Online Video, Pay-Per-View The Future According To Cogent Founder

Cogent Founder, David Schaeffer spoke highly of online video at ISPCON, a convention dedicated to service providers looking for the next big thing in Internet technologies. Comparing online to video to standard television, Schaeffer makes a point regarding what works and what doesn’t when it comes to monetizing content:

The HBO model already works for cable TV. HBO is profitable. On the internet, music services that charge a subscription fee, such as Rhapsody, are not as successful as those such as iTunes that charge per download. “Pay per use could be the future.”

Schaeffer makes an excellent connection between profitable ventures in current video and how the internet has not yet utilized the same business model. Subscription models provides a barrier to entry that has cut off several potential customers. If video providers are looking to turn their content into cash, they’re going to have to look to successful ventures for inspiration. The pay-per-view model seems to be the most effect means of monetizing content. The step content producers have to take is to form a relationship with a streaming video company that is able to create en e-commerce model suited to their specific needs.

ISPCON: Taking Advantage of Video [ISP Planet]