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Verizon CEO: No Mobile Spectrum Shortage, FCC Should Butt Out
Were you as surprised as I was to read yesterday that Verizon CEO Ivan Seidenberg is questioning the need to reclaim broadcast spectrum for mobile data use? Instead he believes that ongoing advances in technology will address any potential bandwidth squeeze. His comments represent a weird reversal because Verizon has been (for obvious reasons) a key proponent of gaining access to this spectrum. As I wrote a few weeks ago, the bandwidth reclamation concept is one of the most contentious in the FCC's recently released National Broadband Plan.
I'm not clear on what's going on here. The iPad's release this past weekend is yet another reminder of the infinite mobile data uses ahead. Meanwhile recently-amped up rumors that Verizon will get getting the iPhone later this year means lots of data increases from Verizon itself. Throw in the coming proliferation of Android devices as yet more evidence of mobile data's rise. So why would Seidenberg now cast doubt on the spectrum reclamation effort? Beats me. Any ideas?
What do you think? Post a comment now (no sign-in required).Categories: Regulation, Telcos
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VideoNuze Report Podcast #56 - April 9, 2010
Daisy Whitney and I are pleased to present the 56th edition of the VideoNuze Report podcast, for April 9, 2010.
First up this week, Daisy gives us an update on increasing ad loads in TV programs distributed online, building on our discussion from last week. Daisy reports on an interview she did with Mark Garner, SVP of Business Development at A&E Television Networks. AETN has found that in their TV Everywhere trials, when they increased ad loads by 20%, the rate at which people watch the programs all the way to the end was unchanged.
Research continues to build that incremental increases in ads doesn't harm viewership, but enhances monetization. Daisy concludes that AETN's experience is yet more evidence that soon enough more ads in online programs will be pervasive. Separate, Daisy previews an article she's writing about ad verification and how it figures in to the online video space.
Then I add some further color to my post from earlier this week in which I tallied up Q1 '10 financings for private video companies to at least $277.4 million. It was another stellar quarter for video companies, despite the fact that credit markets are still tight. Listen in to learn more.
Click here to listen to the podcast (13 minutes, 44 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!Categories: Advertising, Deals & Financings, Podcasts
Topics: AETN
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Syndicating Branded Entertainment Gains on AlphaBird-Fremantle Deal
This morning AlphaBird is announcing a deal with FremantleMedia to package and syndicate online the new branded entertainment web series, "As Worn Buy." AlphaBird recently launched as a new video content syndication service and is headed by Chase Norlin and Alex Rowland, both online video industry veterans. I caught up with Chase and Alex to understand how the Fremantle deal works, and also how the company is looking to differentiate itself.
Taking a step back for a moment, AlphaBird is working in the "Syndicated Video Economy" a term I coined a couple of years ago. The SVE is an ecosystem of companies facilitating consumption and monetization of online video across a broad network of sites and environments. In the SVE it is more important for content providers to access eyeballs wherever they happened to be - for example on 3rd party sites, on mobile devices, in social media settings, etc. than to solely try attracting them to a destination web site (along the lines of the "must-see TV" model of appointment, channel-based viewing).
The SVE recognizes that the Internet is a highly fragmented, on-demand centric medium that requires its own unique formulas for success. Everyone working in the SVE understands that it's still very early in the game, and the rules of the road are being figured out in real time. The key to the SVE is simultaneously pleasing the main constituencies - video content creators, advertisers, publisher sites and users. All of this needs to be done in the context of long-standing expectations that each constituency has about how things have always worked. The SVE can't be a revolution; rather, to bring all the constituents along, it needs to gradually migrate from and respect the way things have always been done.
AlphaBird is trying to carve out its role in the SVE by focusing on syndicating branded entertainment (web series with deep brand/product
involvement/visibility/placement) to a network of publishers. Alex explained that AlphaBird's key differentiator is to insert the video in an editorial position within publisher web pages, as opposed to in advertising positions (e.g. existing 300x250 in-banner placements). The goal is to provide incremental value to publishers and their audiences. The proposed payoff to the brand is higher awareness (through editorial positioning), engagement (all video is click-to-play) and ROI (all pricing is performance-based). AlphaBird is guaranteeing audience to brands, though not down to certain specific sites just yet. Clarification - AlphaBird is offering site level guarantees.
Given the trend of brands creating their own content, and the difficulty of generating online audiences, AlphaBird's concept is appealing (though to be fair, it's not entirely unique as Grab Networks, for example, also does editorial placements). It's easy to see why Fremantle, which is a content creation expert, but an online video syndication newbie, would value this kind of partnership. Chase said that achieving distribution goals is the number one challenge facing content creators, and that's where AlphaBird is focused.
My main concern is that achieving pure editorial placements is a very heavy lift and is hard to scale. It requires high-touch interactions to gain buy-in from editorial staff who are rightly concerned about their product's integrity (and as a result often bringing a bias against 3rd party video). That creates a far higher bar to clear than convincing the ad team to run something in a location already used for advertising in order to pick up a few extra bucks. A lack of scale would challenge AlphaBird's ability to win deals from major brands requiring significant exposure.
AlphaBird's hand-crafted approach also means a lot of detailed integration and follow-on QA to ensure the video is running according to expectations conveyed to the brand upfront. That would be welcome, given some of the stories emerging about low-quality syndication market activity, but it's costly to deliver. Alex acknowledged all of this and agreed that trying to automate as much as possible is the key to scaling the model successfully.
With the Fremantle deal, AlphaBird is plowing new ground for branded entertainment in the SVE. Chase says the company is already profitable, and it is begin funded from revenue. For those interested in the SVE's ongoing evolution, AlphaBird will also be worth keeping an eye on.
What do you think? Post a comment now (no sign-in required).Categories: Indie Video, Syndicated Video Economy
Topics: AlphaBird, FremantleMedia
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Hurray - Net Neutrality is Dead, For Now
Yesterday's ruling by the D.C. Court of Appeals that the FCC didn't have the authority to cite Comcast for blocking BitTorrent traffic effectively kills "net neutrality," at least for now. That's a good thing and everyone who's interested in seeing continued innovation by broadband ISPs and new video competitors should be cheering the decision. I've been writing about the FCC's unnecessary net neutrality intrusion into the well-functioning ISP market for several years (here, here, here), and it's very encouraging to see this unanimous court decision.
For those not familiar with net neutrality, it would give the FCC the ability to regulate how broadband ISPs manage their networks in order to ensure that
all content is delivered without any bias. Since net neutrality advocates have lacked any sustained pattern of broadband ISP misbehavior to point to as evidence for net neutrality's need, they have instead relied heavily on the argument that pre-emptive regulation is required because ISPs can't be trusted to keep their networks open, and that potential conflicts of interest (many ISPs like Comcast are also big video providers) will inevitably lead ISPs to favor their own services over others.
Concerns about impending, yet hypothetical ISP "fast lanes and slow lanes" have made great soundbites for net neutrality proponents and politicians. And yes, Comcast bungled how it blocked the BitTorrent traffic, and then how it explained itself. There have also been a handful of other ISP infractions. However, if the 70 million plus broadband households were asked to name a single instance where they felt their ISP degraded their access to a certain web site or video service, I am convinced that very few would be able to think of any.
This reflects the fact that broadband ISPs maintain open networks, rightfully policing against illegal behavior or disproportionate use. The ISP business works quite well, and in most parts of America, substantial competition exists between 2 or more providers (with more wireless ones on the way). Further, new video services and devices, which depend on ever-faster, and open broadband networks continue to proliferate, suggesting ample confidence by their backers that robust network access will be available. Consider: did Steve Jobs hesitate to introduce the iPad, which is heavily video-centric, out of fear for network availability? And how about Netflix, ABC, Discovery, MTV and other video providers who quickly introduced apps for the iPad - did they balk due to network concerns? Of course not.
Earlier this week, I calculated that at least $277.4 million was raised by early stage video companies in Q1 '10, bringing the total to at least $570.2 million over the last 4 quarters, despite the worst market circumstances in ages. As I've said many times, investors and entrepreneurs are undeterred though there are no formal net neutrality rules.
It's also important to remember that broadband networks have been built with private capital, in the process creating tens of thousands of well-paying technical and customer service jobs, plus countless other by the content and applications providers who freely ride these broadband pipes each day. And innovation continues, with numerous announcements of 50 and 100 megabit/second services now available. Tinkering with this vibrant sector of the economy with new regulations introduces the risk of unintended consequences.
Rather than presuming that broadband ISP will disrupt their own success formula by arbitrarily blocking supposed competitors, the FCC would be better off staying relentlessly vigilant of ISP behavior. If ISPs do misbehave - thereby offering clear evidence of the need for regulation - the Congress and the FCC should be prepared to act quickly. Until then net neutrality remains a solution in search of a problem, and Washington has plenty of real problems to work on without tackling imaginary ones.
What do you think? Post a comment now (no sign-in required).
Categories: Broadband ISPs, Regulation
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VideoSchmooze is Less Than 3 Weeks Away - Register Now and Win an iPad!
VideoNuze's next "VideoSchmooze" Broadband Video Leadership Evening is coming up on Monday, April 26th - less than 3 weeks from today. The event runs from 6-9pm at the Hudson Theater in New York City and includes open bar, hors d'oeuvres, a full program and a chance to win an iPad.
If you've never been to a VideoSchmooze, it's a premier evening of networking with industry colleagues and learning about what's ahead for the online video industry. The title of the panel discussion at this VideoSchmooze, which I'll moderate, is "Money Talks: Is Online Video Shifting to the Paid Model?" We have an amazing group of executive panelists whose companies are on the front lines of the video revolution:- 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 for the early bird discount
A bonus of this VideoSchmooze is a 15-minute upfront 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 is a veteran researcher who's been studying broadband for 15+ years and previously ran Forrester's North American business. Emily will share key data from Yankee's research and her book, which will set the stage for the panel to follow.
Prior to Emily's presentation, which will start at 7:30pm, we'll have networking, open bar and hors d'oeuvres beginning at 6pm. Past
VideoSchmoozes have attracted 250+ attendees and I expect the same at this one. Whether you're pursuing business or personal opportunities in the industry, VideoSchmooze is a premier opportunity to expand your network and meet the panelists. We'll have a strong mix of established media and technology executives, along with plenty of early stage companies, video producers and investors.
I'm grateful to lead sponsor Akamai Technologies and supporting sponsors FreeWheel, Horn Group, Irdeto, NeuLion, Panvidea and ScanScout for making the evening possible. Once again VideoSchmooze is being held in association with NATPE. You can follow VideoSchmooze on Twitter at hashtag #vidooze
Early bird discounted tickets are now available for $65, which is an incredible value compared to other industry events in NYC. If you're planning to attend with colleagues, more deeply discounted "5-Pack" and "10-Pack" tickets are also available.
And if you need one more incentive to come, I'll pick one lucky attendee's business card from the fishbowl who will win an iPad!
I look forward to seeing you on April 26th!
Click here to learn more and register for the early bird discount
(Note: This Thursday, April 8th, I'll be co-leading a complimentary webinar with TDG's Colin Dixon: "Demystifying Free vs. Paid Online Video," which will be a great warm-up to the VideoSchmooze panel.)
Categories: Events
Topics: VideoSchmooze
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At Least $277.4 Million Was Raised by Global Private Video Companies in Q1 '10
At least $277.4 million was raised by global private video companies in Q1 '10 according to company news releases I received and public sources I track. Of the $277.4 million, $175.4 million was raised by 19 U.S. companies and $102 million by 5 internationally-based companies. The financings ranged in size from $775K for Wistia to $50 million for Qiyi, which is the Chinese search engine Baidu's new online video company. Once again companies across the ecosystem, including content aggregation, chips, advertising, encoding, live streaming and consumer devices were represented.
For the U.S. only, the quarterly total was in the middle of the last 3 quarters, coming in ahead of Q4 '09 ($150.1M) and behind Q3 '09 ($180.9M). Investments in the video space remain very healthy, as the economy gradually recovers from the recession and the opportunity for going public brightens a bit. In the last 4 quarters, U.S. video companies have raised at least $570.2 million.
In addition to private financings, there were a number of video-oriented deals announced in Q1 '10. This list includes the acquisition of Quattro Wireless by Apple for $275 million, Vudu by Walmart for $100 million (rumored), StudioNow by AOL for $36.5 million and Multicast Media by KIT Digital for $18 million. In addition, during the quarter broadband equipment maker Calix went public, raising about $82 million, video ringtone company Vringo filed to go public to raise $64.3 million, independent video producer EQAL bought out its investor Spark Capital and Deluxe bought the assets of MediaRecall. The big negative of Q1 was Veoh's bankruptcy after raising more than $70 million. Looking ahead, Q2 '10 got off to a fast start with Vidyo raising $25 million.
Following are the financings that I tracked during the quarter, the date disclosed and new investors identified if applicable. Links are provided to the companies' press releases, or to relevant media coverage if none could be found (note that I haven't verified media coverage with companies themselves). If I've missed anything or you find an inaccuracy, please post a comment.
U.S.:
Mo-DV ($3.6M) - Jan 5 - Existing investors
Transpera ($2M) - Jan 14 - Existing investors
Beezag ($2.5M) - Jan 24 - Angel investors
Ustream ($20M) - Feb 2 - Softbank (potential eventual investment - $75M)
BrightRoll ($10M) - Feb 3 - Scale Venture Partners, existing investors
IVT ($5.5M) - Feb 9 - Syncom Venture Partners, Barshop Ventures, existing investors
Encoding.com ($1.25M) - Feb 10 - Metamorphic Ventures, angels
Zenverge (Undisclosed) - Feb 10 - Motorola Ventures, existing investors
TidalTV ($16M) - Feb 16 - Comcast Interactive Capital, NEA, Valhalla Partners
YuMe ($25M) - Feb 17 - Menlo Ventures, existing investors
Clicker ($11M) - Feb 18 - JAFCO Ventures, exiting investors
Vook ($2.5M) - Feb 19 - Angel investors
Quantenna ($15M) - Feb 24 - Existing investors
ZillionTV ($10M) - Feb 24 - Qwest
Ubicom ($1.8M) - Mar 8 - Existing investors
SiBEAM ($36.5M) - Mar 9 - Foundation Capital, existing investors
Panvidea ($2M) - Mar 18 - DFJ Gotham Ventures, existing investors
Avaak ($10M) - Mar 22 - Qualcomm, existing investors
Wistia ($775K) - Mar 24 - Angel investors
International:
Siano ($23.5M) - Jan 11 - Existing investors
Guvera ($20M) - Jan 18 - AMMA Private Investment
Voddler ($3.5M) - Feb 8 - Eqvitec Partners
Qiyi/Baidu - ($50M) - Feb 26 - Providence Equity Partners
Videoplaza ($5M) Mar 18 - Creandum, Northzone
Categories: Deals & Financings, International
Topics: Financings
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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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VideoNuze Report Podcast #55 - April 2, 2010
Daisy Whitney and I are pleased to present the 55th edition of the VideoNuze Report podcast, for April 2, 2010.
This week Daisy and I first discuss my post from this past Monday, "New comScore Research Available; More Ads Tolerable in Online TV Programs" (the post also includes a link for a complimentary download of the research presentation). Among other things the research concludes is that viewers of online-delivered TV programs could tolerate 6-7 minutes of ads which is approximately double the typical current ad load.
I have argued for some time that the ad load in online programs is way too light and that it was jeopardizing the broadcast networks' P&Ls, particularly as convergence devices allow online video viewing directly on TVs. Coincidentally, this week the CW Network announced that it would double its ad load next TV season. And Hulu, though announcing this week that it has been profitable for the past 2 quarters, is under continued pressure by its content partners to increase its ad load to generate more revenue (recall that Hulu recently blocked the new Kylo browser, which I asserted was due to concern about cannibalizing audience and ad dollars from on-air).
Daisy then tells us more about "hot-spotting," which is the ability to click on an item in an online video and learn more about it and possibly purchase. Hot-spotting has become very hot (no pun), with multiple companies now offering technology that appears to be yielding significant results. Daisy reports that ConciseClick, ClickThrough and VideoClix are among the leaders and she provides some interesting stats on their performance. Listen in to learn more.
Click here to listen to the podcast (14 minutes, 45 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!Categories: Advertising, Podcasts
Topics: ClickThrough, comScore, ConciseClick, CW, Hulu, VideoClix
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