflix Streaming is the Movie, Not the Bandwidth

Despite my summary, it would not be feasible to distribute a blockbuster, like Shrek X , to everyone who wants it on release day. With the numbers that are typical for such a blockbuster release, it would take more than the world’s currently available bandwidth for several weeks.

Even Netflix continue to see growth in physical media delivery, expecting that to continue until 2014 before streaming takes over.

But it is an interesting data point that the costs of the rights are much more than the cost of the actual delivery of on-demand streams to subscribers.

But despite a huge increase in the amount of video streams it’s serving up through Watch Instantly, Netflix’s streaming costs haven’t increased proportionally. In the second quarter, the company said costs associated with delivery over third-party CDN networks only increased by $1 million versus the previous quarter. Netflix is benefiting from bandwidth costs continuing to fall exponentially as it grows its streaming business.

With the DVD side of the business, delivery costs outstrip programming costs:

But expenses associated with DVD delivery offset its reduction in purchase costs. According to Netflix, the costs of its DVD-by-mail business increased by $23.1 million in the second quarter. Due to the vast increase in its subscriber base, the number of discs shipped grew 9.3 percent, despite a 20 percent decrease in the number of DVDs per sub. Those costs could increase even further next year, as the U.S. Postal Service has announced plans to increase postage rates (again).

YouTube to increase upload limit to 15 minutes

YouTube to increase upload limit from 10 to 15 minutes

Overall an evolutionary move with YouTube, which has progressively increased the file size limit, the highest quality limit (although I don’t buy “4K”) and now an extended duration for those who aren’t YouTube Partners. YouTube Partners have been exempt from the duration limit for a while now.

Just think about it: the move would bring 50% more “haul videos,” from shopaholic teen girls; 50% more crazytime rants from random dudes; 50% more hamster montages; and 50% more double (whoah that’s almost a triple) rainbows.

Why now? I don’t know. Why not? But I’d put my money partially on the company’s recent win in the Viacom case, and a sense that they’ve now figured out more effectively how to help the big content owners (labels, movie studios, TV networks) identify infringing uploads, which might tend to fall largely in that longer-form category.

Worried about loss of iDVD from iLife?

Worried about (possible) loss of iDVD?

iDVD – the DVD burning part of iLife is, according to rumors, likely to be dropped from the iLife 11 package supposedly in development. In it’s place an unannounced mystery application.

Just how important is iDVD – well at the bottom of the Apple Blog article linked above, is a survey:

Daily 3.3% (20 votes)

Once a week 4.6% (28 votes)

Once a month 11.2% (68 votes)

Every few months 25.3%(154 votes)

Once a year 27.1% (165 votes)

I’ve never used it. 28.5%(173 votes)

Total of 608 votes at that point.

I wasn’t sure exactly where to place my vote. I’ve used it exactly once in five years. To do a slideshow!

San Francisco firm to buy Grass Valley Group

RT @walterbiscardi: San Francisco firm to buy Grass Valley Group | –

Interesting move to buy Grass Valley out from French-owned Technicolor (Thompson). I didn’t realize there were so many parts to Grass Valley.

The binding offer from Francisco Partners is for 100 percent ownership of the current Grass Valley Broadcast & Professional business, which would operate as “Grass Valley” going forward. This includes the camera, content repurposing, editing, master control, modular, news production, production automation, routing, servers, storage, and switching product lines including their entire product portfolios, the R&D centers and factories around the world, the Sales & Systems activities and Customer Support organization worldwide, as well as the management and administrative support functions dedicated to the business. This business perimeter and associated product lines for which the offer was made by Francisco Partners represent the core of what the market historically knows as Grass Valley products.

Yes Men Make $11,000 on first weekend of P2P release.

Yes Men Make $11,000 on First Weekend of P2P Release

By asking for donations while distributing the film The Yes Men Fix The World the Yes Men are bringing in “about $500 an hour” now.

For the Yes Men, that tipping point could actually come sooner than later. The duo has already said that it will definitely publish its next movie on file-sharing sites again to give back to people who finance its production with their donations. But Bonanno said that they could also change their mind on other distribution methods, like theatrical releases or TV deals, depending on how much money the current donation campaign will bring in.

Just shows that there are many different ways to distribute and fund a movie.

Announcing The Terence and Philip show

Announcing The Terence and Philip Show

Terry Curren and Philip Hodgetts bring their not-politically-correct opinions on Avid, Adobe, Apple, post production, production, distribution and pretty much anything they want to talk about.

The show has no fixed duration or schedule, taking the form of a free-form discussion between the hosts, who bring their years of industry knowledge to the discussion.

If you remember back to when I hosted the Digital Production BuZZ and the last segment – the BuZZ in Depth officially – that Michael Horton generally referred to as “the rant”, then this is kind of like that but with Terry Curren’s perspective as well. For any of you that don’t know Terry:

Terence Curren has had a passion for filmed entertainment since the age of 12, when he began creating home movies with an old eight-millimeter camera.

He began his career in the early 1980s by directing, editing and producing music videos and a direct-to-video feature film. In 1986, he spearheaded the evolution of a major post-production facility’s edit bays, where he became senior editor in short order. His reviews and tutorials of emerging post technologies have appeared in Post, DV Magazine and other publications.

His extensive knowledge of the Avid along with his rich editorial and color-correction experience, has earned him the recognition of his peers and a legion of loyal clients.

And if you like the new show, thank Keith Larsen who first came up with the idea and name of the show. If you don’t like it, you know who to blame!

The new show has no connection with the Digital Production BuZZ. I will continue to contribute there as and when Larry Jordan would like me to.

CloudCanvas HTML5 Image Creation and Editing tool.

CloudCanvas Launches HTML5 Image Creation And Editing Suite

While Adobe have given some indication that it’s moving to provide the creation tools for HTML5, with their Lab project add-on to Dreamweaver for HTML5, the addition of a competing comprehensive tool is good news for the HTML5 ecosystem and long term prospects for even more widespread adoption. More interestingly this is a browser-based “cloud” application.

CloudCanvas allows both novice doodlers and expert designers to create, store, edit and embed images into the suite. The suite, which supports both vector and bitmap images, includes a standard roster of simple image tools similar to offline image editing suites (i.e. Photoshop), including polygons, circles, painting, layers, brushes and others. And the suite includes more advanced editing tools such as bezier curves, blurring, drop shadow and bevel filters.

Additionally, CloudCanvas is integrated with Google Images search and DeviantArt libraries to import images into the suite and includes over 30,000 clipart and templates within the suite. The suite also includes 500 fonts ready to use on the web and support saving in PNG and SVG formats