The problem with companies who have built their business around free is that it is far from free to remain successful. The more success you have in delivering free, the more expensive it is to stay at the top. The more success you have, the more important it is to management to remain successful.  The more important remaining successful is to management, the more money they will spend, the more chances they will take, the more infrastructure they will build, the more people they will hire.  All of the things that will prevent them from staying lean , mean and flexible. All of the things that distract them from innovating within their core competency.

I love this on going discussion. Of course all of you who think that the OPEN internet will be the primary platform for the delivery of traditional tv content are wrong . But hey, thats what makes a market. Before I get into dismissing some of the traditional arguments why Online TV will take over, let me start you with one that hasn’t been used. Rural Broadband.

The Motion Picture Association of America is doing their best to follow in the footsteps of their brethren at the RIAA and make business harder for its members. They, Im guessing at the direction of some lawyers of their member companies, want to try to make cable and satellite companies shut off the "analog hole" when showing movies that are being released to TV prior to their DVD release. In the MPAA's own words "Distribution over insecure outputs would facilitate the illegal copying and redistribution of this high value content, causing untold damage to the DVD and other 'downstream' markets."

The future of any technology can be defined by the economic opportunities it creates. One just look around Pittsburgh to see the explosion in the number of businesses built around advances in medical technology to see the importance of entrepreneurs focusing on new technology. The impact has been enormous. Which brings us to today. What are the opportunities in front of us to get excited about in the digital media field?

There is a lot of money being spent trying to turn internet video into something its not. Its not TV. It's certainly not going to be HDTV. What is shocking about the entire attempt to turn the internet into a tv/HDTV distribution medium is how much people lie to themselves about what is actually happening.

A couple weeks ago I wrote about the Ala Carting of Video on the Net. The premise was very simple. To paraphrase an old saying, "If you give away the milk for free, there is no need to buy the cow". If you give away your best stuff on an ala carte basis, then the value of everything that depended on that "stuff" declines. Some folks agreed, others searched for ways to disagree. Many in their responses seemed to think that because I own HDNet that I am biased and my judgement is clouded. In fact, its the exact opposite.