Tuesday, June 11, 2019

When Bandwidth and Media is Almost Zero Cost

Network bandwidth gets cheaper every day. The factors that drive hard drive storage capacity and computing power drive network bandwidth, too. Network bandwidth really boils down to the number of computations a device can do per unit time, or the number of operations a device can do per unit energy.

The corporate broadcast media is being eaten up by the Internet the same way newspapers were by cable TV and the Internet. There's essentially no barrier to entry to produce and distribute video content, now.

The current ham fisted attempt to censor YouTube on behalf of legacy media firms will probably only succeed in fatally wounding YouTube. In recent days and weeks, the amount of content on competitors like BitChute has been booming. The factors that drove the rise of YouTube and the decline of the corporate media will propel YouTube's competition.

Tech firms might end up like a man who's job is to sell sand on the beach. For the past few years, the value of companies like Faceberg or YouTube has been derived from eyeballs, network effects, and critical mass. The theory was their positions were entrenched due to the large number of users on those sites. However, the user base of these corporations might be as ephemeral as a flock of birds on a wire. The cost to duplicate faceberg or YouTube drops by a factor of ten every few years.

I thought railroads were a good analogy for these companies, but maybe mass market candy is a better analogy. At first there are a handful of candy companies, then the market is saturated by 1000 different confections.

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