OTT Video Report By Brian Mahony, CEO of Trender Research Our new strategic analysis of the over the top (OTT) video industry and its impact on the Pay TV market, "Pay TV and the Growing Over the Top Video Threat", predicts that 7 percent of households will forgo their Pay TV subscriptions by 2012 in favor of some combination of OTT services and free over-the-air (OTA) television. The report analyzes the major trends of online video consumption and how they are changing the business models for cable, satellite, and IPTV service providers as well as the video rental market. The study provides a strategic analysis of major OTT players, looks at current and potential Pay TV responses to the OTT threat, and predicts likely winners and losers. Seven percent is the likely scenario. We also analyze a more aggressive scenario that has double the number of "cord-cutting" households (as well as a more limited scenario which has far less). Certain limiting factors would need to be overcome for the aggressive scenario to have such an impact in this timeframe, including: * More content would need to be available online, including live content (such as sports) and more HD programming. The trend certainly points in that direction, though the imposition of subscription or PPV fees on sites like Hulu for premium content could slow this trend. * More enabling devices and networking technologies to simplify the process for consumers to connect Internet video content to their living room TVs. The rapid growth of Internet-enabled HDTVs might be the catalyst. * Pay TV hybrid strategies, such as TV Everywhere and Project Canvas, would have had to fail to keep consumers within subscription-based "walled gardens." * Likewise, potential Pay TV operators' defenses, such as raising broadband Internet rates, negating net neutrality attempts, cutting prices for Pay TV, unbundling premium channels, etc. will have had to mostly fail to keep subscribers locked in. * Some demographics (twenty-somethings) will have had to abandon Pay TV altogether. * Taken together, these and other developments could combine to create a "perfect storm" of Pay TV cord-cutting, as well as reductions in premium package subscriptions and video on demand revenues. Past Articles: LG/Netflix partnership ]]> http://www.iptvevangelist.com/2009/10/trender_research_predicts_7_pe.html http://www.iptvevangelist.com/2009/10/trender_research_predicts_7_pe.html Cut-the-Cord iTV Pay TV Trender Research Wed, 14 Oct 2009 16:54:35 -0500 Halogen, a socially conscious television network as they describe themselves. Currently a site (in soft launch) with a cable and perhaps satellite component in the offing, the company seems as much of movement with stated goals of becoming a "source of entertainment and inspiration" Their first show "Start-Up" is a half-hour scripted drama about a small group of friends with the next great idea in social networking history. With recent economic downturns, they've lost their investor and are in way over their gifted heads. They scramble to keep their small business afloat while battling cash flow, tech sabotage, compromising dreams and falling in love." ]]> http://www.iptvevangelist.com/2009/10/post_1.html http://www.iptvevangelist.com/2009/10/post_1.html AT&T U-verse Halogen iTV Series TV Start-up Fri, 09 Oct 2009 11:55:33 -0500 In an effort to guild startups with coaching and mentors, NJIT is running a four weekend workshop which began on September 26th for four successive Saturdays. The session are designed to help startups with their pre-market planning to shorten their time to market. The Venture Acceleration workshop is part of the New Jersey Science & Technology University, located in Newark New Jersey. In addition to the University, there are two buildings which house over 80 startups across many technology fields from IP-based communications to 3-D facial recognition and beyond. I had occasion to attend a day workshop which featured Rally software, which is in the SaaS space. The company offers small groups free access to their development platform and I could see as being useful for any team developing an iTV or mobile delivery platform using video. ]]> http://www.iptvevangelist.com/2009/10/njit_venture_acceleration_work.html http://www.iptvevangelist.com/2009/10/njit_venture_acceleration_work.html Thu, 01 Oct 2009 15:05:58 -0500 Yahoo! announced today they will spend 100mil dollars on a new advertising campaign designed to get beyond Silicon Valley and Silicon Alley and out to the people... According to Yahoo! CEO Carol Bartz, "When you get outside of New York City and Silicon Valley, everybody loves Yahoo," Bartz said Tuesday during a press conference that was webcast. "Why are you (the media) so cynical about us? Be cynical about frigging Google. If you don't love us, leave us alone." Her frustration aside Google is the darling of not only the Valley and Alley but also Wall Street and much of the rest of the world for a reason. Back in the day when I was at the company they had daring and innovative campaigns such as the man with the fish, space junk falling to earth and this little ditty:

According to the news Yahoo! will have ads that highlight efforts to show people how to customize pages that they see on Yahoo!, smokin... I'd go out on a limb and say most people know Yahoo! what is does well and what is does not, If I had say 100k of that money access to their focus results I know I and others could come up with a spot that creates passion with style and would be memorable like their spots from the early days of the company, what Yahoo! needs is to take a risk not charts and graphs... What Yahoo! has always done best was their site as a portal, a launching point to other sites and perhaps they should go back to their roots? Do you...Yawn? ]]> http://www.iptvevangelist.com/2009/09/yahoo_to_spend_100mil_on_adver.html http://www.iptvevangelist.com/2009/09/yahoo_to_spend_100mil_on_adver.html Carol Bartz Yahoo! Wed, 23 Sep 2009 21:54:50 -0500 As now updated in Silicon Valley Insider, Google is not or has not, or will not purchase BrightCove, this according to Dan Rayburn. A BrightCove client gave me an ear full several months back about their view of the platform "I know I alluded to the new API being completely for programmers only. Brightcove will call it "sophistication", but synonymous with that word is another one: snobbery (in our case, tech snobbery). The thing I appreciate about it is at least they're transparent about their elitism. Look at it like this: in an era where it's becoming more about simple-yet-effective apps, Brightcove's taken their platform in an entirely opposite direction. The unfortunate thing is, as a result, if you REALLY want to get your money's worth, you can't just hire for the creative -- you've got to hire a programmer who knows their way around the API". Whatever your position about BrightCove they would certainly realize a net gain from being brought in under the large Google umbrella, the more interesting question is what would be in it for Google say beyond the BrightCove customer base? Much has been written about Google's burn rate with respect to YouTube, What BrightCove wanted to be when they first launched. Will Youtube have to start charging for content if they are going to trim their 50Million plus dollar per year streaming costs? Perhaps this will take the form of a tiered system where there are always cats falling out of trees just in SD and for just a minute or two...but with HD content and longer form fare becoming their paid model, perhaps it will be something that competes with Netflix though they currently do not have a hardware solution so I am not sure of the value proposition for watching movies on my large home set is? ]]> http://www.iptvevangelist.com/2009/09/the_supposed_googlebrightcove.html http://www.iptvevangelist.com/2009/09/the_supposed_googlebrightcove.html Wed, 16 Sep 2009 17:48:55 -0500 To compete with the U.S. entertainment industry, the British Government has lifted the restriction on product placement on U.K. programming. Children's programs will be restricted from product placement and the BBC will also not such placement BBC Video segment]]> http://www.iptvevangelist.com/2009/09/britain_approves_tv_product_pl.html http://www.iptvevangelist.com/2009/09/britain_approves_tv_product_pl.html Wed, 16 Sep 2009 08:46:42 -0500 The FCC has is launching an investigation to determine if there is "adequate" competition amongst carriers such as AT&T and Verizon. In the 5-0 vote, the commission will pursue such this question in addition to an investigation already underway to see if exclusive contracts, like the Apple iPhone with AT&T harms consumers. The commission with look into three areas of interest - The CC inquires about which analytic framework and data sources will most clearly describe competition in the mobile wireless market. - The inquiry will include new market segments not covered thoroughly in previous reports, such as device and infrastructure segments. - The vertical relationships between "upstream" and "downstream" market segments, and how these relationships affect competition. The release on the FCC site, does not indicate a forum for public comment though letters to the commission would be our recommendation. ]]> http://www.iptvevangelist.com/2009/09/fcc_probe_of_wireless_carriers.html http://www.iptvevangelist.com/2009/09/fcc_probe_of_wireless_carriers.html FCC mobile mobile handsets price fixing wireless carriers Tue, 01 Sep 2009 11:08:22 -0500

Other notable findings from June 2009 include:

81.2 percent of the total U.S. Internet audience viewed online video.

The average online video viewer watched 453 minutes of video, or nearly 7.6 hours.

111.8 million viewers watched 7.6 billion videos on YouTube.com (67.9 videos per viewer).

53.6 million viewers watched 524 million videos on MySpace.com (9.8 videos per viewer).

The average visitor to Hulu watched 10.1 videos, totaling more than an hour of videos per visitor.

The duration of the average online video was 3.7 minutes.

]]> http://www.iptvevangelist.com/2009/08/top_us_online_video_ad_network.html http://www.iptvevangelist.com/2009/08/top_us_online_video_ad_network.html Tue, 18 Aug 2009 09:09:01 -0500 an invitation to the private beta here. Screenshot of QuickFlix PHOTO: Courtesy Jinni is one of many promising early-stage companies funded and nurtured by the Startup Factory. This is a collection of Israeli and Jewish technology investors who provide critical investment and expertise to high-potential, early stage Israeli start-ups. Members such as Carmel Vernia (Chief Scientist from 2000-2002 in the government of Israel's Ministry of Industry & Trade) and Dr. Orna Berry (outgoing Chief Scientist and Director of the Industrial R&D Administration in the Ministry of Industry & Trade) take a hands-on role with Jinni. Yosi says "I have great respect for Startup Factory. They help Jinni and they help Israel." Jinni is building revenues from online video distributors, who share a portion of the transactional and advertising revenues. One notable customer is QuickFlix, Australia's largest online DVD rental service. The other revenue stream comes from licensing the technology to pay TV providers, such as cable operators, for TV based services like Video On Demand and Electronic Programming Guide. As for saving marriages, no direct revenue streams there, but you have to admit, it is a great perk. Now, if it could only be applied to solving other relationship issues. How it works: ]]> http://www.iptvevangelist.com/2009/07/unleavened_media_israeli_milit.html http://www.iptvevangelist.com/2009/07/unleavened_media_israeli_milit.html Israeli military technology Sat, 25 Jul 2009 01:11:40 -0500 Awhile back we did a review of the Sandisk Sansa unit and recently I came across and since I am not using am offering to anyone interested. Simply send an email with your name, business if you have one and I'll spin the random number generator to choose a winner, good luck Winner Update: 8/7/09 Congrats to: Eddy Carroll, CTO of Amulet Devices the winner of the Sandisk Sansa unit, enjoy..]]> http://www.iptvevangelist.com/2009/07/sandisk_giveaway.html http://www.iptvevangelist.com/2009/07/sandisk_giveaway.html Sandisk Sansa Thu, 23 Jul 2009 16:25:18 -0500 After moving to the US from Israel fifteen years ago, David Greenberg recalls needing to buy a present for his friend's five-year-old daughter. "She took me right to the Barbie section. When she started explaining it, I was absolutely blown away." The series examines socially divisive issues like religion, sex, drugs and immigration, through the eyes of these dolls, all within a story arc of 3-4 minutes. "The future of television is platform-agnostic. And like everything else in this digitally integrated universe, the idea is to create merchandising opportunities." The dolls were designed exclusively for the series. "Frankly," says David, "we would love to sell lots of dolls." While studios have long benefited from ancillary revenue streams, independent content creators like David Greenberg are beginning to recognize there really is something new under the sun- retaining merchandising rights. Maybe a family of dysfunctional dolls can save Hollywood. ]]> http://www.iptvevangelist.com/2009/07/pot-smoking_lesbian_dolls_conq.html http://www.iptvevangelist.com/2009/07/pot-smoking_lesbian_dolls_conq.html Wed, 15 Jul 2009 01:19:16 -0500 YouTube and other technologies are working hand in glove with people in Iran who want nothing more then the right of self-determination I find compelled once again to evangelize about the very technologies we often write and speak about with such casual affair. ]]> http://www.iptvevangelist.com/2009/06/the_revolution_is_brought_to_y.html http://www.iptvevangelist.com/2009/06/the_revolution_is_brought_to_y.html Wed, 17 Jun 2009 02:44:42 -0500 By Adrian Smith It seems everyone is banging on about monetizing original content on the internet. Is it distribution or is it content? Well, as a former CEO of both a major film studio and a "legacy" internet company once said: "When we had great pictures to market content was king, when we didn't distribution was." Although the esteemed gentleman made a salient point it wasn't hip to the internet world of self-production/self-distribution. Well, yes and no. If you are a major studio with multimillion dollar budgeted productions and equally expensive marketing campaigns it's really down to capturing the zeitgeist. There is no excuse for not having a well made production (given the budgets) nor is there an excuse for shoddy marketing given the role call of MBAs (this isn't to say that excuses aren't made). ]]> http://www.iptvevangelist.com/2009/05/no_honey_no_money_or_how_to_st.html http://www.iptvevangelist.com/2009/05/no_honey_no_money_or_how_to_st.html Tue, 12 May 2009 00:16:32 -0500