Online video, online video publishing, streaming media, OVP, OTT, web television, video advertising, marketing, startups, gadgets, social media, videoconferencing, collaboration and related topics are discussed here. Thanks for stopping by the "Klessblog."
It was eight years ago today that YouTube's first video, Me at the Zoo, was uploaded by Jawed Karim on April 23, 2005. Karim had co-founded YouTube with Chad Hurley and Steve Chen just a few months earlier as a way to share videos with friends and family far away. The video is only 20 seconds long and was shot by Yakov Lapitsky at the San Diego Zoo, and little did the video creators know that it marked the dawn of the UGC (User-Generated Content) online video age. YouTube wasn't the first video sharing site, but since Google purchased it in November 2006 for $1.65 billion, it has revolutionized video sharing across the Internet and has become the top online video content property, with more than 1 billion unique users visiting the site each month.
Just last week, YouTube won its second legal battle against Viacom in federal court with the dismissal of Viacom's $1 billion copyright lawsuit. The ruling by U.S. District Court Judge Louis Stanton in New York stated that Viacom had never proved that YouTube was aware of copyright infringement by its users, and upheld his original ruling from June 2010 which leaves in place the current understanding of the Digital Millennium Copyright Act of 1998. Stanton also ruled that YouTube didn't act with "willful blindness" and had previously responded to Viacom's requests back in 2007 by removing 100,000 copyrighted videos a day after Viacom notified YouTube of the infringement.
Google Senior Vice President & General Counsel Kent Walker said that the ruling marked an important day for the Internet.
"This is a win not just for YouTube, but for the billions of people worldwide who depend on the web to freely exchange ideas and information."
Happy birthday to the first video uploaded to YouTube! While you're not too exciting, you started an online video revolution.
Also to those born on April 23rd, I want to wish a special happy birthday to my daughter Marley Rose, my niece Rebecca and my good friend Steve Dung, owner of Visions Plus video production service in San Francisco!
I'll be back soon with more online video analysis and video conversations.
According to Ooyala's Global Video Index, "2012 was another historic year in online television," and by 2016, 1.5 billion people will watch online video. Ooyala released its 2012 Q4 video index report last week, which measures the monthly viewing habits of nearly 200 million unique viewers in 130 countries. The report found several key trends of its video publishers reflects the overall state of online video, such as live video matters, premium content matters on all screens, larger the screen = higher engagement, branded video viewing and conversion rates surged during the holiday season, mobile and tablet share doubles, and iPhone users watch twice as much video than Android users.
Ooyala CEO Jay Fulcher says that three key themes stood out in the report.
"First, live streaming is the new norm. Online viewers tuned in to the Tour de France, Wimbledon and the U.S. Presidential debates right as they happened, and the data shows viewers watch live video longer on all devices. Second, Tablet TV is surging. The share of tablet video viewing more than doubled last year, as mobile, social and video converged on a single device. And Smart TVs and Gaming Consoles continue to change the way people watch TV. New findings in this Video Index show how viewing patterns change seasonally."
The Lines are Officially Blurred
"One of the most important takeaway of 2012, is that the lines between traditional media and streaming media are really starting to blur," says Ooyala Co-Founder and President of Products Bismarck Lepe.
It's not just about media being consumed across all devices, Lepe emphasizes, business models are also starting to blur. For example, Netflix is now going direct to consumers with original streaming content, and also going the traditional route by licensing its content to television companies in markets where it doesn't have a streaming business.
"We're probably going to see that 2013 and 2014 are going to be the tipping point period for this industry," says Lepe. "As technology improves and business models catch up to where consumers are obviously headed."
Video Consumption Trends Shift
Lepe says that for online video, we're in the middle of phase one and phase two. Distribution platforms like iTunes, Amazon and Hulu Plus have expanded their selection and made it easier to find and view premium content, replacing Torrent sites and the need for DVDs and physical media. The majority of streaming content is still consumed on smaller screens, but as more connected TVs make it into the home, people will move into the third phase of wanting to see streaming content on bigger screens, which is more of the traditional living room lean-back experience.
Ooyala sees a spike in mobile video in places where public transportation is more prevalent, for instance, in Japan video consumption on mobile and tablets is more than double of that of the U.S. Viewers are watching video on the screens that are most convenient to them based on the availability of content and quality of service.
Lepe also predicts that the smartphones war, between iOS and Android will shift over the next year to favor Android platform by 50%.
There's Still Work to Do
"There’s still a lot of work to do," Lepe says. "The industry has yet to agree on standards for online video ad measurement, making it difficult to demonstrate the efficacy of paid streaming content. Network speeds and data-caps also create institutional barriers between viewers and videos. In order for “online video” to fully transition to “online television,” media and technology companies must work together to find common ground in this new media landscape."
Lepe's view of the online video industry, and specifically, the online video platform market, is that we'll continue to see the cookie-cutter, templated video platforms trying to compete with YouTube for free.
"We're very focused on the top end of the market," says Lepe, "where half a trillion dollars changes hands every year, either with episodic television content or theatrical content – and these companies have historically worked with large systems integrators and consultants to build the spoke systems. But the problem with the spoke systems is that they solve the immediate problem, because there isn't a roadmap that supports the long-term trajectory of a particular industry."
Lepe says Ooyala remains committed to its primary mission, to provide value to its customers with video analytics and monetization tools to help them personalize the video viewing experience across all screens, maximize audience engagement and increase revenue.
Key findings from Ooyala’s 2012 Global Video Index
Live Matters
In Q4 2012, viewers watched live video 18X longer than VOD on desktops, 5X longer on tablets and 4X longer on mobile.
Premium Matters on All Screens
About one third of the total time spent watching tablet video last quarter was with premium, long form content running more than 60 minutes.
The percentage of time spent watching long-form video (over 10 minutes) on tablets increased 37% from Q1 to Q4 in 2012.
Publishers are fueling the growth trend by making more premium long form content available to consumers
Branded Video Consumption Surges Between Black Friday and Christmas Day
Conversion rates for branded videos jumped 91% from the start of the quarter to their peak in mid-December.
There’s a huge opportunity for retailers, e-tailers and consumer brands to connect with online audiences between Black Friday and Christmas Day.
Mobile and Tablet Share Doubles
Measured together, the share of all hours spent watching streaming video on tablets and mobile hones increased 100% in 2012.
Home (and Online) For the Holidays
Short-form video* viewing spikes on Black Friday and Christmas, presumably because people are unpacking and tinkering with new connected devices.
The amount of time people spent watching short-form video on Connected TVs & Gaming Consoles increased 500% in the two days following Christmas.
The share of time spent watching online video on tablets jumped 73% on Christmas
Phone Wars: iOS vs. Android
Although Android phones are outselling iPhones globally, last year Apple users watched twice as much online video on their mobile phones.
As we reach the end of the first month of the year, and look back on 2012, the future becomes more clear. In 2012, we saw much of the same activity in the online space as previous years, with more churn and consolidation, more funding and innovation, coupled with the exploding growth of online video consumption. The industry grew another year and took bigger steps to the future.
Viewing trends are shifting as distribution models change, with YouTube and Facebook dominating the media and entertainment space. According to comScore,"82 million U.S. Internet users watched 38.7 billion online content videos in December, while video ad views totaled 11.3 billion." While the average duration of online content video was 5.4 minutes, long-form content viewing also is growing with Netflix dominating the competition having record earnings 33 million subscribers worldwide (27 million in the U.S.) That's great news for the online video and OTT-video industry, because based on forecasts by Informa Telecoms & Media the global online video market will be worth $37 billion in 2017.
Roku's Anthony Wood says, the future of television is coming faster than you think and that not as futuristic as you'd think, where we'll be able to watch every movie ever made, in any language, day or night. Over the last year, Intel has been working on its own virtual MSO/cable TV service and will soon roll out its set-top and service box city by city. As OTT delivery and subscription models mature we'll start to see more content owners unbundle their offerings. Even HBO is pondering the possibility of a standalone offering which would challenge the status quo. But cord-cutters will have to keep dreaming for now, since cable and satellite operators will block the channel from going direct to consumers since it would cut into their subscription base. Also, stay tuned to what Netflix and Amazon are doing around original programming, which will cause further disruption to content subscription and distribution models.
While online video still remains a fraction of total TV and video revenue, it's growing, and online video advertising will continue to mature as marketers and publishers come to better understand video metrics. According to Frost & Sullivan, online video viewers are watching more video ads, but Ooyala's Bismarck Lepe maintains that the focus has to be about personalizing the viewing experience. he says, Advertising in Videos Could Be Better Targeted and It’s High Time We F**ked With the Magic. Lepe states that, "metrics that provide a more granular understanding of viewer preferences, behavior, device, location and other metrics can dramatically optimize online video advertising efficacy and reach."
As video gets more social, there's also been a lot of talk and jockeying about who will become the next “Instagram for video”, which Sorenson Media's Peter Csathy says, most mobile video “contenders” miss the mark, "because they fail to focus on the fundamental differences between video and still-image content." The real contenders can be identified "by three engaging content types", says Csathy. "Think of them as the three “M’s” that have a real chance to succeed massively at scale: music (a community of interest), meaning (social causes), and moments (private sharing)." With Twitter's release of Vine last week, iPhone users may have just met a new contender to apps like VMIX's video editing app Givit, but Csathy's verdict is that it's not "Instagram for Video" Holy Grail. If 2013 follows the funding trends of 2012, I'm sure we'll see a lot more competition in this space over the next year.
I caught up with Andrew Kippen, VP of Marketing at Boxee, earlier this year at OTTCON 2012 to talk about the future of television and how Boxee is reinventing broadcast TV. In January 2012, Boxee Inc. released Boxee Live TV, a new product that added live TV content from the big networks: NBC, ABC, Fox, CBS to the Boxee experience. According to Kippen, this $50 add-on solution to the Boxee Box combined the best of everything available Over-the-Top and live broadcast TV.
However, since my conversation with Kippen, Boxee discontinued the original Boxee Box it released in November 2010, to make way for a new streamlined $99 Boxee TV box, which was met with strong criticism from both Boxee users and technology blogs like Streamingmedia.com and Popular Science.
The new Boxee TV includes an an antenna to pick up live HD channels and added a subscription-based cloud DVR with "no limits" and built-in Internet apps like Netflix, VUDU, YouTube, Vimeo and Pandora. Boxee also struck a deal with Walmart to sell the new Boxee TV device direct to consumers in time for the holidays.
Kippen says that Boxee's major consumer markets are the U.S., Canada, Sweden, Germany, the Netherlands and is available in 35 countries, giving it a much broader footprint than other companies in the space.
In his recent article, Tim Siglin points out, that two main features of the new Boxee TV aren't even available in all markets.
"For the company to avoid disappointing customers again, it would make sense to have the most important features -- the USP, or unique selling proposition -- ready to go at product launch. Yet, the two primary features still aren't available, almost a month after launch: live television pause and cloud- or network-based DVR (nDVR).
Those two features, which the company touts as part and parcel of the "Boxee Rebellion" on its packaging, are not ready for widespread use. In fact, the nDVR functionality that Boxee calls unlimited DVR is only available in beta in eight cities in the United States: Atlanta, Chicago, Dallas/Fort Worth, Houston, Los Angeles, New York City, Philadelphia, and Washington D.C."
Siglin added that there's also a mismatch in the Boxee-Walmart retail strategy, because Walmart has a limited presence in many of those urban markets and faces a big hurdle to sell to sell the Boxee TV to its rural markets, where the unlimited DVR service is not yet available.
"As we begin service in these markets we assume there’s going to a few growing pains so we’re marking the service as BETA, but most users should have full functionality (and it will be FREE during this period)."
While Boxee continues to innovate its product and strike deals with content providers, many of its early adopters have expressed their frustration at being abandoned. The company started with an agnostic business model and a free software-based OTT social media center and devoted user community, but has phased out the software platform, and locked out popular features and development as the Boxee platform matured over the last few years.
"Our small team has poured our hearts and souls into the Boxee Box and it has been great to meet users from all over the globe. Some loved it, some wanted more features, others complained, but everyone was passionate. We hope you have enjoyed it and will continue to use it in your living rooms, dens, bedrooms or wherever else you set it up."
Kippen says that Boxee's focus has been to extend the feature set, streamline what they do to make it simpler and easier to use, and bring in as much content as they can. He says that the company has always seen Boxee as an ecosystem play.
"We want to be the experience that you have on your TV, on your mobile device, your tablet," Kippen says. "We could be on a set-top box, Blu-Ray player or game console. We really see Boxee as a great way to access all that content that's coming from the Internet, and now from your antenna or cable system. We do a great job of bringing that all into one place. So I think for us, we would really like to see Boxee in a lot of those different devices, and also powering more innovative experiences between different screens."
According to Kippen, it all comes back to storytelling, which has grown beyond the traditional linear narrative into a transmedia experience.
"How do we take storytelling to the next level to where it's more than just a TV show, more than just a website or an iPad app," asks Kippen. "How do we create a story arc that goes across all these different platforms?"
Kippen is confident that Boxee can be a great way to experiment and build those experiences out.
About Boxee
Boxee Inc. is helping people fall in love with TV all over again. We believe TV should be personal and delivered on your schedule. That’s why we created the world’s first cloud DVR that allows you to record an unlimited amount of TV programs to the Internet, and then watch on your TV, computer, iPad…pretty much anywhere. Boxee also lets you watch shows from broadcast TV channels and shows & movies from online services like Netflix, VUDU and YouTube. Boxee is made with love in NYC.
Earlier this year at OTTCON 2012, I met up with John Gildred, Founder and CTO of Silicon Valley-based SyncTV, to discuss how OTT video is replacing traditional broadcast TV. According to Gildred, media consumption methods are changing, and mobile devices and OTT video is the main driver behind the shift. OTT is on the path to replace conventional TV, but for now, it's becoming a strong supplement to legacy broadcast platforms. Gildred says, video is such a focal point of what's going on and live television is going to be a big component too. An important theme in 2012 is making Over-the-Top technology be suitable for a full multi-channel live television services, and VOD, network DVR, accessibility on any device with all the things you would normally expect.
Another trend, Gildred says, is that broadcasters and content providers will seek and leverage OTT cloud-based video services.
"They may know they need a CDN, they know they need an app, but they don't necessarily know how to tie the billing in and the customer management, and the entitlement and the DRM, and there's so many other pieces they don't always know they need to have."
Those other pieces include; flexible CMS, VOD and live transcoding, rights management, availability windows, billing, branded apps, analytics and integration.
"As more people begin looking for alternatives to bundled cable subscriptions, some networks are exploring ways to retain the attention of a changing viewer base. A few prominent networks have also released apps for connected- device and TV app stores." "New standards, like MPEG DASH, and initiatives allow digital TV – think digital cable – to be shown over the Internet, and on connected devices. The idea is based on the different ways in which viewers receive content into their homes. Some watch digital TV. Others stream content, but often to a computer, or computer or connected device (and the required pile of hardware and cables) hooked up to a TV. Hybrid broadcasting would allow viewers to watch all of their streaming and digital broadcast content through one device."
The SyncTV provides an OTT platform for broadcasters and content providers for pay TV and pay-per-view. Gildred has experience working with companies like NBC Universal; France’s largest broadcaster, M6; AVAIL-TVN; LimeTV. SyncTV is headquartered in Sunnyvale, California with representatives in France, Spain, UK, Japan, Singapore, South Korea, and China. Earlier this, SyncTV's parent company Intertrust Technologies Corporation, signed a patent deal with HTC, giving it a 20% stake in SyncTV.
About SyncTV
SyncTV and its content distribution platform offers video content and service providers a turnkey solution for extending their offerings to millions of viewers across the Internet. SyncTV partners with television networks, broadcasters, content distributors, and content producers worldwide to distribute media across all forms of entertainment media including Internet-enabled connected TVs, Blu-ray players, set-top boxes, smartphones, tablets, and more. In addition to Dream Link Entertainment, SyncTV works with many of the world’s top entertainment studios including NBC Universal, Jaroo, Kidlet, Wieder.TV, Aim Flicks, Oasis TV, The Concert Channel and Bollywood Nirvana. Based in Sunnyvale, CA, SyncTV is a subsidiary of Intertrust Technologies Corporation (www.intertrust.com. For more information, visit www.synctv.com or follow @SyncTV on Twitter.
