I thought I could add a couple of quick comments into the mix.  First, streaming will be significantly impacted by data caps that are being imposed by network operators - even if streaming is "perfected" - which is a way off. AT&T now charges between $15 and $35 for every 200MBytes consumed - it does not take long for a streaming video applications to chew through that. This means that the majority of subscribers are going to be more judicious about what videos they stream if they are worried it will exceed their data cap. The "All You Can Eat" buffet is running out and will be replaced with network friendly pre-positioning content solutions that work in compliment to data caps.

Second, regarding Craig's question about "do people really watch that much video off of one site," we have found that yes, they do.  People are already paying for video-based apps, like CNN and local TV stations for example. When someone downloads and pays for a CNN app for example, they are making a decision towards using CNN and their news views will be biased accordingly. And based on feedback from many different people, this can be very attractive for long-tail or niche content, such as subscribing to just the video highlights of favorite baseball players or soccer team.  We feel consumers are willing to pay for what they want and have it delivered to them - especially if the quality is perfect every time without any freezing and if it can be viewed offline.

Finally, we believe streaming will always have Quality of Experience issues because playback quality is not guaranteed due to variable network capacity constraints. There is simply no way around that. Imagine if you are a major content provider and you want to offer a day and date release for a premium movie to a smartphone via streaming, you have absolutely no control over the subscriber's QoE.  The movie will likely wind up buffering and freezing at least several times throughout the course of the movie and this simply is not acceptable to a Hollywood studio.

We expect that as subscribers become increasingly disgruntled with the quality of the video that is available to them, and as they have to "pay to play" they will increasingly turn to more consistent lower cost alternatives, such as apps and services that utilize content pre-positioning techniques.  I actually just posted on this exact topic on our blog at http://opanga.com/home/company/blog/ .