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With Its Epix Deal, Netflix Once Again Shows Data is King
Among the many speculations surrounding this week's Netflix-Epix deal is how much Netflix is actually paying. While there have been rumors
suggesting the tab could run as high as $1 billion, nobody except the principals really knows. However, after talking with a Netflix spokesman yesterday, it is likely that whatever Netflix's is paying, it is virtually guaranteed to receive a satisfactory ROI. That's because Netflix has once again mined the extraordinary value of its user data to inform a critical business decision.
Categories: Aggregators, Cable Networks
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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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Netflix-Epix Deal Ratchets Up Importance of TV Everywhere
Today's Netflix-Epix deal should be setting off alarms in the CEO suites of major cable operators around the country that TV Everywhere must get rolled out ASAP. The Epix deal underscores the extent of Netflix's financial resources and its ambition to gain a bigger chunk both of consumers' entertainment mindshare and their spending.
The first, a shift in mindshare, is already underway. With 15 million subscribers, an expanding streaming library, countless ways to view (e.g. iPad, Xbox, Roku, Blu-ray, etc, etc), a value-packed $9/mo entry tier and a customer-focused brand, Netflix has established a reputation for itself as the cutting edge video leader. In social settings these days, it is practically inevitable that someone will bring up how they're streaming Netflix content to the device of their choosing and how cool it is. Conversely, despite the cable industry's numerous positive digital TV efforts, it is still dogged by lagging customer service, often confusing pricing tiers and suboptimal user experiences.
Categories: Aggregators, Cable TV Operators, Telcos
Topics: Comcast, EPIX, Netflix, Time Warner Cable
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Netflix Lands Epix for Significant Expansion of Streaming
Netflix is announcing this morning that it has licensed both new release and catalog movies from premium cable network Epix for instant streaming. Epix is owned by and has rights from three studios, Paramount, Lionsgate and MGM. While the partners didn't specify which movies are covered under the deal and digital distribution rights can be confusing, MGM is the studio behind the James Bond franchise, and Paramount is behind the Indiana Jones franchise, so among other titles, Netflix could be getting some major attractions with the deal.
Aside from its deal almost 2 years ago with Starz, the Epix deal is the most significant license Netflix has yet reached. It is also further evidence of how important Netflix, with its strong desire to gain content rights, is becoming as a Hollywood customer. The multiyear deal will kick in on September 1st.
Categories: Aggregators, Cable Networks
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Google and Verizon Net Neutrality Proposal Comes With Big Loopholes
Responding to rampant rumors last week concerning a potential side-deal on net neutrality, Google and Verizon held a conference call this afternoon unveiling a "Legislative Framework Proposal" by their respective CEOs Eric Schmidt and Ivan Seidenberg. The proposal is meant to influence other net neutrality stakeholders, including the FCC. Google and Verizon insisted there's no companion business deal between them.
On positive side, the companies' proposal tries to break the Washington net neutrality logjam by endorsing an open Internet backed up with a sensible, transparent and non-discriminatory approach that mainly leaves it up to networks to act responsibly. However, the proposal comes with at least 2 big loopholes which until clarified, will no doubt undercut a lot of the proposal's credibility.
Categories: Broadband ISPs, Regulation, Telcos
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Is Demand Media's "Factory" Approach the Future of Online Video - or Not?
Friday's $125 million IPO filing by Demand Media, the foremost content "factory" or "farm," raises the question of whether its low-cost, high-volume content creation model is the future for independent online video, or if its specialized approach is just applicable to its chosen how-to/knowledge-oriented niches.
Back in March, '09 I described how Demand's approach had enabled it to become the biggest supplier of online video to YouTube, with its ExpertVillage and eHow brands delivering the highest number of views of any YouTube
partner. While not a household name, Demand pioneered a new approach to choosing which content to create, how to create it, and how to monetize and value it.
Based on multiple data sources, Demand developed a set of algorithms that could help predict the likely consumption and monetization potential of video on a given how-to/knowledge topic. When promising ones were identified, assignments would be offered out to a large freelance network of producers who would follow creative guidelines while still enjoying an ample amount of flexibility. Content is published to Demand's own sites and to 3rd parties to whom it syndicates. Social media and user contributions are emphasized as well.
Categories: Branded Entertainment, Indie Video
Topics: Demand Media, Easy to Assemble, My Damn Channel, YouTube
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5 News Items of Interest for the Week of Aug 2nd
In addition to producing daily original analyses focused on the evolution of the online/mobile video industry, another key element of VideoNuze is collecting and curating links to industry coverage from around the web. Each week there are typically 30-40 stories that VideoNuze aggregates in its exclusive news roundup. Many readers have come to depend on this curated news collection to ensure they're always up to speed.
Now, to take news curation up another level, on Fridays I'm going to test out highlighting 5-6 of the most intriguing news items of the week. In case you missed VideoNuze for a day or two during the week, you can check in on Friday to see the these top 5-6 industry stories of the week, some of which VideoNuze may have covered itself. Synopses and implications are noted. Enjoy and let me know your reactions!
Wired to Produce Short Films For iPad
The tech magazine recruits Will Ferrell for four short videos that lampoon inventions that failed to take off. Exclusively for its iPad app. More evidence of print pub capitalizing on video.
Motorola and Verizon team up for TV tablet
Enjoying success with its Droid smartphones, Motorola now looks to challenge the iPad, with its own tablet device, using Google's Android OS. A partnership with Verizon could mean new online video features for the phone giant's FiOS service. Another sign of evolution in the pay-TV business.
Bewkes: Rental Delays From Netflix, Redbox Is Paying Off For DVD Sales
The 28-day DVD delayed release window Warner Bros. struck with Netflix earlier this year is helping the studio gain better sales for films The Blind Side and Sherlock Holmes. The deal helps Netflix position itself as a valued partner in the midst of declining DVD sales.
Dish to stream live TV on iPad, other devices
Dish Network takes place-shifting to a new level with plans for an iPad app that would allow remote streaming, likely using its Sling technology. Subscription TV, mobile video viewing and cool devices converge.
FCC Calls Off Stakeholders Meetings
The FCC's private net neutrality negotiations are off the rails as a reported bilateral deal between Verizon and Google causes controversy. Next steps are unknown as the FCC's plan to keep Internet playing field level hits a major pothole.Categories: Devices, FIlms, Magazines, Regulation, Satellite, Telcos
Topics: DISH, FCC, iPad, Motorola, Netflix, Verizon, Warner Bros., Wired
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VideoNuze Report Podcast #71 - Aug. 6, 2010
Daisy Whitney and I are pleased to present the 71st edition of the VideoNuze Report podcast, for August 6, 2010.
In this week's podcast, Daisy and I first review BrightRoll's new BrightRoll Exchange or "BRX," a self-service online video ad buying platform. As I wrote on Wed, BRX's goal is to enable large-scale, online video ad buying, addressing some of the inefficiencies in the market today. BrightRoll is looking at how the display ad market evolved as a precedent that suggests owning an exchange is highly strategic. Daisy and I discuss the details and pros and cons of the move.
Then we transition to talk about "augmented reality" digital marketing campaigns, which Daisy featured on this week's New Media Minute. These are mobile apps, which when used, create additional visual elements in physical products. One example is from Ben & Jerry's ice cream, which has enhanced certain containers with 3D elements like flying chickens and New York City skyscrapers, viewable through the app. Another is from Audi, which created a car calendar where the cars themselves are only visible when using the app. We debate whether these are gimmicks or if they have real strategic value. Daisy concludes they are most relevant for existing, loyal customers. Listen in to learn more.
Click here to listen to the podcast (15 minutes, 44 seconds)
Click here for previous podcasts
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