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by tomphoolery
3195 days ago
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It's expensive to do VOD right, because videos are such huge pieces of data. Plus, the "user experience bar" that Netflix, Hulu, and YouTube have set are pretty high and actually require a fair bit of engineering. There's no "15 minute blog demo" for VOD. The last company I worked for started out in that space, but had to pivot to doing linear television because the market just wasn't there. They built some of the same infrastructure that cable companies now use to do their on-demand services. The only VOD services with healthy profits are actually content creators themselves. All of the services I just mentioned in the other paragraph have their own original content, and at least Hulu & Netflix are pretty successful at that. This original content keeps people on their service, generating more ad revenue, which is how they make money. Basically, if you're a major studio and have billions of dollars to throw away, VOD is pretty easy ;-) Source: I worked for a failing VOD/broadcast video company for a couple years. |
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