RE: Content - BANKERSON
posted on
Nov 01, 2005 10:36AM
Why would a content provider do a deal with EDIG? MONEY. The same reason they offer content to anyone else.
This prompts the question that`s been on my mind for quite a while. Is the content provider paid up front or on an ``as you go`` (based on usage) basis? I would think that it would be handled like any other licensing agreement - possible up front licensing fee (or not), and royalties based on usage. But....
For a long time I thought that maybe they just paid one big up front fee for access for a period of time, and that THAT was justification for Wencor`s high price for a digE (~$2K for a device they get from EDIG for ~$600). Of course Wencor has other associated costs to cover, but that`s still about a 100% mark up. But it would make more sense for the likes of Wencor and EDIG for it to be structured with a nominal up front fee and pay as you go based on use. Flaw in this thinking: I don`t think that`s how content providers deal with movie theatre chains, or TV networks, or anyone else. So maybe that`s how it works....maybe a fee per device (like a fee for each theatre). Anybody have a better clue?
Cuz I KNOW nuttin`!
SGE