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Data Isn’t Free

Here’s some interesting, depressing comments on the failed economics of delivering high-bandwidth content to the developing world.

    Last year, Veoh, a video-sharing site operated from San Diego, decided to block its service from users in Africa, Asia, Latin America and Eastern Europe, citing the dim prospects of making money and the high cost of delivering video there.
    “I believe in free, open communications,” Dmitry Shapiro, the company’s chief executive, said. “But these people are so hungry for this content. They sit and they watch and watch and watch. The problem is they are eating up bandwidth, and it’s very difficult to derive revenue from it.”

That’s the problem with you people, you’re just too hungry! Taking food from the rich people’s tables and holding your hands out for more. Now where have I heard that before?

    “It’s a problem every Internet company has,” said Michelangelo Volpi, chief executive of Joost, a video site with half its audience outside the United States.
    “Whenever you have a lot of user-generated material, your bandwidth gets utilized in Asia, the Middle East, Latin America, where bandwidth is expensive and ad rates are ridiculously low,” Mr. Volpi said. If Web companies “really want to make money, they would shut off all those countries.”

So far, apparently, Veoh is the only company to take this drastic step. But if you wake up one day to find your favorite sites like YouTube or Facebook blocked, don’t blame your local dictator — at least, not yet. Instead, blame capitalism. Or better yet, blame yourselves! You’re downloading content without being good consumers.

Comments

Comment from adel
Time: April 28, 2009, 03:58

that’s something other video sharing web sites disagree with! veoh simply doesn’t have good business model and blame it to… they are stupid, but I would like to thank them, blocking me makes read manga instead of watching anime, which is million times better

Comment from Annouss
Time: April 29, 2009, 17:55

Form now on, I will not skip the ads anymore :)

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