Topic: Bandwidth Costs

The impact of metered internet on independent networks like TWiT is discussed. The hosts suggest that Leo Laporte's reliance on high-definition video and multiple streams makes his business vulnerable to rising bandwidth costs. They compare the situation to a writer who is overpaid until a "bean counter" realizes the costs are unsustainable, predicting that independent media will eventually have to face the reality of metered distribution.

Google CEO Eric Schmidt claims YouTube will become profitable soon, despite estimates that the service loses half a billion dollars annually. Users currently upload 15 hours of video per minute, creating massive transcoding and storage costs. Speculation suggests YouTube may eventually implement a subscription fee to cover the immense bandwidth requirements of its global user base.

Satellite television remains a more efficient distribution mechanism than the internet because one uplink serves an entire audience without incremental costs per viewer. In contrast, internet distribution via CDNs can cost up to 40 cents per gigabyte, making the delivery of a 7GB high-definition episode prohibitively expensive for independent broadcasters.