Regarding fixed content costs versus dynamic distribution costs:
FY 2001 FIXED PRODUCTION COSTS
Average Fixed Production Cost per Video Segment: $1,110
Total Video Segments Produced Each Month: 104
Total Fixed Production Cost per Month: $115,440
FY 2001 DYNAMIC STREAMING COSTS
Average Video Streams per Day: 56,226
Average Video Distribution Cost per Stream: $0.071
Average Video Distribution Cost per Day: $1,767
Average Video Distribution Cost per Month: $53,736
FY 2001 COMBINED COSTS
Fixed Production and Distribution Costs per Month: $169,176
Percent Fixed Production: 68%
Percent Dynamic Distribution: 32%
FY 2002 FIXED PRODUCTION COSTS
Average Fixed Production Cost per Video Segment: $1,110
Total Video Segments Produced Each Month: 104
Total Fixed Production Cost per Month: $115,440
FY 2002 DYNAMIC STREAMING COSTS
Average Video Streams per Day: 149,936
Average Video Distribution Cost per Stream: $0.071
Average Video Distribution Cost per Day: $4,711
Average Video Distribution Cost per Month: $143,296
FY 2002 COMBINED COSTS
Fixed Production and Distribution Costs per Month: $258,736
Percent Fixed Production: 45%
Percent Dynamic Distribution: 55%
The fixed production costs per video segment/episode can vary widely depending on how long and fancy (how many people) the video/production is and how often these segments are produced (weekly, daily, etc). The longer a video is and/or the number of people or locations involved can rapidly increase the cost of producing a video! Of course, one could purchase video (or acquire companies like AENTV that have/produce video content) from others without having to actually pay to produce the video, but as far as I can tell, iNEXTV has produced 90+ percent of the content they stream today. Bramson tries to reduce these costs by producing a lot of studio-only (talking heads) content, not a lot of live/on-location stuff, except for the travel content.
The dynamic streaming costs per video is about 7 cents, and this cost applies to each and every video watched, so this cost varies widely based on pure demand for our video content coming form all our syndication partner's web sites. As our network grows, and as more and more people get broadband and start watching video on the Internut, our distribution costs will really shoot up compared to our relatively fixed costs associated with producing 100+ video segments each month. |
