ENDAVO BLOG

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.

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.

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. 

LifeLight Music Festival 2009 Teams Up with Endavo Media to Stream Live Concert Footage Online

By Jason Anderson

These days, live online streaming is hotter than ever. Take the LifeLight Festival, the largest free Christian music festival in the U.S. happening this Labor Day weekend. Last year, over 320,000 fans gathered on a grassy plain in Sioux Falls, South Dakota for the free outdoor concert. This year, the event will extend far beyond the Mount Rushmore state-- it's going online to a live global audience.

LifeLight will broadcast nearly 30 hours of live music to paid subscribers over three days in stunning audio and video quality. During the live broadcast, fans will see interactive banner advertisements for the on-stage artists' latest CDs, future concert tickets and more. Between acts, LifeLight fans will also have the opportunity to enjoy music videos from their favorite bands or cruise back to the LifeLight main website to find out more about their non-profit ministry.

So what does this have to do with your brand or, for that matter, your band?

Now is the best time to consider new ways to reach your audience. Think about it -- how do you to connect with clients, fans and others in real-time? Live online broadcasting within a custom-branded environment will build a lasting relationship with your audience, especially if you're featuring niche events for dedicated fans and followers.

While some of the video sharing sites do offer to host your live broadcasts, you better be prepared to give up control over your revenue and your brand. So if you’re serious, stop reaching for their “carrot on a stick” and begin fully capitalizing on live event opportunities to connect with your fans with your own platform. Learn from LifeLight's cost-effective, custom-branded efforts and capture your own dedicated fan base using live online broadcasting.