Broadband services are becoming available and inexpensive, which encourages the anonymous distribution of content to the masses. The current Internet economic system promotes the rampant piracy of entertainment content through peer-to-peer networks (P2P). Sadly, many broadband service providers view this as their next significant bandwidth revenue opportunity and are gearing up to capitalize on what they consider to be a foregone conclusion.

The InterStream Solution

InterStream has developed a unique business model coupled with a sound economic system. Together, these promote and encourage cross-industry partnerships both to combat the unauthorized distribution problem and more rapidly grow the broadband Internet. InterStream establishes business agreements to implement a streaming delivery and settlement architecture through which premium broadband services are monetized in an industry standard way.

Only actively licensed and auditable content distributors can distribute files using the InterStream delivery economy. This provides a premium, incremental revenue opportunity for those broadband service providers that interconnect using the InterStream Escrowed Peering model. This new symbiotic business relationship will result in a system that controls the unauthorized distribution of motion pictures and other content, yet will deliver unprecedented convenience, quality and choice to broadband consumers.

The Window of Opportunity

Currently, consumers suffer through poor quality experiences when receiving video across broadband services. Bootleg movie content is now readily available using long duration file downloads from the P2P networks. Emerging compression technologies combined with increased network speed and reduced broadband pricing will make 2006-2007 the years of high quality P2P distribution a reality. Streaming within a household from their PC to TV will never be easier.   New playback devices will make it possible as TV and other pirated video content inevitably make their way across the P2P networks.

If this becomes a reality, consumers will flock to unauthorized - freely available and by then socially accepted - P2P content distribution systems. As the recording industry has already experienced, once this occurs the best opportunity to capitalize on Internet distribution will have passed away.

Before the price reductions and quality improvements kill the market, distributors need tools to give customers the best convenience, selection and quality. The InterStream system is far more compelling than P2P. History teaches us that overwhelming majority will voluntarily opt to use this system and eschew bootleg systems, thus enabling Hollywood to capitalize on its new revenue opportunity.