Hi Everyone,

I've been brought in to consult for a new video streaming site that
expects to launch 3Q 2012.
We had a first meeting today and there were some questions that came
up that frankly I'm not sure the best answer to and I had hoped to
pick the brains of the good folks at PLUG to help me come up with some
answers.

First off they don't plan to use flash and with the new HTML 5 spec I
think that's a wise idea.
Instead they plan to have a device specific client apps that will
handle the actual playback of the video.
Out the gate they plan to support Windows, Linux, Mac, iOS & Android.
They may do a set-top box as well, but not in 2012.

The question is, what would be a good format for storing the video in.
 They would like the initial storage format to be 1080p and then have
the server transcode it down to match the optimum video screen size
and available bandwidth on the playback device.

At the moment I'm leaning towards mp4 (H.264) since it seems to be
widely used and is the native format for most Blu-ray discs.  Are
there any caveats that I need to be aware of before recommending this?

Another concern is that obviously they're not going to build out their
own content distribution network, but handling large HD video streams
could get slow and expensive.  AWS Cloudfront looks like it might
serve all needs but I worry about the 20GB per item limit.  A Blu-ray
disc has a capacity of 50GB, but does anyone know what a 2 or 3 hour
1080p stream would actually consume in terms of storage?  Also are
there other CDN's that might be a better fit?  Being able to have an
entire BD online (including all the special features) and available
for instant streaming would be a big plus, so obviously the bigger the
better for maximum file sizes.  OTOH I highly doubt they'll be storing
an ISO image of the disc, so knowing how large the largest file we
could reasonably expect might be a better way to go.

Finally we were talking about pricing.  Personally I've used Netflix & Vudu.

Vudu is built into my TV and there is no monthly commitment but it's a
small fortune to buy videos from it, in some cases it's more than just
going to walmart and buying the disc (valid comparison since Walmart
owns vudu).

Netflix on the other hand has unlimited streaming for a flat monthly
fee of $7.99, but the selection appears to be rather limited, the DRM
means it's not usable under linux (as far as I've found), and there
appears to be no option to purchase, so if Netflix loses the right to
stream a video then it just disappears.

The plan they are working under is to offer unlimited standard def
(480) streaming for $4.80 per month, 720p for $7.20 and 1080p for
$10.80 per month.  There is also the option of no monthly service
charge streaming where you would "rent" a movie for the day similar to
redbox.  $1.99 per day for 480, $2.99 for 720p, $3.99 for 1080p

A final option being worked out (assuming movie companies will allow
it), is the option to purchase any movie for about the same price or
maybe less than purchasing physical media, this would then be
downloaded to the client.

I admit that I like all of these options, but my gut instinct tells me
that too many pricing options might actually turn off potential
customers.  If it were you, what option or option(s) would you prefer
or do you think putting them all on the table would be best?

Anyways, thanks in advance for letting me pick your brains!

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