VideoNuze Posts

Early Bird Registration Now Open for VideoNuze's Next "VideoSchmooze" Event: April 26th, NYC

Thursday, March 18, 2010, 9:24 AM ET

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Posted by Will Richmond
I'm pleased to share that early bird registration is now open for VideoNuze's next "VideoSchmooze" Broadband Video Leadership Evening, on Monday evening, April 26th from 6-9pm in New York City.

The topic of the panel, which I'll moderate, is "Money Talks: Is Online Video Shifting to the Paid Model?" We have an amazing group of panelists who represent multiple perspectives:
- Jeremy Legg - SVP, Business Development, Turner Broadcasting System, Inc.
- Damon Phillips - VP, ESPN 360 (soon to be ESPN 3)
- Avner Ronen - CEO and Co-founder, boxee
- Fred Santarpia - General Manager, Vevo
Click here to learn more and register for the early bird discount

Our discussion couldn't be more timely given the current rollouts of TV Everywhere, the rapid growth of Netflix's Watch Instantly streaming, the introduction of paid iPhone apps like CBS Mobile's premium "March Madness on Demand" and other paid initiatives. Still, the vast majority of online video viewed - at leading sites like YouTube and Hulu, is free and ad-supported. Our panelists and I will dig into the key drivers shaping the business model debate and what we can all expect going forward on this critical issue. As always, there will be plenty of time for audience Q&A. For anyone trying to figure out how to make money with online video, this panel will be a must attend.

A bonus feature of this VideoSchmooze will be a special 15-minute presentation preceding the panel discussion by Emily Nagle Green, President and CEO of Yankee Group, a leading industry market research and consulting firm. Emily is also the author of the recently published book, "Anywhere - How Global Connectivity is Revolutionizing the Way We Do Business." Emily is an old friend and used to also run Forrester Research's North American business. She's been studying broadband for 15+ years and some of the key findings from her book are fascinating. Her presentation will be an ideal "stage-setter" for the panel to follow.

I've heard your feedback from past VideoSchmoozes and so there are two additional changes to the event this time. First, the networking period will be up-front, from 6-7:30pm, allowing ample time to mingle and meet industry colleagues. Second, by popular demand, we'll have open bar (and hors d'oeuvres) during this period. In other words, no drink tickets this time around.

Past VideoSchmoozes have attracted 250+ attendees and I expect the same at this one. VideoSchmooze is a premier opportunity to expand your network and meet the panelists, whether you're pursuing business or personal opportunities in the industry. As with past events, I expect a strong mix of established media and technology executives, along with interesting early stage companies, entrepreneurs and investors.

The event will again be held at the gorgeous Hudson Theater, a historic gem on West 44th Street just off Times Square. I'm extremely 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.

In addition to individual tickets (early bird discounted rate of $65), I've also created more deeply discounted "5-Pack" and "10-Pack" tickets for those of you who plan to come with colleagues. I hope to see you on April 26th!

Click here to learn more and register for the early bird discount
Categories: Events

Topics: VideoSchmooze
The Battle Over Movie Rentals is Intensifying

Wednesday, March 17, 2010, 10:04 AM ET

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Posted by Will Richmond

News this morning of a $30 million advertising campaign being launched by 8 Hollywood studios and 8 cable operators promoting "Movies on Demand" is fresh evidence that the battle over movie rentals is intensifying. According to the press release, the 12-week campaign, dubbed "The Video Store Just Moved In" is meant to raise consumer awareness of the convenience and affordability of renting movies on cable.

Cable Video-on-Demand (VOD) has been around for a long while (in fact 20 years ago my summer internship for Continental Cablevision was studying the ROIs for VOD's precursor, "Pay-per-view"). What's new more recently is the growth of so-called "day-and-date" availability - which means movies are released to VOD at the same time as they become available on DVD. The other recent phenomenon is the widespread adoption of digital set-top boxes and other technologies which makes selection, ordering and delivery easier than ever.

Day-and-date availability is a key competitive differentiator for cable vs. other options, though on the surface it seems somewhat incongruous that studios are on board with this considering their desire to protect DVD sales (this was the key goal of the 28-day "DVD sale" window Netflix and Warner Bros. recently created). Yet Kevin Tsujihara, president of Warner Bros. Home Entertainment Group said that apparently research has shown that simultaneous VOD release doesn't hurt DVD sales. All titles Warner Bros. releases to VOD this year will have day-and-date availability.

The day-and-date advantage is evident at least vs. Netflix for the 9 movies the press release cited as the opening slate being promoted: "Precious," "New Moon," "Ninja Assassin," "Pirate Radio," "Astro Boy," "Bandslam," "Did You Hear About the Morgans," Fantastic Mr. Fox" and "The Fourth Kind." A search on Netflix for the 9 revealed that 5 are listed as "Short wait," 1 becomes available on Mar 20th, 1 on Mar 23rd, and 2 on April 13th (none are available for streaming). However, it's a different story for Amazon - all of the cable VOD movies are currently available for rental from Amazon (except "Mr. Fox") and for purchase. The Amazon rental price is $3.99 for each, whereas the rental price from Comcast (my service provide) is $4.99.

For now anyway, it seems Hollywood studios have decided that cable VOD and online rental firms get day-and-date access, while subscription services like Netflix wait longer (btw Redbox too is being pushed into the "wait longer" category). According to the NY Times article, this is likely because VOD and online rental give studios a 65% share of revenue vs. lower percentages for other outlets.

For consumers, the cable VOD option is likely the most convenient and instantly gratifying. There's no new box to set up or pay for as with Roku, TiVo or another, which would be needed to access Amazon VOD, for example, on TV. For those that haven't bridged broadband to their TV with such a box or a direct connection, on-computer viewing only would be a limitation in the experience. Still, while the day-and-date option is key for those consumers who just have to see a particular title right then, because it's a la carte, it's a far more expensive option than a monthly Netflix subscription, which starts at $8.99/mo. Convenience clearly has its price.

Consumers aren't monolithic though; there isn't one right or wrong model. Each viewing option offers pros and cons and consumers will choose which one, given the particular moment or circumstance, best meets their needs. With the battle for movie rentals escalating, the real winner here looks like the consumer who is being presented more choices than ever.

What do you think? Post a comment now (no sign-in required).

Categories: Cable TV Operators, FIlms, Studios, Video On Demand

Topics: 20th Century Fox, Armstrong, Bend Broadband, Bright House Networks, Comcast, Cox, Focus Featu, Insight, iO TV, Time Warner Cable
The FCC's National Broadband Plan: A First Look

Tuesday, March 16, 2010, 10:17 AM ET

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Posted by Will Richmond

The FCC released an executive summary of its "National Broadband Plan" yesterday (more details are expected today), which it has been developing for most of the last year at the direction of Congress. Regardless of your political beliefs, when the government decides to weigh in on key telecommunications issues, it's important to understand its positions and their potential implications. This is particularly true given how dynamic the digital, broadband and mobile landscapes are.

Based on my reading of the Executive Summary, here are my first reactions to some of the most important parts of the plan:

Spectrum reclamation/mobile use - One of the most anticipated pieces of the plan is what the FCC would propose to do with spectrum currently allocated to local broadcasters. Many believe that with the shift to digital delivery, broadcasters should give back some of their spectrum for more pressing uses - mobile being at the top of the list. On the other hand, broadcasters are seeking to keep their spectrum for HD and mobile TV services.

The FCC's proposal, to free up 500 megahertz of spectrum within 10 years, of which 300 megahertz would be used for mobile within 5 years, seems like a good starting point. It pragmatically recommends that the spectrum be freed up through "incentive auctions," with some of the proceeds going to broadcasters. This means broadcasters should be able to run business cases and economic comparisons on the pros and cons of keeping or giving back some of their spectrum, with the government tweaking the incentives to accomplish its bandwidth goals. Given the exploding interest in mobile devices and video apps (e.g. March Madness on iPhones), more bandwidth for mobile use is crucial to achieve.

Competition/transparency - While the FCC makes a host of transparency recommendations for broadband service providers, it wisely did not include "open access" mandates, where broadband ISPs' networks would be opened up for others to use. That would have upended broadband ISPs' business models, likely leading to years of litigation and little progress toward desired goals. The FCC's recommendation for things like market-by-market price and service benchmarking and service disclosures are consumer-friendly and not onerous to broadband ISPs. To the extent that consumers gain access to the information they'll help fuel competition as well.

Promote rural access - The FCC correctly wants to address the issue of broadband "haves" and "have nots," brought about by the hard economic realities of wiring less dense, rural communities. Much as the government sought to subsidize prior infrastructure projects like electricity and telephone service, the FCC now seeks to shift necessary money from the Universal Service Fund to support broadband buildouts in rural America. So long as the FCC policy doesn't spread to more suburban or urban markets that already have robust broadband infrastructure, this seems like sound policy.

Expand digital literacy - A small item in the overall summary, but one which could be quite impactful is the idea of creating a "National Digital Literacy Corps" to teach digital literacy and raise broadband adoption. The practical reality is that even the fastest broadband pipes mean little if citizens on the receiving end don't know how to use a computer or a web browser. Many people today live their lives digitally, but many others still don't. Incenting some of the former group to channel their energy and knowledge to the latter group is in everyone's interest.

The FCC understands how crucial broadband is and also articulates 6 longer-term goals (e.g. 100 million homes with 100 mbps access) which set the bar high for America to keep pace with other countries. Video delivery is already one of the key areas impacted by broadband adoption and under the new FCC plan it is poised for still further change. Overall, the FCC seems to recognize that broadband fuels further innovation in our economy and that it is important to be supportive of its continuing buildout. The Plan now has to make its way through reviews and approvals.

What do you think? Post a comment now (no sign-in required).

Categories: Broadband ISPs, Broadcasters, Regulation

Topics: FCC
Brightcove Lands EMI Further Fueling Music Videos Online

Monday, March 15, 2010, 10:21 AM ET

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Posted by Will Richmond

Brightcove is announcing this morning that EMI Music has chosen the Brightcove platform to power its online video initiatives corporate-wide. According to Brightcove, the EMI deal means that all of the big 4 music industry groups, including Sony, Universal, and Warner, are now using its platform. Shifting to a heavy-duty platform like Brightcove is further proof that the music industry is getting more ambitious about its online opportunities.

While there has been much coverage over the years of illegal music downloading, online video on the other hand has become a big friend to the music business and to artists in particular, opening up new monetization and promotion opportunities. Music videos specifically are a key revenue opportunity for labels, through advertising and by licensing to 3rd parties for their distribution. Live streaming concerts, complete with behind-the-scenes extras have become extremely popular. Social media, online playlists and video sharing have all contributed to music purchase/download behavior. Going forward, the growth of video-enabled mobile devices (e.g. iPhone, Android, iPad, etc.) that make on-the-go playback and shared viewing the norm provides more momentum.

According to eMarketer, consumer spending on music is set to increase 11.4% annually over the next 4 years to $4.56 million in 2013, with all of the growth forecast to come from online. Most of this is assumed to come from a shift to subscription, cloud-based music services, and I would anticipate music videos and concerts playing a larger role going forward as well.

Though the specific business models are still evolving, I think that music videos have a long way to run. The recent launch of Vevo, by Sony, Universal and YouTube, and its almost immediate rise to the top 10 most popular video sites (32.3 million unique viewers in January according to comScore) is fresh evidence of how much users like online music video access. Music videos are the perfect format for today's online video user because they are short-form, can be played while performing other tasks and can be shared easily. When convergence devices that bridge broadband all the way to the TV become widespread, then longer-form programs will increase in popularity; until then music videos are in the sweet spot.

What do you think? Post a comment now (no sign-in required).

Note: Fred Santarpia, GM of Vevo, will be on the April 26th VideoSchmooze panel in NYC. Early bird registration opening soon, stay tuned.

Categories: Music, Technology

Topics: Brightcove, EMI, VEVO
March Madness on Demand iPhone App Will be Big Test for AT&T's 3G Network

Thursday, March 11, 2010, 10:23 AM ET

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Posted by Will Richmond

College hoops bragging rights won't be the only thing on the line when the NCAA March Madness men's basketball tournament kicks off next week. Also under the microscope will the performance of AT&T's 3G network, since CBS Mobile announced earlier this week that its new $9.99 premium iPhone app will offer live streaming of all the tournament's games over AT&T's 3G, EDGE and Wi-Fi networks. As with last year there will also be a free "lite" app that will offer on-demand clips only.

Presumably AT&T, CBS and NCAA have modeled how many concurrent streams could be requested under different penetration rates for the app and feel comfortable with AT&T's ability to support these in a quality manner. Let's hope for their sake they got the math right. I continue to hear iPhone users expressing frustration with dropped calls and 3G availability, particularly in Manhattan (in fact I've resisted getting an iPhone for this very reason). AT&T does seem to be getting more confident in its 3G coverage though; just last month it approved Sling's SlingPlayer app for use on its 3G network. In that case, I thought that because few people would likely buy the $29.99 app the stakes weren't that high for AT&T. MMOD is a different story; if AT&T's 3G network fails there will be a horde of angry hoops fans banging on its doors.

What do you think? Post a comment now (no sign-in required)

Categories: Mobile Video, Sports, Telcos

Topics: AT&T, CBS, iPhone, MMOD
Government to the Rescue in the Retransmission Consent Quagmire?

Thursday, March 11, 2010, 10:08 AM ET

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Posted by Will Richmond

Earlier this week, in "Will Nasty Fee Fights Fuel Consumers' Cord-Cutting Interest," I conjectured that last weekend's WABC-Cablevision retransmission consent fee fight (the most recent of many fee fights) would ultimately sow consumers' interest "cutting the cord" in favor of free, online-only alternatives. Obviously that would be bad news for multichannel video programming distributors (MVPDs), but it would also be bad for the whole video ecosystem that depends on consumer payments for its economics to work.

In this context it's only mildly surprising that subsequently this week a group of MVPDs including Time Warner Cable, Cablevision, DirecTV, Verizon and others petitioned the FCC to intervene and revise the retransmission consent rules (for what it's worth, I can't remember the last time MVPDs asked the government for anything, except to stay out of their business). In a sure sign of who currently has the negotiating leverage, broadcasters sent their own letter saying the playing field was level and in no need of a review.

With broadcasters intent on getting paid for their signals, there are many chapters yet to be written in the retransmission consent story. The big risk here is that the parties' jousting will ultimately kill the proverbial golden goose, with consumers getting fed up and deciding they'll make do with whatever they can get through the combination of good old-fashioned antennas and a cheap convergence device that hooks their broadband connection to their TV. Cord-cutting has lacked a strong catalyst to date, but history shows that a wronged consumer is a motivated consumer. The TV industry as a whole needs to figure out the retransmission morass before consumers take things into their own hands.

What do you think? Post a comment now (no sign-in required)

Categories: Broadcasters, Cable TV Operators, Satellite, Telcos

Topics: Cablevision, DirecTV, NAB, Time Warner Cable, Verizon
Cisco's New CRS-3 Router Strengthens Foundation for Online Video Delivery

Thursday, March 11, 2010, 9:50 AM ET

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Posted by Will Richmond

I've often remarked that one of the really impressive things about online video is that there's innovation at every level of the ecosystem; it's not just core infrastructure, delivery, "last mile," aggregation, applications, content, etc. - it's all of them at once that are rapidly advancing. This week's announcement by Cisco, of its new CRS-3 router, is further evidence of this dynamic. Though most online video users never think about them, Cisco's routers are one of the key building blocks on the broadband Internet. Cisco itself knows how important video is to its future; it has been publishing its "Visual Networking Index" Internet traffic growth forecast, which identifies video as the biggest single traffic generator in the future. Cisco CEO John Chambers has repeatedly said that "video is the next killer app."

The CRS-3's capacity of 322 Terabits per second scarcely means anything to most people, so as always, Cisco translated it into real-world examples: the whole Library of Congress downloaded in just over 1 second, every person in China making a video call simultaneously, every movie ever made streamed in less than four minutes. (On the first point, coincidentally I just read in the terrific new book, "Startup Nation - The Story of Israel's Economic Miracle" that it took the CRS-1, introduced in 2004, about 4.6 seconds to download the Library of Congress, so the CRS-3 shows significant improvement.) Next time you're watching something on Hulu, YouTube, Vevo or elsewhere, note that more than likely there's a whole lot of Cisco plumbing helping deliver the experience.

What do you think? Post a comment now (no sign-in required)

Categories: Technology

Topics: Cisco
VideoNuze Posts from the Caribbean

Thursday, March 11, 2010, 9:45 AM ET

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Posted by Will Richmond

If you noticed a little "virtual sand" in your VideoNuze emails this week, that's because I've been posting from St. John, in the U.S. Virgin Islands, where I'm on a quasi-vacation with my wife. If you've never been, I highly recommend it. Lounging on Trunk Bay's powdery white sand and snorkeling in its crystal-clear green water is one of life's exquisite pleasures (see below). Apologies for slow responses to emails and voicemails this week. Tomorrow I'm taking the full day off, so VideoNuze will be back on Monday.

Categories: Miscellaneous

Topics: VideoNuze