Today’s Tales from The Long Tail link is an interview with Peerflix co-founder Billy McNair by my closest-in-geography-blogger, F-Stop Blues‘ Tim Coyle. In the interview, Peerflix is explained (if you don’t know what it is, read the interview!), and its founder talks about the service’s bright future:
Currently people mail DVD’s to one another. Do you see a point where people might download digital copies of the movies instead of mailing them? It seems to me this service might be a great way to legalize P2P trading in some aspects.
While we think that the U.S. is still a few years away from the masses downloading digital movies, Peerflix is absolutely well positioned to take advantage of that opportunity when it arises. While early adopters will move to digital files of movies within the next couple years, the mainstream American consumer probably will not be at that point for at least 3-5 years. There are a number of factors in play to move to digital movies including, for example, integration of Internet connectivity/PC/television, as most people aren’t interested in watching movies on their PC. In addition, there are bandwidth and distribution limitations.
All that being said, Peerflix has the technology today to legally enable our members to trade digital movie files via the Internet. We are waiting for the right market opportunity in terms of technology adoption, consumer preferences and legal environment to deploy this technology to our user base.
But the best part of the interview came as McNair was taking about the advantages of Peerflix over more “traditional” models like Netflix. Here, I think McNair really hits the “long tail” moment of the interview:
Peeflix is a peer to peer network and, as such, Peerflix is able to keep overhead to a minimum. Peerflix has no regional distribution centers (in fact, every household in America is a Peerflix distribution center!) or other logistical overhead. As a result, Peerflix is able to save on these significant capital costs and pass this cost savings along to our members enabling them to receive DVDs that they’d like to watch for only $0.99 each!