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Wednesday, October 31, 2007

Details On Four Industry Networking Events Next Week In San Jose

Next week, in conjunction with the Streaming Media West show there are four industry networking events taking place. Even if you can't make it to the show, feel free to come on by these events:

Monday Nov. 5th

  • The night before the show starts, I will be hosting an informal gathering at 7pm at the Acadia bar in the Marriott Hotel in San Jose. You can find directions to the hotel at on their website. No registration is required and everyone is invited to attend. Get there early and come have some free drinks courtesy of CacheLogic. We usually get a great group of show speakers, media and those from the local content, broadcast and education companies.

Tuesday Nov. 6th

  • The grand opening reception of the Streaming Media West show will take place at 5pm on the show floor at the convention center. All you need is a pass to get in and you can register for one for free using the PROMO CODE: DRF1. Come on by for drinks and food and some great networking on the show floor.
  • Starting at 6pm, Adobe is having a reception at their HQ in San Jose. You must RSVP to get into and you can get all the details here.

Wednesday Nov. 7th

  • Starting at 7:30pm, we will have the reception for the Streaming Media Magazine Reader's Choice Awards. Come celebrate with the winners and other conference attendees, speakers, and exhibitors, during a cocktail reception at the Sainte Claire Hotel (Grande Ballroom). The reception is open to all full conference attendees, speakers, exhibitors, and press. You can register for a conference pass using the PROMO CODE: DRF1 for a discount.

In addition, there will be some other networking events taking place last minute and receptions being organized by some companies in the industry. Stop on by the show and ask for all the latest and last minute networking opportunities.

CDN and P2P Funding Continues: Grid Networks Raises $9.5M

Gridnetworks_2 Yesterday, Grid Networks announced they had raised $9.5M led by Panorama Capital and two strategic partners who's names would be disclosed in the future. Not surprisingly, Grid says they will use the money to expend the development of their "network-friendly P2P service" and grow their distribution business.

Grid is the first of multiple companies who will announce investments before the end of the year. EdgeCast, CacheLogic and Panther Express are all expected to make funding announcements in this quarter.

Workshop: Using Adobe Flash Media solutions to Encode, Deliver, Protect and Monetize Video

Images_2 On Monday Nov. 5th, before the start of the Streaming Media West show, Adobe will be teaching a 3 hour afternoon workshop entitled "Using Adobe Flash Media solutions to Encode, Deliver, Protect and Monetize Video". If you want to learn more about the Flash platform directly from Adobe, this is the workshop to be at.

The workshop will cover the latest advances in the Adobe Flash Media family for creating and delivering innovation interactive media applications. Topics will include how to deploy the highest quality on-demand and live video to a browser, device, and desktop experience; protecting and managing content; and developing an enhanced video streaming experience in Flash.

This workshop will also talk to the new Adobe Media Player that will be used to deliver downloaded content to the desktop with new ways to monetize and protect video.

While the early registration discount has expired, anyone who is interested can use PROMO CODE: DRF1 which lets you go to the morning AND afternoon workshops for only $195. We've kept it very affordable so everyone can attend and get 6 hours of hands-on training across two workshops.

Industry Drivers: Wainhouse, IDC, Tier1 and Morgan Stanley Discuss The Future Of Online Video

Smwest_logo_2 Next week at the Streaming Media West show I will be moderating a session with some of the leading analysts discussing future trends and business models in the online video industry.

This show wrap up session will be an open discussion about where the real opportunities are and what the disruptors will be in the ecosystem for online video. Come hear about new business and revenue models these analysts are tracking and find out what technologies they are most excited about.

The panelists include:

  • Dan Rayburn, Executive Vice President, StreamingMedia.com (moderator)
  • Ira Weinstein, Senior Analyst & Partner, Wainhouse Research
  • Melissa Webster, Program VP, Content & Digital Media Technologies, IDC
  • Jim Davis, Senior Analyst, Networks & Media, Tier1 Research
  • Brian Essex, CFA, Morgan Stanley

It's not too late to register. While the early registration discount period has now passed, if you have not yet registered and want a discount code, let me know.

Tuesday, October 30, 2007

Best Buy Launches Online Video Sharing Service, Takes Equity Stake In Mydeo

Bestbuy Today, Best buy announced the launch of their new fee based solution for consumers to store and share videos on the web. The solution is powered by Mydeo, a UK based company that has been offering online tools for the sharing of user-generated content for a few years. Best Buy has also taken a minority, equity stake in Mydeo, the terms of which were not disclosed.

Plans for the new Best Buy service start at about $7 a month and include 100 minutes of video hosting and video lengths up to 30 minutes each. The service will be merchandised online and in Best Buy’s retail stores and is already live on the web at: bestbuy.mydeo.com

23 CDN and P2P Providers Exhibiting & Speaking At Streaming Media West Conference Next Week

If you're an analyst or money manager that follows the CDN and P2P market, then the Streaming Media West conference and exhibition next week is where you want to be. We have 23 of the leading CDNs exhibiting, speaking or presenting. We've got sessions on  "CDNs & P2P - Is Hybrid Content Delivery the Future or Just Hype?" and "P2P and Next Generation Delivery Networks" amongst 30 other sessions.

If you have not yet registered, e-mail me for a $200 discount code. The list of CDN and P2P companies at the show include:

  • Akamai
  • BitGravity
  • BitTorrent
  • BroadRamp
  • CacheLogic
  • Digital Fountain
  • EdgeCast
  • Grid Networks
  • Ignite Technologies
  • Internap
  • Itiva
  • Level 3
  • Limelight Networks
  • Mirror Image
  • Move Networks
  • NaviSite
  • Pando Networks
  • Peer1
  • RealNetworks
  • Solid State Networks
  • Streaming Media Hosting
  • Swarmcast
  • VeriSign

It's not too late to register. While the early registration discount period has now passed, if you have not yet registered and want a discount code, let me know.

Monday, October 29, 2007

Consumer Generated Video Sites: Can They Be Monetized?

Smwest_logo_3 That's the question we're looking to answer at the Streaming Media West show next week with a panel entitled "Consumer Generated Video Sites: Can They Be Monetized?"

We've got a great lineup of speakers including:

  • Dan Rayburn, Executive Vice President, StreamingMedia.com (moderator)
  • Chris Carvalho, Director of Business Development, Lucasfilm
  • Joel Sanders, Sr. Director of Site and Operations, AtomFilms, MTV Networks
  • David Eckoff, VP, New Product Development and Innovation, Turner Broadcasting
  • Steve Rosenbaum, CEO and Founder, Magnify.net

With nearly a hundred video portals or service offerings all based on user-generated video, and more launching each day, can any of them survive? What business models need to be put in place for these companies to make it in the long run? Will advertising ever provide the revenue they need or even help them cover their bandwidth bills? With so many sites that seemingly do all the same thing, how will these sites distinguish themselves from one another? Come hear directly from some of these UGC sites and learn what they are doing to try and lead the charge to profitability.

It's not too late to register. While the early registration discount period has now passed, if you have not yet registered and want a discount code, let me know.

Microsoft Workshop: Learn How To Publish Media for Microsoft’s Silverlight Platform

Silverlightlogo_2 The day before the start of Streaming Media West, we have a full day of pre-conference workshops. On Monday Nov. 5th, Microsoft will be teaching a 3 hour afternoon workshop entitled "Publishing Media for Microsoft’s Silverlight Platform".

The Microsoft workshop will teach attendees how to use Expression Media Encoder to publish live and on-demand content to Microsoft Silverlight. You’ll also learn techniques for getting the most out of the VC-1 codec over the Web and get expert advice on how to update your existing Windows Media site to a Silverlight experience.

While the early registration discount has expired, anyone who is interested can contact me to get a discount code that lets you go to the morning AND afternoon workshops for only $195. We've kept it very affordable so everyone can attend and get 6 hours of hands-on training.

Adobe Invite: Meet The Adobe Flash Team and Partners At Adobe's HQ on Nov. 6th

Adobeinvite_2 At the end of the first day of the Streaming Media West show, Adobe is having an Adobe Partner Showcase event at their headquarters in San Jose on Tuesday Nov. 6th. Their will be hands-on demos and some of Adobe's partners including Maven, Brightcove, blip.tv, Limelight Networks and Akamai will be in attendence.

RSVP is required. I don't know how many RSVPs they have left open so I suggest you register right away if you are interested. Just before the Adobe event, we have the Streaming Media West show reception as well. Come to the exhibit hall at 5pm for some drinks and networking and then head over with us to the Adobe event afterwards. All you need to do is register for a free exhibit halls pass. While the early registration period is over, you can still register here for free by using promo code HALL.

Sunday, October 28, 2007

Beet.TV and Last100.com Looking For Bloggers To Cover Streaming Media West

Smwest_logo_3_2 StreamingMedia.com is willing to help cover some or all of the expenses of anyone who is able to help Beet.TV or last100.com out. Both Beet.TV and last100.com are looking for anyone who wants to attend the Streaming Media West show next week in San Jose to help them do some online coverage of the show. Andy at Beet.TV is looking for someone who wants to shoot some short interviews and Steve is looking for coverage via blogging.

This is a great opportunity for you to get some exposure on sites that get a lot of traffic. Let me know if you are interested and I'll put you in touch with them.

Friday, October 26, 2007

Webcasting.com Domains Sells For $150k

Earlier this week, the domain webcasting.com sold for $150k. The original owner registered it in 1994 and had a small webcasting company before retiring from the industry a few years ago. A new company in the webcasting business took over the domain this week. Wonder what this domain would have gone for back in the 2000 era?

Thursday, October 25, 2007

Open Call To CDNs: CDN Pricing Presentation, Costs for Outsourced Video Delivery

At Streaming Media West next month, I will be presenting a session entitled "CDN Pricing: Costs for Outsourced Video Delivery". It's a session I have done for the past 3 shows and usually gets a large crowd. I also do a lot of Q&A with the attendees and last show, they had some great feedback for the CDNs on what they wanted, which I covered in a post entitled "Customers Tell Content Delivery Networks What They Want At Streaming Media East Session"

The pricing I will be presenting will primarily be all the data I have collected from contracts, RFPs and customers directly as well as from some CDN and P2P vendors who have sent me their entire pricing worksheets. I will be presenting the data based on the high, low and average price amongst all of the vendors combined, splitting out CDN from P2P.

That being said, this is an open opportunity for any CDN or P2P vendor to provide me with any pricing data they wish. While I plan to combine all the data and publish "averages", if any vendor wants me to specifically publish their pricing stand alone, outside of the combined industry average, I will do this. I see that some vendors are already publishing pricing in the open market so if you want the exposure, and want to give out the data, with ranges based on commit levels, I'll do it for you. Otherwise, all of the numbers I present will be like I have done it in the past, which you can now easily find at www.CDNPricing.com

I am posting info about this session on my blog so that every CDN and P2P provider has the ability to have their data included if they want it. While I have already collected lots of pricing data and continue to do so from the major players, I don't have as much from some of the new players who don't have as many RFPs out in the market. This is your chance if you want to be included. I'm giving all vendors a level playing field to be included, if they want, so afterwards no one can say they were kept out of it.

PLEASE NOTE: I am making an exception for this session and will allow anyone who works for any CDN or P2P provider to attend the session for free. This one session will not require a conference pass. It will require you to register for a free exhibit pass, so if you are interested, contact me and I will give you a code.

The Outlook For Investment In The Online Video Sector

I'll be moderating a panel at the Streaming Media West show in two weeks asking analysts how Wall Street looks at the online video sector, how it values companies in our space, where they think the industry is heading and what they are most excited about. The list of panelists includes:

  • Dan Rayburn, Executive Vice President, StreamingMedia.com (Moderator)
  • Colby Synesael, SVP, Equity Research, Telecom Services, Merriman Curhan Ford & Co.
  • Katherine Egbert, Software Research Analyst, Jefferies and Company
  • David Eller, Principal, Primary Research, Reuters
  • Aaron Kessler, Senior Research Analyst, PiperJaffray & Co.

It's not too late to register. While the early registration discount period has now passed, if you have not yet registered and want a discount code, let me know.

Are All The New CEO Changes A Sign Of VCs Getting Impatient?

In the past three quarters, at least 27 vendors in the industry have had changes at the CEO level. While there are always changes in executive management, I don't recall there being that many new CEOs in such a short period of time in our industry. It begs the question, are VCs getting impatient and demanding a quicker return on their investment? Or are they starting to really see the opportunity and bringing in those who have experience in growing companies larger and faster?

It's hard to know which one it may be, and it could be a combination of both. But this many new CEOs in such a short period of time does suggest that while the VC money still flows, some VCs are getting impatient. Probably too many of them are still hoping, or I should say expecting, a valuation that will not happen. My fear is that many companies are raising too much money too fast, forcing VCs to set expectations they may not be able to meet in 24 months.

We've seen the changes at the top from companies who's services are wide ranging. Delivery providers, hardware vendors, software companies, publishers and content companies. Below were the ones I could think of off the top of my head and I know there are a whole bunch more I am missing.

  • BitTorrent: New CEO, Douglas Walker
  • The FeedRoom: New CEO, Mark Portu
  • Media Publisher: New CEO, Ray Hood
  • Interactive Video Technologies (IVT): New CEO, Phillip Whalen
  • Anystream: New CEO, Fred Singer
  • JumpTV: New CEO, Jordan Banks
  • Cache Logic: New CEO, Phill Robinson
  • Revision3: New CEO, Jim Louderback
  • MobiTV: New CEO, Charlie Nooney
  • EveryZing: New CEO, Tom Wilde
  • HuffingtonPost: New CEO, Betsy Morgan
  • Dabble: New CEO, Kai Mildenberger
  • Topix: New CEO, Chris Tolles
  • Joost: New CEO, Mike Volpi
  • Vudu: New CEO, Mark Jung
  • PodTech: New CEO, James McCormick
  • Revver: New CEO, Kevin Wells
  • RGB Networks: New CEO, Jef Graham
  • Akimbo: New CEO, Thomas Frank
  • Metacafe: New CEO, Erick Hachenburg
  • Podbridge: New CEO, Brian Steel
  • USA Video Corp: New CEO, Frank Bowden
  • ValueClick: New CEO, Tom Vadnais
  • Veoh: New CEO, Steve Mitgang
  • muvee: New CEO, Terence Swee
  • VBrick: Nee CEO, Vince Graziani
  • Babelgum: New CEO, Valerio Zingarelli

Only time will tell what the success rate of the new CEOs will be, but they have to be under more pressure than ever now by investors as the media and everyone else hails next year as the second coming of video.

Wednesday, October 24, 2007

Looking To Join Research House To Cover The CDN Market

Over the past few weeks, I have gotten a few offers from some research houses to help them with their research reports on the industry, and in particular focusing on the CDN subject. I'm interested in working directly with a research house who plans on generating regular reports on the CDN market and I am interested in bringing all of my data, analysis, pricing and customers insight to an organization.

I don't have time to write reports all by myself, but I do want to work with a company to help outline the report topics, provide data, give insight into the market on many levels, introduce them to customers and provide some written editorial in the reports.

I'm listening to all suggestions and idea from companies, be it traditional research houses that sell their reports, or companies who generate reports and give them away to their customers. Please contact me if you have an idea or are interested in discussing further.

Beyond Pre-Roll: What's Next for Online Video Advertising?

That's the question we're looking to have Yahoo!, BlackArrow, Revision3 and CNNMoney.com give us their insights on at the Streaming Media West show in two weeks. I'll be moderating a session on this subject and looking to get answers on which type of advertising works best online: pre-roll, post-roll, in-stream, sponsorship, or all of the above?

We will also discuss if revenue automatically comes with the audience, or will a sudden spike in popularity sink your production under a mountain of bandwidth costs before you ever get a chance to swim? It's a hot topic and one we'll have a lot of debate over. The panelists include:

  • Dan Rayburn, Executive Vice President, StreamingMedia.com (Moderator)
  • Cheryl Kellond, Sr. Director, Global Ad Product Strategy, Yahoo!
  • Jason Schafer, VP, Business Development, CNNMoney.com
  • Brad Murphy, VP, Business Development, Revision3
  • Chris Hock, VP, Product Management, BlackArrow

It's not too late to register. While the early registration discount period has now passed, if you have not yet registered and want a discount code, let me know.

Tuesday, October 23, 2007

Updated: Akamai Will Announce New P2P Offering On Nov. 6th

After my earlier post this morning asking if Akamai will announce their P2P offering next week, numerous Akamai customers wrote in to say that they have been invited to a special Akamai event on Nov. 6th for the launch of Akamai's new P2P service offering. Customers who have been briefed on the P2P service already have said it will launch in November and be restricted to HTTP download only to start.

Biggest question I have is what the cost difference will be between Akamai's traditional CDN service and the new P2P offering? Tomorrow, I am going to post what the current going rate is for P2P delivery.

Is Akamai Announcing A New P2P Delivery Service Next Week?

That's the question I keep getting asked by people the past few days. Seems many are speculating that Akamai may announce a new P2P based delivery offering next week to coincide with their financial analyst summit. I don't know the date Akamai will announce such an offering, but I do expect one to come before the end of the year. Many in the industry are closely watching to see which traditional CDN provider is the first to offer a hybrid service.

VeriSign and CacheLogic both offer hybrid delivery today, but VeriSign bought Kontiki to get their P2P product offering and has been working to build out its traditional CDN service. And CacheLogic was built from P2P technology from the start and like VeriSign, has also been putting their efforts behind adding traditional CDN services. So Akamai would be the first CDN not built from P2P technology to offer the service if they announced it next week.

I also hear that Internap and Level 3 are working on P2P based offerings for video as well, so it seems the race is on amongst the CDNs to see who will offer it first, aside from some of the work the CDNs do already with BitTorrent.

Thursday, October 18, 2007

CDN Funding Continues: Panther Express, EdgeCast and CacheLogic Raising Money

Hot on the heels of Move Networks raising $34 million at the beginning of this month, more venture capital money will be flowing to other content delivery networks very shortly. Panther Express, EdgeCast and CacheLogic, amongst others, should all announce some pretty large funding deals in this quarter.

The bar between what CDNs have enough revenue to last 2-3 years is quickly dwindling as many of them are now raising enough capital to keep them in the game for at least the next two years while the market shakes out. Next year, we're going to have a lot of providers in the market with deep pockets, as is evident by the salaries companies in the CDN space are now paying to attract senior sales people.

Add that to all of the P2P and hybrid solutions in the market, the confusion around what all of these CDNs really support and the speculation on what impact Level 3 may or may not have on the market, and next year is shaping up to be the perfect storm in the content delivery industry.

What do people think about us organizing a one day summit focused only on the CDN market? I am thinking of calling it www.ContentDeliverySummit.com and making it a small focused show and really marketing it to the analyst community. What do you think of the idea?

Many New Online Video Conferences and Events Lacking Focus, Won't Survive

A few days ago, Robert Scoble posted 40 reasons why he thinks "NewTeeVee's conference is lacking substance". He lists a lot of speakers he thinks should be at the event and content that he feels should be included. While I agree with a lot of what he suggests in the way of good content, much of which we are doing next month at our Streaming Media West show, I'll take a different angle to this topic. I think that many of these new conferences don't have a lot of focus, are not being planned by conference organizers, in some cases are off-shoots of other conferences that have no similar subject matter and don't have a clear tie in to their core business. I covered some of this in my post back in April entitled "How The Industry's Online Video Conferences & Exhibitions Can Improve."

Do I always get things right at my shows? No. There is always more I want to do, things I wish I had included and  things that I learn from at each show. The idea is to grow your knowledge on how to put together a good show for the industry and for the attendees. But for most of these new shows, that's impossible for them to do. For starters, most of them don't have conference experience and aren't in the conference business. Operating a blog or a news sites is very different than putting on a show. I've learned that the hard way. Next month's Streaming Media West show will be the 12th show I have done over nearly 5 years, and it took probably 6-8 shows to really get it down to a system, especially since unlike all these other shows who have a big staff, I am the only person who does the programming. When is comes to planning and programming a show, you need more skill sets than just being able to operate a blog.

Being in the conference business is very different than being in the news business or online content business. Trying to replicate the online content, in person at a show, takes time to learn and requires a lot of resources to do it right. Especially if you want to grow the show. I also question what reason many of these companies have for getting into the show business all within the past 12-18 months. Are they just looking to grab some dollars while the market for online video is hot? If so, they should be prepared to fail. Growing and organizing a show is about a long-term commitment to any conference and more importantly, to the industry. Between our 3 shows a year we do over 10,000 combined attendees and it's taken years to get it to that. Traffic does not come overnight. You have to grow it, a little at a time, and do it organically. If you just want to try and make a land grab for some cash and market share, enjoy it for a short time, it won't last. That's not how shows succeed.

To me, NewTeeVee has a shot at having a successful show if they focus it just on content. We need a show in the industry that is solely focused on creating good online video. It's a topic we cover some of at our shows, but is not something we are trying focus on as the core subject. NewTeeVee is the type of company that could do well putting on a show only on this topic and keep it laser focused and small. But if they try to then talk a lot about technology, webcasting and CDNs and all those other subjects, it won't do well as that is not their core audience. Readers who are looking for details on how to choose the right webcasting capture card, how to process raw logs and all of that info on the technical side of the business are not going to NewTeeVee.com. I read them to learn about content and if I learn anything about technology on their site, it's about technology that ties back to content creation or management. I think the focus is good on the site and the show should follow that single-purpose subject.

I've seen other shows focus on just one vertical like media and entertainment and then all of a sudden, try to add enterprise content to their show, even though they don't cover the enterprise market on their blog or news site. Where is the focus? Stick to what you know. Don't start to cover lots of verticals just to try and reach a wide audience. If anything, cut back on your verticals. We stopped programming radio and government content into our shows 2 years ago as I realized it was not focused enough and there are already plenty of shows focused on just radio and government video.

Another problem that all of these shows have or will be learning about is that it's not as easy to market the show as they thought. If you have no avenue other than your blog or website to market your show, you are not reaching a wide audience. None of these other online video shows have any print publications on the subject, don't have research for sale, don't put on live web events, most don't have newsletters, don't have direct mail pieces etc.... which makes reaching a wide audience very hard, even with a marketing budget. Yes, I do feel lucky that I have all these marketing avenues under one company with StreamingMedia.com and I can see first hand how all of them really support the industry's awareness of the show. It is an advantage we have and it's something other conference organizers need to look at doing if they really want to increase their reach.

Part of me also thinks that to many of them, this only about money. You can't have the price of your shows be $1,500 to attend the first year and then $795 the second year. Yes, it's great the price is cheaper but it questions why you got into this in the first place if it took you putting on a show once to realize you didn't get enough people and now want to take the approach of charge less and get more attendees. To me it means you have your priorities backwards from day one and don't realize what it takes to grow attendance to a show and grow revenue at the same time.

One of the biggest problems which I highlighted in my post in April is that too many shows only have vendors speaking. Where are the customers! Attendees don't want to hear sales pitches and if I look at many of the show websites right now, I see that 75%+ of the speakers are from vendors. That number should be reversed. 75% of your speakers should NOT be vendors. If you don't grasp this idea, or only want to plan speaking spots based on who pays you, I will guarantee you that your show won't grow. You HAVE to put the attendee first in terms of your programming, someone Scobble points out in his list which is the most important thing for conference organizers to remember. Yes, some of the vendors may not like you for it, but the smart ones understand the value it provides to them and to the industry in the long run.

Cynthia Brumfield, who I have never met, works on the New Video Summit show and says on her blog that so many of these shows look alike now and is asking "Does nobody have an original idea?" I agree, but then when I look at the keynote speaker for her show in the afternoon, it's Jeremy from Brightcove. No offense to Jeremy or Brightcove in any way at all, but I can think of at least half a dozen shows Jeremy has done a keynote at, including mine, within the past 12-18 months. So to me, having someone who has already keynoted so many shows all so close together do another one, is not original. Where are all the new speakers?

And what really irks me big time is that all most of these new conferences see all the others, including the one I programming, as competition. That's so short sided. All of these conferences are very different and should be working together, not against each other. More successful shows in the industry means that the entire industry grows and all of the shows will benefit. Yet, of all the new online video shows out there, I've had to reach out to all of them of asking how I can help. This is not about my ego, but you would think they would inquire about the industry, what I have seen work, not work, what attendees want, how we may be able to work together and how we can all help the industry grow, considering our show has been around for 10 years.

But none of them have done that. I've had to reach out to all of them to offer guidance, support and suggestions, many of which could care less. That's just dumb. That's like being in the restaurant business and not talking to a restaurant on the same block as you, to compare notes, simply because you are both offering a similar service. And what about sharing contacts? We should all be working together to get good speakers, yet we don't. Mediapost asked me yesterday for some contacts of good speakers for a show they are doing in LA next month and I was happy to help out and provide contact details. I've got a database of 25,000 readers who subscribe to the streaming media magazine, who we know are interested in online video. We've got more contacts than any blog does, yet other shows don't inquire about them and in many cases, don't even let me come to their show. StreamingMedia.com has a long history of covering many, many industry shows other than ours, yet you lose that media coverage as I can't attend as you are worried. Worried of what? Come on guys, think about the business here, the industry and what the long term potential is to work together. And if you are proud of your show, then you should not be worried about anyone coming to it and seeing how good a job you do, competition or not. It's so childish. I've even offered many of the new conference organizers putting on these shows to come to my show and organize a panel of their own so they can get a feel for how it all works. Talk about embracing the competition. But only Liz at NewTeeVee took me up on the offer to do this at West.

I think there is too much short sided thinking in the events business, not enough insight into what is going on and too many people who think that running a blog means they can put on a conference. Some of them can, but many of them will not be able to. It's not about who has a "cool" show, it's about a show that provides attendees with real-world information that can apply in their business immediately.

Online Video Industry Executives On The Move

A quick round-up of some of the latest hirings in the online video industry:

  • BitTorrent announced this week that Douglas Walker, former CEO of Alias Systems, will now serve as their CEO. Bram Cohen, former CEO of BitTorrent will assume the role of chief scientist. In addition, Eric Klinker, former CTO for Internap, is now the new CTO of BitTorrent.
  • Abacast announced today that Rob Green, former Group Manager of Business Development on the Microsoft Windows Media team, and former SVP of business development and strategy at Nine Systems has joined the company's board of directors.
  • Limelight Networks announced this week that Roxanne Ivory, the former senior director of consumer marketing for Motorola's Connected Home business is now the VP of marketing at Limelight.
  • Internap announced this week that Jim Leach, former VP of corporate marketing at SAVVIS is now the VP of sales and marketing operations at Internap.
  • Robert Gribnau, formerly the GM of Content Delivery Services at Internap is now VP of sales for North America and Europe at CDNetworks.
  • Ray Hood has been named the new CEO of Media Publisher. Rod Bacon, the co-founder and former CEO is now the Executive Vice President, service providers.
  • Last month The FeedRoom announced that Mark Portu, a former SVP at Open Text Corporation, is now the CEO. Former CEO Bart Feder has been named as Chairman of the Board of Directors.

If you are looking for a new position, have taken a new job or have a job opening at your company, let me know. In many cases I will highlight it here on the blog - free of charge.

Monday, October 15, 2007

Three Speaking Spots Open For Streaming Media West

We're now at over 100 speakers for the Streaming Media West show next month in San Jose and I have only 3 spots left to fill in the program. I am accepting all inquiries from anyone interested in any of these last 3 spots which will all be selected in the next 24 hours. Please e-mail me if interested.

Tuesday, November 6, 2007
Entertainment Devices: How TiVo, Xbox, and iPod's Are Changing The Content Landscape
Today, with the influx of new entertainment devices, consumers no longer rely on just the PC for their online video consumption. Between iPhones and iPods, their XBOXes and TiVos, consumers now have many ways to get their video fix. So what are the new business models that will be created from these new devices? What current hurdles need to be solved so that content can be monetized for multiple platforms? Explore with this panel the role of current consumer entertainment devices in this new convergent world and how these devices will play together to offer a superior video experience.

Wednesday, November 7, 2007
Using Video to Drive Revenue Growth in the Enterprise
Today, companies' uses of enterprise video deployments are typically justified with the ROI metric of cost savings. While there is no doubt that this is part of the value proposition, some data suggests that revenue generation-rather than cost savings-is the true “killer app” for the enterprise. This panel of corporate users will discuss the implications of using video in the enterprise with an eye towards revenue generation, and they'll explain how streaming video can accelerate a product launch or bring new sales people up to speed, resulting in revenue growth.

Wednesday, November 7, 2007
Evaluating and Choosing The Right Methods Of Video Delivery
With all the various means of distribution and protocols available for video today-CDN, P2P, streaming, progressive download-there is still no single solution that will meet all customers' needs perfectly across all platforms and devices. Learn the various methodologies for content distribution, as well as the pros and cons of each type. Speakers will also discuss which methodologies apply best to which platforms and geographic locations based on type of content, length and format of video, and target audiences. Panelists will also provide you with guidelines and formulas for determining the best single and/or hybrid solution for your online video distribution needs.

Friday, October 12, 2007

Forbes.com: NBC, CBS, ABC and FOX's Internet TV Strategy

Forbes_home_logo Forbes.com has a good article from last week about TV on the Internet and what NBC Universal, CBS, ABC and Fox are doing with online video. It contains Q&A interviews with Fox Digital Media President Dan Fawcett, ABC Digital Chief Albert Cheng, CBS Interactive's Quincy Smith and NBC Chief Digital Officer George Kliavkoff.

Thursday, October 11, 2007

Google-YouTube: Twelve Months Later, Advertising Just Getting Started

Gootube_2 It's been a year since Google acquired YouTube and in that time, the promise of YouTube developing and rolling out a successful video advertising product is only just starting to get off the ground. It's going to be a long time until there is enough data in the market to suggest if the model will be successful, and YouTube has a long way to go before we find out of it can really generate any serious ad revenue from their content.

Paul LaMonica over at CNNMoney.com has a good in-depth article about the hurdles that YouTube faces one year later with more niche competitors, the Viacom lawsuit, the big media companies entering the space (Hulu) and the problem with getting advertisers to spend money around UGC content.

New Radiohead Album Being Delivered By Level 3's CDN

About two weeks ago, the band Radiohead told customers they could "name their own price" for their soon to be released new album. Starting yesterday, the album was available for download from the Radiohead website and when you download the 50MB file, it redirects you to the Level 3 network for the content.

While not an indication that Level 3 is going to put any of the other CDNs out of business, it is proof that Level 3 is continuing to sign up large customers even though they have yet to announce them. First it was Metacafe's videos that an analyst noticed were coming from Level 3, then I noticed the live streams for DirecTV's NFL Sunday Ticket package were coming from Level 3 and now this new Radiohead album. Clearly Level 3 is already starting to get some traction in the market for large scale delivery of video and static content via streaming and downloading. And with many in the industry assuming or speculating that Level 3 is going to offer a cheaper price for their streaming CDN offering next month, and the announcement last week by Level 3 that they are pricing their transit product and static CDN service at the same price, the company is clearly lining up to make a full on assault on the market in this quarter.

The CDN industry, which was once a very quiet segment of this industry even two years back, is now the hottest and fastest growing segment of this market in terms of the number of solutions and providers in the space and entering the fray. The next 24 months are going to be a fun ride.

Wednesday, October 10, 2007

Updated CDN Pricing Coming Next Month At CDNPricing.com

Since my post in August entitled "CDN Pricing Data: What The CDNs Are Actually Charging For Delivery", I've gotten enhanced insight into CDN pricing thanks to many new CDN customers who have come across my pricing post and have reached out to share a lot of new data with me. I've probably seen close to 50 contracts just in the month of September alone and many new readers to my blog are sending in data on what they are paying.

Next month, I will be doing an updated post comparing the CDN pricing averages from 3-4 months ago. To make it easy to find on my blog, you can now go to www.CDNpricing.com which will send you directly to the latest post with the pricing data.

I'll be doing an update sometime in November and had been waiting for BitGravity and BitTorrent to have officially launched so they can be included in the pricing round up as well. I will also have pricing averages from Level 3 as they are expected to launch their CDN for streaming in the beginning of November and I'm already seeing pricing from them on CDN for downloads.

In the mean time, if you are a customer of a CDN and want to share your data, I'm happy to chat with you to share what I am seeing in the market. You can contact me at anytime.

DoubleClick's Ari Paparo Kicks Off Streaming Media Europe Showing The Growth In Online Video Advertising

5187006_2 Thanks to everyone who made last weeks Streaming Media Europe show a success. Attendee traffic grew from last year and we also had more speakers, exhibitors and sponsors participating. Due to the shows growth over the past two years, we'll be moving the show to a larger location for next year. I had some great conversations with European providers and content customers and brought back a lot of new insight into the European market.

Bloggers are just starting to get up coverage of the show and you can already read some highlights of the show here, including an overview of Ari's keynote. In Ari's presentation, he noted that several key challenges remain to be overcome before in-stream video ads become the $1.5 billion market that some forecasters are predicting. Most notably, he pointed to the lack of infrastructure within content publishers and ad agencies to support the degree of integration between video and banner ads to avoid delivering contradicting messages—say, delivering a Coke banner alongside a Pepsi video—as well as the inability to change ad messages on the fly the way they can with banners.

In the next week or so I will be posting MP3 recordings of all the conference sessions along with video archives from many sessions as well. Speakers presentations are just starting to be placed online and we'll have all the archives wrapped up shortly and will announce attendee numbers.

Akamai, CacheLogic, Internap, Level 3 and VeriSign To Speak On CDN & P2P

My buddy Yaron Samid who organizes the NY Video 2.0 Meetup in NYC every month has organized a session at Streaming Media West next month entitled "CDNs & P2P - Is Hybrid Content Delivery the Future or Just Hype?". He has invited and assembled speakers from some of the major CDN providers and those who have hybrid CDN/P2P offerings. Confirmed speakers are:

  • Philip Kaplan, CSO, Internap
  • Travis Kalanick, Senior Director, Engineering, Akamai
  • John Dillon, CMO, CacheLogic
  • Stephen Trainor, VP Strategy, Content Markets Group, Level 3
  • Todd Johnson, SVP, Worldwide Marketing, VeriSign

Should be a good discussion amongst many of today's leading providers on where they see P2P playing a role in the CDN business and what some of them are working on as they move to more hybrid offerings.

Register for the show before October 12th and pay only $795 for a full 3-day conference pass.

Tuesday, October 09, 2007

Analysts Wanted To Join Panel With IDC and Wainhouse At SM West Show

At the Streaming Media West show next month, I am moderating a session on Wednesday Nov. 7th entitled "Industry Drivers: Leading Analysts Discuss Future Trends and Business Models". We have speakers from IDC and Wainhouse confirmed so far and I am looking to add two more speakers from large research houses.

You can see more details about the show and the session on our website. If you are an analyst covering the online video industry and would like to join the panel, please contact me ASAP.

Tons Of Job Openings With The Online Video Infrastructure Companies

While I welcomed any vendor to send me open jobs they had for me to list on the blog, I'm getting more than I can possibly feature. Between all of the vendors who offer content delivery services, content management, enterprise webcasting solutions or software and hardware for video platforms, there is a huge void in the market of qualified people.

The biggest open positions are product managers and sales support engineers as well as experienced account managers who know the space and come with a Rolodex. Due to how many spots are open, and how many companies are trying to fill them, there is a lot of money being offered. I have not seen salaries and offers at this level in our space since the 2000 era. Vendors are still raising huge amounts of money and rapidly growing their head counts.

If you are looking for a new position, send me your resume so I can pass it along to all these companies. I'll pass it on to as many companies as I know who have open positions. While many websites list open jobs in the market, most of them are only focused on content jobs and traditional broadcast TV spots. I see very few focusing on the online video market for vendors. I may set something up in the next few days.

Out Sick, Back Online In A Few Days

Apologies if I have been slow to respond to any of your e-mails. I hope to be back online in a couple of days and have a lot of posts in the hopper.

Thursday, October 04, 2007

Light Reading Quotes Level 3 Wrong On CDN Pricing Discount

UPDATE: On Friday, Barron's spoke with Level 3 and updated it's article. LightReading.com also updated their article and removed the quote in question. Good to see both sites do that to make sure the information is accurate.

I am amazed at how quickly some investors and analysts jump to conclusions based on any report on any website without checking facts. I like LightReading.com, but they quoted Level 3 wrong. Lisa Guillaume, VP of CDN Product Development for Level 3, did not say "the company will be offering CDN services at 20 to 30 percent less than its competition". She said to me that CDN services had typically been offered at a 20-30% premium over high speed Internet access. Nothing to do with the competitions pricing.

DataCenterKnowledge.com got is right by quoting Level 3 as saying that "CDN services have historically been offered at a 20 to 30 percent premium to transit." No where is any competitor even mentioned. Saying you are going to cut your pricing by 20-30% is one thing, but Light Reading is implying that Level 3 is cutting it's pricing 20-30% lower than the competition. That is wrong.

Now Barrons.com and others are quoting LightReading.com in their reports as the reason Limelight and Akamai stock is down in the market today. Is that the reason? Maybe, I don't know. But if it is, then it's based on an inaccurate quote.

Yes, I expect Level 3 to come to the market with a lower price when they announce their CDN for streaming later in the year, as I stated back in August. But to date, Level 3 has not announced any pricing discount numbers or percentages.

Microsoft Makes Major Company Reorg Changes

Today, Microsoft made some major company changes in multiple divisions of their business. Some long time execs including Amir Majidimehr and others are affected and multiple divisions have been reorged. Lots of changes that will affect multiple product lines. I expect we'll see the changes announced shortly, if not tomorrow.   

Wednesday, October 03, 2007

Content Delivery Pricing: Understanding CDN Overages

I’ve seen numerous reports lately by some in the financial community talking to “bursting” overages by CDN providers. Many of these references talk to overages incorrectly and some analysts might benefit from better understanding the two different ways CDNs charge for their services and exactly how “bursting” fees play into a CDNs bottom line.

The most recent example I read was coverage put out on Akamai where the analyst downgraded the stock based on their feeling that Akamai would not be able to get as much additional revenue for “bursting” overages as they have been getting in the past, due to the recent pricing pressure in the CDN industry. As the analyst stated, 30% of Akamai’s total company revenue comes from what he called “bursting”. That may be the case, but “bursting” and overages are not the same thing, especially when you’re talking about content delivery for video.

The first thing to realize is that no one knows exactly what Akamai products the 30% in overages comes from. Too many assume it’s from the delivery of video, but in most cases it isn’t. It comes from many of the other products and services Akamai offers like static caching, software downloads and application delivery. I asked Akamai for a breakdown of what products accounted for what percentage of overage revenue but they said it was not data they were making public.

Even without Akamai making that data public, all analysts should know the two different ways that all CDNs charge and how overages work. Every CDN charges for delivery of video, via streaming or download, based on two metrics. One is the total amount of Mbps sustained at any given time, over a 95th percentile. The second in the total GBs delivered over the network in any given month. These are two very different metrics with very different overage charges.

The majority of customers for video delivery have contracts where they are paying for the amount of GB delivered over the course of a month. With this model, there are rarely overages as typically when you push more bits then you signed up for, you get charged a lower per GB fee. For example, if you committed to push 100GB in a month and are paying $1.00 per GB, and then end up doing 150GB, typically your pricing then drops to a lower rate, say $0.95 per GB. Rarely do CDNs charge overages on a per GB delivered model and in many cases, some of them charge one flat fee per GB no matter how much you push. Years ago, CDNs use to charge overages with this model, but quickly realized that by doing so they gave customers no incentive to push more traffic on their network. This was how Speedera Networks really got traction in the market, by taking all the overflow traffic from customers who didn’t want to pay overages with their core CDN.

The other way CDNs charge for video delivery is on a per Mbps sustained model. This means that you pay for the volume of traffic you push at any one given time, and not based on the total bits pushed. Typically, this is the pricing model where you are charged for overages above the volume of Mbps sustained that you commit to. It’s also referred to by many as 95th percentile as with this model you are typically allowed to burst over your committed Mbps allotment for less than 5% of the month with no penalty.

There are a few reasons why understanding these different pricing models are important. For starters, don’t assume that you know what products the CDNs are getting overages from. Two years ago, Akamai stated that less than 10% of their contracts for the delivery of video were on a per Mbps model, the rest were per GB pricing. I don’t know what that number is today since Akamai won’t say, but too many are assuming that the 30% in revenue is from CDN for video when it isn’t. Much of what Akamai delivers is content of various types, static images, software, applications and video. When it comes to delivering the majority of content other than video, they are charged on a per Mbps sustained model where overages apply. So to assume that Akamai could take a hit in future overage revenue is to assume that they are seeing 30% of that revenue from video delivery, which they aren’t. How does Akamai compare to Limelight Networks in terms of contracts? Hard to know since we don’t know the Akamai number, but Limelight said on their road show that 40% of their customers have per Mbps sustained contracts.

So why does any of this matter and why do money managers pay so close attention to how much Akamai is making in overages? Simple. There is a fixed cost to any CDN to deliver bits of content and if you can charge two or three times that in overages, then that greatly affects your P&L. It all comes down to the bottom line.

That being said, this is not a prediction on my part of how any company’s stock price will perform now or in the future. I am not a financial analyst and have no vested interest in any company’s stock.

Monday, October 01, 2007

Adobe Releases New Software For Mobile Flash Video and AMP Beta

Adobe_3_3 This morning Adobe announced that they launched its Flash Lite 3 software, used for playing back Flash video on cell phones and Flash enabled web sites. Adobe says that Nokia and NTT DoCoMo are planning to support Flash Lite 3 with their upcoming handsets, but didn't say for how many models. Nokia, said it would launch a new development community today to help Flash developers and designers with mobile software development.

Adobe also announced today that major television broadcasters and leading content publishers would collaborate with Adobe to distribute video content via the new Adobe Media Player. Today also marks the first time that the Adobe Media Player is available to the public as a beta download, with the final version being ready in the first half of 2008.

Chris Hock Leaves Adobe, Takes On Role At BlackArrow

Chris_hock Chris Hock, who was the Group Product Manager for Flash at Adobe, has left the company and taken a new job. While I have an e-mail in Chris to get more details, I do know that he has taken on a role as the VP of Product Management for BlackArrow, a yet to be launched "multi-platform video ad-management solution".

For many of us in the industry, Chris has always been the face of Flash, leading the charge for the adoption of the Flash platform back before Adobe acquired Macromedia. While there are a lot of smart people over at Adobe who will continue to carry on the platform, I'm sure he'll be missed by Adobe. Anyone who was trying to contact Chris can now contact Kevin Towes, Product Manager, Flash Media Server who will be taking over some of what Chris was working on.

As soon as I hear back from Chris and get permission, I will post his new details here for anyone who wants to contact him. Chris says you can contact him at chock@blackarrow.tv

Note To Adobe: As of Friday, when you call into Chris' old number, the call does not get transferred anywhere. And when you call into the Adobe receptionist, they say they have never heard of anyone with his name. There needs to be a better procedure in place to transfer his calls to someone who can take them.

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Dan Rayburn: 917-523-4562
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