VI. A Case Study: Broadcast.com
One example of a commercial implementation of multicasting and Unicasting services is Broadcast.com. This company defines itself as "the leading aggregator and broadcaster of streaming media programming on the Web with the network infrastructure and expertise to deliver hundreds of live (multicasting) and on-demand (Unicasting) audio and video programs over the Internet to hundreds of thousands of users."
The Broadcast.com Web site (http://www.broadcast.com) offers a large and comprehensive selection of live and on-demand audio programming, including sports, talk and music radio, television events, full-length CDs, news, commentary and full-length audio-books. According to Broadcast.com the company’s web site served an average daily audience of over 400,000 unique users during March 1998.
The business model of Broadcast.com is centered toward two main sources of revenues: advertising and broadcasting services for businesses.
The company is buying the rights to broadcast over the Internet a large and comprehensive selection of live and on-demand audio and video programming. To attract more compelling programming, Broadcast.com is using a completeness of the content aggregation strategy. By doing this, they hope to exploit network externalities in order to make use of first mover advantage and winner-take-all effects. Broadcast.com content providers include the NFL, the NHL, Major League Baseball, CNN, BBC World Service, SFX Broadcasting, Learfield Communication, and over 200 record labels.
Advertising revenues come from traditional text-based banners and from multimedia packages incorporating custom targeted audio and video ads. Broadcasting services come from cost-effective Internet or Intranet broadcasting of live, on-demand business, and educational programming. These include broadcasting services, quarterly earning conference calls, investor conferences, trade shows, stockholder meetings, product introductions, training sessions, distance learning opportunities and media events. Each of these are tailored to specific customers' needs.