ENDAVO BLOG

OTTCon East: Timing and Trends

By Shaun Pope

OTTCon East was buzzing with energy and excitement last week. The show was brimming with OTT innovators and vendors, as well as telcos, content producers and broadcasters—all searching for answers to some of the industry’s biggest questions.

So what were they saying? Here’s a look at some of the top points of discussion:

Timing (Connected TV). There was a lot of debate on when all this OTT content and interactive TV technology would actually become commercially available to the consumer in a seamless home-viewing experience.

Some said it would be 5 to 8 years, while others argued it’s already here. From my point of view, the “here now” crowd is really saying the technology is available now, but the market and the service providers that control it are moving at a slower pace. Question is: How long can incumbent SP’s hold back the flood?

Consumers. Many are betting on the next wave of consumers. It was interesting to hear several speakers talk about “cord cutters” almost as if they needed to reassure themselves that the trend is real. Unfortunately, it’s not (at the moment, see: http://shar.es/miuNY).

Point being, many in the space are making wide, generalized assumptions on both market trends and shifts in consumer behavior (e.g., some making the point that the expectations and content consumption habits of the 18-24 crowd will eventually lead to explosive adoption of pure OTT video services as those consumers move into adulthood).

I’m not saying they’re wrong—just pointing out that many are stating it as fact when it’s actually only prediction.

Google TV. With the recent announcement of the Google/Sony/DISH/Intel (aka Google TV) solution, many were asking if this was a positive or negative development in the OTT space. Will Google dominate the market, or will it accelerate it to the benefit of multiple OTT players?

From the show, however, one thing is clear. The time is now for telcos, content producers and broadcasters to forge the right alliances and go for that long-term win.

OTTCon East: Observations and Opportunities

By Ryan Busing

OTTCon East may be over, but let me tell you -- after a busy couple of days of our team presenting and demonstrating at the show, everything OTT is just getting underway.

The industry’s top performers and innovators filled the Atlanta Capitol Conference Center this week, sharing their views of multiple screens, content discovery and hybrid IPTV/OTT TV. The fact is, television is changing quickly, including how people view it, all thanks to OTT.

Channel Surfing. As OTT video begins to work its way into the screens of consumers, content discovery will need to evolve as TV lineups go from hundreds of channels to potentially thousands. Just as we’ve seen the old TV Guide evolve first into electronic and now interactive program guides, future “OTT Program Guides” will need to develop new features.

Soon, users will be able to view seamlessly between broadcast and broadband content, as well as discover broadband content and advance metadata search capabilities—all while watching TV. Consumers, when faced with this unlimited programming, will expect (and rely) on discovery and recommendation processes—providing ease-of-use in building personalized viewing options.

Hybrid IPTV/OTT TV. While many of the technical aspects of the hybrid IPTV/OTT TV model are being addressed, delivering content to three screens (outside of traditional managed TV networks) raises issues for content producers and service providers beyond just the platform integration.

The advent of OTT presents multiple opportunities for content providers to consider as part of their business strategy. Should they deliver their content directly to consumers? Strike deals with service providers with their own OTT solution? Integrate content with one or a number of consumer electronics companies with OTT devices? Most likely, the answer is all or some combination of these or even others still yet to be defined.  And of course, there are many related issues such as how to preserve brand quality, control the experience of the audience, protect content from being pirated and determine the best combination of monetization services across multiple devices.

To this end, many vendors are concentrating on one aspect of the value chain and expecting the service providers to pull all the pieces together for delivery to the consumers. Finding an end-to-end technology that has a complete solution, including content management, monetization, multi-screen distribution, all wrapped with the capability to deliver a quality user experience, is a must for any successful OTT video services solution for anyone delivering OTT Video services to their customers. And if OTTCon East is any indication, the level of interest in the emerging OTT opportunity is growing fast. 

Savvy Content Providers Generating New Cash with Over-the-Top Offerings

By Jason Anderson

My recent trips to industry trade shows and events have revealed a trend. Looks like most content distributors and broadcasters are still reluctant to start syndicating their content beyond the TV. In entertainment biz lingo, producers are afraid they’re stepping over broadcast dollars to grab digital dimes. However, a few content providers aren’t just dipping their toes in the cross-platform waters. These smart folks are diving head-over-heels into a sea of new revenue by pushing content “over the top” to paying viewers on any screen. The Weather Channel and Dori Media are two examples that come to mind.

This week, The Weather Channel settled its long-running dispute with Dish Network over carriage fees and revealed plans to deliver a bevy of new offerings for subscribers online and though mobile devices.  Dish Network Programming VP Dave Shull stated, “This agreement recognizes the importance of cross-platform video delivery, ensuring that our subscribers will have the most detailed local weather information available at their fingertips anytime, anywhere.”

On the distributor front, Dori Media is well on its way to bringing in digital cash to supplement its broadcast success.  On the heels of digital telenovela Amanda O, Dori will soon launch a subscription-based video on demand platform aimed at U.S. Hispanic audiences and viewers throughout Latin America. By branching out and distributing their content to more screens, Dori is able to generate new revenue and build distributor brand identity. Ah, the joys of multi-screen syndication!

I understand how difficult it can be to step out of a comfort zone, but TV-only syndication is quickly becoming a thing of the past. And, as more viewers start turning off their TVs and turning on their mobile devices and PCs, they expect the content to follow. It’s time to embrace change and offer cross-platform, over-the-top syndication directly to viewers, on all screens.

What Content Windows Teach About Monetizing Media

By Jason Anderson

Last week, cable industry leaders gathered in Los Angeles for Cable Show 2010.  During the show, I overheard several discussions about an interesting topic -- content windows (when content is only available during a certain time period).  In a recent deal between RedBox and three major Hollywood studios, the studios agreed to allow distribution through RedBox's $1-per-day DVD rental kiosks, but RedBox must wait 28 days after official release date. This content window protects the rental revenue that the studios would derive from other, more expensive, video stores and DVD sales.

The key takeaway here is that whether you’re a major broadcaster or an indie producer, it is critically important to understand where and when your audience wants to watch your content, and the corresponding revenue (and/or information) that you can generate that brings value to your business.

For example, it would be tough to pay your bills solely from ad revenue from YouTube or Hulu.  But you can use the big funnel websites to connect with fans and promote content that you plan to offer first to your core audience in exchange for member information or subscription revenue. Choose when and where to release your content so that you reserve your “best stuff” for the site where you get the biggest piece of the data/revenue pie.  

Windowing is vitally important to your long-term success and is certainly not one size fits all.  You must know your fan base and your potential revenue streams, and then deploy strategies and technologies to build a loyal (and profitable) following.

It’s your content.  Make it do more for you.

Lights, Cameras, OTT Action: A Look Back at Digital Hollywood 2010

By Brent Grablachoff

If OTT were a movie in the making, then Digital Hollywood 2010 in Santa Monica was an all-out cast party. Key players assembled from all over the digital media, entertainment and film spectrum—representing everything from software, hardware and services to actors, freelancers and industry professionals. This was definitely the place to be this week. Friendships were formed, partnerships were made, and businesses learned from each other.  

A group of us attended the event as an exhibitor, and our own CEO Paul D Hamm spoke on a panel about the “Models for Change.” Throughout the conference, change seemed to be a common theme. Almost everyone we spoke to wanted to know what will be next in the digital media space, and how they can capitalize from it.

Some main takeaways from Digital Hollywood:

The fourth screen. We’ve all been talking three screens, and now with the immersion of the iPad, we’ve got another. The iPad has sold 1 million devices in a faster timeframe than Apple’s original iPhone offering. This could pose new opportunities for advertisers and everyone in digital media to find new ways to monetize. 

Mobile still key. As with the last few shows we’ve attended—Streaming Media West, OMMA Video and NAB—speakers emphasized the importance of mobile for businesses. Whether it’s offering content designed for mobile devices, offering mobile-specific advertising campaigns, or developing software or ‘apps,’ the sure thing is that a mobile strategy can be key to growth.

Over-The-Top. People are now embracing the importance of OTT. We’ve been talking OTT for the past 6 months. Now, it seems like most in the market understand the way we consume content, the way content producers make money and the way networks deliver content continues to evolve. Many of the event’s speakers shared our projections for OTT being a commonality among telcos and cable companies in the next 2 to 3 years. This will ultimately give consumers more control over how they view content and where they view it.

Overall, the spotlight was on OTT this week as Digital Hollywood rolled out the red carpet for all things Over-the-Top and multiple screens. So based on the “box office numbers” from this conference, OTT is headed for blockbuster status - coming soon to three (or four) screens near you.

Content Shopping – Making the Digital Leap

By Jason Anderson

With MIPTV in Cannes (and a cloud of Icelandic volcanic ash) behind me, I’ve become fully aware of the need for savvy distributors and broadcasters to do more with their content sales and delivery strategy. 

The fact is -- online video viewing continues to rise. Google alone saw 13 billion video views in March, according to comScore, but it’s up to the content producers, broadcasters and distributors to make the most of this growing popularity.

While many distributors and networks offer easy online access to their shows, most are still mailing content screeners on DVD . That method makes it difficult to obtain the most basic feedback from the potential audience. Did the recipients watch the content? How many times? How long did they watch?

There is a much better way.

Consider the cost-savings and strategic value of managing and tracking all of your digital media, including trailers and full episodes through a single media management system.  No reason to overnight 30 DVDs to a prospects, or to waste any more time uploading trailers for not-so-easy access via FTP and otherwise. 

Just upload your content once into a secure library. Next, let buyers watch content online or download it for later viewing. Then, track what they view or download, how long they watch it and much more. 

Not only will you save money, but you will gather real-time data to help increase sales and fine-tune production budgets.

Consumers are clamoring for a seamless, cross-platform viewing experience, and content buyers are increasingly demanding access to your programming anywhere and on any screen.  Be sure to meet buyers’ needs in a way that fuels immediate sales and provides invaluable data for the future. It’s your content. Why not simultaneously maximize the return on your investment and minimize the effort required, by using a media management system?

MIPTV: The Content Producer’s Road Map

MIPTV is wrapping up here in Cannes, France, and the outlook is optimistic for content producers. According to stats from Cisco, video will make up almost 50 percent of all online traffic and 64 percent of mobile traffic by 2013. That’s a lot of video, and the opportunities for success are mounting. The main takeaways from this year’s MIPTV:

Global & Niche Markets. Niche markets continue to be huge, but think globally. Content is no longer limited to territories or local areas.

Social. Interactivity will continue to play a dominate role in digital media. Twitter is the best for live settings. In fact, one example during the show proved that live Tweeting by fans significantly increased viewership in later time zones. Also worth noting: Content producers will see an increased importance in apps and social media via mobile phones.

User Data. A strong MIPTV emphasis was placed on capturing user data. This will be critical to content producer success both in pre-production and distribution.

Money talks. Monetization of web video will continue to grow. Look for top ways to make money, including mobile, social, casual gaming, ads and digital publishing.

Up and coming. Some additional items to look out for: Touch Web (including the iPad), enhanced location awareness, faster Bluetooth, 4G coverage across the world and micro-payments.

The industry is going full-speed ahead. Already, Americans spend $260 more a month on entertainment and communications when compared to a generation ago. The trick is to utilize these new trends in order reach more people, in more places and gain more revenue.

NAB Day 2: War on the Floor (and a little 3D)

By Pete Contardo

Endavo was asked to participate in NAB/BEA’s War on the Floor, an Amazing Race-type scavenger hunt where two teams explore the NAB exhibit hall to learn all the major steps in the content life cycle. CEO Paul Hamm shared information with one of the teams on Endavo’s role in content management, distribution and monetization, highlighting the key features of our OTT Video Services Platform and the opportunity to syndicate content to global telco tv partners. 

Check out the War on the Floor video clip:

Quick Observations on 3D:

After attending a special event showcasing the latest 3D offerings, there certainly seems to be momentum building on the content production and distribution technologies available to accelerate the adoption of 3D displays (and the commercial success of Avatar certainly doesn’t hurt the business case either). Hearing that Best Buy sold out of their initial Panasonic 3D bundle also shows that there is sufficient demand from early adopters. And who knows, maybe the best indication that the market may just may be ready to take off: We picked up a catalog at the event filled with multiple pages of “designer” 3D glasses now available to consumers. Guess folks want to be stylish even when sitting in their own living room.  Now all this still doesn’t necessarily mean that the typical consumer is ready, willing or able to go out and purchase a new 3D TV, but at least the tools for driving 3D content creation and viewing are in place.

Endavo in Cannes for MIPTV

by Jason Anderson

Ahhh…the French Riviera. Who knew syndicating the planet came with a tan? While some of the Endavo team is in Vegas at the 2010 NAB Show, I’m spreading the word about our Platform at MIPTV in Cannes, France. Not a bad gig, huh?

 

This show is all about the TV, film, digital and audiovisual industries—from production to distribution. And it gives the industry a glimpse of the future on a global scale. I mean, we’re talking 13,000 entertainment professionals here from more than 100 countries.

 

So what does the future look like?

 

Pay-as-you-go productions are up and coming, while the glory days of paying big upfront costs are fading. Syndication seems to be a big plus here—as the relationship among producers, distributors and their fans evolves at lightning speed.

 

Getting to know your audience is going to take on a greater role. This will enable you to quickly determine your revenue base and thus production budgets and distribution models.

 

QoS is still big...but pay bigger. At these shows we used to hear: Will new Internet TV platforms deliver TV-quality viewing experiences? Answer: They can. Now, the questions seem to revolve around how to get paid and who’s going to pay for it. Luckily, 2010 will be the year that the terms of trade between producers and distributors will be worked out, and that means adding up more dollar signs.

 

More people will have access to broadband Internet on mobile phones than any other kind of device. Translation: Endavo’s fully-integrated mobile offerings will be huge for telcos and broadcasters.

 

I’m here for another few days…soaking up all the information (and a few rays). So far, it looks like a money-maker future for content producer.

Day 1: Exhibiting at the 2010 NAB Show

Wow. What a difference a year makes. Last year, we spent some time educating those who stopped by our booth, but this year’s 2010 National Association of Broadcasters Show is all business. Content producers, aggregators, and broadcasters talking with us have certainly embraced OTT video and are now in “solution” mode. “How does your platform support my business model? How scalable is your service? How can I leverage your global telco tv partners?” Clearly, they have done their homework and we are excited about the opportunity to help them take their business to the next level by offering enhanced video services to their customers.

And to further help promote our OTT video services capabilities, we’ve taken our website to the next level. So if you don’t get a chance to stop by our Broadband Innovations Booth SU9506U, (check out the photo below), you can always catch up on the latest from Endavo at our newly renovated site: http://endavomedia.com/. And stay tuned for more; we have a feeling this is going to be an exciting show for the industry.