Red Vs Blue folks on the post-production costs of serving content on the web:

“Imagine if the producers and distributors of Spiderman 2 got a bill from the movie theatres for increased air-conditioning because their movie was too popular”

Currently at their talk: “Why Free is a Good Price: The Terrible Business Model of Red vs. Blue” at SxSW.

Another couple of quotes:

“Homestar Runner is really a t-shirt store with a great cartoon attached”

and on bittorrent, not actually saving them costs…:

“We put bittorrent clips out there, received 45000 emails back saying ‘we don’t understand how to use this and I need to see your clip NOW!'”

Very good stuff on the way-new nanoentertainment industry from the trenches of the long tail.