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Streaming media is a technology and a medium that could be tremendously important, generating growth and providing end-users with much better access to information and entertainment than they ever had before. Streaming media could be a much bigger business and have a greater societal impact than television. However, while the potential is great, delivery of the system, to date, has been less than what is required to cross the chasm between early and mainstream consumer adoption. It is an open question whether or not people will spend more time looking at screens (in other words, consuming more media) as a result of streaming media technology. I believe there are reasons to expect that they will, but perhaps in smaller increments of time: more sessions of shorter duration. Will streaming media cannibalize radio, television, and computer-game audiences I think the answer is that it inevitably will. Will streaming media enrich society From the point of view of increased richness and reach of communications, the indications are positive. Will streaming media make money Again, it appears that the potential exists, but that the limit will be related to the increase in the average number of hours we spend consuming media. There is no bottomless pit of attention to attract. All media consumers are mortal. Attention is finite and increasingly precious. Why hasn t the potential of streaming media been realized to date Besides the sheer degree of the technical challenge and the scale of the logistics required to build out the system, I believe the main impediment to progress has been the lack of coordination between sectors of the industry. As one sector has developed delivery technology or built excess optical capacity, other sectors such as the consumer electronics industry or the content providers, have waited on the sidelines. Every company acted rationally, within its own legitimate concerns, but the result of this piecewise progress was that those forging ahead, unsupported by other sectors, lost money. The net effect on streaming media technology has been slow progress from promising technology to everyday use. When the broadcast systems were introduced, a small number of companies supplied the first content, production facilities, transmission infrastructure, receivers, and customer support. Look at how RCA in the US and the BBC in the UK went about introducing television. Companies were more vertically integrated in those days (or aspired to be).
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Even in recent times, the UK s Sky Digital is a case in point. Connecting to Sky requires a man from Sky to install a Sky-supplied set-top box in your home. He doesn t leave until it works. Thereafter, Sky delivers the programming from its network operations center, including content it produces with its own Sky branding. For the consumer, converting to digital television reception is a one-stop shopping experience. Contrast this with the plethora of companies a consumer must deal with in order to adopt streaming media. Even with all the requisite contracts, equipment and arrangements in place, the consumer is still left to figure out the integration details for himself, with no idea whom to call when something goes wrong and no way to prove it, assuming the guilty party can be found. Would the adoption of digital television in the UK have been as rapid if consumers had faced the same obstacles as those interested in streaming media reception face It is doubtful. Perhaps streaming media needs a single organizing, vertically integrated force, supplying the full end-to-end solution, to help it take root. If one organization supplied the content, production, and authoring facilities, broadband distribution networks, receivers and nice, friendly people to help consumers over the phone when they had difficulties, the system may achieve faster, more widespread, mainstream adoption. The company might subcontract the individual pieces to specialist companies and suppliers. The point is that consumers would see a single guiding intelligence, with which they could maintain a simple and direct relationship, assured that their particular problems and concerns would be addressed and solved by the monolithic body. Perhaps vertical integration still has some merits as a business model. Technically speaking, the streaming media industry needs to deploy cache management for edge streaming systems; forward error-corrected transmission; intelligent load balancing; re-engineered media players that deliver better quality of playback experience and presentation continuity; MPEG-4-compliant infrastructure from end to end; synchronization mechanisms for multiply sourced streams; simulcast capability; synchronized multimedia; multicast technology, assured quality-ofservice content delivery networks; home media gateways to bring the edge of the network into the home; imaginative receiving devices; bulk optical; wireless and mobile bandwidth; symmetrical rights management that protects all parties to a media commerce transaction; laws to support global copyrights; laws against abuse of consumers rights and; finally, licensing technology that does not annoy or intrude. Content providers must also resist the opportunities for rapaciousness that digital rights
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