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Brightcove Partners With Akamai HD Network for Bundled Delivery
Online video platform Brightcove is transitioning its bundled content delivery offering to the Akamai HD network, for which it will now be a value-added reseller. Jeff Whatcott, Brightcove's SVP of Marketing, explained to me last week that the decision was made in reaction to its customers' delivery requirements becoming more complex. Akamai HD's differentiators included improved economics, analytics, mobile delivery and global coverage among others.
Though the deal isn't exclusive, it will involve Brightcove moving over all of its customers who have been using the bundled delivery offering from Limelight, Brightcove's prior delivery partner. Jeff estimates more than 80% of Brightcove's customers take advantage of bundled delivery, though from Brightcove's standpoint, the fees it derives from delivery are small relative to its software and platform fees. Going forward, Brightcove will continue working with Limelight and other CDNs with whom it has relationships.
Categories: CDNs, Partnerships, Technology
Topics: Akamai, Brightcove, Limelight
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12 Questions for Akamai President and CEO Paul Sagan
Last week, Akamai Technologies reported a very strong first quarter of 2010, with revenue of $240 million, up 14% year-over-year, and net income of $40.9 million, up 10% year-over-year. The company pointed to 3 main drivers of its accelerated growth: developments in cloud computing, video distribution over the Internet and online advertising. To learn more about what Akamai is seeing specifically among its media & entertainment (M&E) customers and in online video, late last week I spoke to company president and CEO Paul Sagan. Following is an edited transcript of our call.
VideoNuze: Akamai just reported a very strong Q1, which as you explained on the earnings call, included accelerated growth in the company's large M&E business. What are the key trends Akamai is seeing from its M&E customers?
Paul Sagan: The most important thing M&E customers are focused on is how they can build a sustainable business online. For video it's all about engagement - how to get people to stay longer and make the model work. We believe the big driver of that is quality and more specifically HD. A number of recent things have happened that help HD - first is pervasive and consistently strong broadband in the last mile. Second is variable bit rate streaming. Third are all he new convergence devices connecting broadband to the TV. The key for customers is trying to get TV-like quality with interactivity. Just broadcasting an HD signal over the Internet isn't enough because TV works well already. It's the interactivity - things like multiple camera angles and instant DVR - that make the difference.
VN: You said on the earnings call that HD is driving double or higher engagement by viewers. That's an impressive data point.
PS: Yes, with live events where you can do a true A/B test - we're seeing roughly double the viewing time when delivering at 1-2 MB or higher. That's offering a big potential lift in time spent viewing for our customers.
VN: Does that mean Akamai's M&E customers using HD are also doubling their revenue as a result?
PW: I'm not sure they're doubling just yet, but HD delivery is making content into something that can be monetized more strongly - possibly through sponsorships as well as advertising and paid models. So it's not as simple as saying you sell double the number of banners. What HD also does is push people toward longer-form. An issue with some of the shorter-form content like 2-3 minute clips is that you just can't put that many ads in or it will be worse than TV for users. I'm not suggesting we should see 8 minutes of ads in a 30 minute show, but you can certainly do more.
VN: Speaking of business models for high-quality video - what do you hear from your customers as the emerging standard - ads, paid or a mix of both?
PS: It's a mix - some ad-supported, some per event payments or subscriptions, particularly with sports. Some movies will be more subscription-oriented. Online delivery and HD are unlocking a few different models, yet it's still early days for all models. Clearly some have struggled to date which is no surprise when you consider it's taken 15 years to get online viewing to just a 1% share - which is obviously pretty small. But given everything that's going on, I'm sure it won't take 15 more years to double again.
VN: On the customer front, Akamai is announcing Magnify.net as a new customer this morning, which has an interesting "video curation" model. Can you say more about how these kinds of non-traditional distribution models like Magnify's fit into the online video landscape?
PS: What we're seeing across a wide number of sites is a strong desire to add rich media. We're also seeing sites think about programming in a non-traditional way. The goal is how to keep the user experience compelling. That means adding audio and video when users expect it. That in turn drives higher engagement and monetization. We've evolved from a time when there was a "priesthood of 3 networks" who produced video and nobody else could, to today when there are lots of ways to produce video - including millions of hours of UGC. The curated model is so important because it helps sites get relevant content.
VN: How mature is the idea of curating online video from the web and non-traditional distribution models generally?
PS: Well, I haven't even figured out the etymology of "curation" - in the old days we used to call it "editing." But that was about journalistic sites. Many of today's sites are not purely "journalistic." So the video added isn't always "news," though it still has to be highly relevant. For example, biking video belongs on biking sites, not on hockey or baseball ones. How do we make those sites more compelling through video? That's what curation does. And Magnify's trying to make that easy. I've know (Magnify CEO) Steve Rosenbaum for 20 years and I'm thrilled that they appreciate how Akamai's quality, scale and reliability can be central to delivering the experience they want to achieve.
VN: Shifting topics to CDN pricing, which is of course widely discussed. Can you say more about Akamai's approach to pricing for its M&E customers - on balance, does Akamai try to keep prices stable or is it continually trying to push them down?
PS: I've gotten a question about CDN pricing every day for the 12 years that I've been here! My view in general is that unit prices in technology always come down and in this area they need to come down a lot because we're trying to enable our customers to deliver a lot more data. So we've been relentlessly driving the unit price of delivery down for years. For us it's not about keeping prices stable and reducing our costs solely for our own benefit. Rather, we've been driving the unit costs down every year and sharing that savings proportionately with our customers. That's worked out well in generating more traffic on our network every year. We plan to continue doing that because it creates a virtuous circle of ever-more traffic and reduced costs.
Categories: CDNs
Topics: Akamai, Magnify.net
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Learning Best Practices in Video at Akamai Webinar
Earlier this week, while in NYC for VideoSchmooze, Akamai organized a first-class video webinar, "Constructing the Ultimate Online Video Experience, from the Inside Out" which included the following panelists:- Karsten Weide - VP, Digital Media & Entertainment, IDC
- Glenn Goldstein - VP, Media Technology Strategy, MTV Networks Digital Media
- Eric Black - Project Manager, NBCSports.com
- Emil Rensing - Chief Digital Officer, Epix
We had a very detailed discussion around topics like adaptive bit rate delivery, HD, formats, business models, live vs. on-demand, encoding strategies, consumer behaviors, etc. This group is on the front lines of making the online video experience work for their customers and there are a ton of really valuable points made. The webinar is free and the video quality is gorgeous (no surprise!).
Categories: Events
Topics: Akamai
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See You Tonight At VideoSchmooze and Tomorrow for Akamai Webinar
I'll be hosting the next "VideoSchmooze" Broadband Video Leadership Evening from 6pm-9pm tonight at the Hudson Theater in New York City. The event includes networking, open bar, hors d'oeuvres and a full educational program. You can buy a ticket online until 3pm today or at the door (cash and check only) - both options are the same price of $75.
We have a great panel discussion, which I'll moderate, whose title is "Money Talks: Is Online Video Shifting to the Paid Model?" Panelists include:- Jeremy Legg - SVP, Business Development, Turner Broadcasting System, Inc.
- Damon Phillips - Vice President, ESPN3
- Avner Ronen - CEO and Co-founder, boxee
- Fred Santarpia - General Manager, VEVO
Click here to learn more and register
There is no shortage of topics to discuss; just in the past few weeks there has been news of Hulu's planned subscription service, Turner collaborating with CBS on a long-term $10.8 billion "March Madness" deal, Conan moving to TBS, Netflix signing 28-day DVD release deals with Fox and Universal (plus adding 1.7 million subs in Q1 '10), and lots of other activity. The landscape for online delivery of premium is changing rapidly; our panel will help us make sense of where the market is heading.
We'll also have a 15-minute stage-setting presentation by Emily Nagle Green, President and CEO of Yankee Group, a leading industry market research and consulting firm. Emily is the author of the recently published book, "Anywhere - How Global Connectivity is Revolutionizing the Way We Do Business." Emily will share key data from Yankee's research and her book, which will set the stage for the panel to follow.
From 6-7:30pm, prior to Emily's presentation, we'll have open bar (wine/beer/soda), hors d'oeuvres and networking. We have a very large group, with executives from many key media companies like MTV Networks, Rainbow Media, HealthiNation, CBS Interactive, NBCU, Scripps, HBO, NBA, 5Min, Disney, Comcast, Epix, WWE, Fox Sports and many others, plus tons of industry technology providers.
Thanks to lead sponsor Akamai Technologies and supporting sponsors FreeWheel, Horn Group, Irdeto, NeuLion, Panvidea and ScanScout for their support. Once again VideoSchmooze is being held in association with NATPE. You can follow VideoSchmooze and get updates that evening on Twitter at hashtag #vidooze.
I look forward to seeing you tonight!
Click here to learn more and register
Whether or not you're able to make it tonight, please join me for a complimentary live video webinar Akamai is hosting tomorrow at 1pm ET, "Constructing the Ultimate Online Video Experience - From the Inside Out." On the panel with me will be:- Emil Rensing - Chief Digital Officer, Epix
- Glenn Goldstein - VP Media Technology and Strategy, MTV Networks Digital Media
- Karsten Weide - VP Digital Media and Entertainment, IDC
- Eric Black - NBCU
Categories: Events
Topics: Akamai, VideoSchmooze
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Akamai to Launch "Akamai HD Network" Today
Akamai is announcing its new "Akamai HD Network" this morning, and planning a 1pm webcast to explain the details. Akamai is positioning the network as the first to deliver HD-quality live and on-demand streaming for broadcast-sized audiences. The Akamai HD Network supports Flash, Silverlight and iPhone.
Key to the Akamai HD Network is support for adaptive bit rate ("ABR") streaming, which adjusts the quality of the video delivered based on prevailing network conditions, instant response for pause, rewind, startup, etc, an open standards HD video player and user authentication. Adobe has also optimized Flash to be delivered over Akamai's HTTP network, which appears to be a first. This allows Akamai to fully leverage its 50,000 HTTP edge-server network.
The evolution toward HD-quality delivery has been building steam recently, as content providers increasingly recognize that TV-quality video is becoming the expected norm for online video users. This is particularly true for heavy users who substitute online viewing for TV-viewing, but don't want a degraded experience. As convergence devices, which bridge broadband to the TV in the home take off, the quality bar will rise for all users. This means that all CDNs that want to be players in video delivery will need to be able to deliver HD quality at scale. Move Networks, which I've written about before, is another company playing an important role in enabling high-quality broadband-delivered video to the TV; others will no doubt follow.
More details coming in the webcast today at 1pm ET.
Categories: CDNs, HD, Mobile Video
Topics: Adobe, Akamai, Flash, iPhone, Microsoft, Silverlight
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Titans-Steelers on NBCSports.com Last Night Was Impressive
I was only able to catch a little bit of the Titans-Steelers came last night on NBCSports.com, but what I did see was pretty impressive. This was the first of the "Sunday Night Football Extra" games that NBC Sports and the NFL plan to stream live this season. NBC Sports is using Silverlight for the first time, and the live HD broadcast included 5 different camera angles to choose from. Akamai is providing CDN services and Microsoft's Smooth Streaming for delivery.
NBC has been a pioneer in the delivery of online sports content, and with the 2008 Beijing Olympics setting a new standard. The NFL is not alone in pushing into online delivery though. As I noted recently in "2009 is a Big Year for Sports and Broadband/Mobile Video," there have been a ton of new initiatives this year across baseball, basketball, football, golf, tennis, auto racing, etc.
I'm looking forward to having Perkins Miller, SVP, Digital Media and GM, Universal Sports, NBCU Sports and Olympics on my discussion panel at VideoSchmooze on Mon evening, Oct 13th in NYC. No doubt he'll have lots of great insights and data to share about how the season is progressing.
The next game on NBCSports.com is this Sun night, Bears vs. Packers, 8pm ET.
Categories: Broadcasters, Sports, Technology
Topics: Akamai, Microsoft, NBC Sports, NFL, Silverlight
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A Deep Dive Into Why the iPhone is Going to Unleash Mobile Video Streaming
VideoNuze readers will recall that back in Dec '08, my 2nd prediction for 2009 was that mobile video was finally going to take off. Among the drivers I identified, the main one was clearly the massive, and growing, popularity of the iPhone. But despite all of its gee-whiz capabilities, the iPhone 3G, which was then the latest one on the market, and was running the iPhone OS 2.0, still wasn't really optimized for video.
Flash forward to June '09 and the release of the iPhone OS 3.0, which is downloadable to iPhone 3G, and pre-installed on the iPhone 3GS, and we can see that Apple now has the architecture in place to fuel a massive takeoff of mobile video streaming.
Following is a deep dive explanation of why that is, based on a detailed conversation I had John Bishop, SVP of Business Development & Strategy at Inlet Technologies, an encoding company that's involved with recent iPhone video apps, an excellent new white paper from Akamai, "HTTP Streaming for iPhone Best Practices" and other research I conducted. (For those that want to get further into the weeds, note also that Akamai, Inlet and Turner Sports have an upcoming webinar on this topic.) If you're a video provider looking to capitalize on mobile video distribution, and the iPhone in particular, all of this is crucial to understand.
The most important video-related elements Apple has released are support for HTTP streaming, a new protocol for adaptive bit rate (ABR) streaming and a new iPhone media player that can handle both. In addition, a significant increase in battery life (especially important to retain phone functionality) is enabled by a hardware-based video decoder. And the iPhone supports "HSDPA," an enhanced 3G protocol AT&T is rolling out, which provides up to 7.2 megabit per second delivery, guaranteeing outstanding video quality. All of these elements, when combined with the iPhone's open (well, relatively at least) App Store and web browsing, offer video providers a breakthrough mobile video environment.
HTTP-based streaming is particularly key because CDNs already have massive deployments of HTTP (the web delivery standard) servers. That means they avoid significant capex to support proprietary video streaming protocols like RTSP and RTMP, and can instead focus just on hardening their HTTP infrastructure to scale video distribution.
Apple's new ABR streaming protocol means a far superior user experience that obviates disruptive buffering and users having to make confusing choices like "hi res" or "low res." ABR streaming was pioneered by Move Networks. Microsoft and Adobe now each have their own ABR streaming approaches.
Importantly, because the iPhone supports H.264, video providers can use existing encoding vendors like Inlet to simply create multiple iPhone-compatible video files encoded at different bit rates that are then delivered to their CDN for iPhone distribution. No intermediary "encapsulation" step needs to be taken to support Flash for example. As the iPhone's media player auto-detects available mobile bandwidth, it continuously re-selects the optimal video file to stream. Inlet makes a key contribution in this process by doing "key frame alignment" - essentially allowing the new file being streamed to start at the same frame where the old file left off. Pretty cool stuff.
From the content provider's standpoint, iPhone-directed video can either be embedded in a web page, or as part of an app, for distribution in the iPhone's gigantic app store. The open web approach of course means it's available for all to see. On the other hand, the app route means greater control of the brand, user experience and business model (e.g. free, paid, authenticated, etc.), though it will involve time and money is needed for development.
This whole paradigm is still so new that we've only begun seeing the first iPhone video apps come to market. Examples include the updated version of MLB.com's At Bat app, the live Aug. 7th concert from Underworld, the PGA Championship app from Turner Sports and the PGA, and yesterday, the launch of the HSN "shop app." I can relate to the value of the PGA app - I was in a car on my way back to Boston on Sunday afternoon, furiously - and unsuccessfully - trying to follow the Yang-Woods showdown shot-by-shot on my Blackberry (I'm a Verizon sub, so no iPhone for me, grrrr....). If I'd had an iPhone, would I have spontaneously paid $1.99 for the PGA app so I could watch the action? In a heartbeat.
Mobile video is an incredibly exciting extension of the broadband experience users have come to love, except with the additional benefit of being untethered. The iPhone is the first environment that brings all the necessary elements together and will, in my view, drive an explosion of mobile video streaming apps (though I concede to being uncertain what AT&T will think of all this). Think about video apps that are yet to come from folks like Hulu, Netflix, and others. No doubt we'll see Android, Palm and Blackberry further fuel the addressable market. Add it all up and there's a lot of growth ahead in the mobile video space.
What do you think? Post a comment now.
Categories: Devices, Mobile Video, Telcos
Topics: Akamai, Apple, HSN, Inlet Technologies, iPhone, MLB, PGA, Turner Sports
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4 News Items Worth Noting from the Week of July 27th
Following are 4 news items worth noting from the week of July 27th:
New Pew research confirms online video's growth - Pew was the latest to offer statistics confirming that online video usage continues to soar. Among the noteworthy findings: Long-form consumption is growing as 35% of respondents say they have viewed a TV show or movie online (up from 16% in '07); watching video is widely popular, draw more people (62%) than social networking (46%), downloading a podcast (19%) or using Twitter (11%); usage is up across all age groups, but still skews young with 90% of 18-29 year olds reporting they watch online vs. 27% of 65+ year olds; and convergence is happening with 23% of people who have watched online reporting they have connected their computers to their TVs.
FreeWheel has a very good week - FreeWheel, the syndicated video ad management company I most recently wrote about here, had a very good week. On Monday, AdAge reported that YouTube has begun a test allowing select premium partners to bring their own ads into YouTube, served by FreeWheel. Then on Wednesday, blip.tv announced that it too had integrated with FreeWheel, so ads could be served for blip's producers across their entire syndication network. I caught up with FreeWheel's co-CEO Doug Knopper yesterday who added that more deals, especially with major content producers, are on the way. FreeWheel is riding the syndication wave in a big way.
Plenty of action with CDNs - CDNs were in the news this week, as Vusion (formerly Jittr Networks) bit the dust, after going through $11 million in VC money. Elsewhere CDN Velocix (formerly CacheLogic) was acquired by Alcatel-Lucent. ALU positioned the deal as fitting with its "Application Enablement" strategy, supporting customers' needs in a "video-centric world." Limelight announced its LimelightREACH and LimelightADS services for mobile media delivery and monetization (both are based on Kiptronic, which it acquired recently). Last but not least, bellwether Akamai reported Q2 '09 earnings, that while up 5% vs. year ago, were down sequentially from Q1. Coupled with a cautious Q3 outlook, the company's stock dropped 20%.
IAC is making big moves into online video - IAC is making no bones about its interest in online video. Last week the company unveiled Notional, a spin-out of CollegeHumor.com, to be headed by that site's former editor-in-chief Ricky Van Veen. Then this week it announced another new video venture, with NBCU's former co-entertainment head Ben Silverman. IAC chief Barry Diller seems determined to push the edge of the envelope, as IAC talks up things like multi-platform distribution and brand integration. With convergence and mobile consumption starting to take hold, the timing may finally be right for these sorts of plays. At a minimum IAC will keep things interesting for industry watchers like me.
Click here to see an aggregation of all of the week's broadband video news
Categories: Advertising, CDNs, Indie Video, Syndicated Video Economy
Topics: Akamai, Alcatel-Lucent, blip.TV, FreeWheel, IAC, Limelight, Pew, Velocix, Vusion, YouTube
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Giving Thanks and Keeping Perspective
If ever there was a year for giving thanks - and for trying to keep perspective - this is surely it. For the last several months or more, all of us have been buffeted by the economic meltdown to one extent or another. It isn't fun for anyone, and regrettably, if you believe the experts, things aren't going to turn around anytime soon.
Still, as I mentioned in last week's "Deflation's Risks to the Broadband Video's Ecosystem," for those of us who make our living focused in one way or another on broadband video, there are reasons to remain optimistic. Consumers continue to shift their behavior toward on demand, broadband-delivered alternatives. Clever entrepreneurs are introducing ever-more innovative technology-based products and services. Large pools of existing revenues are shifting around, in search of better, higher ROI ways to be allocated. And investors recognize all of this, motivating them to continue funding companies throughout the broadband ecosystem.
These are all things to be thankful for, and hopefully allow us to keep a little perspective. For those of us old enough to remember past downturns, it is also important to keep in mind that there have been difficult times in the past, and fortunately, eventually, things do correct. That doesn't relieve the current pain, but at least gives us a measure of hope for better days ahead.
Speaking of giving thanks, I want to give a shout out to the 30 companies that sponsored VideoNuze or its events in 2008. VideoNuze is just over a year old now, and I've been truly gratified by the support its received from both sponsors and the community of readers and participants.
VideoNuze is not immune from the economic meltdown, so I'd like to also mention that we're offering some great sponsorship specials going into '09. If you're interested in reaching a highly-targeted, broadband-centric group of senior decision-makers, VideoNuze is an outstanding value. I welcome your calls or emails.
Thanks to our '08 sponsors below. Happy Thanksgiving and see you on Monday.
ActiveVideo Networks, Adap.tv, Adobe, Akamai, Atlas Venture, Anystream (Grab Networks), Brightcove, ChoiceStream, Critical Media (Syndicaster), Digitalsmiths, ExtendMedia, EyeWonder, FAST Search & Transfer, Flybridge Capital Partners, Goodwin Procter, Gotuit, Jambo Media, KickApps, Kiptronic, Macrovision, Move Networks, Multicast Media, PermissionTV, Signiant, Silicon Valley Bank, thePlatform, Tremor Media, VMIX, WorldNow and Yahoo
Categories: Miscellaneous
Topics: ActiveVideo Networks, Adap.TV, Adobe, Akamai, Anystream (Grab Networks), Atlas Venture, Brightcove, ChoiceStream, D, Syndicaster
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Video Quality Keeps Improving - What's it All Mean?
Is it just me, or are you also noticing that the quality of your online video experience is getting consistently better and better? Even though I'm totally immersed in the space, periodically I will find myself watching something online and still think to myself, "This quality is just unreal!"
I've had the experience of watching some or all of the following recently: the Democratic convention on demconvention.com, the movie "Ordinary People" on Hulu, swimming on NBCOlympics.com, trailers on Fancast and "Eli Stone" on ABC.com, among others. In each case, the quality of the video is outstanding, even in full screen mode.
All of this is due to tremendous innovation in the content delivery world. This includes not only traditional CDNs such as Akamai, Limelight, Level 3, CDNetworks and others, but a raft of other players specifically focused on optimizing video delivery quality such as Move Networks, Swarmcast, Digital Fountain, Vusion, BitGravity and others. Further enhancing the experience are improvements in media players like Windows Media, Flash, QuickTime and more recently Silverlight.
The innovation and investment in this space shows no signs of abating. I was reminded of this just last week in a call with Perry Wu, CEO and co-founder of BitGravity, which yesterday announced a strategic relationship and investment from Tata Communications (part of Tata Group, the massive Indian conglomerate).
Perry explained that the underlying theme of the deal is to deliver video at consistently high quality on a global basis. That aspiration fits with the increasingly international-oriented distribution strategies I hear about from content providers. While fast-growing international markets have been core growth drivers for content companies, frictionless and cost-effective IP delivery is creating a whole new ball game. I expect international reach - and the ability to monetize with locally-appropriate advertising - to become more and more important.
Meanwhile, back in the U.S. surging video quality means the bar is getting higher for all video providers. Delivering video without a full-screen option, or where the audio and video aren't synched perfectly, or where rewind/instant play isn't available will soon be perceived as sub-par. For budget-minded broadband content startups this will require heavier investments in delivery services if they're to be taken seriously.
For traditional networks and the Hollywood community, higher quality broadband delivery means the shift from on-air to online consumption will only accelerate. As more consumers come to see broadband as a legitimate alternative, they'll continue modifying their behaviors. With these shifting eyeballs comes a slew of economic challenges (the "analog dollars to digital pennies" anxiety) that must be urgently addressed.
Lastly, for the owners of local broadband networks (cable operators, telcos, etc.) surging video quality increases the pressure on their networks' delivery capacity. When a handful of users are watching high-quality long-form video that's one thing. But what happens when it's the norm? Bandwidth management and net neutrality debates are sure to intensify.
While all of these uncertainties swirl, consumers are gleefully seeing a high-quality video Internet unfold that just a few years ago would have seemed unimaginable.
What do you think? Post a comment.
Categories: CDNs
Topics: Akamai, BitGravity, CDNetworks, Digital Fountain, Level 3, Limelight, Move Networks, Swarmcast, Vusion
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New Akamai-KickApps Partnership Stakes Out Advantages in Video Management/Publishing
More news today in the fiercely competitive video management, publishing and delivery space. KickApps, a social media platform provider and Akamai, the leading content delivery network, have announced a partnership integrating KickApps's Video Player Studio with Akamai's Stream OS video management system. On Friday I spoke to Michael Chin, KickApps's SVP of Marketing to learn more about the joint offering's benefits.
I look at this deal as a front-end/back-end marriage, bringing together the two companies' complimentary capabilities as they seek to stake out new advantages in this market. KickApps, which has a roster of media companies, sports teams and others using its turnkey social media applications, has recently released its Video Player Studio, enabling customers to build on-demand customized video players for their sites.
Meanwhile Akamai's Stream OS has been focused on the back-end tasks of video management and publishing, such as uploading/storing/editing video and metadata, distributing video through managed RSS feeds, and controlling syndication through business rule creation and geo-targeting.
Michael sees the joint offering's key differentiators as comprehensive out-of-the box functionality, improved flexibility/time to market and integrated social media features (rating, tagging, commenting, etc.).
KickApps is also counting on financial benefits to lure customers. It uses pay-as-you-go CPM-based pricing vs. the typical platform license fee model used by others. Large media companies usually buy out their entire KickApps-generated inventory at an agreed-upon CPM, while smaller companies stick to an ad revenue share approach. Another financial lever in the deal is that KickApps has negotiated very favorable CDN pricing from Akamai, which gives it more pricing flexibility for customers.
Michael believes that between the broader feature set and pricing advantages, the KickApps-Akamai joint offering will be well-positioned to appeal to customers of competitors like Brightcove, Maven (Yahoo) and thePlatform (Comcast), not to mention smaller players in the space who have narrower feature sets.
The KickApps-Akamai partnership continues to raise the competitive bar in this space. These are important, real differentiators the companies are using. That said, this space is very fluid, and in the coming weeks there will be at least 3 other companies which I've spoken to recently which will raise the bar in still other ways. This is a space that continues to evolve, as customer needs shift and their revenue pressures intensify. More news coming soon.
What do you think? Post a comment now.
(Note: Akamai is a current VideoNuze sponsor and KickApps is a former sponsor)
Categories: Partnerships, Technology
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Great Webinar on Syndicated Video Yesterday
I participated in a great webinar on the syndicated video economy yesterday, along with Greg Clayman, EVP Digital Distribution and Biz Dev at MTV Networks and Suzanne Johnson, Senior Industry Marketing Manager at Akamai Technologies.
The three presentations were very complimentary: I laid out the framework of the syndicated video economy, Greg provided tangible examples of how MTV's capitalizing on it, and Suzanne addressed how Akamai is helping enable it. We had a huge audience and lots of great follow-up questions. If you're interested in content syndication, I highly recommend listening in.
The webinar is available for replay by clicking here
(Note if you previously registered, you should have an email from "Digitally Speaking" which gives you details of how to access the webinar, so you don't have to re-register)
Categories: Events, Syndicated Video Economy
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August 6th Akamai Webinar on Syndicated Video Economy
Please join me on August 6th at 11am PST / 2pm EST for a complimentary webinar, "Profiting from the Syndicated Video Economy." I'll be sharing thoughts about the trends in broadband video syndication which I first introduced in this post back from March 2008.
Also presenting will be Greg Clayman, Executive Vice President, Digital Distribution and Business Development, MTV Networks, who will explain his company's successful syndication experiences, and Suzanne Johnson, Akamai's, Senior Industry Marketing Manager, who will detail how their offerings are helping facilitate syndication.
It promises to be a packed agenda, full of best practices and useful data. I hope you can join us!
Categories: Events
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Anystream Lands Hearst-Argyle and Brings New Competition in Video Management Space
Anystream, a long-time player in video transcoding, is announcing that its Media Lifecycle Platform has been implemented by 11 of Hearst-Argyle's 29 owned and operated TV stations.
The move suggests even more vigorous competition is coming to the video management/publishing space where players like thePlatform, Brightcove, Maven, ExtendMedia, PermissionTV, Akamai (StreamOS), WorldNow and others have focused.
I sat down with Anystream (note, a periodic VideoNuze sponsor) president Bill Holding and founder/chairman Geoff Allen recently to learn more about their expansion strategy.
Anystream is well-known in the digital media space as it Agility transcoding platform is deployed in over 700 companies. Leveraging this base of relationships and its knowledge of customers' work flows, Anystream is now "moving north" by focusing on the video management layer. The core technology comes from Anystream's 2007 acquisition of Cauldron Solutions, which has been built out, renamed as Velocity and integrated with Agility.
Anystream's new, broader positioning rests on its belief that the video "Produce-Manage-Monetize" lifecycle elements are deeply linked, and that ultimately a comprehensive, integrated solution will be prized by media companies serious about scaling their broadband video businesses. At the manage layer specifically, Velocity focuses on rights, scheduling, packaging, syndication and asset tracking.
Anystream believes metadata it gains access to, at the start of the video lifecycle through its transcoding role, is a unifying value driver in the video management and monetization phases.
Hearst-Argyle clearly saw the benefits of this approach, citing Anystream's metadata management as opening up new content re-use opportunities and creating competitive advantage. In the press release, Joe Addalia, H-A's director of technology projects, said H-A has cut its production and distribution to online channels "from 30 minutes to 3 1/2 minutes."
I continue to be impressed with how many companies are staking a claim in the broadband video management/publishing space. I'm constantly trying to discern the real competitive differentiators that separate industry players. Like many of you, I often find the landscape quite blurry, with overlapping capabilities. Each player tends to cite its traditional competencies as being the best building blocks from which to build a full scale management/publishing platform.
While it's tempting to say "they can't all be right," the fact that so many players are finding market success today indicates that content owners are not monolithic in their specific requirements and that a giant game of matchmaking seems to be occurring between content owners and video management providers. One day there may be a consensus on who truly has the "best" management platform, but for now that day seems to be far off.
What do you think? Post a comment and let us all know!
Categories: Broadcasters, Technology
Topics: Akamai, Anystream, Brightcove, ExtendMedia, Hearst-Argyle, Maven, PermissionTV, thePlatform, WorldNow
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New Statistics Address Video Piracy, Importance of Quick Online Release of TV Programs
During very informative presentations at my NAB panel discussion yesterday, there were 2 slides that really caught my attention. Both shared statistics, new to me, about video piracy and user behavior patterns. These statistics illustrate the important early online window just following when a TV program is aired. Capturing this audience spike can dampen video piracy and also be a big revenue opportunity for providers.
The first slide, shown below, was presented by Rob Adams, director of digital media operations at CTV, Canada's largest broadcaster. CTV offers both clips and full-length streaming episodes from its networks and select partner networks. In the slide below each line represents a single day's unique visitors for a specific TV series CTV offers.
I know the slide is a bit of an eye chart, so I'll summarize the phenomenon Rob explained. In this example a popular network show airs at 7pm on Tuesday. Notice how the purple usage line spikes during the hour of its run. Rob explained that users who go online to find the episode being aired realize it's not yet available and instead begin catching up on previous episodes. That new episode is posted around 2 am, and the spike in usage the following day is shown by the blue line.
Note the far lower behavior in the other lines and it is clear that the 24 hour window during and after airing a new episode is critical. It's also interesting to speculate on whether some users are beginning to look at online availability as pure VOD. If so, that would have implications on DVRs (i.e. why record a show when you've come to expect they'll all be posted quickly online?)
The second attention-getting slide was based on recent research by Akamai and Vobile, which used its digital fingerprinting technology to track the availability of illegal copies of an episode a popular program and their download volume. In the slide below, it is clear that although illegal copies are available immediately, the volume of downloads jumps by more than 500% the following morning (13 hours after broadcast).
What all of this demonstrates is that there is a real window of opportunity for premium video providers to slow video piracy and drive many new video views. By satisfying the obvious demand that users have for this content with legitimate distribution, providers can chip away at, though admittedly not eradicate, illegal sharing. If users gain confidence over time that their favorite programs will be available quickly, in high-quality and with a positive user experience (i.e. not overburdened with ads), the rationale to pursue the illegal route lessens. Conversely, video providers not responding to these viewer needs continue to leave themselves highly vulnerable to illegal behavior.
Categories: Broadcasters, P2P
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Magnify's New Social Features and Video's Role in Community-Building
Yesterday Magnify.net, a company I've previously written about, released its version 3.0, introducing new social features and also Pro and Enterprise versions. Magnify's CEO Steve Rosenbaum gave me an update.
Magnify is a platform that enables enthusiasts to assemble relevant video from sharing sites (YouTube, Metacafe, Dailymotion, others) into channels. One of the things I originally liked about the Magnify approach is that it is a powerful avenue for would-be curators to simplify the morass of video now available at disparate locations into one easy-to-access area for others with similar interests. The concept has clearly proven popular: since I wrote the original post in October '07 the number of Magnify channels has roughly doubled from 17,500 to 33,000+ and page views have spiked to 18 million this month.
The social features Magnify is introducing in its 3.0 version are aimed at creating deeper community interaction within the channels and are a natural evolution for the company. Quite frankly, they're something I would have expected earlier (chalk it up to finite resources?). The social features allow members to create and view profiles, "friend" each other and to track and subscribe to other members' activities. There's also integration with Twitter, Mogulus and Flickr.
Reactions to Magnify's move have been mixed and raise interesting questions about the interplay of social media and broadband video. For example, if I understand TechCrunch writer Erick Schonfeld's perspective correctly, he just doesn't buy into the idea that video is a solid foundation for community building and that the existing social networks can and do incorporate video just fine, thereby obviating the need for community within Magnify's channel context. While he rightly identifies a potential logistical issue of Magnify not offering cross-channel profiles, and simmering social networking saturation, overall I think he's underestimating the potential of video as a catalyst for social interaction.
Using well-organized and curated video as a foundation for community development actually makes a ton of sense. In our media-saturated society, video is a common and defining thread for starting and sustaining our interactions. As one example, Steve pointed me to the "Native American Tube" channel at Magnify. Have a look, there are 388 members and counting, and see how active the back-and-forth commenting is? People have strong and passionate affiliations with particular videos, programs and even networks - and want to share their thoughts.
Meanwhile, for all the growth of Facebook, MySpace and Bebo, social media is far from a mature space. At last week's Media Summit, the integration of social media and video was among the hottest topics. The reality is that existing media brands (especially in the niches) and aspiring ones like those Magnify is powering have a strong ability and economic incentive to create community and interaction opportunities for their audiences. I expect we'll see no let up in their enthusiasm, and Magnify's social tools, as they further evolve, will become a key part of the company's success.
(Note: if you want to know more about this topic, yesterday there was a webinar sponsored by KickApps and Akamai. KickApps helps companies set up their own social networks and is getting significant traction in the media space.)
Categories: Events, Video Sharing
Topics: Akamai, KickApps, Magnify.net
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My 3 Takeaways from 2008 Media Summit
I had 3 key takeaways from the 2008 Media Summit which just wrapped up in NYC. The event just keeps getting better - great keynotes, terrific informal hallway chit-chats/networking and tons of well-directed energy. Though the event's agenda is broad, I was focused on the video-related elements. Here are 3 takeaways:
1. Iger and Moonves Get Tech; Lots of Innovation/Growth Ahead
A clear highlight for all attendees was the 2 morning keynote interviews, day 1 with Disney CEO Bob Iger and day 2 with CBS CEO Leslie Moonves. Both were ably conducted by senior Businessweek editors. Until a couple years ago, big media was in a defensive crouch regarding technology's uninvited incursion into their businesses. No more. Iger and Moonves are obviously convinced that technology, the Internet and broadband video delivery are now their companies' friends. Iger in particular really pounded this theme home.
An example of how technology helps which Iger repeatedly touched on was how Disney will leverage the platform of Club Penguin, its recent acquisition, to build communities for other properties (e.g. "Cars", "Pirates," etc.). These moves are intended to engender ever-greater levels of engagement. By the way, if you're a parent of youngsters and you've ever bemoaned how Disney's gotten its hooks deeply into your kids, you ain't seen nothing yet!
Moonves was emphatic that the Internet extends the value of CBS properties. March Madness was an example he offered. Three years ago it generated $250K of broadband subscription revenue. Two years ago CBS converted to ad-support and generated $4M. Then last year it generated $10M and this year is projected for $23M. And as Moonves pointed out, other than bandwidth, it's all incremental profit for the company. Echoing another conference theme, he further added that "the Internet should not be used to just regurgitate TV," but rather for the medium's unique capabilities.
Iger's and Moonves's mantras are no doubt being sent down to the troops from the executive suite. That suggests we can all expect a whole lot of tech-based innovation springing from these media giants.
2. Engagement and Originality: Buzzwords or More?
Two touchstones in many sessions were "engagement" and "originality." Both reflect the evolving viewpoint that broadband video has its own unique capabilities and that breaking through requires going far beyond traditional, passive programming approaches. With respect to engagement, the concept of introducing "social media" opportunities was often cited as the key tactic. An amorphous term, social media refers to all manner of user participation: content sharing, interactivity, personalization, mashups, uploading, commenting, rating and so on. Basically it's anything that gets viewers to do more than just sit back and enjoy the show. (For those looking to learn more, note next week's webinar on social media, presented by VideoNuze sponsors KickApps and Akamai)
Regarding originality, this relates back to Moonves's comment about not using the medium for regurgitation of TV shows (though to be sure there's value to that). Many people echoed that theme, emphasizing broadband must be used for original programming. The proliferation of independent "broadband studios" is encouraging early evidence that the originality bar will keep rising, prompting established and startup players to harness broadband's limitless possibilities.
3. Missing in Action: Paid business models
It wasn't that long ago that discussions about broadband video business models focused evenly on paid and ad-supported. No more. The paid model was completely missing in action at the event. I think I can count on one hand the number of times the concept was raised in sessions. Also MIA was DRM, the paid model's enabler (or torturer, depending on your perspective).
I detect a broad consensus that the broadband video industry has hitched its wagon to free ad-supported video for the foreseeable future. Many of you know I've been a long-time and enthusiastic proponent of this approach and I'm extremely happy to see things unfold this way. Though the broadband video ad model is still immature, all macro trends point to a bright future. One in particular is video syndication, which I wrote about 2 days ago. Syndication was a dominant theme, as panel representatives from both large and small content providers enthusiastically embraced it. See my post earlier this week, "Welcome to the Syndicated Video Economy" for more on this.
Ok, there you have it. There's plenty more tidbits I took away from the summit, so feel free to ping me if you'd like. And if you attended, post a comment and share your takeaways as well!
Categories: Advertising, Broadcasters, Downloads, Syndicated Video Economy, UGC, Video Sharing
Topics: Akamai, CBS, Disney, KickApps
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Welcome to the "Syndicated Video Economy"
I am ever mindful of the old adage about "missing the forest for the trees" as I try daily to understand the often minor feature differences between competing vendors or the nuances of startups' market positioning. As we all know, when you get too close to something, it's quite easy to lose the larger perspective. So periodically I think it's essential to take a huge step back to try to identify the larger patterns or trends that crystallize from the daily frenzy of deals and announcements.
As a result, I've come to believe that recent industry activity points to an emerging and significant trend: the early formation of what I would term the "syndicated video economy." By this I mean to suggest that I'm seeing more and more industry participants' strategies - in both media and technology - start from the proposition that the broadband video industry will only succeed if video assets are widely dispersed and revenue creatively apportioned.
For content providers the notion of widespread video syndication big change in their business approach. In the past year I think we've observed content providers of all stripes transition from "aggregating eyeballs", to "accessing eyeballs," wherever they may live now or in the future: portals, social networks, portable devices, game consoles, etc. Underlying this shift is the realization that advertising-based revenues are going to fuel the broadband video industry for the foreseeable future. The ad model requires scale and syndication is the best way to deliver it.
This shift by content providers has been accompanied by a loosening of traditional tightly-controlled, scarcity-driven distribution strategies, an acknowledgement that fighting newly-empowered consumers is a futile exercise. The evidence of this shift abounds. Consider the broadcasters like CBS, NBC and Fox, which through their affiliates (Hulu, CBS Audience Network) are syndicating programming to many portals/aggregators (e.g. Yahoo, MSN, AOL, YouTube), social networks (e.g. Facebook, MySpace, Bebo) and others. And Disney's Stage 9 digital studio, which premiered with YouTube and explicitly plans to tap into broadband video hubs. And cable networks like MTV Networks, which is pursuing a plethora of distribution deals. And traditional news-gatherers like local TV stations, newspapers and news services (e.g. Reuters, AP) which have stepped up their activity to scatter their video clips to the Internet's nooks and crannies. And the list goes on and on.
Taking their cue from the media companies' strategy shift, technology entrepreneurs and investors have ramped up their focus on this market opportunity. The prospect of the syndicated video economy blossoming drives news/information distributors such as Voxant, ClipSyndicate, Mochilla, TheNewsMarket and RedLasso, an ad manager such as FreeWheel, and a content accelerator such as Signiant, plus many others. Then there are more established companies guiding areas of their product development process by the prospect of the syndicated video economy's growth: Google, WorldNow, Akamai, thePlatform, Anystream, Maven Networks, Brightcove, PermissionTV and plenty of others (apologies to those I've left out!)
All of this suggests that the eventual "value chain" of the broadband video industry will look quite different than the traditional one (for more on this, I've posted some my slides from late '07 here.) As with all economies, in the nascent syndicated video economy there is vast interdependence among the various players, not to mention shifting market positions and degrees of pricing power and negotiating leverage. It is far too early to gauge who will emerge as the syndicated video economy's winners and losers. But make no mistake, lots of energy and investment will be expended trying to nurture its growth and exploit its opportunities.
Do you see the syndicated video economy forming as well? Post a comment and let us all know!
Categories: Advertising, Aggregators, Broadcasters, Cable Networks, Newspapers, Portals, Startups, Syndicated Video Economy
Topics: Akamai, Anystream, ClipSyndicate, FreeWheel, Google, Mochilla, RedLasso, Signiant, TheNewsMarket, thePlatform, Voxant, WorldNow
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HD Broadband Video Rollouts Will Be Driven by Advertising Model Growth and ROI
Last week's unveiling of HDWeb from Akamai (disclaimer: a VideoNuze sponsor), coupled with Limelight's recent announcement of its LimelightHD service offering, further raise the visibility and near-term prospect of higher-quality video streaming.
Underlining this was the impressive array of support in the two press releases from customers willing to be quoted expressing their interest in HD. I read all this as putting to rest any doubts about whether content providers are interested in offering HD. Supporting Akamai's release were MTV, NBA, Gannett, while supporting Limelight's release were Fox Interactive, Brightcove, Adobe, Silverlight and Rajshri.com (India's #1 broadband portal).
Content providers I talk to are enthusiastic about pushing the quality bar, though a key issue is cost of delivery and potential ROI. Obviously to push out HD-quality streams means higher bandwidth and storage needs, the 2 key drivers of CDN charges. To support higher costs, improved revenue potential is required. And this is why HD rollouts are dependent on broadband video advertising prospects.
With ad support the primary business model for broadband video, I think a chicken-and-egg dynamic between ads and HD is going to play out. The better the ad revenue prospects, the more willing content providers will be to invest in HD. This is a reminder of why further maturing of broadband video ad models and supporting technologies are so important. So while the paid download model will also continue to grow, if you really want to get a handle on HD's prospects, keep an eye on the broadband video ad business. Continued traction will govern how much HD we'll all be seeing.
In the mean time, HDWeb from Akamai provides an enticing glimpse of an online HD future. I had no problem accessing its content over my standard Comcast broadband connection. The video quality is unlike anything I've yet seen online. If you get a chance, take a look at the NBA highlights clip (screen shot below). The clarity is mind-boggling.
Can Akamai actually deliver this at scale? At the recent Akamai analyst day I attended, Chief Scientist/co-founder Tom Leighton said their network roadmap is to have 100TB of capacity by 2010, which could theoretically support 50 million concurrent 2MB streams. We're a long way from that usage level, but Akamai seems to be squarely focused on making HD a reality. And they're not alone, along with Limelight there are numerous other HD CDN initiatives underway. All this means that the video quality bar will inevitably rise.
Categories: Advertising, CDNs, HD
Topics: Akamai, HDWeb, Limelight
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VideoNuze Goes Live
It's official - after months of intense development, VideoNuze went live today. I'm very excited about this first version of the site, and am deeply indebted to many of you who have provided me tremendous feedback, insight and support on the way to today's launch.VideoNuze 1.0 accomplishes what I set out to do at launch - provide a high-value, user-friendly online publication and community for busy video executives seeking to keep up-to-date with the industry's vast array of news and better understand what it means to their businesses. The two primary components of the site, "Analysis" and "News Roundup", are already well-stocked with content and will grow rapidly over time. In addition, I have a full roadmap of features which will also be introduced in the coming months.
As with all online initiatives, VideoNuze is a work in progress and I welcome your feedback. Please have a good look around and let me know what you think. What works well? What's missing? What's broken? No comment or observation is too small, I invite them all.
Today's launch wouldn't be possible without the support of an incredible group of charter sponsors, so I want to acknowledge and thank them again. Each signed on when there was not so much as an official name for the effort. They made a bet on my concept - that an online publication that relentlessly focuses on informing and educating broadband video decision-makers would add real value to the market. I greatly appreciate their confidence.
These companies are all leaders in the fast-evolving video industry and I encourage you to take time to learn about how they can contribute to your company's success:
If you are interested in learning about VideoNuze sponsorships, please click here for more information or contact me.And if you'd like to know more about Broadband Video Focus, my firm's subscription market intelligence service, please click here.I look forward to hearing from you!Categories: Miscellaneous
Topics: Akamai, Atlas Venture, Digitalsmiths, ExtendMedia, ICTV, PermissionTV, thePlatform, Voxant