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Can't you think of something other than college hoops?


Editor's Note: The following vibe is shared with educational intents and is not offered as advice. We believe that the best way to "teach" about the market is to walk through the mindset and thought process of our esteemed professors.

Last night our friends at StreetAccount LLC reported the following:

"[Apple] (AAPL) upgraded its iTunes software last week, enabling video downloads to Quicktime players vs previous view-only capabilities. Article speculates that AAPL will start selling music videos, a deal that the studios would welcome as there is no current sales avenue for videos that would be cannibalized by video downloads. Some might find this technology development notable in light of recent speculation about video iPods and today's discussions by NFLX, citing AAPL as a potential competitor."

This is a watershed moment for . . . Akamai (AKAM). AKAM has been delivering iTunes through its network since day one. Based on management's "body language", I believe they are also fully engaged in this new video distribution service.

While the AAPL deal itself may not be a major financial windfall (AAPL is and has been a MAJOR customer of AKAM for many years and presumably has negotiated a pretty nice contract for itself), the advent of mass transmission of rich media is likely to put a spotlight on the importance of getting the "distribution" part of the process right 99.999% of the time.

Best I know - and I'd always like to hear otherwise - AKAM pretty much is the only game in town for that type of fail-safe delivery.

This is the appetizer fellow Minyans. Once FTTP kicks in . . . that will be the main course. That's when the added complexities of video distribution are likely to help AKAM's ARPU's in a meaningful way, as companies will require more of its software modules to manage delivery.

Hoya hoops on my cell phone 24/7 . . .game on Toddo!

Position in AKAM
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