[Advisors] Fwd: [CommunityInformaticsCanada] Google fiber in kansas city VERY INTERESTING hat tipdewayne hendricks

Fri, 4 May 2012 10:38:20 -0700

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Begin forwarded message:

> From: michael gurstein <gurstein@gmail.com>
> Date: May 4, 2012 9:06:15 AM PDT
> To: <cracin-canada@vancouvercommunity.net>, =
<ciresearchers@vancouvercommunity.net>
> Subject: [CommunityInformaticsCanada] Google fiber in kansas city VERY =
INTERESTING hat tipdewayne hendricks
>=20
> Google Fiber in Kansas City Makes Hollywood Nervous
> By John Lopez
> April 26, 2012
> =
<http://mobile.businessweek.com/articles/2012-04-26/google-fiber-in-kansas=
-city-makes-hollywood-nervous>
>=20
> Of all the media industries dragged kicking and screaming into the =
brave new digital world=97news, music, publishing=97Hollywood has held =
up comparatively well. Although physical sales of DVDs and Blu-ray are =
falling, no single Web company dominates the online video realm, and =
consumers mostly still get their programming via pricey cable bundles. =
Poky Internet speeds=97the U.S. average of about 5 megabits per second =
ranks 26th globally=97means that pirates can=92t swap bulky video files =
with the same insouciant ease as they do MP3s.
>=20
> Google might change that. In 2010 the company announced plans to bring =
super-high-speed Internet access to select communities in America and in =
2011 picked Kansas City to start. The search giant has said it hopes to =
spur innovation among cable companies and Internet service providers by =
demonstrating what=92s possible with Internet speeds 100 times faster =
than the U.S. average. The project could also foreshadow dramatic =
changes for Hollywood, both because of the specter of piracy and =
Google=92s possible experiments with new ways to distribute content =
legally.
>=20
> Google has already strung more than 100 miles of fiber-optic cable =
along utility poles in Kansas City, Kan., and Kansas City, Mo., and =
expects to connect its first homes in the next few months, says Google =
Fiber spokeswoman Jenna Wandres. Its test network of about 850 homes in =
a faculty neighborhood near Stanford University in Palo Alto, Calif., =
already provides blistering download speeds of 922 megabits per second =
and upload speeds of 883 Mbps. At those speeds, Web surfers=97or =
pirates=97can download a DVD in under a minute or a high-definition =
Blu-ray in five.
>=20
> Wandres stresses that Google Fiber isn=92t meant to empower pirates: =
=93We hope higher speeds will actually make it easier to deliver and =
download more authorized content,=94 she says. Nonetheless, Howard =
Gantman, spokesman for the Motion Picture Association of America, notes =
that piracy is always a concern of the entertainment industry. Google =
Fiber =93could be a great opportunity for consumers whose access to =
creative content is often hampered by slow speeds,=94 he says. But in =
South Korea, =93the home entertainment marketplace was decimated by =
digital piracy=94 enabled by the widespread availability of high-speed =
Internet.
>=20
> Google doesn=92t have the intent or money to build a nationwide fiber =
network, which is a prerequisite for apocalyptic piracy. Such a project =
could cost $350 billion, according to the Federal Communications =
Commission. Still, there are signs that Google=92s experiments could =
affect Hollywood. In December the Wall Street Journal reported that =
Google was in discussions with Walt Disney, Time Warner, and Discovery =
Communications about offering their content via Google Fiber. Google =
subsequently obtained licenses from Kansas and Missouri state regulators =
to offer video services over its fiber-optic network. In February the =
FCC gave the search company permission to operate a satellite farm, =
pulling down transmissions that typically carry TV signals, near its =
data center in Council Bluffs, Iowa. The state=92s economic development =
authority has approved tax breaks to Google for a planned $300 million =
expansion of that data center.
> Such evidence fuels belief that Google will become a content =
distributor, although the company won=92t comment on its plans. Craig =
Moffett, an analyst at Sanford C. Bernstein, speculates that Google =
could use its raw data processing power to store TV programming, =
essentially creating a giant, searchable DVR in the cloud and =
distributing programming=97live or on-demand=97to Android smartphones, =
iPads, and TVs. It could also use the network to develop more targeted =
ways to sell and deliver TV advertising.
>=20
> In short, by creating its own pipe, Google can play with new ways to =
allocate bandwidth between Internet and TV services and see what Kansas =
City denizens adopt. Mitch Singer, the chief digital strategy officer =
for Sony Pictures Entertainment, believes media companies can=92t ignore =
such experimentation. =93Google Fiber will definitely be a disruptive =
force,=94 he says. =93The studios know that if we stick our heads in the =
sand, we will fail, pure and simple.=94
>=20

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<html><head></head><body style=3D"word-wrap: break-word; =
-webkit-nbsp-mode: space; -webkit-line-break: after-white-space; =
"><br><div><br><div>Begin forwarded message:</div><br =
class=3D"Apple-interchange-newline"><blockquote type=3D"cite"><div =
style=3D"margin-top: 0px; margin-right: 0px; margin-bottom: 0px; =
margin-left: 0px;"><span style=3D"font-family:'Helvetica'; =
font-size:medium; color:rgba(0, 0, 0, 1);"><b>From: </b></span><span =
style=3D"font-family:'Helvetica'; font-size:medium;">michael gurstein =
&lt;<a =
href=3D"mailto:gurstein@gmail.com">gurstein@gmail.com</a>&gt;<br></span></=
div><div style=3D"margin-top: 0px; margin-right: 0px; margin-bottom: =
0px; margin-left: 0px;"><span style=3D"font-family:'Helvetica'; =
font-size:medium; color:rgba(0, 0, 0, 1);"><b>Date: </b></span><span =
style=3D"font-family:'Helvetica'; font-size:medium;">May 4, 2012 9:06:15 =
AM PDT<br></span></div><div style=3D"margin-top: 0px; margin-right: 0px; =
margin-bottom: 0px; margin-left: 0px;"><span =
style=3D"font-family:'Helvetica'; font-size:medium; color:rgba(0, 0, 0, =
1);"><b>To: </b></span><span style=3D"font-family:'Helvetica'; =
font-size:medium;">&lt;<a =
href=3D"mailto:cracin-canada@vancouvercommunity.net">cracin-canada@vancouv=
ercommunity.net</a>&gt;, &lt;<a =
href=3D"mailto:ciresearchers@vancouvercommunity.net">ciresearchers@vancouv=
ercommunity.net</a>&gt;<br></span></div><div style=3D"margin-top: 0px; =
margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span =
style=3D"font-family:'Helvetica'; font-size:medium; color:rgba(0, 0, 0, =
1);"><b>Subject: </b></span><span style=3D"font-family:'Helvetica'; =
font-size:medium;"><b>[CommunityInformaticsCanada] Google fiber in =
kansas city VERY INTERESTING hat tipdewayne =
hendricks</b><br></span></div><br>

<meta http-equiv=3D"Content-Type" content=3D"text/html; =
charset=3Dus-ascii">
<title>Message</title>

<meta name=3D"GENERATOR" content=3D"MSHTML 9.00.8112.16443">
<div style=3D"WORD-WRAP: break-word; -webkit-nbsp-mode: space; =
-webkit-line-break: after-white-space">
<div>Google Fiber in Kansas City Makes Hollywood Nervous<br>By John=20
Lopez<br>April 26, 2012<br>&lt;<a =
href=3D"http://mobile.businessweek.com/articles/2012-04-26/google-fiber-in=
-kansas-city-makes-hollywood-nervous" =
target=3D"_blank">http://mobile.businessweek.com/articles/2012-04-26/googl=
e-fiber-in-kansas-city-makes-hollywood-nervous</a>&gt;<br><br>Of=20
all the media industries dragged kicking and screaming into the brave =
new=20
digital world=97news, music, publishing=97Hollywood has held up =
comparatively well.=20
Although physical sales of DVDs and Blu-ray are falling, no single Web =
company=20
dominates the online video realm, and consumers mostly still get their=20=

programming via pricey cable bundles. Poky Internet speeds=97the U.S. =
average of=20
about 5 megabits per second ranks 26th globally=97means that pirates =
can=92t swap=20
bulky video files with the same insouciant ease as they do =
MP3s. Google=20
might change that. In 2010 the company announced plans to bring =
super-high-speed=20
Internet access to select communities in America and in 2011 picked =
Kansas City=20
to start. The search giant has said it hopes to spur innovation among =
cable=20
companies and Internet service providers by demonstrating what=92s =
possible with=20
Internet speeds 100 times faster than the U.S. average. The project =
could also=20
foreshadow dramatic changes for Hollywood, both because of the specter =
of piracy=20
and Google=92s possible experiments with new ways to distribute content=20=

legally. Google has already strung more than 100 miles of =
fiber-optic=20
cable along utility poles in Kansas City, Kan., and Kansas City, Mo., =
and=20
expects to connect its first homes in the next few months, says Google =
Fiber=20
spokeswoman Jenna Wandres. Its test network of about 850 homes in a =
faculty=20
neighborhood near Stanford University in Palo Alto, Calif., already =
provides=20
blistering download speeds of 922 megabits per second and upload speeds =
of 883=20
Mbps. At those speeds, Web surfers=97or pirates=97can download a DVD in =
under a=20
minute or a high-definition Blu-ray in five. Wandres stresses =
that Google=20
Fiber isn=92t meant to empower pirates: =93We hope higher speeds will =
actually make=20
it easier to deliver and download more authorized content,=94 she says.=20=

Nonetheless, Howard Gantman, spokesman for the Motion Picture =
Association of=20
America, notes that piracy is always a concern of the entertainment =
industry.=20
Google Fiber =93could be a great opportunity for consumers whose access =
to=20
creative content is often hampered by slow speeds,=94 he says. But in =
South Korea,=20
=93the home entertainment marketplace was decimated by digital piracy=94 =
enabled by=20
the widespread availability of high-speed Internet. Google =
doesn=92t have=20
the intent or money to build a nationwide fiber network, which is a =
prerequisite=20
for apocalyptic piracy. Such a project could cost $350&nbsp;billion, =
according=20
to the Federal Communications Commission. Still, there are signs that =
Google=92s=20
experiments could affect Hollywood. In December the Wall Street =
Journal=20
reported that Google was in discussions with <a =
href=3D"http://mobile.businessweek.com/quote/DIS">Walt Disney</a>, <a =
href=3D"http://mobile.businessweek.com/quote/TWX">Time Warner</a>, and =
<a href=3D"http://mobile.businessweek.com/quote/DISCA">Discovery =
Communications</a>=20
about offering their content via Google Fiber. Google subsequently =
obtained=20
licenses from Kansas and Missouri state regulators to offer video =
services over=20
its fiber-optic network. In February the FCC gave the search company =
permission=20
to operate a satellite farm, pulling down transmissions that typically =
carry TV=20
signals, near its data center in Council Bluffs, Iowa. The state=92s =
economic=20
development authority has approved tax breaks to Google for a planned=20
$300&nbsp;million expansion of that data center. </div>Such evidence =
fuels belief that Google will become a content distributor,=20
although the company won=92t comment on its plans. Craig Moffett, an =
analyst at <a href=3D"http://mobile.businessweek.com/quote/AB">Sanford =
C. Bernstein</a>,=20
speculates that Google could use its raw data processing power to store =
TV=20
programming, essentially creating a giant, searchable DVR in the cloud =
and=20
distributing programming=97live or on-demand=97to Android smartphones, =
iPads, and=20
TVs. It could also use the network to develop more targeted ways to sell =
and=20
deliver TV advertising. In short, by creating its own pipe, =
Google can play with new ways to allocate=20
bandwidth between Internet and TV services and see what Kansas City =
denizens=20
adopt. Mitch Singer, the chief digital strategy officer for <a =
href=3D"http://mobile.businessweek.com/quote/SNE">Sony Pictures =
Entertainment</a>,=20
believes media companies can=92t ignore such experimentation. =93Google =
Fiber will=20
definitely be a disruptive force,=94 he says. =93The studios know that =
if we stick=20
our heads in the sand, we will fail, pure and simple.=94</div>
</blockquote></div> </body></html>=

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