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How To Make Money In Online Video: Sell Hardware (CSCO)

Via Gigaom, a reminder that the biggest moneymaker in online video isn’t pre-roll, overlay or display advertising — it’s selling the systems that lets you watch all those Rick Astley videos, over and over again. Cisco (CSCO) says video is fueling the sales of its high-end CRS-1 routers:

The San Jose-based router and switch maker said that the total global cumulative shipments of CRS-1 Routers have doubled in less than nine months, rising from a total of 900 units shipped through June 2007 to more than 1,800 units shipped through March 2008. This shouldn’t come us a surprise. It was back in June 2007 that first signs started to point to video (any kind of IP video) as the saviour for Cisco.

One question: Just how much does a CRS-1 router cost? Om describes them as “mega-millions”, but 2004 reports about the router’s debut quoted a list price of $450,000, and we assume they’ve gotten less expensive since then. Anyone want to weigh in?

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