Running Some Numbers on Content Delivery – If You’re Making a Profit Is It Such a Big Deal?

Lot of talk right now about the cost of delivering Podcasts. Let’s run some numbers, shall we:

Benchmarks: Last Audio Episode of Marketing Online Live Audio Podcast. 13.2 meg for 28 minutes. Last Video Podcast of Diggnation Video Podcast. 185meg for 50 minutes.

Coach – iPowerWeb – Virtual Hosting with 250GB of transfer – $7.95 a month. That’s 3.2 cents per gig. 18939 downloads of MOL for $7.95. .05 cents per download. That’s 20 downloads MOL per penny. That’s also 1351 downloads of Diggnation for $7.95. .6 cents per download. That’s 8 downloads per nickel. Yes, video is more expensive.

Business (What I’m Currently Using)- 1PlaceForEverything.com Virtual Economy Business Server = 500 Gigs of Bandwidth for $34.95 a month. That’s 6.9 cents per gig. 37878 downloads of MOL for $34.95. .1 cent per download – more than 10 downloads MOL per penny. That’s also 2702 downloads of Diggnation for $34.95. 1.3 cents per download (we pass the penny point). That’s 4 downloads per nickel.

First Class – CacheFly.com – 12000 (12k) gig for $299. That’s 2.5 cents per gig. 909090 downloads of MOL for $299. .033 cents per download – about 30 downloads MOL per penny. That’s also 64864 downloads of Diggnation for $299. .5 cents per download. That’s back to 2 for a penny.

If I can make a penny per download on an audio Podcast, bandwidth isn’t an issue. If I can’t make more than a penny per download, this isn’t a business.

2 of the three options allow me a profit at a penny per download for a Diggnation sized show as well. The other option breaks the bank at 1.2 cents per download.

Suggestion – if I can’t make 2 cents per video download, we got problems there as well.

Bandwidth is expensive with no profit – no doubt. Get this though, paying for anything with no profit is the same thing – regardless of the vehicle.

Once profit is established (even pennies per download) on any Podcast, your bandwidth bills aren’t the issue.

Tags: podcast, podcasting, marketingonlinelive.com, diggnation.com, bandwidth costs

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