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Brightcove Extends Platform to Serve Android Mobile Devices
Brightcove is announcing this morning that it has extended its platform to serve Android mobile devices, the latest sign of momentum behind Google's mobile operating system. The new functionality includes an SDK for Android and new mobile templates for Flash Player 10.1, which together cover the spectrum of video viewed in apps and in browsers. Brightcove's president David Mendels provided further insight in a briefing last week.
What Brightcove is now doing for Android mirrors what the company did for the iPhone last November in the Brightcove 4 launch. Resources included in the Android solution are pre-built components for playback, content discovery, and connections into the Brightcove Media API. Next on the Android support roadmap are easy sharing to social media sites, improved navigation and discovery. For Flash 10.1, Brightcove has created a set of templates that will adapt to mobile devices and their playback context. These include right-sized player controls and a UI for smaller mobile screens. Flash 10.1 is now available for Android devices running Android 2.2 ("Froyo") and is also supported on BlackBerry, Windows Phone 7, Symbian and others.
Categories: Mobile Video, Technology
Topics: Android, Brightcove, iPhone
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Reconciling iPhone 4's Video Push With AT&T's New Data Plans
To nobody's surprise, at Apple's Worldwide Developers Conference yesterday, Steve Jobs announced the new iPhone 4, a powerful machine with a focus on performance. It carries the specs of an iPad including an A4 processor and 800:1 contrast IPS display, along with a new 960x640, 326 pixels per inch "retina display," a pixel density that is indistinguishable to the human eye.
The new iPhone also squarely emphasizes video use - video chat, video shooting and editing and a new Netflix app that Jobs was obviously so excited about that he brought Netflix CEO Reed Hastings up on stage to do his own short demo.
Surprisingly though, the new iPhone's push to more video comes just days after AT&T published its new data plans that seem to disincent video-hungry power users. The new plans, which are slightly cheaper, cap users at 2GB for $25 a month with additional 1GB increments available for $10. While AT&T says that less than 2% of its users exceed the 2GB/mo threshold currently, surely new iPhone (not to mention iPad) users, tempted by all the tasty new video offerings, will start blowing through these limits, knowingly or unknowingly. In fact, it won't take much to exceed the limit; Clicker CEO Jim Lanzone estimated that just 1 HD episode of Mad Men will take up 1.51 GB, or more than 3/4 of the monthly allocation - before you've done anything else.
Categories: Mobile Video
Topics: Apple, AT&T, Flash, iPhone
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Mobile Video Ad Network Transpera Raises $9 Million
Mobile video ad network Transpera is announcing this morning that it has raised a Series C round of $9 million, led by BlackBerry Partners Fund, with participation from existing investors Flybridge Capital Partners, First Round Capital, Intel Capital and Labrador Ventures. Transpera CEO Frank Barbieri told me yesterday that total company funding to date is $18 million.
In addition to the financing, the company is also now promoting its network as "The Audience Network," reflecting what Frank said are significantly higher engagement metrics Transpera campaigns are achieving vs. comparable online video ones. Transpera has worked with brand research firm Insight Express to study performance of 5 recent video ad campaigns that ran on Transpera's network. Compared to norms that Insight Express keeps for similar online video campaigns, for the Transpera campaigns it found 9 times higher increase in purchase intent, 19 times higher increase in aided awareness, 4 times higher increase in unaided awareness and 2 times higher increase in ad awareness.
Categories: Advertising, Deals & Financings, Mobile Video
Topics: BlackBerry Partners Fund, Rhythm New Media, Transpera
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Rhythm New Media Releases Bullish Stats on Mobile Video Usage and Ads
A report this morning from Rhythm New Media, a firm that develops mobile video apps for TV programs and runs its own mobile video ad network, provides fresh reasons to be bullish on mobile video. The report is based on an estimated 250 million video views/month that Rhythm has tracked in Q1 '10 on its mobile video platform. Two key stats that jumped out for me: an average 86.7% completion rate and a 1.7% click through rate for its 15-second pre-rolls. The latter is roughly consistent with data Will reported from Rhythm about 6 months ago. It is noteworthy that Rhythm's click through rates are holding steady as it scales up.
To get a sense of how Rhythm's mobile data stacks up against online video advertising data, I compared it to a report eMarketer and YuMe released based on Q4 '09 data, which showed a steady decline in click through and completion rates for pre-rolls. Rhythm's completion and click through rates are 24% and 56% higher than those in the eMarketer/YuMe report. While it's a bit of an apples vs. oranges comparison because YuMe's much larger network includes many different types of video content (vs. Rhythm's TV program only) and the ads YuMe surveyed were a mix of 15-second and 30-second spots (vs. Rhythm's 15-second only), the differences may be an early indicator of the contrast between mobile and online video.
Categories: Advertising, Mobile Video
Topics: eMarketer, Rhythm New Media, YuMe
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Kyte is Bullish on Android; Releases New SDK and App Framework
Further expanding its mobile offering, Kyte announced this morning both an SDK and an "App Framework" for the Android OS. The SDK eliminates a lot of the complexity for developers to do custom implementations of Kyte-powered video and interactivity for their Android apps. The "App Framework" provides a template with pre-built modules (e.g. video playback, UGC video integration, commenting and chat, location-based events, Twitter and RSS readers) so new Android apps can be quickly built and released.
Kyte's COO Gannon Hall told me yesterday that both are comparable to the previously-released iPhone and BlackBerry SDK and Mobile App Frameworks. Examples of how the templatized iPhone App Framework have recently been used include UMG's Lady Gaga app and MTV's "Hope for Haiti" digital telethon app, which Gannon said was built in record time.
Gannon said the Android moves are further validation of Kyte's positioning as a "360 degree solution," helping companies easily deliver video to consumers everywhere they want. He sees continued fragmentation across operating systems, devices and formats as some of the tectonic "Apple/Google/Adobe/fill-in-the-blank" battles sort themselves out.
Gannon explained that even as Kyte has been expanding its social and set-top box functionality recently, it has seen the most growth in mobile. He's particularly bullish on Android, calling out last week's NPD research that Android was the #2 selling smartphone OS in Q1 '10, behind BlackBerry, but ahead of the iPhone. He also compared Android in certain ways to Windows, much like Will has as well, but added that because Android is open source, it allows developers to enhance and improve it - a big distinction from Windows. Note - the buzz around Android and video will grow much louder later today as Google and partners Intel and Sony announce their "SmartTV" initiative, built on the Android platform.
Regardless of the underlying technology, consumers just want video wherever they are. That's why, as these technologies segment and codecs continue to compete for dominance, OVPs that offer solutions to help content creators navigate through the myriad of technologies and cost-effectively deliver robust apps will have the competitive advantage.
What do you think? Post a comment now (no sign-in required).
Categories: Mobile Video, Technology
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"Mobile Set-Top Box" Era Begins on June 4th with Sprint Evo Introduction
News this week from Sprint that it will release the much-anticipated HTC Evo 4G on June 4th means that the era of the "mobile set-top box" is about to officially get underway. For those of you not familiar with the Evo, it is the first smartphone capable of working on Sprint's ultra-fast 4G wireless network. The Evo, powered by the Android 2.1 OS also sports an HDMI output (the first that I've seen), which means that you can connect the device to a widescreen HDTV and watch 720p video in gorgeous quality on a widescreen HDTV (note, Sprint plans to charge a $10 incremental 4G fee, though data transfer will be unlimited). See video below showing Evo outputting to an 85-inch plasma HDTV and also a side-by-side Engadget did with the iPhone.
The implications of the Evo - and the many similar devices that will no doubt follow it - are profound. While current set-tops can of course deliver stunning HD programming, they are anchored to the room and the designated TV. Conversely, video-capable smartphones have offered video watching on the go and ever-increasing quality. The Evo is essentially the first bridge between these 2 worlds, opening up exciting use cases and unprecedented consumer control. For example, with a set-top in your pocket and a Netflix or MLB streaming app you could conceivably transfer your experience from the mobile screen to the big screen in a snap, just by plugging in your handy HDMI cable.
It is these kinds of Android innovations that will put increasing pressure on iPhone sales (see below for more on that), and also demonstrate the rampant wireless competition in video in the coming years. Even as the government seems intent on regulating broadband ISPs, innovation abounds, ensuring highly competitive dynamics and accelerating investments. The mobile set-top box era promises a new chapter in consumer value.
What do you think? Post a comment now (no sign-in required).
Categories: Mobile Video
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iPhones vs. Android Phones - The Competitive Battle is Underway
A report from market research firm NPD earlier this week, showing that in Q1 '10, sales of smartphones running the Android operating system outpaced the iPhone by 28% to 21% (though both were behind RIM at 36%), highlighted something that I've been thinking about a lot lately: could it be that Apple is about to replay in smartphones its losing fight from the past against Microsoft-Intel in desktop computers?
While plenty is different about today's Apple, the basic contours are similar. Apple, the vertically integrated and control-oriented hardware/software/service company has a well-loved, but extremely narrow smartphone product line. Meanwhile, smartphones based on the Android OS are sprouting like wildflowers, riding a wave of broad OEM adoption, wider customer choices, heavy purchase incentives by multiple carriers and diffused innovation (note Google is saying its partners are shipping 65K Android smartphones each day). Aren't these some of the main reasons why Microsoft and PC OEMs swamped Apple in desktop computers?
I'm not suggesting Apple is headed for a fall any time soon, but one thing's for sure, Apple's early ownership of the smartphone category is over; the market has caught up. One area where we can expect the iPhone vs. Android competition to be particularly intense is in video. As the Evo's launch (see above) shows - better screens, network capacity and yes format support (i.e. Flash) are going to be pushed as proof points for sexy video apps. Meanwhile Apple has ensnared itself in the ever-escalating battle with Adobe over Flash, which is a huge distraction. It will be interesting to see how these iPhone vs. Android sales numbers unfold in 2010.
What do you think? Post a comment now (no sign-in required).Categories: Mobile Video
Topics: Android, Apple, iPhone
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VideoNuze Report Podcast #57 - April 16, 2010
Daisy Whitney and I are pleased to present the 57th edition of the VideoNuze Report podcast, for April 16, 2010.
Daisy and I are back from the NAB Show in Las Vegas and this week we share 2-3 key takeaways. For her part Daisy was impressed by the energy and mood at the show which was significantly brighter than last year. Daisy heard from a number of people contemplating new ventures, a big departure from last year when most people were hunkered down. Daisy shared further insights about specific companies she interviewed.
Then I talk a little more about my reactions to the Level 3 - Silverlight 3D streaming demo I saw in Microsoft's booth, which I wrote about on Tuesday, and also the new local TV station JV for mobile DTV that was unveiled at the show and which I wrote about yesterday.
Click here to listen to the podcast (14 minutes, 0 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!Categories: 3D, Mobile Video, Podcasts
Topics: 3D, Level 3, Mobile DTV, NAB Show, Podcast, Silverlight
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Broadcasters' New Mobile DTV Joint Venture Offers Potential
One of the more interesting things coming out of the NAB Show this week was the announcement by a dozen local TV station groups of a new mobile direct TV content service intended to reach 150 million Americans. The service, which is still unnamed, is backed by Belo, Cox, E.W. Scripps, Fox, Gannett, Hearst, ION, Media General, Meredith, NBC, Post-Newsweek and Raycom. No details on programming were revealed except to saying local and national news, sports and entertainment would be included.
For the last several years, it's felt as if local broadcasters have been on the short end as online and mobile delivery have gained steam. One looming threat has been from broadcast network partners, who have increasingly embraced online distribution, which threatens to shift audiences from consuming programs through local affiliates' stations to consuming at the networks' web sites and aggregators like Hulu.
More recently, the FCC's National Broadband Plan, with its "voluntary" spectrum reclamation would transfer valuable bandwidth to mobile carriers - a move that was quickly perceived as further marginalizing local broadcasters' role in the digital ecosystem. If this wasn't enough, the launch of Apple's iPad highlighted the growing role that consumer electronics devices - and the apps that are built for them - will play in empowering users to search and access content from many new sources, further fragmenting traditional broadcast audiences. All of this has unfolded against the recession's backdrop, which has suppressed consumer spending and local ad spending.
Now, with the new joint venture, local broadcasters seem to have the beginnings of a cohesive plan to show that they too have an important place in the digital era. Throughout the NAB Show various industry executives repeated the mantra that local broadcasters play a vital role in news, weather and emergency information, a not-so-subtle reminder to policy-makers that broadcasters shouldn't be shunted aside in favor of shiny new gadgets.
Still, it's early days for the venture and for mobile DTV in general. Next month a big DTV trial in Washington, DC is scheduled using the ATSC-M/H technical standard. The new JV doesn't have any agreements yet to put DTV tuners in handsets or with carriers for integration. Larger questions of governance still loom as well. Broad industry initiatives like this often suffer from members' differing goals, tactics and motivations. An even larger question is consumers' desire for the mobile DTV format. With countless viewing options already, and more coming every day, local stations' DTV efforts will be in a competitive battle for attention.
Big questions remain about what the new JV's ultimate impact will be, but at a minimum it at least appears to show that local broadcasters are getting serious about how they fit into the digital video ecosystem.
What do you think? Post a comment now (no sign-in required).
Categories: Broadcasters, Mobile Video
Topics: Belo, Cox, E.W. Scripps, FOX, Gannett, Hearst, ION, Media General, Meredith, NBC, Post-Newsweek, Raycom
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Revisiting the iPad's Impact on Video
With the iPad available tomorrow, it's worth revisiting the prospects for the device, with respect to video specifically. Two months ago, based on information provided during the iPad's unveiling, I wrote that while the iPad is ultra-cool, it was unlikely to have a very big impact on the online and mobile video worlds, due to 3 key limitations - high price/narrow gadget appeal, no new video applications and certain key product limitations. In the past 2 months a number of things have happened, so while I'm still doubtful of big iPad success, at least in the short-term, I am somewhat more sanguine about its prospects longer-term.
High price/narrow gadget appeal - Since the unveiling, nothing has changed on the price front, which I continue to believe is the number one factor that will suppress sales. If you want the 3G capable model, you'll be paying approximately $700 including tax, plus $30/month for the AT&T 3G service. Sure, there have been many encouraging reports in the last 2 months that America is emerging from the recession, but the reality is that many people are still watching their expenditures closely. Until Apple cuts the price (and btw, I'm betting on a $150-200 reduction by Christmas), the iPad's high price alone will limit its sales.
Of course price doesn't stand alone; consumers evaluate price in the context of utility and other factors. However, on the utility scale, the iPad's constraint is that it still feels a lot like a gadget. The closest it comes to must-have utility is as an e-book reader, but if that's your main motivation there are many great e-book reader options already available for half or less the iPad's price.
The conversations I've had with those who submitted iPad pre-orders, or intend to buy one in the coming weeks leads me to believe that most early buyers are more eager just to get their hands on one (a gadget motivation if ever there was one) than because they already envision it somehow playing a central role in their lives. While I love gadgets as much as anyone, I just don't think that type of positioning will drive sales in the millions as Apple hopes.
Video availability - In Steve Jobs' demo two months ago he showed video from the NY Times and YouTube, but didn't highlight any new partners or even any new applications. Since then magazines and newspapers have been most enthusiastic in unveiling iPad apps. And in the last 24 hours new apps from Disney/ABC, Discovery, Paramount, Time, NBA, Yahoo and many others have surfaced. One new app of particular note is from Netflix, which hasn't offered an iPhone app to date (I've confirmed that Netflix will issue a press release tomorrow morning at 8am, no doubt officially announcing it). For sure others will be announced tomorrow as well.
It's encouraging to see a content ecosystem around the iPad and the touch screen interaction will create new excitement for these brands. Still, as I asked 2 months ago, will the iPad bring some new type of video, that is more engaging in some way? I think it is possible longer-term (3D on the iPad?), but is unlikely for tomorrow's launch. Jobs is right that iPad viewing will be more intimate. The problem is, try using the iPad on AT&T's overloaded 3G network and excitement will quickly turn to frustration. AT&T is trying hard to keep up, but given iPad users' expectations, disappointment is all but guaranteed when longer-form content from Netflix, ABC or others is accessed.
Product limitations - Cool as the iPad is, when it comes to video, it is missing the most fundamental building block - support for Flash, which is by far the most widely adopted video player. Steve Jobs's disdain for Flash is widely known, and it is forcing partners to reformat their video to work with the iPad. For the deep-pocketed like Disney/ABC and Netflix this isn't so big an issue, but for many others it is. The rise of HTML5, which Apple does support is surely in the iPad's favor, yet its widespread adoption is still a way's off. In the meantime, users who surf to Hulu and other Flash sites on their iPads will be let down. Another issue is battery life. It will be interesting to hear reports from users about how close to spec the iPad's battery performs when watching video continuously.
Despite these concerns, tomorrow will bring a frenzy of activity at Apple stores nationwide which will last for weeks as the first reviews emerge. In addition to the iPad a bevy of additional tablet devices will roll-out this year as well. The whole category will be scrutinized closely to see if consumers have decided there is indeed room in their lives for this new type of device. My sense is that at the right price, people can be convinced. The iPad's price is not there yet, but by fueling early adopter interest, Apple is setting itself up for deeper mass appeal as it brings the price down. If nothing else, with the hysteria we're witnessing around the iPad, Apple has once again proven itself as the world's unparalleled marketer.
What do you think? Post a comment now (no sign-in required).Categories: Mobile Video
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Encoding.com Offers Multi-Bit Rate Support to Meet Spec for iPhones/iPads
This morning Encoding.com is announcing support for multi-bit rate encoding and "stream segmenting," to let its customers comply with Apple's HTTP streaming spec for delivering video in iPhone and iPad apps. Last week, Encoding.com's president Jeff Malkin explained to me that several of its customers had reported that video apps they had submitted to Apple for approval in the App Store had been rejected because they didn't offer multiple bit rates. A post last week on TechCrunch provided more background on Apple's requirements.
Encoding.com now offers its customers 3 pre-set encoding rates with additional ones configurable on demand. Subsequent to encoding and splitting the video into multiple segments, Encoding.com packages up the files and delivers them with XML to the specified CDN for HTTP streaming from standard web servers. The goal of multiple bit rates is to let the video adjust to varying available bandwidth, which in turn helps smooth the user's experience. Jeff reported that CarDomain, the largest auto enthusiast site, is now using Encoding.com's multi-bit rate. CarDomain had seen its app rejected by Apple repeatedly due to "bandwidth usage limitations."
The backdrop here is that with more and more apps incorporating video, when WiFi isn't available, AT&T's 3G network comes under ever-increasing pressure. Just last week I posted on the sub-par experience several iPhone users I've surveyed have been having when trying to access the premium iPhone March Madness app on AT&T's 3G network (though to be fair a few others commented that their access has been ok). I had been surprised that Apple and AT&T felt confident enough in the latter's 3G network to approve this app in the first place, given the likely concurrence of viewing.
AT&T is obviously feeling more confident in its network - or at least in the buffer that Apple is creating by enforcing the multi-bit rate requirement - that more video-intensive apps seem to be passing through the approval process. In addition to the MMOD app, other examples include the new SlingPlayer app, announced last month, and Justin.tv's video app, which was unveiled last week. AT&T is likely trying to be more aggressive with these video apps as news continues to filter out that its iPhone exclusive will expire this year, opening up competition from other carriers.
Mobile video adoption is still well behind online, but the proliferation of mobile devices and apps that support video will no doubt accelerate usage. The next big device catalyst will of course be the iPad, coming this weekend. And as more ecosystem partners like Encoding.com provide the underlying tools to deliver seamless mobile video experiences, even more video-centric apps can be expected.
What do you think? Post a comment now (no sign-in required).Categories: Mobile Video, Technology
Topics: Apple, AT&T, CarDomain, Encoding.com, iPad, iPhone, Justin.tv, MMOD, Sling
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AT&T's 3G Network is Falling Short for Premium MMOD iPhone App
Two weeks ago I noted that the premium "March Madness on Demand" iPhone app, which allows live streaming of all MMOD games would be a big test for AT&T's 3G network, which has been repeatedly criticized for lack of capacity. Based on reports I've received from several friends who have been using the app both on AT&T's 3G network and on WiFi, it appears that AT&T is indeed falling short, with video quality highly inconsistent or video just plain unavailable (see iPhone screen grab below). Granted it's a small sample size, but they've tried it repeatedly and the pattern is pretty clear.
AT&T's network should come under further pressure as the field narrows and audience sizes surge. On a positive note, one friend took note of how incredibly cool it was to be eating lunch at Panera Bread watching live hoops on his iPhone (note, he was on their WiFi at the time). Mobile video is definitely here. On the flip side, I've watched a fair amount of various games online and I have to say I've been somewhat unimpressed by the quality of the streams. Last night's Cornell game (my alma mater) was a perfect example - full screen was highly pixilated and plain unwatchable. Even in standard size there were many stalls and the stream couldn't keep up with camera switches during fast-break coverage.
What have your experiences been like? Post a comment now (no sign-in required).Categories: Mobile Video, Sports
Topics: AT&T, CBS, iPhone, MMOD
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March Madness on Demand iPhone App Will be Big Test for AT&T's 3G Network
College hoops bragging rights won't be the only thing on the line when the NCAA March Madness men's basketball tournament kicks off next week. Also under the microscope will the performance of AT&T's 3G network, since CBS Mobile announced earlier this week that its new $9.99 premium iPhone app will offer live streaming of all the tournament's games over AT&T's 3G, EDGE and Wi-Fi networks. As with last year there will also be a free "lite" app that will offer on-demand clips only.
Presumably AT&T, CBS and NCAA have modeled how many concurrent streams could be requested under different penetration rates for the app and feel comfortable with AT&T's ability to support these in a quality manner. Let's hope for their sake they got the math right. I continue to hear iPhone users expressing frustration with dropped calls and 3G availability, particularly in Manhattan (in fact I've resisted getting an iPhone for this very reason). AT&T does seem to be getting more confident in its 3G coverage though; just last month it approved Sling's SlingPlayer app for use on its 3G network. In that case, I thought that because few people would likely buy the $29.99 app the stakes weren't that high for AT&T. MMOD is a different story; if AT&T's 3G network fails there will be a horde of angry hoops fans banging on its doors.
What do you think? Post a comment now (no sign-in required)Categories: Mobile Video, Sports, Telcos
Topics: AT&T, CBS, iPhone, MMOD
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Apple Approves SlingPlayer Mobile App with 3G; Milestone for Long-Form Mobile Streaming
One other noteworthy tidbit to come out of Mobile World Congress earlier this week was that Sling Media announced it got final approval from Apple to offer its SlingPlayer Mobile App in the App Store. SlingPlayer had been held up due to network concerns, but 2 weeks ago AT&T announced that it would let the SlingPlayer app stream live over its 3G network.
Though there aren't that many Sling users, and only a subset of them will pay the hefty $29.99 price for the SlingPlayer app, its clearance is a milestone because it truly enables high-quality place-shifting of long-form programming to a mobile device. It also steals some thunder from the FLO TV value proposition and offers a meaningful precedent to others who might like to stream long-form programs to iPhones and other mobile devices down the road (Netflix? Hulu? Amazon?). It's somewhat of a mystery to me how AT&T's overtaxed 3G network can now support long-form video streaming when complaints are still rampant about call quality. I don't have an iPhone or a Sling box, but if a VideoNuze reader does, and downloads the SlingPlayer app, I would be very interested in hearing about your viewing experience.
What do you think? Post a comment now (no sign-in required).
Categories: Devices, Mobile Video
Topics: Apple, AT&T, iPhone, Sling
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Spotlight is on Video as Mobile World Congress Begins
As the biggest annual mobile conference - the Mobile World Congress - gets underway today in Barcelona, new initiatives from some of the biggest names in technology underscore the growing importance of smartphones and of mobile video specifically. Among the most important headlines:
- Microsoft's CEO Steve Ballmer is unveiling Windows Phone 7 which includes Xbox LIVE games, Zune video and audio, plus enhanced sharing. With Phone 7 Microsoft is continuing to vie for position in a crowded smartphone operating system landscape.
- Sony Ericsson is launching "Creations" allowing users to create and publish video, audio and images from their mobile phones in collaboration with professional developers.
- AT&T and 11 other mobile service providers, which together have about 2 billion subscribers, are introducing a new applications store designed to appeal to developers and compete head-on with Apple's App Store.
- Symbian is taking the wraps off its new Symbian 3 open source release, which includes support for HDMI, so that users can connect their Symbian phones to their TVs and watch 1080p video, in effect creating a Blu-ray player in your pocket.
- Intel and Nokia are merging their respective Moblin and Maemo software platforms to create MeeGo, a unified Linux platform to run across multiple devices.
- Adobe is providing an update that by mid-2010, its AIR runtime for building rich applications will be available for Android and that Flash 10.1 will be generally available for various mobile platforms, including Android. In addition, Adobe is announcing that Omniture, which Adobe recently acquired, will add mobile video measurement within its SiteCatalyst product.
While each announcement, plus countless others, have their own significance in the burgeoning mobile ecosystem, the one that's most relevant to mobile video specifically is the coming availability of Flash 10.1, especially for Android. Mobile video has been hampered to date with the lack of Flash player support on iPhones, so its pending launch on Android phones threatens to scramble the relative appeal of these devices for users eager to watch video from sites like Hulu on their smartphones.
Late last week I got a glimpse of how significant Flash on smartphones is from Jeff Whatcott, SVP of Marketing at Brightcove, which today is announcing an optimized version of its platform for Flash 10.1, to be released in the middle of 2010. Adobe has made the beta of Flash 10.1 available to content providers, and Jeff has a video showing how it works with Brightcove for its customers like NYTimes.com and The Weinstein Company.
Brightcove has done 3 things - optimized its template for mobile devices (so navigation and interactivity is seamless on the small screen), enabled auto-detect of mobile devices (so the correct Brightcove template is served) and leveraged cloud-based transcoding (so a mobile-ready H.264 encoded video is streamed). The goal is for Brightcove's customers to be able to deliver an optimized mobile and Flash experience identical to their online experiences, with minimal additional work flow. Brightcove provides the appropriate logic for mobile templates to its customers which they embed in their pages. When a user visits from a mobile device and clicks to watch video, the right Brightcove-powered experience is delivered.
All of the above activity is happening in the shadow of the now-dominant iPhone (and coming release of the iPad) which do not support Flash. As non-iPhone devices - and content providers - progressively incorporate Flash this year, it seems like the smartphone market is poised for another new turn. Flash is the dominant video player and as users look to replicate their online experiences on their smartphones, the void of Flash on iPhones will become even more pronounced. I don't underestimate Steve Jobs or Apple's ability to compete, but this will be one place where it feels like the iPhone will be at a real disadvantage. Apple is keen to prevent Flash from extending its online hegemony to mobile as well, so it will be interesting to see how it chooses to play this.
What do you think? Post a comment now (no sign-in required).
Categories: Mobile Video, Technology
Topics: Adobe, AT&T, Brightcove, Intel, Microsoft, Nokia, Sony Ericsson, Symbian
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VideoNuze Report Podcast #46 - January 22, 2010
Daisy Whitney and I are pleased to present the 46th edition of the VideoNuze Report podcast, for January 22, 2010.
Daisy gets us started today, discussing recent smartphone research from eMarketer. According to the research, in Q4 '09, the percentage of people saying they're interested in purchasing an Android phone jumped from 6% to 21%, while the iPhone's dropped from 32% to 28%, creating a narrow 7% gap. In addition, research on how the phones are actually used revealed extremely similar behavior, with usage skewed toward reading news on the Internet, using apps, social networking and IM.
Daisy's takeaway is that this could be early signals that the smartphone market may be getting commoditized. I add that with the proliferation of Android phones, and the disproportionate amount of retail shelf space they'll soon take up, Apple could well find itself in the familiar spot of competing against a large and growing ecosystem of well-aligned competitors (i.e. similar to competing against the Windows ecosystem). Time will tell.
We then switch gears and I add some more detail to Boxee's plan to offer a payment platform, which it unveiled this week. Boxee's move is yet another effort to shift the online video model from advertising, which has of course accounted for the dominant share of the online video industry's revenue to date. In addition to Boxee, this week we've also seen additional paid model initiatives: YouTube dipped its toe into rentals, rumors resurfaced of Hulu's subscription plans, and, outside the video space, the NYTimes.com's announced plans to erect a pay wall early next year. And that's all on top of TV Everywhere's rollout.
Click here to listen to the podcast (11 minutes, 47 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!
Categories: Devices, Mobile Video, Podcasts
Topics: Android, Apple, Boxee, iPhone, Podcast
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4 Items Worth Noting for the Jan 11th Week (Real's Rob Glaser, ESPN Mobile, Broadband's impact, Vail goes 360)
1. Goodbye to RealNetworks' Rob Glaser - For broadband veterans like myself, this week's news that RealNetworks' founder and CEO Rob Glaser is stepping down from the CEO role after 16 years brought to mind how far the online video and audio worlds have come, in a relatively short time. Having done a fair amount of work with Real back in my Continental Cablevision days, some of my first memories of seeing video delivered through the Internet were with the RealPlayer.
There is no question Rob was one of the pioneers of the online video industry, and everyone working in the industry today owes him and Real a debt of gratitude. In the Internet's first wave, Real was out ahead of everyone in audio and video. Unfortunately for the company, Microsoft's decision to roll out its own media player (and to bundle WMP with Windows) scrambled Real's future and set off years of antitrust litigation. Over the years Real has tried many things, some of which worked and some of which were serious head-scratchers (Ryan Lawler recounts 5 of the company dumbest moves here).
Personally, it's been a while since any video I wanted to watch required the RealPlayer download. And the last time I did download it, I was so incessantly bombarded with offers that I uninstalled it and swore I'd never download it again. Nonetheless, Real remains one of the largest digital media and technology companies, with $140 million in Q3 '09 revenues and almost $400 million in cash and short term investments. The new CEO will inherit all this, plus the challenge of how to make Real a more significant player in a broadband-dominated world that Rob envisioned so many years ago.
2. ESPN: "Mobile will be bigger than the web" - I'm always on the lookout for insights from content executives charged with building their company's mobile initiatives (and mobile video more specifically) and so I found MocoNews.net's interview with John Zehr, ESPN's SVP and GM of Mobile a worthwhile read. ESPN has made a ton of progress in mobile since its MVNO was shut down and the post provides growth stats on some of ESPN mobile's most successful efforts.
Reflecting the key shift in mobile away from "on-deck" carrier-focused distribution deals to a more open Internet-like environment, Zehr said ESPN's mobile revenue model is built on payments from aggregators like FLO TV and MobiTV, advertising and app sales. That sounds a lot like the traditional cable model of affiliate fees, advertising and ancillary revenues like commerce. And just like in cable ad sales, ESPN sells all of its mobile ads itself, avoiding third-party ad networks that it believes would commoditize the ESPN brand. ESPN is clearly bullish on mobile, with Zehr saying "Not too far in the future, mobile will be bigger than the web." With the Apple vs. Google mobile war getting underway there's a lot of momentum building. Still, to keep things in perspective, we're a long way from mobile eclipsing the web.
3. Does broadband help the economy or not? - I was intrigued by this piece in Network World, reviewing a new study, "Does Broadband Boost Economic Development?" which makes the case that where broadband connectivity is available, it helps local economies, though it doesn't necessarily help the individuals who live there. I'll admit, this is pretty wonky stuff, but as broadband becomes ever more central to our economy and to video in particular, it's important to understand broadband's impact. This is true all the more so as we have a major net neutrality debate looming this year, which could have far-reaching consequences for both content providers and network operators.
4. Vail introduces 360 degree video, it's almost like being there - Finally, on a lighter note, if you've been itching for that ski trip to Colorado this winter, or just want to escape the daily grind for a few minutes of pleasure, check out Vail's new virtual video clips, shot in 360 degree splendor with partner Immersive Media. The company's Dodeca spherical camera system captures video from 11 different sensors, allowing the viewer to click on the controls to switch angles.
Immersive caught my attention recently with music concerts they've captured and plus their work with brands like Red Bull, Armani and Mercedes. The company offers a full suite of capture, production and distribution services. In Vail's case, you get to experience some of the mountain's best runs alongside other skiers. It's great marketing for Vail and though it's no substitute for actually being there, your legs won't hurt afterwards either!
Enjoy the weekend!
(Note - The VideoNuze Report podcast with Daisy Whitney will resume next week)
Categories: Cable Networks, Mobile Video, People, Technology
Topics: ESPN, Immersive Media, RealNetworks, Vail
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Recapping 2010 CES Video-Related News
The 2010 Consumer Electronics Show (CES) is now behind us. There were tons of announcements to come out of this year's show, including many in the online and mobile video areas. Increasingly a core focus of new devices is how to playback online and mobile-delivered video, how to move it around the consumer's house and how to make it portable. Following is a filtered list of the product announcements (or pertinent media coverage if no release was available) that I found noteworthy. They are listed in no particular order and I'm sure I've missed some important ones - if so, please add a comment with the relevant link.
Boxee box internals revealed. NVIDIA Tegra 2 FTW
Syabas Announces Popbox for Big Screen Everything
Sling Media Announces Support for Adobe Flash Platform in Hardware and Software Products
LG Electronics Expands Access to Content-on-Demand with New High-Performance Blu-ray Disc Players
ESPN 3D to show soccer, football, more
TV Makers ready to test depths of market for 3D
DirecTV is the First TV Provider to Launch 3D
DISH Network Introduces TV Everywhere
Microsoft Unites Software and Cloud Services to Power New TV Experiences
FLO TV and mophie to Bring Live Mobile TV to the Apple iPhone and iPod Touch
Broadcom Drives the Transition to Connected Consumer Electronics at 2010 International CES
New NVIDIA Tegra Processor Powers the Tablet Revolution
Digital Entertainment Content Ecosystem (DECE) Announces Key Milestones
Disney offers KeyChest, but where is the KeyMaster?
DivX Launches New Internet TV Platform to Redefine the Future of Entertainment
Blockbuster, ActiveVideo Announce Agreement for Cloud-based Online Navigation
Skype Ushers in New Era in Face-to-Face Online Video Communication
Aside from CES, but also noteworthy last week:
Apple Acquires Quattro Wireless
AT&T Adds Android, Palm to Its Lineup
Tremor Media Launches New Video Ad Products That Enhance Consumer Choice and Engagement
Categories: 3D, Advertising, Aggregators, Cable Networks, Devices, FIlms, Mobile Video, Satellite, Telcos
Topics: CES
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Google and Apple Collide in Mobile; Video Poised to Benefit
Google and Apple both unveiled key mobile initiatives yesterday, underscoring the collision path the two companies are on, and how long-term, video is poised to benefit from their battle.
First, as you no doubt already know, Google introduced the Nexus One, an Android-powered smartphone that it is selling directly to consumers. It is Google's first foray into consumer devices and many more products sure to follow. Meanwhile, Apple, in a rare significantly-sized deal, acquired Quattro Wireless, a mobile advertising company, for around $300 million. Quattro represents Apple's first real push into advertising, an important shift from its traditional iTunes-driven paid media model.
With its own device, Google is primarily looking to compete against Apple's iPhone, which has practically owned the U.S. smartphone market since its introduction 2 years ago. And Apple, with a toehold in the exploding mobile advertising market, is positioning itself to disrupt Google's planned dominance of mobile advertising through its pending $750 million AdMob acquisition. If Apple were to make additional acquisitions, particularly in the online video advertising space, that would further strengthen its position.
Mobile video is poised to be a real winner in the Google vs. Apple face-off. At a minimum, the two companies' considerable marketing spending (plus those of competitors Palm, RIM, Nokia and others) will mean smartphones in millions more consumers' hands, dramatically expanding the video-ready universe. In addition, the experience of watching mobile video will just keep getting better. For example, the Nexus One's screen resolution (480x800) surpasses the iPhone's (320x480), which only means Apple will need to up the ante even further with its next generation. The range of video applications is sure to surge as more and more players stake out their ground.
Importantly, because there are no powerful incumbent distributors in mobile video - as there are in the living room, with cable/satellite/telco - I believe there is more flexibility in how premium video can be distributed to smartphones. Until recently mobile was an "on-deck" world where everything had to be approved and carried by the wireless carrier. But mobile is quickly evolving to take on open Internet-like characteristics, where applications and services are not gatekeeped by a distributor. In short, mobile looks to be more like online distribution than traditional video distribution. As power in mobile shifts to players like Apple and Google, it should also be a wake-up call to the FCC, whose planned wireless carrier-focused net neutrality paradigm already looks out of date.
While there have been recent rumbles about Apple doing something with subscription video for the living room, instead the company likely has more latitude in mobile to go well beyond the pay-per-use iTunes model, especially if it can also bring in advertising. Meanwhile, by having its own device and operating system, Google is optimizing the YouTube mobile experience. As this YouTube blog post points out, the Nexus One is an improved way to search, view and upload YouTube videos. With YouTube enjoying such benefits not just on Nexus One, but on all Android phones, YouTube becomes an even more valuable partner for premium content providers looking to generate mobile usage.
Google and Apple will be jousting for years to come in the mobile space. The opportunities for growth for both companies are sizable. I fully expect that video is a going to be an increasingly important part of the battle.
What do you think? Post a comment now.
Categories: Advertising, Deals & Financings, Devices, Mobile Video
Topics: Android, Apple, Google, Nexus One, YouTube
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Back from the Vacation? Here Are 7 Video Items You May Have Missed
Happy New Year. If you're just back from a holiday vacation and have been partially or totally off the grid for the last week or two, here are 7 video-oriented items you may have missed:
1. Time Warner Cable and News Corp fight over fees, then settle - Two behemoths of the cable and broadcast TV ecosystem spatted publicly during the holidays over the size of "retransmission consent" fees that News Corp (owner of the Fox Broadcast Network and cable channels like Fox News) wanted TWC (the 2nd largest U.S. cable operator) to pay to carry its 14 local stations. While a last minute deal averted the channels going dark, broadcasters' interest in dipping into cable's monthly subscription revenues will only intensify as audience fragmentation accelerates and ad revenues are pressured.
For my part I wish Fox and other broadcasters were as focused on building new and profitable digital delivery models for their programs as they were on trying to redistribute cable's revenues. Even as Rupert Murdoch continues advocating the paid content model, the freely-available Hulu is seeing its traffic skyrocket (see below). But if Hulu's viewership isn't incrementally profitable, then all that growth is pointless. Urgency is mounting too; in '10 convergence devices that bridge broadband to the TV are going to get a lot of attention. In the wake of their adoption, consumers are going to want Hulu on their TVs. If Hulu doesn't allow this it will be marginalized. But if it does without first solidifying its business model, it could hurt broadcasters further.
2. Hulu has a big traffic year, but no further information provided on its business model - Hulu's CEO Jason Kilar pulled back the curtain a bit on the company's strong progress in 2009, citing 95% growth in monthly users, to 43 million, 307% growth in monthly streams, to 924 million (both as measured by comScore) and a doubling of available content, to 14,000 hours. While noting that its advertisers increased from 166 to 408 during the year, with respect to performance, Jason only said that "we are extremely excited about atypically strong results we have been able to drive for our marketing partners."
Though Hulu is under no obligation to disclose details of its business model, I think it would dramatically increase the company's credibility if it shared some metrics about how its lighter ad load model is working (e.g. improved awareness, click throughs, leads, conversions, etc.). Per the 1st item above, as Hulu grows, a lot of people have a lot at stake in understanding what effect it may have on broadcast economics. In addition, as I pointed out recently, it is important to understand whether Hulu thinks it may have already saturated its U.S. audience. After a jump in Q1 '09 from 24.6 million to 41.6 million users, traffic actually dipped below 40 million until October. What does Hulu do from here to gain significantly more users?
3. Cable networks' primetime audience is nearly double broadcasters' - Punctuating the ascendancy of cable over broadcast, this Multichannel News article pointed out that in 2009, ad-supported cable networks as a group captured 60.7% of primetime audience vs. 32% for the 4 broadcast networks. That's a major change from 2000 when the broadcasters had a 46.8% share vs. cable's 41.2%. Cable increased its share every single year of the last decade, powered by its innovative original programming. NBCU's USA Network in particular has become the real standout performer, winning its second consecutive ratings crown, with 3.2 million average primetime viewers, up 14% vs. 2008.
The surging popularity of cable programming is a crucial barrier to consumers cutting the cord on cable. Since cable networks are highly invested in the monthly multichannel subscription model, they are unlikely to disrupt themselves by offering their best shows to others under substantially different terms than how they're offered today. So to the extent cable programs are either unavailable to over-the-top alternatives or offered less attractively (e.g. less choice, higher cost, delayed availability), little cord-cutting can be expected. And if TV Everywhere achieves its online access goals, the cable ecosystem will only be further strengthened.
4. YouTube is working to drive higher viewership - Amidst the turmoil in the traditional ecosystem and Hulu's growth, YouTube, the 800 pound gorilla of the online video world, is working hard to deepen the site's viewership. As this insightful NYTimes article explains, a team of YouTube developers is analyzing viewing patterns and tweaking its recommendation practices to encourage more usage. YouTube says time on the site has increased by 50% in the last year, and comScore reports that the average number of clips viewed per user per month jumped to 83 in October, up from 53 a year earlier. Still, as comScore also reports, duration of an average session has yet to crack 4 minutes, meaning video snacking on YouTube is still the norm. YouTube's moves must be watched closely in '10.
5. Showtime's "Weeds" available online before on DVD - This WSJ article (reg req'd) pointed out that Lionsgate, producer of Showtime's hit "Weeds" series is offering episodes online before they're available on DVD. By putting the digital "window" ahead of DVD's, Lionsgate is further pressuring DVD's appeal. We've seen periodic experimentation in this regard, and I anticipate more to come, especially as the universe of convergence devices expands and consumers can watch on their TVs instead of just their computers. Until a tipping point occurs though, "Weeds" like initiatives will be the exception, not the rule.
6. Netflix goes shopping in Hollywood - And speaking of reversing distribution windows, this Bloomberg Businessweek piece was the latest to highlight Netflix's efforts to woo studios into giving it more recent releases. Netflix has of course made huge progress with its Watch Instantly streaming feature, but its appeal to heaviest users will slow at some point unless it can dramatically expand its current slate of 17K titles available online. Hollywood is understandably wary of Netflix given all the variables in play and a desire to avoid Netflix becoming master of Hollywood's post-DVD, digital future. Whether Netflix will spend heavily to obtain better rights is a major question.
7. Get ready for Google's Nexus One and Apple's "iSlate" - Unless you've really been off the grid, you're probably aware by now that two very significant mobile product releases are coming this month. Tomorrow (likely) Google will unveil the Nexus One, its own smartphone, powered by its Android 2.1 operating system. The Nexus One will be "unlocked," meaning it can operate on multiple providers using GSM networks. The device will further fuel the mobile Internet, and mobile video consumption along with it. Separately, Apple is widely rumored to introduce its tablet computer later in the month, which many believe will be called the "iSlate." The tablet market is completely virgin territory, and while it's early to make predictions, I believe Apple could have most of the ingredients needed to make the product another big hit. The prospect of watching high-quality video on a thin, light, user-friendly device is extremely compelling.
Categories: Aggregators, Broadcasters, Cable Networks, Cable TV Operators, Devices, Mobile Video, Studios
Topics: Apple, FOX, Google, Hulu, Lionsgate, Netflix, News Corp, Showtime, Time Warner Cable, YouTube