It's The Connection, Not The Content

from the why-telecom-should-buy-the-music-industry dept

Andrew Odlyzko got quite a bit of attention a few years back for being the first person to point out that Worldcom’s (and others’) claims that the internet was doubling every three months wasn’t even close to true. Now he’s causing more trouble debunking some internet myths. He points out that network utilization is incredibly low, and those building capacity are going to face problems. When you look at the home user, it turns out they use an average of $2 worth of bandwidth per month – despite paying $40 or $50 for their connection. He also suggests that those who believe there’s a business model in content are sadly mistaken. Connectivity is the real issue (which goes along with my claims that people need to sell services – not goods – online). In fact, he half-jokingly suggests that the telecom industry should just buy up all the music and movie licenses in the world, and let people trade these freely online. He suggests this would benefit the telecom firms immensely. The revenue from such content is 5% of the total revenue of the telecom industry, and the increased bandwidth use would more than make up for the difference. Of course, he admits that this is impossible “for a variety of political, economic and legal reasons.” Still, it’s an excellent point that puts a lot of the current debate over file sharing into perspective.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “It's The Connection, Not The Content”

Subscribe: RSS Leave a comment

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...