Posts for 'Partnerships'

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Amid all of the attention Netflix has been receiving for embedding its streaming software in one consumer electronics device after another (the Wii just yesterday) and its recent Warner Bros. deal, it's been easy to overlook the fact that Blockbuster has been getting some online traction itself. One announcement at CES last week, by ActiveVideo Networks, caught my attention as it has the potential to leapfrog Blockbuster On Demand's user experience past Netflix's Watch Instantly.

Much as I'm a big fan of Netflix's Watch Instantly streaming feature, one of its limitations is that the user experience is very segregated between computer and TV. You browse and search online for titles - just as you would for DVDs - and then when you've made your choices, they show up in your Instant Queue online and on your connected TV (via Roku, Blu-ray, Xbox or other device). While it's a perfectly functional approach, wouldn't it be nice if you could do the entire process of search, discovery, previewing, selection and viewing on the TV itself?

That's the experience that ActiveVideo Networks' CloudTV will be helping Blockbuster on Demand deliver to its users. As ActiveVideo's CEO Jeff Miller explained to me yesterday, when deployed, the Blockbuster on Demand app (developed using ActiveVideo's JavaScript/HTML authoring kit), will give Blockbuster's users a web-like experience of search, discovery and previewing on their TVs, via connected devices. In addition, it will present viewing options - streaming, download-to-own and in-store rental (via an API it will even show current availability in selected stores).

The requirements are that ActiveVideo's thin client has been integrated with the device, and that Blockbuster has its own deal with to distribute through the specific device manufacturer. Navigation is via the remote control using an on-screen keypad (see example screen shots below from last week's CES demos).

Similarly, ActiveVideo is also focused both on CE (currently through a partnership with middleware provider Videon Central) and on cable. It has deployed on set-top boxes with Cablevision and Oceanic Time Warner Cable in Hawaii, reaching an audience of 5 million homes. Content providers that have developed apps include Showtime, HSN and Fox, among others. No doubt ActiveVideo and Blockbuster will synch up their biz dev activities to proliferate the Blockbuster on Demand app as widely as possible.

I have to admit that I haven't been paying too much attention to Blockbuster, as it has worked to re-position itself, aiming to close another 1,000 stores by the end of the year and installing more kiosks to compete with Redbox. Of course, it can ill afford to allow Netflix to get too far out in front of it in digital delivery as DVD rentals are poised to be supplanted by streaming down the road.

But Blockbuster has an ubiquitous, if somewhat dated, brand that could be skillfully leveraged into the digital era, provided it has the right services in its arsenal. In this respect, the potential to bring a converged user experience between online and connected TVs is a meaningful differentiator. No initial joint customers have yet been announced by Blockbuster and ActiveVideo, though I expect that soon. And, as online video and TV continue to converge, ActiveVideo is likely to find itself in the middle of a lot of action. All of this is worth keeping an eye on.

(Note - ActiveVideo Networks is a VideoNuze sponsor)

Online video platform provider Ooyala unveiled a partnership yesterday with NTT SMARTCONNECT that expands the company into Japan. Under the non-exclusive deal, the two companies will collaborate to create a localized and co-branded version of Ooyala's Backlot platform. Marketing and sales are set to begin in February.

As part of the announcement Ooyala also provided some 2009 updates: contracted customers grew from 30 to 300, self-serve customers grew five-fold, the Ooyala player now delivers hundreds of millions of streams/mo to 50 million unique users/mo, it transcodes 60K hours of video/mo and the company now has 70+ employees.

Ooyala also said that 50% of its customers are marketers, and outside of the traditional media space. The company cited Electronic Arts, for which it powers video on 30 different properties, General Mills and Cerner. The non-media focus parallels what Brightcove recently told me, that over half its business now comes from non-media customers (e.g. business, government and education).

As I wrote recently, despite all the growth in the online video platform space, it's still relatively early days. To be in the top tier as the market matures will require providers to scale their operations, including international expansion and serving customers outside the core media market. It looks like Ooyala understands this as well.

What do you think? Post a comment now.

Another building block for delivering video applications to the home through broadband connections is being announced this morning by ActiveVideo Networks and Videon Central. The companies are unveiling a partnership in which AVN's client software will be embedded in Videon's middleware stack used in millions of CE devices. I talked to AVN's SVP of Marketing Edgar Villalpando and Videon's VP of Business Development Michael Daulerio last week to learn more.

For those not familiar with AVN, it is a cloud-based provider of interactive video applications, with customers like Showtime, Fox Reality, HSN and others. AVN initially focused on delivering apps to service providers' set-top boxes, but has also expanded into the Internet-connected CE space. Videon provides middleware to semiconductor and CE manufacturers, driving user interface and navigation in various devices. As an example, its middleware can be found in over 2M Blu-ray players from Samsung, LG, Insignia and others.

As Edgar and Michael explained, the goal of the partnership is to enable content providers and others to deliver up-to-date video apps to the growing universe of connected-CE homes. In some ways this is comparable to what Intel and Yahoo are doing with the Widget Channel and other industry initiatives.

To understand how this works, think of a consumer who rents The Dark Knight Blu-ray disc. The disc itself has additional content like Director's cuts, etc. The problem is that the disc's content is fixed, whereas there's always new Dark Knight-related content being produced (e.g. branded entertainment, product-tie ins, games, user-generated content, etc.). Simply using a bumper to promote the Dark Knight's URL on the disc is a start, but it leaves a lot to be desired in terms of specific promotion. Given the amount of money now involved in ancillary revenue streams, Warner Bros, the Dark Knight's distributor, is highly motivated to drive stronger engagement.

Once implemented, a Blu-ray player with AVN/Videon that's connected to the web allows additional video apps and targeted advertising to be presented seamlessly. The idea of joining offline and online media is a powerful draw for content providers trying to build larger franchises around specific titles. The apps are built with AVN's tools that use web standards like JavaScript and HTML. And with cloud-based delivery, storage needs are minimal and content updates can be frequent. Of course, this is not just restricted to Blu-ray players; Michael explained that Videon's middleware is being included in Internet-enabled TVs and other devices as well.

There is much speculation about how convergence between broadband and TVs is going to unfold. A big sticking point is how the convergence device gets into the home and who pays for it - consumer, content provider or both. From my perspective, building blocks like AVN-Videon are important because they open up new revenue opportunities for content providers and others to help offset the cost of the device. I expect these kinds of initiatives throughout the ecosystem will only accelerate, bringing the convergence era ever closer.

What do you think? Post a comment now.

thePlatform is announcing this morning that another 20 companies have joined its "Framework" partner program originally rolled out in Feb. '08. There are now over 80 companies participating.

In its release, thePlatform notes that its "role is to make online video publishing a seamless process for our customers...." That's a commonly-shared goal among video platform companies, yet I continue to hear from various content providers that stitching together the various pieces they require into a total solution can be difficult. That's why these kinds of programs, where partner products are pre-integrated, add a lot of value for customers.

Among the many companies thePlatform cites as new partners are quite a few I've written about previously on VideoNuze (click to see each write-up): Aspera, Azuki Systems, BrightRoll, EveryZing, Transpera, Visible Measures, YuMe and others.

(Note: thePlatform is a VideoNuze sponsor)

Brightcove and Qik are announcing a partnership this morning that further fuses the broadband and mobile video worlds. Under the partnership Qik users will be able to distribute their mobile-recorded video through Brightcove players if they have a Brightcove account. For Brightcove customers the deal will enables mobile recording as a new source of video into their catalogs.

Qik's client is one of a number of options for mobile video recording and uploading. As I wrote yesterday regarding the iPhone's new video recording capabilities, mobile video capture (and eventually full-featured editing) is poised to become a big activity, implying that few spontaneous significant live events will go unrecorded. We will see additional partnerships like Qik-Brightcove as mobile recording becomes a key source for content providers distributing video over both broadband and mobile.

The ad management company Adap.tv has taken the wraps off its new "Player Partner Program" this morning. Initial partners include Brightcove, thePlatform, Mogulus, VMIX, Twistage and Kaltura. All are now integrated with Adap.tv's "OneSource" ad management system.

Yesterday, Dakota Sullivan, Adap.tv's VP of Marketing told me that though the company has been working with Brightcove and thePlatform informally to date, the new program will provide more structure to partners. Included are a central location on the Adap.tv web site for partners for promotional purposes along with other co-marketing and technology updates. No cash is changing hands with partners though, as Adap.tv tries to maintain neutrality.

These types of partnership programs are springing up all around the broadband video ecosystem, as companies continue to carve out their specific niches, and seek to benefit from partners' marketing efforts in a resource-constrained environment. I expect we'll continue to see them get rolled out.

Late yesterday's announcement that Disney-ABC and ESPN would launch a number of ad-supported channels focused on short-form content was yet another meaningful step in broadband video's maturation process. Here are 6 reasons why I think the deal matters:

1. It validates YouTube as a must-have promotional and distribution partner

For many content providers it's long since become standard practice to distribute clips, and often full-length content, on YouTube. Yet aside from CBS, no broadcast TV network has seriously leveraged YouTube. That's been a key missed opportunity, as YouTube is simply too big to ignore. It's not just that YouTube notched 100M unique viewers in Feb. '09 according to comScore, it's that the site has achieved dramatically more market share momentum over the past 2 years than anyone else, increasing from 16.2% of all streams to 41% of all streams.

Increasingly, YouTube is not the 800 pound gorilla of the broadband video market; it's the 8,000 pound gorilla. Disney has acknowledged what has long been tacitly understood - as a video content provider, it's impossible to succeed fully without a YouTube relationship.

2. It creates a path for full-length Disney-ABC programming to appear on YouTube and elsewhere

While this deal only contemplates short-form video, and more than likely, mostly promotional clips, it almost certainly creates a path for full-length episodes to appear as well, as the partners build trust in each other and learn how to monetize. Full-length content is most likely to come from ABC, not ESPN (the release pointedly states no long-form content from ESPN's linear networks is included) as part of a newly expanded distribution approach.

For YouTube, which has been aggressively evolving from its UGC roots in its quest to generate revenues, the current clip deal alone is a big win; gaining distribution rights to full-length programs would be an even more significant step. Underscoring YouTube's flexibility, the current deal allows ESPN's player to be embedded, and for Disney-ABC to retain ad sales. YouTube's reported redesign, which places more emphasis on premium content, is yet another way it is getting its house in order for premium content deals.

3. It opens up a new opportunity for original short-form video to flourish

When you think about broadcast TV networks and studios, you immediately think of conventional long-form content. Yet all of these companies have been producing short-form content that either augments their broadcast programs, or is originally produced for broadband, as Disney's own Stage 9 is pursuing. The levels of success of this content have been all over the board.

With YouTube as a formal partner, Disney can aggressively leverage it as its primary distribution platform, gaining more direct access to this vast audience. Facing unremitting market pressures on many fronts, broadcast TV networks themselves need to reinvent their business models. Short-form original content married to strong distribution from YouTube would be a whole new strategic opportunity.

4. It puts pressure on Hulu and other aggregators

It's hard not to see YouTube's gain as Hulu's - and other aggregators' - loss. For sure nothing's exclusive here, and as PaidContent has reported, discussions about Disney distributing full-length programs on Hulu (as well as YouTube) are also underway. But the Disney deal underscores something important that differentiates YouTube from Hulu: YouTube is both a massive promotional vehicle and a potential long-form distributor, while Hulu is really only the latter.

YouTube's benefit derives from its first-mover status. Hulu has done a tremendous job building traffic and credibility in its short life, but it is still distant to YouTube in terms of reach. I continue to believe it is far easier for YouTube to evolve from its UGC roots to become also become a premium outlet than it is for Hulu - or anyone else - to ever compete with YouTube's reach.

5. It raises threat warning to incumbent service providers by another notch

It's also hard not to see the Disney deal moving YouTube's threat level to incumbent video service providers (cable/satellite/telco) up another notch. We discussed YouTube's importance to these companies at the Broadband Video Leadership Evening 2 weeks ago (video here), and I thought the panelists generally did not give YouTube much credit as it deserves.

I continue to believe that of all the various "over-the-top" threats to the current world-order, YouTube is the most meaningful ad-supported one. It has massive audience, a potent monetization engine in Google's AdWords, and with the Disney deal, increased credibility with premium content providers. Especially for younger audiences, the YouTube brand means a lot more than any incumbent service provider's. If I were at Comcast, Verizon or DirecTV, I'd be keeping very close tabs on YouTube's evolution.

6. It exposes the absurdity of the ongoing Viacom-Google litigation

Two weeks ago at the Media Summit I listened to Viacom CEO Philippe Dauman describe the status of his company's $1 billion lawsuit against Google and YouTube. As he talked of mounds of data and reams of documentation being collected and reviewed, I found myself slumping in my chair, thinking about how well all the lawyers involved in the case must be doing, and yet how pointless it all seems.

The old adage "2 wrongs don't make a right" fits this situation perfectly. There is no question that in the past YouTube was lax about enforcing copyright protection on its site and cavalier about how it responded publicly to the concerns of rights-holders. But it has made much progress with its Content ID system and a good faith effort to become a trusted partner. All of this is evidenced by the fact that Disney wouldn't even be talking to YouTube, much less cutting a deal, if it didn't view YouTube as reformed. While the media world is moving on, adapting itself to the new rules of video creation, promotion and distribution, Viacom continues to waste resources and executive attention pursuing this case. To be sure, Viacom has been plenty active on the digital front, but it is long overdue that these companies figure out how to resolve their differences and instead focus on how to work together to generate profits for themselves, not their lawyers.

What do you think? Post a comment now.