Scores of billions of dollars worth of global revenue are built on arbitrage: finding some way to bypass the pricing or gateways one or another network services provider requires as the price of using the assets. We call this "bypass." Sometimes we call it "disintermediation," removing the "middleman."
Telco and video "middlemen" know the danger. Well, the danger is growing. Sony, for example, will release a Will Smith movie, Hancock, on Sony's own digital distribution service before it goes to DVD release, traditionally the most-important of all venues for movie content.
When Hancock is available to buy, after theatrical release, Sony’s own digital distribution service is where it will be viewable. Keep in mind the other possibilities.
Sony's new Bravia line of televisions will be able to receive downloads via the Internet without hooking up to cable or satellite. Can you say "disintermediation"?
The same will likely be true for Sony's Playstation 3 video game console, which will roll out its digital movie download service this summer. Game platforms long have had the ability to function as DVD players. Now they will be able to act as movie download boxes.
Bandwidth, voice and television long have been applications where bypass suppliers have grown their businesses. Now we will witness "going to another level," as content and applications increasingly can "bypass" middlemen.
Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.
Internet Protocol (IP) | X |
| IP stands for Internet Protocol, a data-networking protocol developed throughout the 1980s. It is the established standard protocol for transmitting and receiving data
in packets over the Internet. I...more |