ENDAVO BLOG

Takeaways From Streaming Media West & Online Video Platform Summit ’09: Part 1

By Brent Grablachoff

Many here at Endavo Media recently attended Streaming Media West and Online Video Platform Summit ’09, a three-day conference rich with live demonstrations, expert speakers and business-building opportunities for professional video content producers, video technology companies and online video platform providers. I spoke with countless industry experts, providers, producers, and attendees, all of which helped confirm problems the online video industry is experiencing, and the need for solutions for future digital media delivery systems.

Because there is so much conference information to share, I’m providing the first of a two-part blog post in hopes to educate and inform you of the latest happenings in our digital world. Today I’m writing on 3-Screen Delivery and Mobile Video Delivery. Next week I’ll conclude with Paid/Premium Content, Detailed Video Analytics and Live Streaming.

3-Screen Delivery (PC/Mobile/IPTV)

Mobile delivery was the most widely discussed topic with 3-Screen Delivery not far behind. Three-Screen Delivery is simply another way to describe the ability to publish digital media to the computer, mobile phone and TV. While interest in IPTV was somewhat tempered, many telecommunications companies with whom I spoke was touting set-top box and its importance in the future of online video delivery.

Most experts believe telecommunications providers, cable companies, and global broadcasting companies will be offering “TV Everywhere” by 2013.

Mobile Video Delivery

Being a sports nut and former college football player, there have been countless sporting events I missed because I was away from a TV or Computer, or my cable company wasn’t airing that particular game. Rejoice! I no longer have to worry about that.

Today we can simply enter the mobile URL of your favorite sports video Web site and catch the game live or on-demand from a mobile phone. No doubt mobile video delivery has arrived and is capturing tons of viewership!

While most conference exhibitors seemed focused on standard video delivery to Web sites, we saw heavy interest in vendors promoting mobile video delivery. Content producers were seeking an easy and effective solution to distribute content to mobile phones. Also, there was considerable talk about piracy and illegal downloads of content—that’s always a concern of video content producers. But rest assured, there are measures for distributing content safely without limiting its global reach.

Based on feedback and interactions at the Endavo Media booth, and discussions with others at the conference, I believe mobile video delivery will be the HOT TOPIC in the online video world for at least the next six months. 

Be Prepared to Set Sail with Mobile Video Opportunity

According to data from Nielsen Online, visits to web sites from mobile devices grew 34 percent during July 2008 to 2009. What’s more, the growth is spreading beyond the typical early-adopting age bracket of 18- to 34-year-olds. Youths and seniors experienced a surge in growth, according to an article by ClickZ last month. In fact, users over 65 years old saw a remarkable 67 percent growth (although the base amount started off very low).

So, where are you with your strategy to move beyond your online video platform to embrace the opportunity with mobile delivery? Even if you don't think your content or customers would be a perfect fit for mobile just yet, the mobile user population is growing and should be given serious consideration in your strategy.

The evidence of recent mobile video trends were clearly shown at Streaming Media West and the Online Video Platform Summit in San Jose last week with many demonstrations focused on delivering content to the mobile screen. (On top of this, the number of broadband-enabled devices continues to grow with what feels like everyone getting into the game with their own set-top box. Hey, even Flip may be entering into the space.)

But before you go jumping headfirst into the deep end of the “mobile pool,” you’ll want to carefully wade in with a solid strategy for extending your brand and content to each screen. It’s too easy to get caught up in the latest wave of features, specs and codecs being tossed around as if the technology alone is the solution. Your business goals need to be front and center when defining the requirements you seek for your mobile video solution.

Technology needs to be supportive, not the driver, of your strategy for packaging, promoting, delivering and monetizing mobile content for your customers. This approach will help keep you afloat as you begin crafting your mobile video strategy.

Lessons from Internet Summit ’09: Live Streaming, VOD, and Ad Placement

Yeah, the Internet turned 40-years-old this year, prompting a birthday article by the Guardian, but it’s far from being “over the hill” – at least, not at this summit.

More than 75 industry experts and Internet thought leaders from companies such as Technorati, Pandora, ESPN and Google, convened at the second annual Internet Summit earlier this month in Raleigh, N.C. And this year, it was streamed live—thanks to Endavo Media.

One hot topic discussed at the conference was online video solutions for businesses, especially live streaming versus on-demand.

Here's a quick look at the main discussions at the summit:

Live Streaming: Live streaming allows content producers to engage an audience with an interactive environment. This includes chatting, commenting and social media opportunities that allow the audience to really feel like they’re a part of the event. It also creates a feeling of exclusivity. The audience feels as though they’re the “first to see” or that they’re part of the “in-crowd” with live streaming events. The key take-away for businesses: It’s important to focus on gaining a large amount of content and then up-selling to a paid platform.

On-Demand: Content providers looking at on-demand video need to focus on monetization of their content (especially longer form content). Analyze and measure the value of the content. Plus, focus on premium content, higher-end media/broadcasting companies. 

Mix It Up: Luckily, businesses don’t have to choose between the two. Endavo Media provides a platform that allows both live streaming and on-demand video. The next Internet Summit lesson, however, is making money from all your work.

Monetization: Content providers don’t necessarily need to choose ad networks. This allows businesses to 1) have a personal relationship with the advertisers, 2) only include relevant ads to their sites, and 3) have greater control over the where/when of ad displays in order to keep customers from being blasted by unnecessary advertisements. Also, consider playing video ads on the same media player that viewers are watching VOD. This keeps the viewers on the company’s site (and NOT the advertiser’s site).

A strong Internet video strategy starts with research, followed by some trial and error to find the best overall solution for your content and audience. We look forward to covering future events and conferences to gather the latest opinions and trends in online video. Until then, Happy Birthday, Internet! 40 years and still going strong.

Will The Real New Media Broadcaster Please Stand Up?

By Shaun Pope

Last week I had the privilege of presenting a keynote speech to the AMA Tampa Bay Digital Media SIG event. The focus was video -- and how New Media is changing traditional broadcast models. It sounds fairly straight forward, right? But when you think about it, the components or framework for monetizing content hasn't changed; the real change is in the new-found ability of all stakeholders to take on new roles in the process.

At the event, I introduced a concept I like to call the "New Media Framework," which illustrates how similar old and new broadcast models are. "Monetization" is one of today's top buzz words. However, traditional broadcasting and new media are built on the same principle: generating sustainable revenue from content. The 3 key components to successful content monetization are: Content, Audience, and Sponsorship/Advertising.  When all 3 are clicking, you have monetization. NOTE: I intentionally left out paid content, as it has its own dynamics.

Within the traditional media framework, each participant is rather fixed in their role. Content producers make content and sell it to broadcasters. Audiences passively consume it. And, sponsors/advertisers place their 30- or 60-second spots in targeted media outlets. Again, it's all designed as one-way communication, hence the term broadcasting.

So what's "new" about New Media. In short, emerging technology, the Internet and social media platforms have unleashed the true potential of the traditional broadcast model, allowing flexibility. Here are just a few examples of new broadcast strategies where roles have shifted resulting in monetization:

• Audience acting as broadcaster: YouTube personalities. The user generated content (UGC) craze has been fueled by social media portal sites where anyone can publish/distribute content. Individuals like Dave Days, YouTube Fred and LonelyGirl15 have all built significant audiences with nothing more than a hand-held camcorder and their computer. Even though it's challenging to reach maximum monetization (see: Online Video, Nothing's for Free), strong content and established audience creates sponsor demand. Specifically, product placement and in-video branding, enabled by companies like HitViews (started by YouTuber Caitlin HIll) has created real revenue for these content entrepreneurs.

• Content producers acting as broadcasters. A great example of this is Endavo Media's client American Powerboat TV. Here is a traditional content publisher that continues to sell content production services to traditional media brands, but realized they were leaving money on the table. With their own Internet TV channel, AmericanPowerboat.tv has created a niche audience of enthusiasts with sponsorship driven deep into the content. In effect, they have become a broadcaster, with all 3 pieces of the New Media Framework under their control.

• Sponsor acting as broadcaster, or as its become known, branded entertainment. Arguably, this has become one of the hottest trends in marketing. It can take many forms, from concert sponsorship with an online component (recent U2 on YouTube event), to serialized webisodes like IKEA's acclaimed "Easy To Assemble," and/or UGC contests like Hienz Ketchup's ongoing "Top This TV Challenge." In all cases, the flexibility of the New Media Framework allows big brand marketers to create/aggregate content, deliver it, promote it and wrap their brand around it. Again, controlling all 3 pieces of the model.

These examples are meant to demonstrate the opportunity that exists for multiple groups to succeed within the New Media Framework. Now, no one is relegated to a single role. However, taking on these new roles can mean venturing into uncharted water for some. If you lack the ability to fill the content production role, or you're not a strong marketer, you'll need to find partners that are and forge relationship that can deliver on all 3 phases of monetization.

Look at the graphic above, and remember: shoot for the middle.

Lessons from Space and Xbox 360’s Sky Player

By Jason Anderson 

“Houston, we have a problem.”

Those famous words by astronaut Jim Lovell on the ill-fated Apollo 11 mission should never be spoken of your online, mobile or IPTV content distribution. Whether you’re a niche content producer or a major media company, proper planning will reduce hiccups and help you launch and manage your online efforts.

The folks at Xbox 360 in Europe are learning about proper pre-planning the hard way, perhaps with Jim Lovell’s voice ringing in their ears.

Xbox 360 recently launched Sky Player, which as this article relates, allows Sky TV subscribers to access live and on demand content. Sky Player is also available to non-Sky TV customers for £15/month.

Demand has been so high that Xbox 360 has been forced to suspend the service while they upgrade their network capacity. In fact, they’re now implementing a phased rollout to protect against future outages.

As you launch your online, mobile or IPTV offerings or as you ramp up to a bigger and better audience, be sure to plan for success by choosing a platform that can handle major traffic and includes “roll up your sleeves” support to quickly tackle issues on the road to generating revenue and distributing your content. Frankly, relying heavily on so-called ‘free services’ such as YouTube and Blip.tv may appear to save you money in the near-term, but your long-term goals can suffer due to slow performance at peak traffic times, lack of real-time technical support and more.

Thankfully, Lovell and friends made it back to earth unscathed. And though the jury’s still out on whether Sky Player will overcome their initial stumbles, both tales illustrate the need for better upfront planning. Be sure to learn from their missteps and lay a firm foundation to accomplish your online, mobile or IPTV goals.

Do you Hulu? Combo business model for monetizing online video

By Jason Anderson

If you’re a content owner or aggregator, you have probably thought about the different ways to monetize. You may be thinking, “Should I use an ad-based or subscription-based model?” But, what if I told you that it’s not an either-or situation? What about using a combination of both? Your distribution strategy would likely include the following coordinated strategy: advertising to give free content to guests and subscription-based memberships for premium content.

Consider two recent happenings at online video giant Hulu.  

Hulu.com has famously gathered an audience in the tens of millions via premium content from top networks offered in a visually engaging, easy-to-navigate site monetized through video and banner advertising.  Now, Hulu is developing new tools to allow viewers to interact with advertising more significantly and laying the framework for subscription-based offerings set to debut in some form in 2010.   

In spite of the massive bandwidth costs associated with showing nearly 500 million video views per month, Soleil Securities analyst Laura Martin says Hulu is well on its way to profitability.  Their success demonstrates the viability of delivering quality content in a quality environment.

Perhaps your revenue sweet spot is in providing ad-supported content free to guests and members, plus exclusive content for paid members, all showcased in a custom-branded environment, just like Hulu. The possibilities are endless when you use all the capabilities of your own online video platform. And Hulu’s efforts should act as encouragement as you consider various ways to generate revenue from your content.