I have the feeling that ATHM should view this the same way they view DSL. We should offer it unless it really hurts us. We offer DSL just so we don't miss those customers and with the hope that we can eventually convert them to cable.
I think ATHM simply isolates the offering of a net ready computer as a profit center. ORCL will offer a sub $400 net ready computer this month. I am sure we could get HP, or someone, to pony up a unit in the three hundred dollar range. The financing guys can work it out so the computer is paid out of the monthly payments. The computer will be delivered with cable ready modem installed.
The bottom line is that I think we can offer a "Cable Ready" box with no cost to ATHM and, in fact, we will make a dollar or two. Of course, we still have a truck roll but we will save on installation time and we have another revenue stream (upgrades to the box). I think it is a deal we will do and make money on. Computers are appliances now. In this case, a give away appliance.
Even though I am angry that we did not do this sooner, I have to admit it is kind of good to be second to the market (provided you don't wait too long) because you can see all the problems and improve your model.
********************************************
Will customers pay for a premium network? Is ATHM a premium network? Can they be?
I think T is going to take care of all that for us.
Did you see the item below today? Note that T says the service will offer cable internet service so I guess we are in there somewhere as the backbone carrier but we are never mentioned by name.
biz.yahoo.com
Monday July 10, 3:39 pm Eastern Time
Company Press Release
SOURCE: AT&T
AT&T Launches 'Ecosystem for Media'
Creates the Industry's Premiere End-To-End Digital Media Platform To Serve 10 Million Simultaneous Streaming Media Internet Users
BEDMINSTER, N.J., July 10 /PRNewswire/ -- AT&T (NYSE: T - news) announced today its ``Ecosystem for Media,'' a network services platform with a comprehensive co-marketing and distribution program that will allow companies to create, manage and distribute audio and video to millions of users over the Internet. Working closely with Inktomi (Nasdaq: INKT - news), Microsoft (Nasdaq: MSFT - news), RealNetworks (Nasdaq: RNWK - news) and other industry leaders, AT&T will leverage its world-class data and Internet infrastructure, its digital media production capabilities and its broad network reach to build this unique suite of media services.
AT&T's Ecosystem for Media will enable businesses to unleash the power of applications such as website acceleration, streaming media, distance learning and media-enriched e-commerce. The initiative is currently in controlled introduction with general availability slated for the first quarter of 2001.
``One of AT&T's core competencies is scaling technologies,'' said Kathleen Earley, president AT&T Data and Internet Services. ``We're applying this skill to our media infrastructure and building the capability to stream real-time media to 10 million simultaneous Internet users.
We're fully committed to providing businesses with the ability to reach as many people over the Internet as national prime-time television reaches today.''
``AT&T's commitment to this market underscores the importance of content distribution networks,'' said David Peterschmidt, president and chief executive officer of Inktomi. ``Its selection of Inktomi as a core technology provider is a strong testament to our role in delivering essential Internet infrastructure. A key aspect of Inktomi's relationship with AT&T is how closely we are working with leading Internet companies to deliver streaming media and other rich content for a compelling Internet experience.''
Content Delivery Services
AT&T's Ecosystem for Media provides its customers with a continuum of content distribution options. For businesses that want to use the public Internet to distribute their content, AT&T's Intelligent Content Distribution Services provide customers with a variety of options for accelerating website performance, video-on-demand and webcasting capabilities. For businesses with enterprise-class networking needs that want to distribute their content within a private, high-performing and highly reliable network, AT&T offers its high- speed packet services.
Internet Based Streaming Media Services
AT&T's streaming media services provide customers with a broadcast-scale service for reaching large audiences over the Internet. One-to-many multimedia applications can now operate at vastly improved levels by optimizing network bandwidth and efficiently managing traffic destined for multiple endpoints. During the next 18 to 24 months, AT&T's streaming media infrastructure will scale to support 10 million simultaneous Internet users.
For its streaming media services, AT&T plans to use Microsoft's Windows Media and RealNetworks'® RealSystem® 8 as its initial media formats to provide an industrial-strength platform with the scalability and performance streaming-media applications demand.
``Today's announcement clearly demonstrates how digital media is becoming mainstream,'' said Will Poole, vice president, Microsoft Corporation Digital Media Division. ``AT&T's plan for a scalable delivery network running on Windows Media Services with Windows 2000 supports our mutual goal of creating an infrastructure to broaden the role of digital media in entertainment and e-commerce.''
``RealNetworks is delighted to team with AT&T to provide audiences with superior digital media experiences,'' said Jeff Pancottine, senior vice president, media systems, RealNetworks. ``The unparalleled quality of RealVideo 8 combined with RealSystem 8's distributed broadband solutions are ideal complements to AT&T's leading networking services.''
AT&T's streaming media offers supplement AT&T's Intelligent Content Distribution (ICD) Services. AT&T's ICD services employ technology from AT&T Labs as well as Alteon WebSystems, Dell, Inktomi and Novell to improve the performance and reliability of websites as well as protect against unexpected spikes in traffic.
Private Data Network Services
To meet the growing need of enterprises to distribute large media files throughout their private corporate networks, AT&T is announcing Asynchronous Transfer Mode (ATM) multicast capabilities.
Providing a ``universal port'' in the AT&T network via simple logical connections, AT&T's ATM multicast service takes content from a single ATM virtual circuit and replicates it within the AT&T data network for distribution to multiple end sites. AT&T's ATM multicast service is backed by industry-leading service level agreements and comes with a wide array of web- based reporting and network management tools.
``With AT&T's Ecosystem for Media we have a total communications provider who is genuinely concerned with our success as a company and works hard to help us achieve our objectives,'' said Jamie Thingelstad, chief technology officer at CBS MarketWatch. ``AT&T provides us with expert solutions to meet our data, IP and voice needs -- all from one company. We no longer have to juggle multiple vendors to get our services to the customer reliably and securely.''
Media Management Services
To provide businesses with a complete turnkey solution, the AT&T Ecosystem for Media will also offer customers the ability to encode and manage their digital media. For encoding services, the company will use AT&T Broadband Services' Digital Media Centers to digitize ``traditional'' media, such as VHS or audiocassette tapes, and convert them for use as ``downloadable'' or streaming Internet media.
Representing a critical link between content creation and delivery, AT&T also plans to work closely with Loudeye Technologies, Inc. (Nasdaq: LOUD - news), which provides Internet-based audio and video solutions for the encoding, management and distribution of digital media. Loudeye will supply its industry-leading digital media solutions to ensure that customers of AT&T's Ecosystem for Media receive high-quality digital audio and video content, as well as robust applications to effectively manage their media assets.
``Statistics indicate that more than 70 million hours of audio and video content is shelved away in archives and storage facilities,'' said Martin Tobias, minister of order and reason, founder and CEO, Loudeye Technologies, Inc. ``Loudeye's membership in AT&T's Ecosystem for Media provides a channel to begin unlocking this content, ultimately giving customers the opportunity to re-purpose their existing media assets and use it to generate new revenue streams.''
For customers with extensive video assets, especially those in the corporate media, broadcast or entertainment industries, AT&T will provide its Digital Video Library technology for video archival and retrieval services. These services will be made available through Excalibur Technologies -- a founding member of AT&T's Ecosystem for Media. Excalibur's Screening Room(TM), a powerful end-to-end video asset management solution, allows users to access video and text assets with a standard web browser over private data networks, corporate intranets or the public Internet.
Content Creation Services
AT&T's Ecosystem for Media also will include the ability for customers -- corporate, dot com, advertising, entertainment and others -- to create original content through its Digital Media Centers. Located in Denver, New York, Los Angeles and Hong Kong, these centers offer extensive production capabilities including studio, mobile and post-production services. Using advanced digital technology, AT&T's Digital Media Centers provide customers with a complete suite of services to create world-class video, audio and multimedia content.
Ecosystem for Media Co-marketing Program
AT&T also is launching a co-marketing program for the Ecosystem for Media designed to ensure the success of businesses of all sizes who are creating, managing or distributing digital media. The program -- available today -- will allow companies who purchase AT&T's Intelligent Content Distribution services and who host in AT&T data centers to leverage the power of AT&T's brand through multiple levels of co-marketing support. In addition, qualified businesses can apply for membership in the company's award-winning Alliance Program, a complementary sales channel that will enable them to market and sell AT&T's Internet services. Lastly, AT&T will make available an online business services directory as well as a set of sales and support tools for its Ecosystem for Media members.
``The evolution of digital imaging and networking technology has created a significant market opportunity for Kodak. So, we are teaming with AT&T through its Alliance Program and the Ecosystem for Media initiative to make it easier for companies to get, move and use images anywhere, anytime,'' said Marty Graen, Kodak global customer service and support -- chief marketing officer and general manager of Kodak's Image Integration Services. ``We will leverage our extensive experience in this space to provide a wide array of imaging network, encoding and digital asset management services.''
About AT&T
AT&T (www.att.com) is among the world's premier voice, video and data communications companies, serving more than 80 million customers, including consumers, businesses and government. AT&T has annual revenues of more than $62 billion and 160,000 employees, and provides services to customers worldwide. Backed by the research and development capabilities of AT&T Labs, the company runs the world's largest, most sophisticated communications network, is the largest cable operator in the U.S., and has one of the largest digital wireless networks in North America.
NOTE: Kathleen Earley, president of AT&T Data and Internet Services, will discuss the AT&T ``Ecosystem for Media'' in an audioconference for reporters and industry analysts at 10 a.m. EDT today. The call-in number is 800-230-1092 in the United States and 612-332-0107 for callers outside the U.S. A set of visuals to be used during the call is available via the Web at att.com. Beginning at 1 p.m. EDT today, a replay of the audioconference will be available for 48 hours by calling 1-800-475-6701 and the access code 527-279.
Sidebar
AT&T Ecosystem for Media
The AT&T Ecosystem for Media is built on a foundation of core data and IP infrastructure resources:
-- AT&T's Internet Data Centers (44 centers planned for hosting and co-location services).
-- OC-48/OC-192 IP backbone.
-- A complete portfolio of broadband services including Cable Internet Access, Digital Subscriber Line and Fixed Wireless services.
-- A broad portfolio of private label and virtual Internet Service Provider offers.
-- A continuum of VPN offers with access to 59 countries around the world.
-- Value-added design and implementation professional services from AT&T Solutions.
-- Monitoring and management services to ensure end-user performance and content delivery.
Participating Companies
Alteon WebSystems www.alteonwebsystems.com
Audible.Com www.audible.com
CBS Marketwatch www.cbs.marketwatch.com
Dell www.dell.com
Eastman Kodak Company www.kodak.com
Excalibur www.excalib.com
helloNetwork.com www.hellonetwork.com
Inktomi www.inktomi.com
Liberty Livewire www.libertymedia.com
Loudeye www.loudeye.com
Microsoft Corp www.microsoft.com
NextAudio www.nextaudio.com
Novell www.novell.com
RealNetworks www.realnetworks.com
VideoSnap www.videosnap.com
WebADTV www.webadtv.com
SOURCE: AT&T |
