Posts for 'Technology'

  • Digging into Adap.tv's New Real Time Bidding Interface for Online Video Ads

    Yesterday video ad management provider Adap.tv introduced a "real-time bidding" (RTB) interface for users of its video ad marketplace, which itself was launched this past February. I'm a big believer that innovations in online video advertising, plus massive online video viewership growth and adoption of convergence devices are together causing big future shifts in brands' ad budgets. RTB is another innovation that over time will help shift budgets. To learn more I spoke to Teg Grenager, Adap.tv's founder and VP of Product last night and have also spent some time reading up on how RTB is working in the display ad sector.

    As background, ad exchanges give publishers the ability to expose their content and inventory to interested buyers who can use analytical tools in conjunction to allocate their budgets to better reach their targeted audiences. Exchanges are able to offer more pricing transparency to both publishers and advertisers, with the goal of improving ad performance and ROI. With exchanges, buys are placed in thousands of impressions sizes and in advance, based on anticipated targeting parameters.

    As Teg explained, Adap.tv's new RTB feature improves its recently-launched marketplace by allowing ad buying at the impression level with dynamic pricing. The goal is to drive ad effectiveness even higher for advertisers, while still allowing publishers to retain control over their inventory. Teg likened RTB in the marketplace to a next-generation spot market. To use Adap.tv's RTB, the buyer (typically an agency) needs to integrate Adap.tv's API into their own trading desk technology, which as this article suggests are well underway at large firms like Publicis, Havas, The Media Kitchen and others. Once the Adap.tv API is integrated the buyer makes requests to connect with desired publishers for RTB, who in turn can accept or deny access. If accepted the buyer is then able to start bidding on available inventory, alongside other accepted buyers, creating the dynamic pricing environment.

    Obviously all of the above is only worthwhile if a large number of publishers are offering inventory to the exchange in the first place and are subsequently willing to allow RTB. Teg said that 700 different properties are currently offering in-stream ad inventory to Adap.tv's marketplace, with hundreds of millions of available in-stream video impressions per month. Though this is only a fraction of the online video market, it seems like a solid start with lots of room to grow ahead. Teg noted that the buy side is in flux, with increasing pressure to be accountable to clients for targeting and ROI (things search marketing has excelled at). RTB caters to these needs.

    Longer term the idea of both exchanges and RTB seem like very useful tools to further unlock online video ad spending and shift dollars over from TV. Still, with estimated total online video ad revenue around $1 billion/year, it is clearly early days for many agencies and brands. Many are still just dipping their toes into online video advertising to learn how it performs and will not yet be ready for such hands-on granular bidding. But as these brands and their agencies get more sophisticated, and for others who are already deeply immersed in the market, the idea of a robust ad exchange with RTB will likely be intriguing.

    What do you think? Post a comment now (no sign-in required).
     
  • ABC Unveils "The VIEWer's Choice," Powered by Gotuit

    Late yesterday, ABC unveiled "The VIEWer's Choice" an online library of video clips of every single topic, co-host, guest and segment from the popular daytime talk show "The View." Clips can be searched, and are also organized by playlist topics such as Celebs & Entertainment, Sex & Relationships, Mom's View, etc.

    For fans of The View, the clips offer unparalleled access to the show's most memorable moments, which can also be shared easily through a dozen social media sites. For example, here you can see last Friday's episode featuring guest Melissa Etheridge. I played around with it a bit and was quickly able to find all the relevant clips with Tiger Woods and discussions about American Idol.

    The VIEWer's Choice is powered by Gotuit Media Corp, a company I've written about in the past.  Producers use Gotuit's Video Metadata Management System to set up the "virtual clips" from the source broadcast, based on time-based metadata. The metadata is used to both categorize the video clips into the playlists, to power search and to define ad inventory. Gotuit is used in other key sites like NBA.com's "Inside the NBA," ESPN's "Pardon the Interruption" and SI's "The Dan Patrick Show."



    Almost 2 years ago I wrote a post "Non-Linear Presentation + Long-form Premium Video = Big Opportunity," in which I explained how deconstructing full-length programs into searchable clips offers big opportunities to drive fan engagement and new ad inventory. With the explosion of social media like Twitter and Facebook since, the opportunity to leverage clips to promote specific moments in programs is even higher now. Looking around the web though, I'm still surprised at how many full-length programs don't take advantage of this. As "The VIEWer's Choice" demonstrates, talk shows, news and sports programming are probably the most natural fit.

    Engagement is the big idea behind The VIEWer's Choice; it is exactly the kind of initiative that bridges broadcast to the Internet, where more interactivity, choice and personalization are expected. As a side-note, I think it picks up nicely on what Martin Nisenholtz, SVP of The NYT's digital operations said in a recent speech at Wharton: "we've begun to view (engagement) as the essential moat around which our defenses are based; it is the emotional connection that our users have with us."

    I think that point is right on the money - since Internet users are always just 1 quick click from moving on, the need to immerse them in the content experience is stronger than ever. The traditional metrics of ratings points, circulation, box office gross, etc will still be important, but going forward, measuring how solid the bonds are with audiences and users will become a key new currency when measuring a brand's value.

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

    (Note - we'll be talking in-depth about engagement at the VideoSchmooze breakfast in LA on June 15th, where our topic is "How Hollywood Succeeds in the Digital Distribution Era." Among our panelists will be Albert Cheng, EVP of Digital Media at Disney/ABC Television and Ben Weinberger, CEO and co-founder of Digitalsmiths which is powering metadata creation and management for many studios. Please join us - early bird discounted registration is now available).
     
  • Jobs on Flash - There's No Turning Back Now

    Definitely make time to read Steve Jobs's blog post from yesterday, "Thoughts on Flash" - no doubt you'll conclude as I did that there's no turning back in this battle. Over the past few weeks the war of words between Adobe and Apple over the latter's lack of Flash support in iPhones, iPods and iPads has flared to new levels. Now Jobs's new post kicks things up another notch. Jobs's argument is mostly a technical/product one - "open" vs. "closed" systems, reliability, performance, security, battery life, touch attributes, etc. (Adobe posted a short response here)

    But Jobs's last point is clearly the most important, as he acknowledges. Apple wants to control its own destiny to provide the best products possible and doing so requires eliminating any dependency on 3rd party tools. Lack of dependency on others is a hallmark of Apple's model more generally, but when it comes to the Flash war, the number of penalties Apple is imposing due to its uncompromising position is pretty remarkable: users' inability to view video at some of the web's most popular sites like Hulu, forcing these sites to offer their video in HTML5, marginalizing smaller content providers that don't have the resources to make the change, etc.

    However, Apple's products are loved and only Jobs would have the single-mindedness and guts to force a pretty wrenching change in the video ecosystem. Until we see Android or other smartphones emerge as a counter-weight to the iPhone's hegemony, Adobe's role in video is bound to wane.

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  • Ooyala Integrates YouTube Access For Customers

    Online video platform Ooyala has unveiled an interesting new feature that allows its customers to add videos from YouTube to their Backlot account and then have them displayed right alongside their own videos in their Ooyala player. All of the analytics that are available for the customer's own videos extend to the YouTube videos as well. Alex Holub, senior product manager at Ooyala gave took me on a quick tour last week of how it works. It appears simple and well thought-out.



    Alex explained that the impetus here was that a lot of Ooyala customers were already trying to incorporate YouTube videos, but there wasn't an easy or integrated way to do so. With the new feature, a customer can search and gather relevant YouTube videos from within the Backlot platform and then add them to their account, where they can subsequently add metadata. The videos can also be syndicated along with other owned video. The YouTube videos are displayed in a chromeless player, which means the Ooyala look and controls remain. The main thing that separates the YouTube videos is that per YouTube rules they cannot be directly monetized. So Ooyala's ad rules pre-empt any pre-roll or overlays; instead on-page ads only are allowed.

    Ooyala's move is further recognition of valuable YouTube's library has become for many publishers. There is just so much content on YouTube, and tons more being added every day that is freely available that for many YouTube is an irresistible augment to their own content. The only other OVP that I'm aware of that has done something like this with YouTube and other sources is Magnify.net, with has been all about enabling its customers to curate the best video from around the web from the outset. I expect we'll see other OVPs offer this capability too.

    Ooyala is offering the new YouTube feature free until May 31st for customers.

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  • NDS Leads $20 Million Investment in BlackArrow for Advanced Advertising

    Amid all the coverage that online video advertising receives, it's also important to remember that advanced advertising in on-demand and pre-recorded TV continues to evolve. News today that NDS, one of the largest technology providers to multichannel video programming distributors ("MVPDs") is leading a $20 million Series C round in BlackArrow, a provider of advanced advertising solutions, is a reminder of progress. Last week I spoke to Todd Narwid, VP of New Media for NDS and Dean Denhart, BlackArrow's CEO, to learn more about the deal.

    To put the deal and its upside in context, it's important to first understand there's a big difference between how online video advertising against free streams in the open Internet works vs. how advertising against VOD and DVR programs in paid, subscription-based services run by MVPDs works. In the Internet world, there are pretty well-established standards, allowing significant interoperability among sites and ad servers. While measurement challenges persist, the act of getting video ads inserted where they're supposed to be is now pretty straightforward.  

    Conversely, in the MVPD world, the first challenge is just getting ad serving systems approved and deployed. Because ads are served from within the MVPD's own infrastructure, new ad servers must be tested and integrated with existing video delivery infrastructure residing in distribution centers often called "headends" in the cable world. Unlike MVPDs' broadband deployments, much of MVPDs' TV delivery architecture pre-dates the Internet and therefore is heterogeneous and often difficult to integrate with. In addition, there are the tens of millions of deployed set-top boxes which also differ in their capabilities and openness. MVPDs have made significant progress in creating their own standards and in deploying advanced services, but as anyone who's ever tried to implement any kind of advanced service in the MVPD world can attest, it's hard work and has ground down many promising technology start-ups.

    When I first wrote about BlackArrow, on its launch in Oct, '07, I liked its vision of delivering advanced advertising in VOD and DVR programs, but I noted the above challenges gave it a steep hill to climb. Since then, BlackArrow has made progress, deploying with Comcast in Jacksonville, FL and with other operators (though Dean isn't able to mention them due to MVPD restrictions). Still, MVPDs have so many priorities and their resources for testing and integrating new technology are limited. Further, there's a lingering sentiment that MVPDs have only made a half-hearted attempt to really monetize VOD and DVR.

    Given these circumstance, the NDS deal appears to offer BlackArrow a lot of upside. As one of the largest technology providers to MVPDs globally ("conditional access" systems that provide secure MVPD video delivery are its main product line, among others), NDS immediately gives BlackArrow both credibility and significantly improved sales and support reach, particularly outside North America. The companies also announced a joint solution offering, which will be key to realizing actual sales  Importantly, NDS gives BlackArrow improved financial footing for what promises to be a very long-term process of deploying advanced advertising by MVPDs. Conversely, for NDS, as Todd explained, BlackArrow provides the monetization piece of the puzzle that MVPDs need to create business cases to help them justify NDS's advanced technology delivery systems.  

    For MVPDs, who are witnessing the rapid adoption of online video and the threat of cord-cutting down the road, it is essential to be able to offer subscribers more flexible viewing options like VOD and DVR and to give their content partners opportunities to effectively monetize these views. This has been the Achilles heel of VOD and DVR to date, and the scarcity of ad-supported programs in VOD (particularly relative to what's available online) is a direct reflection of this.

    Going forward, the challenge for MVPDs will only intensify as content providers face escalating choices about where to optimally monetize their programming. This is where BlackArrow fits in. Plus the company has always had a multi-platform vision, so once it's enabled for TV and DVR, BlackArrow could also provide a pathway to online monetization, which given MVPDs' TV Everywhere initiatives, is also a growing priority.


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  • LiveU: High-Quality Live Broadcasting Gets Portable and Cheap

    Among the more interesting conversations I had over the last few days at the NAB Show was with Avichai Cohen, COO and co-founder of LiveU, whose lightweight mobile video uplink solution opens up all kinds of new opportunities for remote broadcasting while also saving customers lots of money. LiveU has been on my radar for some time, but this was the first opportunity I've had to see its LU-30 device. I wasn't the only one interested; their booth was buzzing with activity.

    The LU-30 incorporates 6 wireless aircards from multiple cellular service providers which are bonded together to provide a high-quality on-demand video uplink. The device fits into a LiveU-provided backpack so the user is able to simply plug in their video camera and begin broadcasting remotely. Avichai explained that the company's patents focus on the bonding, load balancing and smooth delivery under highly variable circumstances. The device also takes in Ethernet and other connections if a customer wants alternative uplinks vs. wireless. The LU-30 interfaces with the LU-100 server in the studio where the video is processed for delivery to viewers.

    Beyond the technology, LiveU also distinguishes itself with a simple monthly fee model of $1,500/mo for 30 hours of use, which Avichai said no customer has yet exceeded. That's a huge savings over renting a satellite or mobile uplink for $5,000/day. Even if the user is in an area where roaming charges apply, LiveU absorbs those costs so the flat monthly fee remains intact.

    News and sports are the most logical applications for LiveU and Avichai said the company has added both domestic and international broadcast customers. The proliferation of live streaming events, and the trend toward multiple video captures to enhance social media and smartphone consumption, is another natural opportunity. To help penetrate the market, LiveU has partnered with companies like Livestream, Ustream and Kyte, who are in turn offering remote broadcasting as a service to their customers.

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  • Seeing 3D Streaming Video For the First Time at NAB Show

    It's no surprise that 3D is a major focus here at the NAB Show this week. But with all the market attention on how and when consumers might upgrade yet again, to an expensive 3D television set, one thing I've wondered about for a while is when might we see 3D online video streaming to standard monitors. At last, I saw a demo of this in the Microsoft booth yesterday. Microsoft showed a live stream of German broadcaster TVN's control booth (yes, pretty boring stuff but something live was needed), delivered in 3D to both a computer monitor and also to a Panasonic 3D TV.

    The diagram below shows the details. The broadcast was captured by a 3D camera and encoded using Inlet's Spinnaker 7100 HD streaming appliance at 3 mbps in 720p HD. The files were delivered via Level 3's network which used Microsoft's IIS Smooth Streaming delivery to the PC running Silverlight. Then Silverlight does something called "anaglyph rendering" which means delivering 2 offset images in different color layers. Using the 25 cent blue-red paper glasses you've no doubt seen before, the images are fused and I was able to see the TVN control booth in 3D.



    Microsoft positioned this as a proof of concept, but with all the technical pieces already in place, the idea of streaming a live 3D event online seems very close at hand with a potentially quick ramp of activity thereafter. Recall that the 2009 French Open tennis tournament was the first live HD streaming event, and less than a year later there have been a number of HD streaming sports events (e.g. NFL games, Olympics, etc.).

    After viewing the TVN stream on the PC monitor I then watched it on the Panasonic plasma 3D TV, using $150 glasses. Instead of using the anaglyph technique, the TV and glasses use something called "active shutter" whereby the TV signals to the glasses to open and close each lens at double the frame rate in order to create the 3D experience. While this higher-end set up provided an improved 3D experience, with colors in particular looking sharper and truer, if you didn't have this set up in your home (which most people won't for many years), the PC experience still feels like a big step up from HD.

    3D is clearly the next big thing in video delivery, yet with the replacement cycle for expensive 3D TV sets limited, 3D online streaming could represent an important starting point, introducing 3D to a huge number of users for modest expense. And for Silverlight and Microsoft generally, it could be another differentiator vs. Flash as Adobe continues its skirmish with Apple. It will be interesting to see how it is adopted and rolls out.

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


    (Note - Silverlight is a VideoNuze sponsor)
     
  • Encoding.com Offers Multi-Bit Rate Support to Meet Spec for iPhones/iPads

    This morning Encoding.com is announcing support for multi-bit rate encoding and "stream segmenting," to let its customers comply with Apple's HTTP streaming spec for delivering video in iPhone and iPad apps. Last week, Encoding.com's president Jeff Malkin explained to me that several of its customers had reported that video apps they had submitted to Apple for approval in the App Store had been rejected because they didn't offer multiple bit rates. A post last week on TechCrunch provided more background on Apple's requirements.

    Encoding.com now offers its customers 3 pre-set encoding rates with additional ones configurable on demand. Subsequent to encoding and splitting the video into multiple segments, Encoding.com packages up the files and delivers them with XML to the specified CDN for HTTP streaming from standard web servers. The goal of multiple bit rates is to let the video adjust to varying available bandwidth, which in turn helps smooth the user's experience. Jeff reported that CarDomain, the largest auto enthusiast site, is now using Encoding.com's multi-bit rate. CarDomain had seen its app rejected by Apple repeatedly due to "bandwidth usage limitations."  

    The backdrop here is that with more and more apps incorporating video, when WiFi isn't available, AT&T's 3G network comes under ever-increasing pressure. Just last week I posted on the sub-par experience several iPhone users I've surveyed have been having when trying to access the premium iPhone March Madness app on AT&T's 3G network (though to be fair a few others commented that their access has been ok). I had been surprised that Apple and AT&T felt confident enough in the latter's 3G network to approve this app in the first place, given the likely concurrence of viewing.

    AT&T is obviously feeling more confident in its network - or at least in the buffer that Apple is creating by enforcing the multi-bit rate requirement - that more video-intensive apps seem to be passing through the approval process. In addition to the MMOD app, other examples include the new SlingPlayer app, announced last month, and Justin.tv's video app, which was unveiled last week. AT&T is likely trying to be more aggressive with these video apps as news continues to filter out that its iPhone exclusive will expire this year, opening up competition from other carriers.  

    Mobile video adoption is still well behind online, but the proliferation of mobile devices and apps that support video will no doubt accelerate usage. The next big device catalyst will of course be the iPad, coming this weekend. And as more ecosystem partners like Encoding.com provide the underlying tools to deliver seamless mobile video experiences, even more video-centric apps can be expected.

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  • Is Hulu Now Blocking Access for Kylo Users? Yes, It Is.

    No sooner did I post "With New Kylo Browser Convergence is Another Step Closer" this morning, than I've come to understand that Hulu programs are now not accessible through the Kylo browser. Hulu worked completely fine for me yesterday, but now when I go to watch a program on Hulu, I'm getting the text message, "Unfortunately this video is not available on your platform. We apologize for any inconvenience." Huh, what's going on here? Is Hulu blocking Kylo users' access to its programs? I've asked Hulu for a comment.



    If Hulu is indeed doing this, it's a PR fiasco in the making for the site. Blocking access to its content would mean that Hulu is putting itself on the wrong side of convergence and risking turning off its users (not to mention censoring as if this were China). The episode recalls February, 2009, when Hulu demanded that boxee turn off access to Hulu at the request of its content partners. That tempest highlighted the artificially made quagmire that Hulu's owners find themselves in - eager to have Hulu boost their programs' viewership, so long as it remains on the computer and not on the TV.

    With Kylo, Hulu will once again be called upon to justify how it's making decisions. For example, if I'm using Kylo on my computer, how is watching Hulu content any different than if I were using IE, Firefox, Safari, etc? And if I choose to connect my computer to a TV screen, how is that any different than if I connected it to a large monitor? In short, this is a hairball for Hulu.

    Update: Hillcrest Labs, the company behind the new Kylo browser, has confirmed that Hulu is indeed preventing its content from being shown. The statement from Hillcrest's CEO Dan Simpkins:

    "We have confirmed with Hulu that they are preventing the Kylo browser from playing Hulu videos. Prior to our formal launch, Hulu videos would play within the Kylo browser. Like Internet Explorer, Firefox or Safari, the Kylo browser is simply a Web browser that enables consumers to visit any site on the Web. We have tremendous respect for Hulu, and we hope that a continued dialog might influence their thinking."

    Meanwhile Hulu seems to be in a bunker. I haven't heard back from them, nor has anyone else it appears. I have confirmed from ABC (one of Hulu's owners) that it found out about Hulu's action when everyone else did, which means that ABC is not the instigator here. Much more on this story as it unfolds.

    Update 2: Now Tuesday morning and still no word back from Hulu. Nobody else seems to have heard from them either. It looks like their PR strategy is avoidance. That's a bad move because going mum just means that story continues to live (just ask Tiger).

    Hulu's decision to block Kylo users is all about preventing Hulu viewership from migrating to TVs, which would undermine broadcast network economics. That's because Hulu, with its light ad load, still hasn't been able to prove its business model. The problem for Hulu - and the networks - is bigger than Kylo though as the push toward convergence between online video delivery and TV is going to be relentless (lots more on this tomorrow). Hulu is facing an escalating "Whac-a-mole" problem which will only lead to huge user frustration and increasingly tortured justifications. 

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  • With New Kylo Browser Convergence is Another Step Closer

    This morning Hillcrest Labs is announcing its new "Kylo" browser, providing people who connect their computers to their TVs with an optimized and complete on-TV Internet browsing experience. Kylo is being offered as a free download by Hillcrest, the maker of the "Loop pointer," a clever "in-air" mouse. After downloading Kylo and connecting my Mac to my TV over the weekend, I was quickly navigating Kylo with a Loop. Taken together, Kylo and the Loop deliver an inexpensive, yet high-impact online video/TV convergence experience.

    As Dan Simpkins, Hillcrest's CEO and founder told me last week, Kylo strives to deliver the simplicity required for a satisfying on-TV experience with enough of the most-often used features of computer-based browsing. As such, the first thing you notice about Kylo is that all of the buttons and text are a lot bigger than with standard browsers like IE, Firefox, Safari, Chrome, etc. The layout is also a lot cleaner, with all extraneous text and navigation found in these other browsers stripped away.

    With Kylo you can navigate to any web site, either by clicking on any one of the 125 or so pre-set, scrollable logo buttons Kylo conveniently includes, or by using the on-screen keyboard. The keyboard takes a little getting used to, mainly because the Loop requires only minimal wrist gestures to move the pointer around. To be sure, typing on a virtual keyboard like this will never be as easy typing on a full keyboard, but then again the idea here is to eliminate the need for keyboard on your coffee table. My bigger issue (and really the only Kylo drawback I could find) is that the text box used for searching is relatively small and hard to read, at least on our 23-inch office TV. Kylo also allows standard browsing features like bookmarking, zooming and full screen viewing modes.



    Hillcrest is looking to leverage the growing number of U.S. homes (estimates vary, but certainly in the millions already) that have connected their computers to their TVs. Some of these people are "cord-cutters" who have dropped their subscription TV service, but many more are just trying to enjoy Hulu, Netflix, YouTube or other online video sources on their TVs instead of solely on their computers. When I connected the 2 devices a while ago, one of the first things I realized is that because the computer is next to the TV, not to me, there's a new need created for a remote control to control the computer. Though I have the Apple remote, it offers only limited functionality.

    Dan explained that while Kylo is free, Hillcrest's real objective here is to create  stimulant for Loop sales. While you can navigate Kylo using any mouse, it's a whole lot easier (and cooler) with the Loop. Plus having the $99 Loop means you don't have to have a mouse and a mousepad on your coffee table. My kids and I got the knack of the Loop pretty quickly and we were able to watch Netflix and YouTube content right away.  The Loop offers an inexpensive functionality upgrade especially in college dorms where the computer is now often the de facto TV.

    The Kylo/Loop set-up is further evidence of the inexorable convergence of online video and TV. However, the underlying need to connect the computer to the TV shows that there are still inconveniences to be resolved. The ideal solution here is an all-in-one box that seamlessly blends online and on-air programming with all the Internet functionality users expect. For a variety of technology and business model-related reasons we are still years away from that solution. However as consumers adopt solutions like Kylo/Loop, pressure will build on service providers to deliver the all-in-one solution. That means that eventually (by end of this decade?) the distinctions between online and on-air will become meaningless.

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

     
  • Kaltura Gives HTML5 Another Boost

    HTML5, the next version of HTML, which seeks to make video more open and flexible, got another boost this week as Kaltura, the online video platform company, and its partners unveiled two new initiatives. Kaltura made available its HTML5 Video and Media JavaScript Library and also launched HTML5Video.org, a site that includes demos and related news.

    Ron Yekutiel, Kaltura's Chairman and CEO explained to me that given the company's emphasis on open source, it was a natural to embrace HTML5. Ron sees HTML5 as allowing developers to treat video just like text and freeing video to run across platforms, devices and browsers without needing any plug-ins. One of HTML5's biggest benefits is that it works on the iPhone, which means developers using it avoid Apple's anti-Flash bias, while also gaining access to other smartphones. Still, Ron says Kaltura is "pro-choice" so if its customers want to use Flash or Silverlight, it will support those as well. Separately, HTML5 got another boost this week as Microsoft made available the first developer preview of IE9 (the next version of its widely-used browser) that offers extensive HTML5 support.

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  • Brightcove Lands EMI Further Fueling Music Videos Online

    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.
     
  • Cisco's New CRS-3 Router Strengthens Foundation for Online Video Delivery

    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.


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  • New "NCAA Vault" is More Evidence of Archived Assets' Value

    This year's "March Madness" men's college basketball tournament is just around the corner and in addition to the now-customary live streaming of the games (and this year an iPhone app for additional streaming), a new feature was introduced last week: "NCAA Vault" - a video index to every single moment in "Sweet 16" history for the last 10 years. NCAA Vault is powered by Thought Equity Motion, a technology provider that partners with media companies and rights-holders to digitize, deliver and monetize video assets. Last week I spoke with Thought Equity's CEO and founder Kevin Schaff to learn more about how the Vault works and the background of the deal with the NCAA.

    Kevin explained that Thought Equity indexed all 150 of the Sweet 16 games' video with rich metadata for players, teams and highlights. This yielded a searchable database of 6,000 moments, which users of the Vault can tap into in a number of different ways. They can search by player, team, year, game or description of the play they're looking for. For more casual use, the  Vault also presents lists clips of great shots, blocks, plays and finishes, plus most outstanding players and current stars. In addition to being a standalone site, the Vault is linked to from the March Madness main site.  

    When you search for a specific play, it will load and when done, the remainder of the game will continue playing until you want to move on. I can say from doing this several times that watching a play quickly and addictively morphs into watching several minutes of the game itself. Below the video window there's a text description of each play in the game. If you scroll the list and begin clicking on different plays what you'll immediately notice is how fast the new video loads and begins playing. Kevin explained that part of the reason is because the system is simply moving to a new cue point in the existing video file (in other words a new video file hasn't been created). This is a similar technique other indexes use; still, I don't think I've ever seen a new clip load as fast as these do. It's comparable to the experience of changing TV channels.


    Thought Equity is very mindful of how, for some users, the Vault will be essentially a "stock video" database and so it has done several things to really enhance its value. Most important, it has created a Publishing Guide, which provides URLs to each of the moments so that writers and fans can search for incorporate links to just the plays they want. Conversely, if you're watching a video highlight and want to link to that moment, one click generates a URL for that clip. Thought Equity has even integrated the bit.ly URL shortener, so that you get a Twitter-friendly URL to use. Finally, Thought Equity has created an API so that 3rd parties who want to integrate the database, or pieces of it, with their own services, can do so easily.

    Kevin explained that Thought Equity's model is to partner with media companies and rights-holders to license exclusive rights to their archived assets in order to create rich, searchable video databases. In the Vault's case, monetization is through advertising and CBS will sell the new high-value inventory. Thought Equity has worked with other media partners (e.g. Paramount, HBO, NY Times, BBC, etc.) with a monetization mix of advertising and licensing (i.e. the "stock" model). Over 10.5 million hours have been indexed to date with many more on-deck.

    From a user's standpoint, the Vault is another exciting example of how the combination of online video and indexing technologies opens up access to memorable sports moments. Consumer usage creates the ad opportunity, but equally interesting are the myriad professional uses of the video. For bloggers and others running sports-oriented sites, the Vault opens a ton of new upside. Last week I wrote about how MovieClips.com is trying to create a similar Vault-like experience for movie clips; no doubt others will follow as the value of archived assets becomes increasingly apparent.

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  • thePlatform Rolls Out Social Media Features; Video Interviews Available

    This morning thePlatform is rolling out its latest Player Development Kit (PDK) which offers its media customers the option of turning on a series of video sharing/social media features for their users. Marty Roberts, thePlatform's VP of Marketing, gave me a demo last week. One of my key reactions is that interest in the PDK by thePlatform's customers shows how much media companies' executives' mindsets have evolved in a very short time.

    With the player enhancements, users are able to embed video into ten of the most popular social networks: Facebook, MySpace, Twitter, Digg, Reddit, Stumble Upon, Delicious, Windows Live, Yahoo! Buzz and Vodpod. All are pre-integrated by thePlatform so just a couple of clicks by the user places the video player, complete with its original branding, into these 3rd party sites. All of the advertising logic flows through to wherever the player is distributed, so ads run according to the same rules as they would on the destination site. All of the views are reported in the admin console, including detail on where the videos played.

    An additional feature is the ability for users to clip a specific segment out of the underlying video and embed just that segment into these social networks. That means that users no longer have to say to their friends something like "check out the joke approximately 45 seconds into the attached 3 minute clip;" instead they can embed a new segment with just the joke itself. thePlatform has also handily integrated URL shortening, so embedding in Twitter is a snap. It also exposes hash tags in the meta data which are automatically added to the tweet.

    Marty explained that thePlatform's customers, recognizing their users' interest in sharing clips, have pushed for these new social features. That's a pretty remarkable evolution in thinking by big media companies, which not that long ago were focused both on driving users only to their own destination sites for online viewing and also on bearing 100% of the promotional responsibility for doing so. By advocating for these new social/sharing features these companies are recognizing that online viewing should happen wherever users decide to hang out (this is the premise of the Syndicated Video Economy I've discussed many times) and that users themselves should be considered a critical ingredient in promoting content.

    Gone too appears to be traditional concerns about the environment in which branded video would show up. I can't count how many times over the years I've heard content executives express worry about having their brands and programming end up in semi-pornographic or amateurish user-created sites. I asked Marty about this evolution in thinking and he said that even some of thePlatform's most conservative customers now seem to be over this perceived problem. Looks like Dylan was right, "The times, they are a-changin.'"

    Separate, I recently conducted short interviews with a handful of industry executives who attended thePlatform's customer meeting in NYC, and I'm pleased to share them today. Browse below to see several minute-long Q&As with Bill Burke (Global Director, Online Video Products, AP), Ian Blaine (CEO, thePlatform), Channing Dawson (Senior Advisor, Scripps Networks), Kip Compton (GM, Video and Content Platforms, Cisco) and Stephen Baker (Chief Revenue Officer, RAMP). More interviews will be added in the days ahead, so please check back again.


     
  • Panache Unveils "Ad Flow" Tool for Streamlined Fulfillment

    Panache has unveiled Ad Flow, a new work flow tool for online video ads intended to streamline the process for publishers adding and approving new video campaigns. I got a short demo of Ad Flow from the Panache team and it looked intuitive and thorough.

    According to Panache's EVP Cheryl Kellond, who was formerly a VP of Advertising at Yahoo, ordinarily this process is very manual and is based on home-brewed work flow tools which can result in a lot of emails back and forth among the publisher's team members. The result is that it can take up to 6 weeks and end up costing 25-40% of the value of the campaign with all the personnel time involved. With these delays, Cheryl said Yahoo sometimes had to turn business away because they couldn't process the ads quickly enough.

    Though I've never personally been involved in this type of process at a major publisher, I have a glimpse into how complicated it must be from my own experience with VideoNuze's ads. First I receive sponsors' creative which was to have been developed according to published specs. Then I load the ads into my ad system and test them along a number of different dimensions. For one reason or another, frequently there are 1-2 rounds of revisions before they finally go live.

    Even for a relatively simple site like VideoNuze which accepts Flash ads, though not video ads, there are a number of things that can cause deviations, resulting in delays for the campaign's start date. Mind you I'm not complaining, I've just come to understand that all of this is part of being in an ad-supported business.

    With Ad Flow, the publisher's ad sales, ad product strategy, operations and creative teams can all monitor the step-by-step progress of new campaigns from initially being loaded through testing and to final approval. Rather than using email to monitor progress, everyone gets access to the tool for their specific tasks. Importantly, testing can be in the publisher's video player offline, which has been hard in the past. Ad Flow is another element in online video's foundation which will reduce the friction involved in getting ads live so that more TV ad budgets can be shifted to online video.

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  • Conviva Addresses Video Quality Problems Impressively

    Undoubtedly we've all had the experience at one time or another of watching (or trying to watch) a particular online video, only to have some problem arise that interrupts our experience. To the average user, it's a mystery what might have happened. Is it a problem with my computer? With my personal Internet connection? With my Internet service provider? With the source of the content?

    Regardless, it causes user frustration, which can lead to clicking away from the video, possibly never to return. More often than not, the content provider isn't even aware of these user problems. As online video becomes more central to content providers' strategies and P&Ls, inferior user experiences are a growing concern for content providers. And given the vagaries of the Internet and the exploding volume of video being consumed, it's an issue unlikely to go away anytime soon.

    That's where Conviva comes in. Conviva gives content providers unprecedented insight into their users' viewing behaviors as well as tools to quickly identify and resolve problems. As Darren Feher, Conviva's new CEO explained to me when I met up with him recently, and in a subsequent demo, the company's studies show that at least 25% of all streams suffer one problem or another. Affected users watch between 30-80% less video than those who don't have problems.

    Here's how Conviva works: a small bit of its code is integrated by the content provider alongside the Flash or Silverlight player, whichever is used (in either case no user download involved). Conviva is also integrating with online video platforms (so far just thePlatform, but others to come), so the step is eliminated for the content provider. When deployed, Conviva's code monitors the user's video experience and sends back "heartbeat" reports every 10 seconds to the Conviva console. The console gives the content provider multiple views of their users' experiences, including things like a geographic distribution of current viewing, what player's being used, the average time it's taking to start streaming, the average duration of viewing, the amount of buffering, and so on. Conviva shares the science behind all of this if you're so inclined.

    Conviva's secret sauce is mashing up all that in-bound data in real-time and detecting if/where problems exist, and when they do, what the source is. Problems could include buffering on the user's machine, issues with the currently-used CDN, congestion in the local ISP, etc. In addition to these telemetry/analytics services, the company also offers a service it calls "Conviva Distribution" which will seek to remedy problems as they arise based on a set of pre-configured policies. For example, if the user's machine is buffering, Conviva will adjust the stream being sent to a lower bit rate. Or if the CDN being used is the problem, Conviva will switch to another CDN (of the content provider's choosing) in mid-stream, unbeknownst to the user. The content provider gets real-time visibility into what troubleshooting is happening.

     

    In addition to improving the user experience, Darren believes this degree of insight opens up new opportunities for content providers. For example, say there's a higher value set of streams, maybe for a subscription service or a live event. Those streams can be tagged and monitored separately, and have greater resources allocated to them to ensure up-time. Improved visibility into videos that are going viral means their placement on the site and their monetization can be enhanced. Another example is better-informed customer service agents responding to issues specific to a certain set of videos.

    Some of what Conviva does is similar to analytics products like Omniture, performance measurement from companies like Keynote and Gomez and some of the reporting CDNs themselves provide to customers. But Conviva seems to bring together user viewing data in a unique and far deeper way than any of these. This week Conviva is helping NBC better understand its Olympics streaming using Silverlight. Conviva also counts Fox, ABC, NFL and others as customers. Conviva started life as Rinera Networks, pursing managed P2P distribution. It has raised $29 million to date from UV Partners, New Enterprise Associates and Foundation Capital.

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  • Spotlight is on Video as Mobile World Congress Begins

    As the biggest annual mobile conference - the Mobile World Congress - gets underway today in Barcelona, new initiatives from some of the biggest names in technology underscore the growing importance of smartphones and of mobile video specifically. Among the most important headlines:

    - Microsoft's CEO Steve Ballmer is unveiling Windows Phone 7 which includes Xbox LIVE games, Zune video and audio, plus enhanced sharing. With Phone 7 Microsoft is continuing to vie for position in a crowded smartphone operating system landscape.

    - Sony Ericsson is launching "Creations" allowing users to create and publish video, audio and images from their mobile phones in collaboration with professional developers.

    - AT&T and 11 other mobile service providers, which together have about 2 billion subscribers, are introducing a new applications store designed to appeal to developers and compete head-on with Apple's App Store.

    - Symbian is taking the wraps off its new Symbian 3 open source release, which includes support for HDMI, so that users can connect their Symbian phones to their TVs and watch 1080p video, in effect creating a Blu-ray player in your pocket.

    - Intel and Nokia are merging their respective Moblin and Maemo software platforms to create MeeGo, a unified Linux platform to run across multiple devices.

    - Adobe is providing an update that by mid-2010, its AIR runtime for building rich applications will be available for Android and that Flash 10.1 will be generally available for various mobile platforms, including Android. In addition, Adobe is announcing that Omniture, which Adobe recently acquired, will add mobile video measurement within its SiteCatalyst product.

    While each announcement, plus countless others, have their own significance in the burgeoning mobile ecosystem, the one that's most relevant to mobile video specifically is the coming availability of Flash 10.1, especially for Android. Mobile video has been hampered to date with the lack of Flash player support on iPhones, so its pending launch on Android phones threatens to scramble the relative appeal of these devices for users eager to watch video from sites like Hulu on their smartphones.

    Late last week I got a glimpse of how significant Flash on smartphones is from Jeff Whatcott, SVP of Marketing at Brightcove, which today is announcing an optimized version of its platform for Flash 10.1, to be released in the middle of 2010. Adobe has made the beta of Flash 10.1 available to content providers, and Jeff has a video showing how it works with Brightcove for its customers like NYTimes.com and The Weinstein Company.

    Brightcove has done 3 things - optimized its template for mobile devices (so navigation and interactivity is seamless on the small screen), enabled auto-detect of mobile devices (so the correct Brightcove template is served) and leveraged cloud-based transcoding (so a mobile-ready H.264 encoded video is streamed). The goal is for Brightcove's customers to be able to deliver an optimized mobile and Flash experience identical to their online experiences, with minimal additional work flow. Brightcove provides the appropriate logic for mobile templates to its customers which they embed in their pages. When a user visits from a mobile device and clicks to watch video, the right Brightcove-powered experience is delivered.

    All of the above activity is happening in the shadow of the now-dominant iPhone (and coming release of the iPad) which do not support Flash. As non-iPhone devices - and content providers - progressively incorporate Flash this year, it seems like the smartphone market is poised for another new turn. Flash is the dominant video player and as users look to replicate their online experiences on their smartphones, the void of Flash on iPhones will become even more pronounced. I don't underestimate Steve Jobs or Apple's ability to compete, but this will be one place where it feels like the iPhone will be at a real disadvantage. Apple is keen to prevent Flash from extending its online hegemony to mobile as well, so it will be interesting to see how it chooses to play this.

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  • Google's Fiber-to-the-Home Experiment Could Cost $750 Million or More

    I hope for Google's sake that it understands the cost to build its 1 gigabit/second ultra high-speed fiber network experiment announced today could be $750 million or more. Even for Google that's a very big number, especially considering the company has said it has no intention of actually pursuing this as a business. Of course, we don't know exactly what Google is forecasting its project costs to be, but using Verizon's FiOS numbers wouldn't be a bad starting point to do the math. So here goes.

    Google said it would offer the gigabit service to between 50,000 and 500,000 people. Let's start at the high end of that range. Verizon has disclosed that it will spend $18 billion to pass approximately 18 million homes in its footprint with its FiOS fiber-to-the-home network. It's not fair to do a straight average and assume that Verizon is still paying $1,000/home passed given that its costs have no doubt declined over the years. However, in Google's case, since it has approximately zero experience laying fiber in neighborhoods, and won't get the same level of vendor discounts that Verizon enjoys, it is probably fair to assume Google will spend at least $1,000 per home passed. So if it goes all the way to 500,000 homes, that's $500 million in neighborhood build-out costs.

    But that's only to wire the neighborhoods, then the service has to be deployed in the homes themselves. That means in-home wiring, on-premise equipment, labor, trucks, insurance, overhead, etc. Estimates for Verizon's per home cost vary, but $500 is in the range often cited. In Verizon's case they're also deploying a set-top box to deliver TV, which Google hasn't announced plans to do (more on that below), so that cost should be deducted. But on the flip side, once again, because Google has never wired a consumer's home (that I'm aware of anyway) it has a steep learning curve ahead of it, meaning its costs could be much higher than Verizon's.

    But to make things easy, let's just use the $500 per installed home. So 500,000 homes at $500 apiece, another $250 million for the project. Add it to the $500 million for the neighborhood build-outs and the total is $750 million. This assumes Google decides to go all the way to 500,000. Obviously if it stopped at 50,000, the costs would be a lot lower.

    However, there's another big caveat that could drive Google's costs far higher: passing 500,000 homes does not equal having 500,000 customers. It's impossible to predict what percentage of a community's residents would take the Google experimental service. One way of thinking about it is that around 65% of American homes currently subscribe to broadband Internet service. What percentage of those will Google lure? Say it's around 15%. So in a community with 100,000 residents for example, Google may get only get 9,750 people to take its gigabit service (100,000*.65*.15). That means Google may need to pass fiber by 10 homes for every one it gets as a participant in its experiment. Put another way, the $500 million homes passed budget could increase by a factor of 10x. (In case you're wondering, by comparison, Google's 2009 net income was $6.5 billion.) Each subscriber's home would have cost Google approximately $10,750 to connect.

    Executives at cable operators and telcos - who build and operate residential networks for a living - are very familiar with modeling network deployment costs. But I wonder, how familiar do you think Google is? Does it know what it has bitten off here? And for what benefit exactly - to test next-generation apps? Hmm. Everyone knows video is the biggest bandwidth hog; an expensive experiment isn't going to change that. And also remember, Google only plans to sell broadband Internet access, not a full bundle with TV or voice. It says it will do this at competitive prices, which means around $50-$100/mo. At these revenue levels and with operating costs that I haven't even mentioned, it's inconceivable to me that there's a positive business case for Google's gigabit experiment.

    I'm all for innovation and for pushing competitors along. But Google's experiment really has me scratching my head. No doubt the folks at Verizon, Comcast and other big broadband ISPs are wondering as well. It's one thing for Google to throw $2.5-$3 million at a 52-second Super Bowl ad, but quite another to be contemplating a $750 million experiment with ambiguous goals. What am I missing?

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  • Paltalk Releases SuperIM URLs for Clientless Video Chatting

    Paltalk, the long-time video chat technology provider, is announcing its Paltalk 9.9 beta release today, which includes a feature called SuperIM URLs, which allow users to initiate 1-click, in-browser video conferences without any client download. It's a clever feature that promises to drive higher adoption of personal video conferencing. Paltalk's CEO Jason Katz walked me through a demo yesterday.

    SuperIM URLs work like this: say I'm a registered Paltalk user (either free or paid) so I've already downloaded the Paltalk software. I then select a personalized SuperIM address, for example http://www.wrichmond.superim.me. Then I begin publicizing the URL to friends, say through tagging my email signature, Facebook page or business card. People who see the URL simply click on it and, as long as they have a webcam, are instantly connected via video chat with me. Just so I don't have people barging in on me on a bad hair day, I can set privacy controls to always require accept/decline. I can also password-protect the link so I only hear from people I want to. I can also set it so only audio comes on first and I have to manually start the webcam.

    I can have up to 10 people in a video chat and display the participants in different mosaics. The most obvious competition for SuperIM URLs is Skype, which I use for video calls. Jason agreed that while Skype does a lot of things really well, Paltalk SuperIM's big differentiator is that it does not require the caller to have downloaded any software to participate.

    With SuperIM, the caller simply clicks on the URL provided and is connected. In effect, the conferencing capability is brought to users instead of the other way around. The goal is to make it so easy that anyone's "grandmother can use it" as Jason put it. Even though Paltalk has had its client downloaded some 70 million times, Jason acknowledged that it's a "busy Internet," and it's getting harder and harder to induce people to download any new software.

    Another differentiator is Paltalk's multi-party capability, which Skype doesn't offer. This means that a Paltalk user could set up a multi-party video chat around a specific event simply by sending out the SuperIM URL to friends, asking them to click-through at a certain time (think "virtual Super Bowl party").

    Going forward, Jason said Paltalk plans to eliminate the step of even having the initial user download the Paltalk software. Paltalk wants to become ubiquitous for mobile users and other portable devices like the iPad. Jason also makes an interesting point that with the spread of $300 Internet-connected netbooks with built-in webcams, personal video conferencing has become more accessible than ever. Paltalk is also aiming for tighter integration with Facebook, so users can initiate video chats to their friends.

     

    I vividly remember that George Jetson's video phone was just about the coolest thing I'd ever seen when I was a kid. SuperIM URLs are yet another indication that the Jetsons' world is upon us.

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    Filckr image via writetechnology