The document discusses several key topics related to internet video content including: 1. Questions around how internet video differs from traditional TV content in terms of delivery, producers, and importance of user-generated content. 2. Telecom companies are building out broadband infrastructure in the US but it still lags other countries in broadband speeds and fiber connectivity. 3. Current trends show growth in high-quality internet video through services like streaming and downloads, but traditional TV and movies still dominate long-form content. 4. User-generated sites like YouTube have become major platforms for both amateur and professional video while ad-supported sites also strive to find audiences and business models.

1. The Content Question Jeffrey Hart Professor Indiana University http://mypage.iu.edu/~hartj November 14, 2008

4. US is Lagging in Broadband Takeup

5. US is Lagging in Broadband Speed

6. US is Behind in Fiber to the Home/Building

7. Verizon FiOS vs. AT&T U-Verse Both are capable of moderately high quality video content delivery. Both are betting that digital TV service revenues will grow faster than telephone services in the next 5-10 years. FiOS U-Verse architecture FTTH FTTN latest stats on customer base 1.5 million 0.6 million download speeds 10 mps 6 mps

9. Production Values and Potential Audience Size Small audience Large audience Hi value Lo value Chris Crocker Videos of my dog on YouTube Sanctuary ; other HD content Movies TV programs LonelyGirl15

10. The MeTV Hypothesis Source: Eli M. Noam, “The Stages of Television: From Multi- Channel Television to Me-TV,” CITI Working Paper Series, 1995 Stages Delivery Audience Size Regulation Business Model Limited Terrestrial Broadcast Large Audiences Regulated Ad-supported Multi-Channel Cable, Satellite Smaller Audiences Lightly regulated Subscription Me TV Internet and other digital conduits Niche Audiences Lightly regulated? Pay-per-view or download to own

12. The Long Tail Hypothesis In MeTV the user becomes a video programmer; in the fat long tail case, the user may be the producer as well as the consumer . Pareto Distribution (aka Power Law) “ fat tail means more Voices will be heard” See Chris Anderson, The Long Tail (New York: Hyperion, 2006).

14. Media Usage Statistics Source: Study by Veronis Suhler Stevenson. The big news is that Internet use is rapidly displacing recorded music and newspaper use; and hours per day media use is reaching a plateau (around 3.5 hours per day on average). TV use and web use are increasingly simultaneous (Nielsen data).