ENDAVO BLOG

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.

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…

Takeaways From Streaming Media West & Online Video Platform Summit ’09: Part 2

By Brent Grablachoff

Last week I shared a few key insights gleaned from attending the recent Streaming Media West and Online Video Platform Summit ’09. I wrote on 3-Screen Delivery and Mobile Video Delivery. Today, I will be concluding with Paid/Premium Content, Detailed Video Analytics and Live Streaming.

Live Streaming

Most visitors to our Endavo booth were overwhelmingly interested in streaming live video. I'm watching as live streaming gradually becomes a higher priority. These days, we live in a world where people want to see real events, right NOW. The demand and need for Video on Demand (VOD) cannot be ignored.

Paid/Premium Content

Because businesses are in the business of making money, many are starting to notice ways to monetize their online video content, too. This question is on everyone's mind, "Why create a Web site offering high-quality and premium video content, if we're just going to give it away for free?" That’s why conference attendees were asking us about video monetization models, and if Pay-Per-View offers a better ROI over Subscription or Membership models.

While there is no universally accepted single “best” online video monetization model, there are multiple ways available that will offer an effective combination of revenue generating tools for your business. We feel it’s crucial that each businesses assess and decide what’s important to their audiences – then apply a monetization model that best achieves their specific business objectives.

Detailed Video Analytics

Without a goal or plan, your business is like a ship without a sail. Because it’s important to track and measure results, I was especially interested in the conference’s discussion on ‘Analytics & Measurements’. At Endavo, we believe creating deeper analytics will become more of a development priority in the digital media revolution. Metrics such as total videos views, most watched videos, and what’s generating buzz are helpful, but you should demand more. The Streaming Media West panel predicted in 2010 we’ll see more detailed analytics, such as: How long did the user view the video? Did they skip through the ads? Did they watch the video in its entirety? Where did they drop off?

Also, as discussed, we’ll see more proven tracking methods for geographical drill-downs and metrics showing video viewership on a global, country, state and city-wide radius. While overall online video technology continues to evolve, we believe the capability to dive deeper into online video viewership dynamics will help companies realize better ROI, monitor and track marketing and sales goals, and appreciate the contribution of online video to their business mix.

Conclusion

Online video has come a long way the past 5 years – but we have an even longer way to go in the next two. Technology continues to evolve, new companies are launching every day ... and best practices continue to be implemented.

I admit that I can get wrapped up in the capabilities of online video, and the myriad of services offered ... and why our platform is so great. But it’s important to not get too focused on the array of technical services available throughout digital media. You should instead do your research, stay up to date as best as you can and ultimately find solutions that solve problems and make sense for your business.

And most importantly, develop a solution that provides your audience an opportunity to engage, interact and consume ... and keep giving them reasons to come back for more.

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.

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. 

Mobile Video Requires Solid Strategy...Just like Online Video.

By Peter Contardo

“It’s like déjà vu all over again.” -Yogi Berra

If you’re considering putting your video content on mobile phones, you may be wondering where to begin. Well, just like when you made the decision to put videos on your website, a good bit of strategic planning can go a long way.

Remember, distributing your content to mobile phones doesn’t automatically guarantee an audience. Whether your goal for mobile video is to build your brand, generate revenue, or both, it is your content that drives success.

Sure, mobile distribution can give you an additional way to connect with your audience, but your content requirements can be very different. What type of videos do you want to deliver? What length? How often? Are they the same or different videos from your main website? Is it premium content for members only? Are they designed to drive people to your main site or stand-alone as an additional service? Or, some combination of it all?

Mobile video distribution can be an effective method to offer your current and prospective viewers a more convenient way to connect with you. However, as with online video, you need to make sure you’ve got your video creation strategy locked down so you have the right videos playing on the right devices. And having a solid strategy that embraces mobile as a second screen becomes even more critical if you are thinking about venturing into the world of three-screen by adding IPTV set-top box distribution. (Or as my friend Kelvin G. likes to say, “three-scream.”)

So remember what Yogi said and develop a solid video creation strategy while you are developing your mobile video strategy. It might just feel like déjà vu, but your audience will thank you.

Mom was right. It’s nice to share.

By Pete Contardo

Whether it’s some sick zombie clip, a cute puppy video, or another one of those fake viral commercials, today’s online video scene is full of content for all types of people. But where’s the fun in finding a cool video and then not being able to share it with anyone?

Research shows that 1/3 of all online videos are shared, according to a study by Yahoo! and other large media companies. So, it still baffles me when I come across a great video on a site that doesn’t support sharing or other social networking features. Now, more than ever, viewers don't want to keep their favorite content a secret. They just can’t wait to share it, post it or mash it!

Best of all, great things can happen when a viewer shares your video. They become an ambassador for you, strengthening not only their relationship with your brand, but also engaging others to do the same. You can effectively reach more of your target audience, in a more direct and personal way. And any of their “friends” who receive an invite to view your video are more likely to accept the message because it came from someone they trust, and in turn they learn to trust you. Similarly, if someone embeds your video on their site or social network page, it can have the same effect by exposing your content to their friends.

These days, customers have come to expect sharing features with their media content, especially when it comes to video. So, make sure your platform has the right features. Before you know it, your viewers will be sharing their favorite videos and you can just sit back and enjoy the benefits. (But sometimes it doesn't hurt to remind your customers to share, just like Kelvin G. does before one of his clips...)

So, be nice and remember what your mother taught you-- and make it easy for everyone to share.

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 :).

Bringing Concert DVDs Online - Broadcasting Live Video From the Stage

By Jason Anderson
A few weeks ago I trekked to Pagosa Springs, Colorado for our annual "man trip" featuring paintball, Texas Hold 'Em and plenty of Wii. Concert DVDs by Matchbox 20, Eric Clapton and Rush provided the soundtrack for our extravaganza.

If you're a music lover or just a big fan of a special group of bands, you've no doubt plunked down $35 or more for these concert DVDs, which according to our trip DJ--whom himself is a killer percussionist--is the next best thing to being at the show. This from a guy who's seen literally hundreds of concerts including U2, Elton John, Tim McGraw, Rush, Billy Joel and many more.

Frankly, it amazes me that such a solid musician and huge audiophile would want to see his favorite bands on the small screen. But my friend's love for concert DVDs got the gerbel in my head back on its wheel...

Why don't bands stream live from the stage and sell online season passes to all of their shows? Unless fans are utter Dead Heads, Parrot Heads and/or perpetually unemployed, they won't be able to make it to every show. Broadcasting live video from concerts can solve this problem. With the advent of synching your computer with your TV, killer home audio and unbelievably fast broadband access, any true fan should be able to see every show.

Imagine a concert DVD that features every tour stop! How much would you spend on that? $49.95? $99.95? More?

And what about music festivals? Imagine Alive Fest, Lilith Fair and the thousands of other music fests--either with several stops or one multi-day show--offering live online concert packages! Add to that user-gen contests leading up to the show and fan video uploads after the show(s) and you've got a recipe for huge fan response and big revenue! Did I mention online title, video advertising and banner sponsorships by existing sponsors?!?

The concert DVD was just the beginning. Now it's time for bands, promoters and fans to bring the show online.