Digital media value chain.

by Aanarav Sareen on May 12, 2009

I’ve recieved a few comments about the last post. I’m hoping this image below simplifies things.

In words:

  1. Content creator: Visual Avenue — our online shows are still unprofitable, where as our other services are profitable.
  2. Content distributor: YouTube, Vimeo — YouTube has been struggling with a monetization model for the past few years.
  3. Content host: Akamai — As a content creator, Visual Avenue needs online storage, along with content distributors like YouTube. However, no one is offering this for free, and therefore Akamai (and other web hosts) are making money from digital media.
  4. Content transmitters: Content transmitters like AT&T and other ISPs are not making money, because they’re transmitting more data, while customers are paying the same.
  5. Content consumers: Consumers of content have gotten used to free content — independently produced and premium content, ranging from free online-only shows to TV shows.

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