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Cox Embraces Over-the-Top Video In Unique Deal With TiVo
Another day, another head-turning example of how the boundaries between traditional and over-the-top (OTT) online video distribution are blurring. This morning Cox Communications, the 3rd-largest U.S. cable operator, isannouncing that it will integrate its entire VOD library into TiVo's Premiere multi-purpose box, the first time a major cable operator has done so with a retail-only product. Cox will promote and offer free installation for Premiere which, when coupled with a CableCARD, will support Premiere as a full set-top box solution in its markets (Premiere boxes cost $300 or $500). The deal is a significant win for TiVo, which has continued to rollout clever products, but has been challenged to go beyond its traditional retail proposition.
As important, TiVo will continue to make available all of its integrated onlinevideo offerings (e.g. Netflix, Amazon, YouTube, Break, Howcast, CNET, etc.), which means that Cox is enabling online video options to be exposed and promoted side-by-side with its own video offerings. As Jeff Klugman, TiVo's SVP/GM of Products and Revenue explained to me yesterday, TiVo's search function would allow, for example, a user searching for "30 Rock" to see results including Cox VOD listings for the current season and upcoming on-air episodes blended with prior seasons available from Netflix, Amazon or Blockbuster.
Categories: Cable TV Operators, Devices
Topics: Cox, EPIX, Netflix, Starz, TiVo
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IBM is Turning to Video to Make Its Point
While most of VideoNuze's coverage is of online video's impact on the media and entertainment industries, I'm constantly on the lookout for examples ofhow video adoption is infiltrating other organizations. Therefore, a new case study about IBM Software Services from Lotus, presented by video platform vzaar, hit my radar. In it, Mark Leaser, Worldwide Offerings Manager, describes how he and others at IBM are increasingly using video for internal sales training and communication, along with external marketing. I caught up with Mark yesterday to learn more.
Categories: Business Apps
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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 rumorssuggesting 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 andMGM. 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 YouTubepartner. 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