ENDAVO BLOG

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.

March Madness Coverage Shoots…Nothin’ but Net!

Millions of people across the country – especially in the state of Kansas – are wishing that their NCAA college basketball tournament teams were scoring as well as the online video streaming of March Madness.

The NCAA basketball tournament brackets have historically led the field when it comes to “just for fun” office pools. The tourney has a way of bringing together workers that stumble when trying to name 6 out of 64 teams and those basketball snobs who think they know it all (and often end up at the bottom of the betting pool).

But the tournament is breaking new barriers – this time with online video. March Madness is crushing online video records and is proving as valuable to advertisers as traditional television.

CBSsports.com reports fans watched 3.4 million hours of live streaming in just the first day of the 2010 NCAA College Basketball tournament - representing a 20 percent growth verse 2009. The tournament scored the largest video streaming single-day traffic on the Internet.

Better yet, online video watching of major sports events on computers and mobile phones is now commonplace. AT&T actively promotes that fans can watch the game on their phones during the tournament coverage.

The tournament is laying the foundation for true monetization. Call it Monetization Madness. CBS is expecting its highest level of income from online viewers ever. In fact, the network stands to make $37 million this year (just for comparison – way back in 2006, online revenue for CBS was at $4 million).

Online video looks like a real winner for the tournament. I wish I could say the same thing for my picks in our own “just for fun” office pool. At Endavo Media we can certainly help you understand the value of OTT video services and how to monetize them. As for picking winners for March Madness, I’m afraid that you are on your own.

You Gotta See This…Oh, Wait. It’s Buffering.

By Pete Contardo

Sure. We all love watching video clips of skateboarding dogs and talking babies on YouTube. But buffer once, even for short videos, and we’re out. A recent study by Tubemogul found that 81 percent of all online video viewers —- that’s four out of five of us -— click away if a video rebuffers just once. Now, imagine trying to watch a full-length movie on YouTube.

The quality of service issue when it comes to delivering video content, especially those looking to monetize their video content, is critical. It’s tough to charge a premium, be it ads or subscriptions, when your platform can’t deliver the quality experience that your audience expects. So, good luck to YouTube in their latest plan to offer movies on their site. But don’t take it from me. Just ask SNL’s Weekend Update New Media Correspondent Bobby Moynihan what he thinks about this latest move from YouTube. Oh, wait. He’s buffering…

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. 

It's time to put some “Service” back in your Platform

By Pete Contardo

You have many choices when it comes to trying to find an online video (SaaS or PaaS) solution that’s right for your content and business strategy. From a pure technology standpoint, adding a video to your website is easier than ever before. In fact-- it’s so easy a marketing person can do it! (Hey, I can get away with saying this because I am that marketing person.)

But a successful online video strategy requires more than just embedding video on your website. So why are so many platform vendors moving towards a “self-serve” model? Do they really think that all that’s needed is to fill out an order form, enter a credit card, and your Internet TV platform is fully operational and optimized to your business and marketing goals? You don’t even have to speak to a person. Seriously?

And what happens when you want to explore a new distribution channel or advertising opportunity, add a new feature, or just need some expert online video advice? Will you be satisfied with an auto-reply email form? Some may only want to work with the more “popular” vendors in the market. But is bigger really better when it comes to Internet TV platforms? Do you prefer working with an 800-pound gorilla or a real human being?

At Endavo Media, we take a different approach. I like to say that we built our business on a “Service-as-a-Platform” philosophy. Sure, we offer our own version of a hosted online video platform that enables you to manage, deliver and monetize your content and branded video services. It actually stands up on its own quite well. But rather than just taking your credit card on some website form, our dedicated business development specialists provide insights into the current online video market and can guide you in launching a web video strategy that satisfies your business needs. In addition, our dedicated Client Support Team is always there for you on the phone, chat, and of course by email as well.

So if you are in the market for an online video solution, you may want to ask the vendors you are evaluating about the level of service that comes along with their software or platform…that is, if you can reach them.

3 Reasons Now is the Time for Broadcasters to Become “Broadband-casters” – Part 3

By Paul D Hamm

By now you know that your targeted consumers are online and the infrastructure is there for you to reach them with your video content. However, where is the money? How do you monetize your online video, audience or an online community you have created?

Multiple monetization models are now proving out to make Internet TV a viable business alternative. Great article from Bloomberg – "The Simpsons" is getting $60 CPM; IGN‘s gaming site is getting $45 CPM. This is great news for quality niche content, because it proves that sponsors and advertisers are looking to reach targeted audiences. 

If you think the best way to build a business around professionally-produced online video is to “follow the eyeballs,” um, YouTube, I encourage you to reconsider your business plan. A viewer engages best with the content that relates to his or her interests. And when the environment around the video reflects these interests, engagement deepens. This represents a wonderful opportunity for the relevant advertiser.  Quick Challenge: Go to YouTube, spend a few minutes there and tell me what viewers there are actually interested in. Then go to Puppy Channel, American Powerboat TV or USA Rugby and tell me what people there are interested in.

However, one of the biggest mistakes a content producer or broadcaster can actually make is to get caught up in the debate over one video monetization model vs. another (especially ads vs. paid content). First of all, most of what you hear out there relates to “big media,” which is certainly a noteworthy data about the industry trends.  But this data doesn’t represent the majority of video content producers and distributors. So, the rest of us need to build our businesses on leveraging as many video monetization models as possible.

What does this mean? Well, first, you need to be regularly producing high-quality content relevant to specific audiences. This content has to be worthy of being paid for either by the audience (via subscription or pay-per-view) or by advertisers and sponsors looking to reach your audience… Or both, which is my second point here.

Why limit your business plan to a one-size-fits-all strategy? We’re seeing content owners – producers, broadcasters, organizations, etc – find multiple video monetization models that work for their services and communities. For best results, you can offer a combination of free ad-supported/sponsored videos, premium content (subscription or pay-per-view), live events and paid syndication. 

Take a chapter out of the book of cable TV broadcasting – offer free channels with ads, premium channels (think HBO) by subscription and PPV content, all through the same “network.” We’re seeing real-world examples of this approach working online. Call us and we’ll show you. Broadband supports a great number of distribution models. So, the possibilities to monetize are virtually endless. Do the math, and you may find that you are sitting on a cash cow just waiting to be turned loose. Let him run! Oh yeah, I can think of at least one platform to help you break the chains :).

Web Communities and Social Media: There’s More to Life than Facebook

By Pete Contardo

Without a question, social media and web communities are becoming increasingly important to businesses looking to engage and connect with their target audiences. Facebook, MySpace, LinkedIn and other social networking sites allow companies to join the conversations forming around their products, services and brands. They can attract new customers, reinforce marketing efforts, build brands and even find new ways to generate revenue.

However, as Krishna Kumar writes in 10 things CEO's should know about social media and online communities, navigating the social media space where 99% of content is irrelevant can be a daunting task. And finding and creating appropriate web communities requires dedication of time as well as sufficient human and financial resources. It’s much more than just putting up a Facebook profile and seeing what happens.

Now don’t get me wrong, Facebook and other social networks can be critically important to your business…but they are not necessarily the only way to leverage the power of social media. This is where building your own web community comes in. Why not create your own online community where your potential and existing customers can interact with each other and your brand? By doing so, you’ll be able to engage with your audience in an environment that you can easily monitor, control and manage according to your business goals. You will also build relationships with your community members that extend far beyond a product or service. Just remember that with social media you cannot, and don’t want to, control the conversation. You can only facilitate the environment in which it takes place.

But before you jump into planning your branded web community, check out Mack Collier’s blog post in which he gives six reasons why online communities fail. In this post, Collier writes that heavy emphasis on monetization, insufficient value creation and lack of engagement on the community owner’s part are the main factors why business-sponsored online communities tend to fizzle out before they get a chance to grow. So, based on Collier’s analysis, here are some things you must address to increase the likelihood that your web community will be a success.

1. Focus on establishing a following of dedicated fans. Monetization may be part of your overall strategy, but the primary purpose of your web community is to connect people and provide a user-friendly social environment that facilitates conversations. How you ultimately monetize should come naturally, after the community has already formed.
2. Offer something of value. Provide your community members with an abundance of interactive tools, encourage content creation through forums, blogs and comments or start a user-generated contest. Online video is another great way to add value to your web community. From weekly announcements from the company’s CEO and insightful industry overviews, to a fun web series featuring your products, to educational ‘how-tos’ and user-generated uploads, online video content will engage your community members and keep them coming back for more. 
3. Become an active community member. Participate in forum discussions, comment on your members’ blog posts, create content, respond to your members’ concerns and treat each of your community members with equal respect.
4. Make it easy for members to promote your community and content. As people enjoy participating in your community, give them the tools they need to share their enthusiasm with family, friends and co-workers. For example, allow users to email and link to your video content or embed it on their personal websites and blogs.

Good luck on your new web community! And, as always, let us know if Endavo Media can help.