[M4IF Discuss] hourly usage fee for MPEG4

[Ken Goldsholl]

When viewed in the context of paying $4 for watching a feature film, two cents an hour does not seem unreasonable.  However, for video on demand service to become ubiquitous, much more content than recently released movies must be available on the system, as that kind of service can not succeed with just a handful of titles.  If content that is offered on free television is also included in a service like subscription video on demand, then the hourly usage fee can render such a service unfeasible, which would have the ripple effect of suppressing demand for all VOD.  There could very well be reruns of old TV series that may cost viewers say, five cents per hour.  This usage fee then eats up a big portion of the revenue.
When viewed in the context of other technology, this proposal makes even less sense.  Yes, a significant investment was made by the patent holders to develop the MPEG4 intellectual property.  But the same can be said for virtually all other kinds of technology, almost all of which is paid for by the user when they purchase the product.  What is so special about MPEG4 that the creators deserve a perpetual revenue stream?  There are no recurring payments to the developers of the technology utilized in cars, computers, audio systems, basically every other electronic device.  
The idea that reducing the upfront cost of the equipment to spread the proliferation of MPEG4 devices should be quickly dismissed, as a $2.50 royalty for the decoder in a set-top box will not slow down adoption of that device.  An what about the other technology used in these products?  MPEG4 is just a small part of the technology needed for the digital video end-to-end solution. Will they be subject to hourly usage fees?
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