Aahh...iNEXTV (AXC) The NEXT Thing! Message Board

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Technology Stocks : Aahh...iNEXTV (AXC) The NEXT Thing!

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To: Michael Olds who wrote (3324)	3/31/2001 11:46:41 PM
From: Trenton A. Scott	Read Replies (1) of 4169

Using your numbers (5% population usage, 50/50 split on broad/narrowband segmentation, etc.) my cost model produces the following: Stream Cost (per GB): $15.00 Daily Stream Load (seconds): 144,000,000 (800,000 views * 3 minutes * 60) Daily Broadband Cost: $168,750 Daily Narrowband Cost: $59,063 Daily Distribution Cost: $227,813 Even though the number of streams drops in this scenario, the increase in broadband usage to 50% really hurts, bringing the revenue-per-stream requirement up to 28 cents just to break even! Nasty. This lower usage scenario still requires almost $5 million each quarter to cover distribution costs; these numbers are so bad, I'm thinking iNEXTV must be getting some kind of volume discount/break from Akamai; otherwise, Bramson would have folded tents already! A 50% drop in streaming costs to $7.50/GB would help things a lot, dropping the revenue-per-stream requirement to 14 cents. Ouch.

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