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.

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.

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.

Day 3: An Over-The-Top Overview at IPTV World Forum 2010

IPTV World Forum 2010 has come to a close and while we make our way back across the Atlantic, we leave knowing that the OTT video revolution is in full swing around the globe.

It was no surprise that most everyone at the show “gets” OTT. But the market is still struggling to marry up IPTV with OTT to create business and delivery models that make sense, and then figure out where they play in the new converged world. As we demonstrated with AirTies, the trend is toward hybrid OTT and IPTV. One thing is for certain, however. Everyone needs content AND a platform. So while the market understands that the OTT/hybrid delivery model is there, a big concern is getting content into it. This of course is good news for Endavo as it is core to our solution. In fact, when Massimo Marinelli from UBS Investment was asked where he’d invest $100 million in the media services arena, he said content distribution platforms.

Another big take away from the Forum was the desire for an iPhone-like consumer experience on the TV. In order for the Internet to truly make its way into the TV realm, there needs to be more widgets, apps and sites designed specifically for IPTV. For telcos, they have an advantage in this because they own the pipes to manage OTT/hybrid service delivery to deliver a better quality user experience. In fact, SoftAtHome, which Endavo demonstrated with on the Etisalat booth during the Gitex event, is already doing this. The company showcased a new version of its application that has more of an iPhone-like experience. SoftAtHome is saying, “instead of trying to build services around the current TV experience, we need to build a new experience on the TV (like the iPhone) that happens to include TV.”

Three-screen is still hot—as it gives operators an opportunity to increase user base, activity and average revenue per user (ARPU). And while the best ways to monetize content are still being debated, paid is winning out over ad based as the preferred model. Free content is being replaced with a freemium model, which offers a mix of free services with intent to up-sell to premium services.

While OTT is still defining itself as a market, the keys to success are apparent: Quality content, interactive features and the ability to watch anywhere, at any time, and on multiple screens. Sounds like a job for Endavo…as we continue our mission to syndicate the planet.

IPTV World Forum 3-Day Experience

Day 1: Going Over-The-Top at IPTV World Forum

03/24/2010- Day 1 is over at the IPTV World Forum in London and we’re off to a great start. We’ve teamed up with wireless networking vendor AirTies this week to showcase our solution for over-the-top (OTT) video services. The world of online video is changing—and we’re right in the thick of this evolution of technology and entertainment. Talk about exciting times.

It’s been non-stop for our CEO Paul Hamm, pictured with AirTies CEO Bulent Celebi. Paul’s been meeting with content producers, broadcasters, telcos and other industry representatives and sharing new ways to reach more people, in more places, with more ways to monetize by offering OTT video services. Throughout the day, people from around the world have been viewing the AirTies hybrid demo of OTT and digital video broadcasting (dvb-t) supported by our Endavo Media Management System. I think it’s safe to say, OTT is going global.

So syndicating the planet…here we come (that is, right after we grab some fish 'n' chips).

 Day 2: IPTV World Forum Buzz

03/25/2010- Day 2 has now come to a close at the IPTV World Forum 2010 in London. And we were somehow able to snap a photo of our CTO Scott Bell sitting down—the first time all day. 

Scott and CEO Paul Hamm spent the day demonstrating the integration of our media management system with AirTies hybrid set-top-box. It offers telcos, content producers and broadcasters the power of OTT videos services, and there is plenty of “buzz” about OTT at the booth.

• Visitors are already sold on the business potential of OTT video services. They’re focused on finding the best solution, one that integrates all the pieces of the equation, and Endavo/AirTies is an example of how it all comes together. 
• They like the fact that Endavo/AirTies offers access to content already packaged and ready. They need content, beyond IPTV, and they want an easy way to acquire, manage, deliver and monetize it.
• AirTies users note its UI speed and ease of use, and they certainly like the integrated home networking and wireless access capabilities when it comes to their OTT set-top box offerings. 
• Overall, flexibility, ease of deployment, ease of use (consumer QoE), and access to content/services beyond IPTV are major factors being cited as important to operators evaluating OTT solutions.

Now that the day is over, we finally get a chance to truly sit back, relax and watch some OTT-TV. Until tomorrow…

Day 3: An Over-The-Top Overview at IPTV World Forum 2010

03/26/2010- IPTV World Forum 2010 has come to a close and while we make our way back across the Atlantic, we leave knowing that the OTT video revolution is in full swing around the globe.

It was no surprise that most everyone at the show “gets” OTT. But the market is still struggling to marry up IPTV with OTT to create business and delivery models that make sense, and then figure out where they play in the new converged world. As we demonstrated with AirTies, the trend is toward hybrid OTT and IPTV. One thing is for certain, however. Everyone needs content AND a platform. So while the market understands that the OTT/hybrid delivery model is there, a big concern is getting content into it. This of course is good news for Endavo as it is core to our solution. In fact, when Massimo Marinelli from UBS Investment was asked where he’d invest $100 million in the media services arena, he said content distribution platforms.

Another big take away from the Forum was the desire for an iPhone-like consumer experience on the TV. In order for the Internet to truly make its way into the TV realm, there needs to be more widgets, apps and sites designed specifically for IPTV. For telcos, they have an advantage in this because they own the pipes to manage OTT/hybrid service delivery to deliver a better quality user experience. In fact, SoftAtHome, which Endavo demonstrated with on the Etisalat booth during the Gitex event, is already doing this. The company showcased a new version of its application that has more of an iPhone-like experience. SoftAtHome is saying, “instead of trying to build services around the current TV experience, we need to build a new experience on the TV (like the iPhone) that happens to include TV.”

Three-screen is still hot—as it gives operators an opportunity to increase user base, activity and average revenue per user (ARPU). And while the best ways to monetize content are still being debated, paid is winning out over ad based as the preferred model. Free content is being replaced with a freemium model, which offers a mix of free services with intent to up-sell to premium services.

While OTT is still defining itself as a market, the keys to success are apparent: Quality content, interactive features and the ability to watch anywhere, at any time, and on multiple screens. Sounds like a job for Endavo…as we continue our mission to syndicate the planet.