What about the Streaming business?

Short term outlook

Alternate forms of delivery were always part of the Media 100 vision. But, like so many others, Media 100 got a little caught up in the Internet bubble and, along with many, many others, thought that the promise of the Internet, and streaming video on the Internet would happen much more quickly than common sense suggested it would.

Despite the sale of Cleaner, Media 100 still believes in streaming but concedes that it will take more time to mature.

It was clear that the company is still committed to a streaming media business. When announcing the sale of the software products, John Molinari quoted the Video on Demand deal announced by five major studios, led by Sony Pictures, for introduction next year. He also commented on the strength of streaming in the corporate communications business which no doubt will become stronger now that airline travel is going to be seen as less desirable.

But Broadband take-up, necessary for the success of video on the Internet, has not been as quick or as complete as people expected. With the delivery infrastructure delayed, service providers found themselves with products and no demand.

Long term outlook

Some form of video on the Internet - or more precisely over IP delivery - is inevitable.  There are too many players with deep pockets - Microsoft, Real Networks and others - committed to the goal that it will eventually find a market.

Many of the things made possible with the EventStream technology point in the direction that 'streaming media' on the Internet must go. What is required for success is something that users actually want! Right now, streaming video is a technology looking for a real application other than "CEO to troops". And the proposed business models from people like Microsoft and Real - controlling access to the content - doesn't seem to be going to deliver content in a way that people want to purchase content.

In his August speech, John Molinari recognized the issues facing Media 100 in the streaming market:

"Turnaround for Streaming was not going to be for another 2 to 5 years as it needs more time to germinate and develop. "

"Streaming Media is an opportunity best suited to a large company"

Presumably he means a large company that has the capacity to invest without return for a longer period than Media 100 Inc could. He re-iterated in his October 11 address to the investment community that Media 100, as a company, still believed in broadband internet as a delivery mechanism and that the Pegasus project was expected to cater (long term) to:

"Broadband content providers - a new type of cable station with links to the Internet."

Media 100 has not lost an Internet and delivery focus.

Media 100 as a company did fairly well out of the 'streaming' mania. The dot-com market was a good one for editing systems particularly on the Windows platform where reliable, easy to use solutions for mixed sources are not that common.

As a publishing solution "Pegasus" will have the substantial amounts of dedicated processing power that encoding video - even for a broadband network delivery - requires.  It may well be a very powerful encoding solution in addition to its other capabilities?

©2001 Philip Hodgetts