[M4IF Discuss] RE: [OpenDTV] News: Terms of MPEG-4 Visual Patent Portfolio License Announced

[Larry Horn]

Hi, Jordan.  We welcome the feedback, as we work on the details.  What
is being discussed is based on the current state of information as
reflected in the news release and subject to change.  Also, as noted,
the broadcast and cable environments are still under study.  
Regards,
Larry Horn
-----Original Message-----
From: Jordan Greenhall [mailto:jgreenhall   divxnetworks.com]
Sent: Thursday, February 07, 2024 9:50 PM
To: 'Rob Koenen'; craig   pcube.com; jmcclenny   sandstream.com; OpenDTV
Mail List; M4IF Discussion List (E-mail)
Subject: RE: [M4IF Discuss] RE: [OpenDTV] News: Terms of MPEG-4 Visual
Patent Portfolio License Announced
All,
As I read it, the use fee is based on actual hours watched, not hours
broadcasted.  Thus, the formula below would be modified:
[Hours Watched / Subscriber / Month] X [total subscribers] * [$0.02] =
usage fees.  Then something like Nielsons would be used as a surrogate
to determine hours watched by a subscriber.  
This is a (very little) bit more reasonable, as a stream of seinfeld
would cost more than a stream of a brady bunch rerun.  But, even then,
it is commercially unreasonable.  Take a look:
1. DVD with 120 minute movie.  Revenue: $25.  MPEG-4 license fee: $0.04.
Fee as % of Revenue: .16%
2. A broadcast of that exact same movie with commercials.  Revenue: $1
(48 30 second commercials at a $25 CPM).  MPEG-4 license fee.  $0.04.
Fee as % of Revenue: 4%
The cost of the MPEG-4 license scales with views, not revenue generated
by views.  This is like the bandwidth problem that has killed streaming
media on the Internet.  
There are other odd effects as well.
J