Thursday, August 28, 2008

Forget revenue, what did NBCU's Olympics Video Cost?

It is now well publicized that NBCU left a lot of money on the table for the Olympics online... but what was spent to deliver the Silverlight enabled experience? The following numbers provided by NewTeeVee gives us a high level model to estimate what was paid:
  • 75.5 Million Streams
  • 9.9 Million Hours (594 million minutes)
  • Average unique viewed saw ~7.86 minutes of video
  • Average stream 700k
Given the assumptions above, the average user "consumed" 40 megabytes of video delivered from a CDN; total delivery of ~2.9 million gigabytes. Let's consider the following cost per gigabyte calculations:

  • 5 Cents: $145,000
  • 8 Cents: $232,000
  • 10 Cents: $290,000
  • 12 Cents: $348,000

Any estimates on what the "true" cost was?

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