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Thursday, March 29, 2007

Killer NIC K1 and Custom BitTorrent Client Tested

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"The new Killer NIC K1 is the successor to the much debated original Killer NIC card that offers the same features at a lower price: this time for about $170 or so. Not cheap, that's for sure. But in this review at PC Perspective, not only is the new card tested under the drastically updated Vista networking stack with improved results, but the free BitTorrent client that runs on the Killer NIC is reviewed as well; with it you should be able to download torrents without affecting online gaming performance. Enough to warrant a $175 network card?"

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What Of Joost, BitTorrent If NBC/News Corp. JV Succeeds

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YOUTUBE ISN'T THE ONLY VIDEO site likely to be affected by the coming NBC Universal/News Corp. joint venture. Smaller digital video players are expected to feel the deal's waves.

Joost--a start-up from the founders of Kazaa and Skype--just announced plans to offer ad-supported versions of a host of Viacom programs. Similarly, BitTorrent Vice President and General Manager of Consumer Services Eric Patterson said at OMMA Hollywood this past week that the company plans to start offering ad-supported TV programs by the end of the year.

"When the big players agree to play together, there's automatically less need for the smaller guys," said David Clark, a managing director with investment banking firm Jordan, Edmiston Group, Inc. "There's room for other players, but they obviously don't have as much to offer."

BitTorrent, a peer-to-peer Web company, has drawn 135 million people worldwide who have downloaded files using the service--one-third of all P2P traffic online.

Last month, BitTorrent launched BitTorrent Entertainment Network, a new service that has compiled the rights to more than 3,000 movies, 1,000 games and 1,000 music videos from 34 participating content providers. The network has deals with Paramount Pictures, Lionsgate, Warner Bros. and MGM.

Like iTunes Music Stores, the BitTorrent business is a pay Internet service, where users can rent movies for $4 each, and download-to-own TV shows and music videos for $2 each. BitTorrent also plans to add a digital-rights-management-free music download service in the near future.

Both Kazaa and BitTorrent have had a history of unauthorized digital-content distribution. Now the founders of both companies are setting themselves up to provide above-board digital-entertainment services.

If NBC and News Corp. do find success with their new venture--and that's still a huge if--it could threaten the continued adoption of peer-to-peer distribution, which relies on the collective computing power of its users to thrive.

"To the extent that this creates an efficient use of one set of servers powered by NBC and News Corp., the deal could take some of the air out of peer-to-peer," said Forrester Research analyst Josh Bernoff.

But with the future of digital video distribution still highly uncertain, everyone is hedging their bets, Bernoff added.

Case in point: The broadband services company Roo Group, in which News Corp. holds a minority stake, recently agreed to buy legal P2P service provider Wurld Media's assets for up to $10 million in cash and stock.

News Corp. earlier this year agreed to purchase a 5% stake in the company, with tentative plans to purchase another 5% in the near term. The deal gave Roo's existing clients--including News Corp., Verizon and The Street.com--access to a burgeoning pay-to-play market.

Indeed, a recent report by Adams Media Research projected significant increases in consumer spending on downloaded movies, music and TV shows. The report projected that pay-to-play spending will top $4 billion in 2011, far exceeding revenues derived from video advertising.

While details are still scarce, News Corp. and NBC have made it clear that advertising will not be the only source of revenue coming from the new venture. Selling their own and others' movies and TV shows is also part of the plan.

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Could Bittorrent Inc. Be the Next Big IPO?

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Some are contemplating if BitTorrent Inc could be the next big dot-com IPO since Google's mad run caused a fever on on Wall St back in 2004 but, does the current and future state of the video download service look good enough to make it a successful bet?.

It's been a while since Google went public back in 2004 to much fanfare on Wall St and press the world over, and stock-market investors have been looking for the next big "dot-com thing" ever since.

We have all watched Google's profits, market capitalization, and profits soar to stratospheric heights, and many have wondered what company will be the one to follow in such big footsteps.

Now I don't think anybody's foolhardy enough to predict that BitTorrent Inc. will have anywhere near the success or impact that Google has but, the POTENTIAL for a huge impact on the nature and model of video content distribution as we know it is definitely within the realm of possibilities.

"When downloading a movie, it should be faster than a pizza delivery. That's a safe rule of thumb with us," said Ashwin Navin, the president, COO and co-founder of BitTorrent.

It currently has content distribution agreements with Viacom Inc.'s Paramount Pictures, News Corp.'s 20th Century Fox, Lionsgate, Palm Pictures and Kadokawa Pictures USA, and as everybody will tell you, "content is King." With iTunes offerings limited to that of Disney, ABC, and Lionsgate, BitTorrent Inc. is head and shoulders above the competition.

Plus, they have an "anti-Google" situation on their side where Viacom, NBC, News Corp., and just about every other major media company whose content winds up on YouTube looking for a viable online video site alternative. Tired of not getting what they feel is their proper cut of ad-revenue from Google, which is a fair assessment considering since they did all the work to create and produce in the first place, BitTorrent Inc. just could be the next YouTube in that it would be more than happy to distribute or stream their content under terms far more favorable to the media companies than Google would ever dream of offering. This alone may be why BitTorrent really could be the next darling of Wall St.

As far as their video download service is concerned, its current state is probably its biggest weakness. Riddled with DRM and playback problems, this and the fact that its pretty hard if not impossible to convince people that it's better to pay for what they currently can get for free, makes the future of this portion of their business look less than bright. But, its rumored ad-supported Net TV service, possibly in conjunction with YouTube-disgruntled media companies as I mentioned could perhaps more than make up for this shortcoming.

Ashwin Navin, president, COO and co-founder of BitTorrent Inc., has also mentioned recently that they are going to release a corporate version of their BitTorrent Entertainment Network called BitTorrent DNA, sometime in the 2nd quarter of this year. Some companies are apparently already testing it but, he declined to name who they are.

Navin's also hopeful that BitTorrent Inc. will be able to create a lucrative new revenue stream by licensing its BitTorrent protocol technology to companies who wish to both cut down on the costs of maintaining central servers as well as be able to to deliver files faster and more cheaply than typical downloads.

It might just be that BitTorrent Inc's status as a distribution platform more so than as a content destination may be what sets it apart to be successful in a such a highly competitive and crowded playing field.

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