Erin McPherson, VP and Head of Video at Yahoo! To Keynote Streaming Show Next Month

Screen Shot 2013-10-23 at 2.51.13 PMOver the past year, Yahoo! has been making a big push into the video market, (licensing Saturday Night Live videos from NBC Entertainment) as well as creating and syndicating original content. So I’m very pleased to announced that Erin McPherson, VP and Head of Video at Yahoo!, will be the keynote speaker on day two (Nov. 20th) of the Streaming Media West conference. Come hear what Yahoo! sees as the future of online video consumption and learn more about their video licensing and content creation strategy.

Erin will be joined by more than 100 speakers from leading media, broadcast and MSO companies discussing the latest business, content and technology subjects around online video. You can register for an exhibits only pass and get access to the show floor, both keynotes and all the networking events, at no charge. And it’s not too late to get a full pass to the show, using my own personal discount code of DR13, which gets you a two-day ticket to the show for only $595. #smwest

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#smwest Presentation: Understanding the Significance of HEVC/H.265

sm-west-arowsThe most recent video compression standard, HEVC / H.265, is expected to become the video standard of choice over the next decade. But as with each generation of video compression technology before it, there are key barriers to widespread adoption. At the Streaming Media West show, taking place Nov. 19-20 in Huntington Beach, encoding guru Jan Ozer will outline how H.265 promises to reduce the overall cost of delivering and storing video assets while maintaining or increasing the quality of experience delivered to the viewer. His presentation will address what H.265 is, how it differs from previous generations of compression technology including H.264, key barriers to widespread adoption, and thoughts on when H.265 is likely to be implemented.

It’s not too late to get a pass to the show and readers of my blog can register using my own personal discount code of DR13, which gets you a two-day ticket to the show for only $595 and gives you access to 40 sessions and how-to presentations and 100+ speakers. You can also register for an exhibits only pass and get access to the show floor, both keynotes and all the networking events, at no charge. #smwest

Learn The “Best Practices For Live Streaming” At #smwest Show

sm-west-arowsAt the Streaming Media West show, taking place Nov. 19-20 in Huntington Beach, we have a session that will discuss tips and tricks, best practices, and lessons learned regarding the technical setup of live streaming production. Learn how to stream multiple formats, use social networking overlays and leverage adaptive bitrate streaming. Hear how live streaming is now largely being fueled by businesses using live video as a socially-fueled communications platform. Speakers in this session are the ones in the trenches, producing some of the largest live events you see on the web today. Confirmed speakers include:

  • Moderator: Jon Orlin, Executive Producer, TechCrunch
  • Alden Fertig, Sr. Manager, Product Marketing, Ustream
  • Bill McCandless, VP, Video Programming and Production, Bleacher Report
  • Jack Ferry, Independent Director & Producer
  • Chris Mangum, Sr. Digital Media Manager, Live & On-Demand Video Streaming, Yahoo!

It’s not too late to get a pass to the show and readers of my blog can register using my own personal discount code of DR13, which gets you a two-day ticket to the show for only $595 and gives you access to 40 sessions and how-to presentations and 100+ speakers. You can also register for an exhibits only pass and get access to the show floor, both keynotes and all the networking events, at no charge. #smwest

#smwest session: Online Distribution and Monetization Strategies for the TV Industry

sm-west-arowsThe Internet has disrupted nearly every facet of the TV industry, from programming to distribution to audience viewing. And while the networks still rule the living room, many of them are working to find their footing online. At the Streaming Media West show, taking place Nov. 19-20 in Huntington Beach, we have a session entitled, “Online Distribution and Monetization Strategies for the TV Industry“. In this session, we’ll explore some of the distribution options for those that want to bring their content to online audiences. The panelists will delve into the pros and cons of sharing content with YouTube, subscription-based services and syndication networks. They’ll also explore what kind of content—short form vs. long form—makes sense for each outlet. Confirmed speakers include:

  • Moderator: Peter Csathy, CEO, Manatt Digital Media
  • Mara Winokur, SVP, Starz Digital Media
  • Jessica Sutherland, VP, Content Development, USA Network
  • Paul Cochrane, Head of Entertainment and Lifestyles, Yahoo! Studios
  • David Tochterman, Head of Digital Media, Innovative Artists

It’s not too late to get a pass to the show and readers of my blog can register using my own personal discount code of DR13, which gets you a two-day ticket to the show for only $595 and gives you access to 40 sessions and how-to presentations and 100+ speakers. You can also register for an exhibits only pass and get access to the show floor, both keynotes and all the networking events, at no charge. #smwest

Level 3 To Surpass Limelight As #2 CDN In The Market, Based On Revenue

Late in 2010, Level 3 announced on their earnings call that they would generate about $60M in revenue for the year, from their CDN services. Since then, the company hasn’t broken out CDN revenue from the rest of their products but on a call with them last week, they gave me more insight into the growth of their CDN business. Since 2010, Level 3 has said they are growing at more than double the average industry rate of 15% a year. This means that Level 3’s CDN business has grown by at least 30% each year, for the past three years.

Based on a 35% growth number, Level 3’s CDN revenue was $71M in 2011, $96M in 2012 and is on a run rate of at least $130M for 2013. These numbers do not include the Vyvx portion of their business, which separately does more than $100M a year. While Limelight has not given out guidance for yearly revenue, the consensus from many on Wall Street is that Limelight will do about $177M in revenue for 2013. Last quarter, 36% of Limelight’s revenue was coming from what they call “value added services”, which is revenue outside of traditional CDN services. If that 36% number stays true for the remainder of the year and Limelight does $177M in revenue for 2013, Limelight’s CDN revenue for 2013 will be $113M.

A lot of vendors tend to call themselves the “largest” based on things like network capacity and number of customers, but the only real metrics that matter are revenue and profitability. Level 3 does not disclose the profitability of their CDN business, but being they own and operate their own network, they have a better shot at having a profitable CDN business than anyone else. Also, when the Comcast and Level 3 dispute was taking place, Level 3 went on record to say that they were making money on their Netflix CDN business, even with the added port costs from Comcast. So if they can make money on someone like Netflix, who has a very low price point, surely they are making money from customers that aren’t getting the lowest price in the market. Level 3 has had a lot of success in the media and broadcast markets, signing up customers like Apple, and with their Vyvx platform, they have the ability to control the customers content from creation to distribution.

Based on the revenue numbers disclosed by Akamai, Limelight, EdgeCast and now Level 3, it’s easy to call Level 3 the #2 CDN in the market, out of those four providers, based solely on revenue. But throwing Amazon into the mix makes things a bit cloudy. Amazon won’t give out any details on CloudFront’s revenue and it is possible they are generating more CDN revenue than Level 3. In 2011, Amazon announced they had more than 20,000 active (paying) customers, but customer count alone does not equal a lot of revenue. The vast majority of those customers aren’t the size or type of customers Level 3 has for CDN services, so even if they have more CDN revenue than Level 3, the amount of revenue they get from each customer per month is pretty low.

As an example, I am one of their 22,000 paying customers, but I spend less than $100 a year and use their service for small projects. So the real question about Amazon business is how much of their CDN revenue is similar to Level 3’s in size and scope. By my guess, less than 20% of Amazon’s CDN business could be compared to Level 3 in a true apples-to-apples comparison. Amazon has been doing a great job growing their CDN business and product capabilities, but I still don’t see them being involved in 8 out of 10 large RFPs I see in the market. Amazon still has a lot of work to do to improve their sales presence going after larger customers.

If 25,000 customers pay Amazon an average of $500 a month, Amazon would do $150M in CDN revenue this year and be larger than Level 3. But there are plenty of customers not paying that much each month, as well as customers paying a lot more. When I say CDN I don’t just mean video and there are all different kinds of streaming, downloads and small object delivery taking place across the CDNs. At some point, Amazon’s going to have to disclose some aspect of their CDN business, but until we know more, among the other four major CDNs, Level 3 has now taken over Limelight’s position as the number two CDN in the market.

Amazon Announces New Features In CloudFront Targeting Commerce & Retail Customers

On Tuesday Amazon announced they had added more functionality to CloudFront in a demand from commerce and retail customers. CloudFront has added support for five additional HTTP methods, including POST, PUT, DELETE, OPTIONS and PATCH. This means customers can not only download content using Amazon CloudFront, they can now also upload content to origin servers via Amazon CloudFront edge locations. This helps customers improve the performance of the dynamic and interactive portions of their websites for things like web forms, comment and login boxes, “add to cart” buttons or other features that upload data from end users. Customers have been asking Amazon for these additional HTTP methods for a variety of reasons:

  • To be able to serve their entire website through Amazon CloudFront, including the dynamic and interactive portions of their site (web forms, comments, login boxes, add to cart buttons, etc.) for which they use the GET, HEAD and POST methods.
  • Use an Amazon CloudFront edge location to upload/delete files in Amazon S3 (or another origin server) using the PUT and DELETE methods.
  • Deliver their API endpoints via Amazon CloudFront for which they use all the methods including PATCH and OPTIONS.

Amazon said they heard from many customers that they don’t currently use a CDN for uploads and thus need to manage multiple domain names for their web application plus suffer from slow performance when uploading content. Customers who do use a CDN for content uploads do so at premium dynamic content delivery rates and have to negotiate long-term contracts with other providers. Now with Amazon CloudFront, customers can use a single domain name to accelerate both downloads and uploads and data transfer prices for uploaded content are lower than the price for content downloads (unlike many of the other CDNs that charge premium rates for uploads).

Websites that need this functionality are typically in the shopping, travel, and financial services segments, but also news, media, advertising, gaming, and other customer segments. Over the past few quarters Amazon has been very busy adding a lot of new features and functionality to their CloudFront offering, especially for dynamic content. In addition to this week’s announcement, Amazon recently added support for custom error pages, configurable error cache duration, wildcard CNAME support, as well as new edge locations in Seoul, Mumbai and Chennai.

These recent additions, along with the ability to now upload content via CloudFront will help even more customers accelerate their entire website – static, dynamic, and streaming content – using CloudFront. Some in the industry still don’t give Amazon enough credit for what they are building with CloudFront as they think the service is only for “developers” or “small” customers. While Amazon does have a lot of those types of customers, it’s not the only ones they have. The company has a dedicated sales force targeting large customers for CDN and other AWS services. While other CDNs still have more functionality than CloudFront, every quarter that goes by, Amazon closes that gap by announcing the addition of more features. You can’t underestimate the impact Amazon can and does have, on any market they are in, and that’s only going to grow as Amazon’s CloudFront service continues to expand.

A Detailed Look At Instart Logic’s Technology & How The Mobile CDN Wants To Disrupt The Market

instartlogicFour months ago, I blogged about a new startup in the content delivery space called Instart Logic. Since then, I’ve gotten a lot of questions about how their technology works and how it compares to other CDNs in the market. These days, many find it hard to know exactly what kind of content delivery and acceleration services vendors offer, as many of them use different terms to describe their delivery services.

Instart Logic claims to have developed a new and unique approach to delivering web content faster to end-users. If the technology works as promised, this could signal a shift in the way web applications are delivered and it may change how the industry relies on edge caching, network acceleration, and full page downloads today. Instead, the industry could migrate towards newer types of web performance platforms that can make more intelligent decisions on how to order and prioritize pieces of an app or a site to send to a browser to improve user experience and diminish waiting time to first click.

Instart Logic’s approach also has the potential to better handle the higher levels of personalization we are seeing with dynamic sites and web apps, as well as the challenges that wireless networks are introducing into the delivery path. Instart Logic claims to be a full drop-in replacement for CDNs and the company clearly wants to compete with the likes of Akamai and EdgeCast. Whether or not they can do so at scale and performance is still to be seen. But keep in mind they don’t need to get to the size of an EdgeCast or Akamai to disrupt the market. Cotendo was only doing about $25M a year in revenue when Akamai acquired them, due to the pricing pressure Cotendo exerted on the market.

At a more basic level, Instart Logic is trying to solve several problems faced by content providers. The web is going wireless in a hurry with more and more users accessing sites from smart phones and tablets and they expect the same initial web site load times and rapid first-click response times as wired computers. They also expect personalization, social network integration, and other forms of dynamic data that are hard to cache.

The new generation of high-resolution displays on smart phones and tablets means that these devices can also display detailed HD photos. For visual segments like media and entertainment, travel and ecommerce, high quality images are absolutely critical to boosting engagement and ultimately revenue. Bigger images, more advanced personalization and more interactive content on web pages has resulted in rapid growth in the size and complexity of web sites.

The predominant focus to date of web performance companies has been to focus on wired era issues and reducing latency by caching pages and assets as close as possible to the end-user. The goal of this strategy is to minimize the number of lookups and round-trips back to origin servers. For mobile devices and wireless networks the focus has been to compress anything possible (images, JavaScript, and other static assets, etc.) to shrink the amount of bits that need to get pushed through a pipe with variable and unpredictable performance. Akamai has been promoting its adaptive image compression technology as a mobile solution in this space along with existing last mile asset compression technology.

Content owners say that if done incorrectly, some of these adaptations, including adaptive image compression, can have unpleasant side effects. For example, compressed images look particularly washed out and lifeless on Retina-class displays on smartphones. Worse still, some content owners are still loading mobile sites on larger screen tablets, subjecting users to really bad visuals.

Another tactic content providers use to speed up mobile user interactions is to reduce site complexity and quality themselves with simpler UIs, fewer images and less JavaScript. By minimizing the amount of data required to load a page on a mobile version site, publishers can load pages faster and allow users to interact more quickly with sites on mobile devices. But the downside is that users are less likely to click or spend time on boring, less dynamic, visually uninteresting sites that look like our desktop web sites from the late 90’s, albeit on a smaller screen.

Instart Logic claims to solve these problems by allowing content providers to deliver visually appealing and complex web experiences for mobile but with fast response times across all screens. Their system does this by intelligently prioritizing the order of web page elements (or pieces of those elements) delivered to a user’s screen. It does this by analyzing the different parts (images, HTML, etc) of a web page and studying how and in what order browsers load these parts. Instart Logic’s technology then divides the different parts of the website into much smaller fragments. Then it makes intelligent decisions about which fragments to send first and which to send later, all the while streaming first high and then low priority pieces into a browser continuously.

Instart Logic claims this allows users to quickly see and interact with web sites even with big images and heavily dynamic content. It almost sounds like the early days of streaming video, so here’s a bit more detail on the components of their system and how they work together to accomplish the speed gains.

  • The NanoVisor – This is a very small JavaScript virtualization layer that the company injects into the website as it goes through their service. This virtualization layer sits between the browser and web application and acts as a client for the client-server architecture that Instart Logic constructs from the user’s device up to their cloud based web application streaming network. The client-server architecture is the same as what RealNetworks and Adobe built for their own video streaming and windows application streaming technologies. But by using JavaScript and modern HTML5 technologies, Instart Logic does not require a user to install any software or change browsers.
  • The NanoVisor has two key functions. First it captures key information about how web applications load and which pieces are the most important to load first. It also acts as the receiver for a web application stream from the cloud part of their service. NanoVisor works on all popular HTML5 compliant browsers and across all devices. While Instart Logic primarily built its solution targeting the fast growing mobile and wireless device segment of users, the NanoVisor also works well on traditional sites used with laptops and desktops. While it could replace the existing use of a CDN it can co-exist with FEO systems or with in-house performance tuning because the NanoVisor and Instart Logic’s web application streaming network deliver performance on top of existing web performance changes.
  • AppSequencer – This is a cloud-based intelligence engine that does the analysis of the various website load patterns based on data collected through the NanoVisor. The AppSequencer will look at how a web application is loading on devices and build a profile for that application. The AppSequencer analyzes which images, HTML and Flash components need to render quickly for the user to see and begin to interact with a Web app. Then, the AppSequencer will fragment the images, Flash files, and HTML into smaller pieces. It then streams those components to the NanoVisor in order of priority, pushing the most important bits first. The AppSequencer can currently stream images, Flash, and dynamically generated HTML but they tell me they are working on other content types as well.
  • The Network  – Instart Logic has launched with 30 PoPs covering many of the major Internet peering points and their architecture is a hybrid with a mix of physical and cloud based locations. That’s less physical coverage than you get from Akamai or another very large player, but Instart Logic’s whole philosophy is to move away from the old-style big iron CDN approach because they believe the Internet backbone is more stable and much faster than when companies like Akamai came into existence. The company states that their network takes web publishers close enough to the vast majority of devices and users to deliver what is effectively the same origin-to-edge-of-network-performance for static assets. And they point out the problem is now on the wireless last mile beyond the reach of the existing CDNs systems.

So how would a web application load process look different running through Instart Logic’s web application streaming network compared to a CDN? A typical web app would pull all static components from a CDN edge cache only after loading all required HTML upfront, wasting precious time. It would then start processing all of that and then load up the site. It requires more waiting and much more data download just to get an initial display and allow interactivity like scrolling and clicking by the user.

In contrast, a web app served through Instart Logic’s streaming network would load the non-unique HTML up front, then the NanoVisor, followed by CSS and JavaScript components. Next, Instart Logic would load a portion of the first image a user should see on a page. It would then load the rest of the HTML and load up a portion of the other key images required for a user to get a full flavor of the page. At that point, the application is ready for user interaction. Instart Logic will subsequently stream down the remaining bytes of the images or Flash files in order of importance in the background.

To be clear, Instart Logic’s provides much of the functionality as a CDN. It has the capability to cache static assets close to the end-user and can deliver first and middle-mile network acceleration from the origin server to the edge. Instart Logic optimizes TCP/IP at the network layer to speed up HTML transfer. They also tightly manage connection settings between PoPs to save time by keeping connections open longer. But the real secret sauce is what happens in the last mile, which is where the client-server connection between the NanoVisor and the AppSequencer lives and where today’s CDNs have the least to offer. The full package is a replacement for CDNs (and ADNs), the company claims.

When I ran the concept by those who build out today’s leading CDNs, they said it definitely should work if executed well. The segments Instart Logic appears to be targeting are media, travel sites, game sites, and e-commerce sites. As I mentioned in my last post, I could see a noticeable difference in web performance in site load and response times, when Instart Logic’s execs demoed the product for me. Even more interesting, Instart Logic showed me before-and-after side-by-side demos on sites that aren’t even their customers, using live production sites pulled in through the Instart Logic service.

It’s too early to know whether Instart Logic’s technology can represent a true paradigm shift in the industry. But of all the startups in the space right now who are trying to solve some of the hurdles of streaming web applications to mobile devices, Instart Logic seems to be the most interesting. The company has recently announced its first set of customers with some case studies on their website.