3   Business Models

Information technology and business are becoming inextricably interwoven. I don't think anybody can talk meaningfully about one without the talking about the other.

—Bill Gates

Regardless of the technology, the key to success in delivering video services to consumers is a profitable business model. A wide variety of models are being tested in the market today for delivering video content over IP networks. Many different plans for user fees are being tried, ranging from completely free service to services that charge for each viewing of each piece of content. In the long run, it is likely that a few selected models will dominate, but for now, it is prudent to get an understanding of the many different models that are being ...

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