YouTube pays nearly $1 million per month in bandwidth fees, a 7 figure deterrent to some interested in the business. A digital movie seller may only break even, as per-download bandwidth scrapes away at profit margins. There is a growing camp, though, that believes peer-to-peer (p2p) technology can address these barrier

The panel agreed that with video on the Net, bandwidth was the key issue, especially in regard to high definition video. Utilization of p2p may be a solution, but there still remains the question of how to monetize it.

Weiss mentioned YouTube’s colossal bandwidth bills before, like someone with new windows brags about their heating bill, noted that p2p dropped the costs of bandwidth at StreamCast to just $7,000 per month.

“For a $15 movie, the cost of downloading is only a buck or two,” added Cohen. “However, for the retailer that is pretty much your profit being blown away. For lower cost content like TV shows that sell for a lower price, it is only possible to deliver via peer to peer from a cost standpoint.”

Great, p2p is much cheaper. Now, how do we monetize it?

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