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The Agony of Streaming Video Content
by Jo Hawke @ Gay Streams

You’ve built a nice little membership site and now you'd like to serve what all the other up-and-coming pay-sites have: Movies. So, what are your options? Well, you can always cut cost by making your own.

Making Your Own Movies
You break out your digital movie camera and decided that the cheapest route to movies on the Internet is to talk your friends, the cheapest actors you know, into getting freaky in front of the camera.

About two weeks later, you’ve discovered that you can’t talk your friends, or your friend's friends, or anybody else for that matter, into getting freaky in front of the camera.

Now you’ve decided that you’re just gonna go out and BUY the damn movies. Hell, you’re gonna go right on out and buy a whole friggin’ bunch of them -- or rather, the right to use them on the Internet.

Buying Movies
In order to buy the kind of movies you want to show on your member site, you have to find a studio whose movies you want to show…

Then you have to contact the studio, buy plane tickets to where ever they are, buy them lunch at a nice restaurant to suitably impress to them that you mean business, and then spend at least 4 hours talking them into signing a content agreement – because there is no way in hell that they’re going to sell you the complete rights a single movie – never mind the 100 titles you had your heart set on. 

  • Cost of plane ticket to California: $500.00 (on a cheap flight that hops from airport to airport in the dead of night).

  • Cost of hotel: $125.00 (per night).

  • Cost of lunch: $300.00 (food, drinks, etc.)

  • Cost of contract agreement: A major share of your profits – once you have the movies ready to stream.

  • (Note to Self: Now that you have one studio’s movies, you still have well over 50 more studios to go, just to compete with the competition.) 

Streaming your Movies
So, now it’s time to take your hard-won movies from 50 different studios and turn them into electronic, streaming media. (Hey, you got lucky – it only took you 2 years to convince all those studios to speak to you on the phone, never mind doing actual business with you.)

Streaming videos into Real and Windows media requires 24 employees on two 8-hour shifts (12 bodies per shift) to render 50 movies a day into streaming media.

And then, it takes at least 4 experienced people to load your brand-new streaming media onto the server and encode it so that other webmasters can’t steal (or piggyback onto) the video streams. And yes, you have to pay all your employees for at least, 8 holidays a year to sit on their butts at home.

  • Cost of equipment: $12,000 in one lump sum. (Cha-Ching!) – Never mind! You are going to LEASE at $800.00 a month instead. (Small drop in the bucket. - plink)

  • Cost of production staff: roughly $24,000.00 a month. (Another drop in the bucket. – plink)

  • Cost of experienced encoding staff: roughly $8000.00 a month. (plink)

  • Support employees for marketing and traffic management departments: roughly $36,000.00 a month. (plink)

  • Cost of bandwidth to broadcast 800 videos: Are you really sure you want to go there right now? (plink) (plink) (plink)

With me so far? You have reached a total of: The Gross National Product of the Western World.

At $20.00 a membership, how many would you have to sell to break even?

Hmm… Breaking even is beginning to look like its going to require a membership be sold to every English speaking human on the planet. In addition to a fair share of those non-English speaking folks… So go ahead and hire that translator.

But wait – there’s more.

  • Cost of renting a building: $2500 a month. (plink) CONGRATULATIONS! You are now the proud owner of an empty warehouse. Now you have to put in all the creature comforts to make it livable. You know, silly things like floors, walls, doors, paint, carpeting, wiring, telephones, etc… 

  • Cost of a professional contractor: $5000.00 (plink). Unless you really want to leave it up to your employees’ doubtful abilities. Good luck passing the building inspection.

  • Plus monthly utilities. (plink)

  • Plus basic office equipment. (plink)

Lets toss in a few incidentals such as, cigarettes, beer, coffee, food, a stress management therapist, monthly prescription for Zanex.

Okay, you have reached a grand total of: Oh man, you ARE a sadist!

At $20.00 a membership, how many would you have to sell to break even NOW?

Begin to think in terms of: the absolute global population over the next century - and your going see that “break even” point just over the horizon!

And finally…
Cost of a really good accountant: One that doesn't cut company checks to themselves, or have other clients on the side with nick-names like "The Greek" and "Knuckles". PRICELESS! (Badda-Bing!)

Stop The Madness!
There is another way to get all the movies you need for your member site streaming away without all the headaches and hassle of doing it yourself. 

You can go to GayStreams.com - For no setup fee and starting at a measly $99.00 a month, you can get some bandwidth, and video streams representing over 50+ studios in excess of 10+ niches, that rotate out every 30 days! And all you had to do was drop a check in the mail. 

Gay Streams – Streaming Video Feeds

  • No setup fees.

  • Full-length videos from 50+ studios in over 10+ niches.

  • All videos Real & Windows media w/DVD functions.

  • Video-streams from 56K to 512k broadband.

  • Select a few streams or all for one low price. Bandwidth included in price.

  • All content is replaced monthly with exclusive content available.

Gay Streams – It’s everything you want your site to be.

 
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