ENDAVO BLOG

Lights, Cameras, OTT Action: A Look Back at Digital Hollywood 2010

By Brent Grablachoff

If OTT were a movie in the making, then Digital Hollywood 2010 in Santa Monica was an all-out cast party. Key players assembled from all over the digital media, entertainment and film spectrum—representing everything from software, hardware and services to actors, freelancers and industry professionals. This was definitely the place to be this week. Friendships were formed, partnerships were made, and businesses learned from each other.  

A group of us attended the event as an exhibitor, and our own CEO Paul D Hamm spoke on a panel about the “Models for Change.” Throughout the conference, change seemed to be a common theme. Almost everyone we spoke to wanted to know what will be next in the digital media space, and how they can capitalize from it.

Some main takeaways from Digital Hollywood:

The fourth screen. We’ve all been talking three screens, and now with the immersion of the iPad, we’ve got another. The iPad has sold 1 million devices in a faster timeframe than Apple’s original iPhone offering. This could pose new opportunities for advertisers and everyone in digital media to find new ways to monetize. 

Mobile still key. As with the last few shows we’ve attended—Streaming Media West, OMMA Video and NAB—speakers emphasized the importance of mobile for businesses. Whether it’s offering content designed for mobile devices, offering mobile-specific advertising campaigns, or developing software or ‘apps,’ the sure thing is that a mobile strategy can be key to growth.

Over-The-Top. People are now embracing the importance of OTT. We’ve been talking OTT for the past 6 months. Now, it seems like most in the market understand the way we consume content, the way content producers make money and the way networks deliver content continues to evolve. Many of the event’s speakers shared our projections for OTT being a commonality among telcos and cable companies in the next 2 to 3 years. This will ultimately give consumers more control over how they view content and where they view it.

Overall, the spotlight was on OTT this week as Digital Hollywood rolled out the red carpet for all things Over-the-Top and multiple screens. So based on the “box office numbers” from this conference, OTT is headed for blockbuster status - coming soon to three (or four) screens near 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.

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.

Will You Watch Me Now? Where Content Producers Can Find Their Audience

These days, being a content producer certainly has its opportunities and challenges. On the up side, viewers are now able to access hours and hours of video content, whenever and wherever they want. But, with all that content out there, it's tough work getting your audience to notice you. Video consumption is way, way up, and the competition is fierce. Cisco forecasts that U.S. bandwidth consumption is headed for 15 Terabytes per user each month. That’s around 3,750 DVDs-worth of data associated with video viewing (for one user, for just one month). As consumption soars, content producers must try harder to reach target viewers.

One way to gain an advantage is to stay ahead of audience demands. According to a recent Pew Internet study, an overwhelming majority of Americans (92%) use multiple formats for getting news. Here are the key findings:

• Multiple Formats: 46% of Americans say they get news information from four to six media platforms on a typical day. Just 7% get their news from a single media platform.
• Mobile: A third of cell phone owners now access news via their phone
• Interactive: More than a third (37%) of Internet users have contributed to the creation of news, commented about it or disseminated it through postings on social media sites. And about 75% of online news consumers say they get news forwarded through email or posts on social networking sites.
• Personalized: 28% of Internet users have customized their home page

And it’s moving in the same direction for video. Viewers want to watch content whenever they want and delivery to multiple screens is expected. So, you need to be thinking not just about producing great content, but also about putting it in the form and format that your audience wants. This is how you can rise above the noise and find (and connect) with your audience.

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.

OTTCon 2010: Go Over-The-Top!

By Brent Grablachoff

Early this February, I packed my bags and headed to San Jose, California, for OTTCon 2010. These days, everyone is trying to figure out where the Internet TV revolution is headed. Many folks were looking for a simple answer to the big question, “What is the role of OTT in the rapidly-changing world of TV,” while others wanted to know, "What device will emerge as the "entertainment box of choice? ...or is a box even the best solution?”

Speakers and industry pundits at the conference discussed their view of Over-The-Top and how they envision Internet TV being delivered. Although the majority of presenters had great solutions for certain pieces of the puzzle, no single company really offered a full end-to-end turn-key solution.

Some of the major topics of interest at the conference were:

• The emergence of Blu-ray players as a preferred OTT delivery solution
• Quality of Service (QoS) and how network service providers (telcos and MSOs) can guarantee a superb user experience over a managed network
• Best-efforts Internet vs. delivering your content through a predictable medium
• TV Everywhere and the ability to distribute video content to PC, TV and mobile devices

Some of the major concerns and areas of opportunity that were commonly shared among network service providers were:

• Monetizing video content remains a key focus
• Providers want their content delivered to as many subscriber devices as possible
• Ability to deliver HD or better quality content with no buffering, e.g. Smooth Streaming, Adaptive Streaming
• Improving the end user’s experience
• Giving their subscribers more options and flexibility
• Controlled distribution of content via authenticated devices

Consumer expectations are already being set with initiatives like TV Everywhere, and although the technology already exists to broadcast to multiple devices, the total experience must first be integrated and seamless. Ultimately, the end user should be able to casually turn on their linear TV channel, or browse through a VOD library from various content sources, without any drop in the experience. If you’re away on vacation or out on business with your laptop, you should be able to enjoy your video content wherever you are, with TV, netbook or mobile phone. It takes something like enhanced OTT video services, which combine the benefits of managed network delivery of IPTV with the interactivity of the Internet to address this opportunity. Ideally, your audience should be able to watch their TV channels and VOD content anywhere, anyplace, anytime, on any device…delivered with sufficient QoS to meet their expectations.

With new technology comes a new set of questions and concerns, but the age-old success formula remains the same -- listen to your customers, give them the experience that they want, and you’ll be providing real value as a business. It's a real win-win situation…if you can deliver.

Hey, anyone else attend OTTCon this year? Have something to say or want to share your experiences? Just send me an email.

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. 

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.