
In recent years, more precisely this past year we have witnessed the massive growth of streaming services for entertainment.
There big “old” global streaming players like YouTube, Netflix, Spotify, among others, added to local or semi-local players like Google TV, Hulu, Fox, ESPN, TIDAL, are increasing their competition with the new services of Apple and Disney among others. But let's not limit ourselves to streaming content but let's put online or partially online gaming services in the arena like those recently announced by Apple and Google.
The problem, I think, is that the way in which the current business model is raised is not scalable and is doomed to failure.
All this poses new technical and business challenges, some of which I briefly and informally analyze below:
The problem of the geographical limitations of the contents
At this point there are incompatibilities and limitations imposed on these businesses that I believe respond to obsolete models inherited from a past in which things were done in a way that today greatly limits the full development and potential of these services.One of these limitations is the regionalization of content for streaming rights reasons. In the past, the business or a large part of it resided in the sale of rights to broadcast content in different regions or countries. Today these companies that produced and sold emission rights or that were simply intermediaries, face the new modalities of contracting services by customers, where streaming and direct contracting seem to be the big stars. But let's not forget the global nature of the Internet and the fact that the Internet does not recognize geographical boundaries. Then, when a new streaming service is announced anywhere in the world, thousands or millions of potential customers automatically begin to investigate the contracting and visualization mechanisms. It is at that point where the vast majority of them clash head-on with the issue of rights and geographical virtual barriers that for some reason content providers insist on imposing.
I think the world has changed ... and who does not see it or delay seeing it will lose (sooner or later) the race.
The era of geographic content limitation has come to an end. The most skilled and willing to invest extra dollars hire VPN services to access geographically limited content. Those not so knowledgeable or willing regret not being able to access those contents and are at a disadvantage.
Then, whoever goes first in braking down these barriers and universalizing the possibilities of access to services, will clearly be the most prolific. For this, I think that it is necessary that those who are responsible for planning in the content providers change the way of thinking and doing these businesses ... and the new players who in turn own all their content (like Disney for example) are the ones who have all the advantages to quickly make this move and position themselves ahead.
The problem of the granularity of services
A new inconvenience arises for consumers: that of the granularity or disaggregation of services. There is so much offer of services today, that in order to have a wide range of them it is necessary for a family to invest several tens or hundreds of dollars monthly in content. I believe that this reality undermines the future development of these modalities of services and places a clear limitation on their growth.In the past, cable or broadcasting companies in general were the ones who performed that integration; they were the ones who “packaged” the proposals and marketed them as such.
So, I think it opens a new path towards business models that integrate the proposals, as well as new business models for Internet Access Providers (ISPs as they are called).
Why the ISPs?
It is at this point where the commercial and the technical come together. It happens that these new streaming services require that the broadcast occurs as close as possible to the client, because that way the quality and speed are maximized while reducing latency, without having to greatly impact the costs of bandwidth and Internet streaming (both for content providers, ISPs, or end users).
For this, agreements between content providers and ISPs are required, where providers host their content in ISP Data Centers to position it (in terms of networks and the Internet) very close to the client.
However, these agreements, I believe, also open the possibility of other agreements through which ISPs can play the role of natural integrators of content.
How?
I believe that the synergy between content providers and ISPs is natural, necessary and potentially very productive for both.
In this way the suppliers can host their content in the ISPs and the latter play the role of offer integrators vis-à-vis consumers, maximizing business possibilities and providing an economically attractive and profitable offer for consumers.
All this requires, again, a paradigm shift in the way of doing these businesses and in the way of relationship between Content Providers and Infrastructure Providers (ISPs, Telcos, etc).
For this to happen, it is necessary the will of all parties and people with sufficient mental openness and future vision of the telecommunications and content business as a win-win for all parties, rather than a race where everyone runs towards a point in the infinite that is unattainable and where otherwise, the most harmed will be all, especially consumers.
I think it is a conclusion of the set behavior theory, mathematically demonstrable, that says something like that the maximum benefit of the set is not the sum of the maximization of the benefit of each individual. This means that everyone has to be willing to give something up, so that the benefit of the set is maximum! And this, in the history of business, has always been a huge challenge that only a few visionaries have understood !!!

