Google's cost is probably more on the distribution side of things ... 
but I only found a top level number not a break down of component costs. 
At any rate the point is to start exploring distributing costs 
associated with large scale video collaboration. In that way I target 
developing a framework where individual pieces can be done on the server 
or on clients depending on what is optimal. Its not that much extra 
effort to design things this way.

Look back 2 years and you can see the xiph communities blog posts and 
conversations with Mozilla. It was not a given that Firefox would ship 
with ogg theora baseline video support (they took some convening and had 
to do some thinking about it, a big site like wikipedia exclusively 
using the free formats technology probably helped their decision). 
Originally the xiph/annodex community built the liboggplay library as an 
extension. This later became the basis for the library that powers 
firefox ogg theora video today. Likewise we are putting features into 
firefogg that we eventually hope will be supported by browsers natively. 
Also in theory we could put a thin bittorrent client into java Cortado 
to support IE users as well.

peace,
--michael

Tisza Gergő wrote:
> Michael Dale <mdale <at> wikimedia.org> writes:
>
>   
>> * We are not Google. Google lost what like ~470 million~ last year on 
>> youtube ...(and that's with $240 million in advertising) so total cost 
>> of $711 million [1]
>>     
>
> How much of that is related to transcoding, and how much to delivery? You seem
> to be conflating the two issues. We cannot do much to cut delivery costs, save
> for serving less movies to readers - distributed transcoding would actually
> raise them. (Peer-to-peer video distribution sounds like a cool feature, but 
> it
> needs to be implemented by browser vendors, not Wikimedia.)
>
>
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