[opendtv] Re: Can't stream HD?

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Sun, 14 Dec 2008 09:39:52 -0500

At 9:18 PM -0800 12/13/08, Ron Economos wrote:
Remember that the profit margins for broadcast equipment
are astronomical. Those Divicatch gadgets I mentioned
in my previous post sell for over $1000. I'll guess the
BOM cost is less than $100.


And the NRE to play in the broadcast market is relatively small when compared to that which is required to play in CE devices. I know because I have developed a number of product for the broadcast and professional video markets, as an employee at Grass Valley and as an independent contractor developing products for Videotek and ForA. And it is not difficult to market to a target audience this size.

Unfortunately the much larger professional video markets are now more like the consumer markets - Apple has several hundred thousand seats of Final Cut Studio. A few thousand of these are in broadcast facilities. Even Avid is struggling to compete in this market now.

There certainly is room for both in this world, and even if OTA broadcasting dies, there will still be many opportunities to develop products for market niches in the content distribution business.

But the requirements are changing. The creation of 24/7 linear transport streams as a business is being challenged by streaming content files on demand. The latter is being fueled by the continuous evolution of IP networks, which is another market for which you need significant resources to be able to play (i.e. in the core technologies that are dominated by the likes of Cisco).

On the other hand, this evolution is opening up huge new opportunities for small developers - The App store for the iPhone and iPod Touch is a great example. More than 10,000 applications in the first 5 months, with more than 100 million applications downloaded.

This is not about religion. It is about innovation.


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