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Success Cases

Compression issues aside, audio delivery and video delivery are broadly technically equivalent models - with the key variance being the bandwidth required by the content. The rollout of broadband availability without a doubt produced a significant drag in the emergence of video services worldwide, while the music services space had emerged some years before.

Obviously there were many smaller models years before these prime names emerged. However, the services listed in Table 6.1 have all been significant in their negotiation of rights. But until these rights vehicles appeared, they had largely been illegally rebroadcast or had limited investment and penetration.

These “big plays” were also markers of a point of critical mass being reached for rights deals in online content distribution.

The drag occurred due to big video licensors being a lot more demanding of video. While the music industry took a considerable hit, the video services industry was able to be more defensive in the music industry's wake.

Video services learned quickly where the music sector has “got it right”

Table 6.1 Drag between music and video services emergence in major rights enabled platforms.

Music services

Video services

Subscription on demand

2001

Rhapsody (Listen.com)

2007

Netflix

Pay-per-use on demand

2003

iTunes Music

2006

iTunes Movies

Subscription linear/live

2008

Apple Radio

2014

HBO Now

While the technology has been able to deliver the models for around 12 to15 years, it has taken all that time for the major broadcasters to “get serious” about online delivery, and realize that it is an inexorable future. Now the technology piece is pretty much sorted out; the last hurdle is largely a combination of rights negotiations and cultural change.

Let's briefly take a look at two more of the largest success cases.

 
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