Let's face it, change is tough!
From Randy's post:
"Pandesic's business model is like that of an outsourcer. It provides hosting and infrastructure in return for ongoing fees that will grow with volume. "We become their infrastructure in many ways, and what we put in is hopefully returned many times over," says Hughes. But this percentage-of-revenue pricing model isn't always well-received by the venture capitalists backing those companies. "We've had to do a bit of educating there, convincing them that we actually add to the return," Hughes says. Pandesic recently retained an investment banker to help its startup customers raise additional capital.
Pandesic's much-maligned business model, which the company admits contributed to its slow start, may finally be gathering momentum. "E-commerce service offerings are gaining traction, and Pandesic's applications are architecturally well-suited for that," says berdeen Group analyst David Alschuler. "Their assets, with an integrated backbone that uses R/3, are unique for companies that are virtual start-ups.""
Possibly good parallels in this business model to Ampex and Internet TV networking and hosting. Like E-commerce service offerings, Internet TV networking and hosting may initially be footed on an unclear basis.
Beyond this, Internet TV networking and hosting requires high bandwidth pipelines, upgraded and revamped gear at the server side and client-consumer side, possibly standardization in the HDTV area and elsewhere and an evolution of content which is both feasible and demand satisfying.
In sum, a scenario possibly even too bold for today's venture capitalists.
For Ampex, this may prove to be an advantage. If Ampex digital video equipment and know how combined with, initially narrowcasting affiliations, then following on more broadcasted Internet TV affiliations-developers, and most important, their corporate / financial history taken all together, may put Ampex in the position of being the first historically relevant meaningfully capitalized and advanced gear equipped Internet TV producer / provider in the galaxy.
If my assumptions are correct, Ed Bramson will be one of the most visionary figures of interactive Internet-based media. Be prepared to be cast with labels such as speculative fools, wild-eyed visionaries, hopelessly undercapitalized, severely inexperienced in the specific environments, impossible to compete with the largest media moguls in existence and so on.
There is always resistance based on inertia to any new idea. NBC, under the prodding of GE may be making headway and so may be TCI / @Home under the prodding of AT&T. However, CBS, ABC, Disney and others may prefer a slower pace as will most likely everyone else on down. Let's face it, change is tough!
We should know within on year - at most two years. Ampex and affiliates's solutions and business models should be becoming evident in that time. Also, high end users will have bandwidth in some form or another and gear will begin the roll-out on the server side and for the consumer (watch Sony!).
There may even be competitors! If so, then surely, the entire speculation will be validated.
Ed Perry
PS: my investment position is long AXC . |
