On May 19th, Google plans to announce a list of vendors in the online video ecosystem that will support VP8 on day one of Google's plan to move to an open-source video codec. Once the On2 deal was finalized, Google has been hard at work meeting with many different vendors in the online video ecosystem including video platform providers, encoding companies, hardware vendors and others to convince them to support VP8 in their product lines. So far, they have been successful in their efforts and have quite a few vendors who have agreed to support VP8 have been busy over the past few months building that support into their platforms.

In addition, I've also learned that some major content owners also plan to support VP8 soon after it becomes open-sourced and that while Google is not working directly with them, they are using the vendors in the video space to help convince them to encode to VP8. Things are going to get pretty interesting if Google continues to get vendors in the video eco-system to support VP8 and gets them to help push it to content owners.

Adaptive bitrate encoding methods are gaining traction in the industry as Apple, Adobe and Microsoft have all recently started offering new ways to encode and deliver video, including via HTTP. But what does that mean for the average content owner who is trying to figure out the best way to improve the viewing experience?

At the Streaming Media East show on May 11th and 12th, we've got a great session entitled "Understanding Adaptive Bitrate Technology And HTTP Video Delivery".  You'll hear directly from some of the platform providers and content owners themselves to see how this technology is impacting their content offerings and plans. We'll also get their guidance on best practices, cost and overhead considerations, and real impact to their users – and the bottom line.

• Moderator: Matt Smith, Senior Director, Systems Architecture and Strategy, Inlet Technologies
• Joe Inzerillo, SVP, MLB.com
• Shujaat Ali, Director, Digital Services, NBC Universal
• Glenn Goldstein, VP, Media Technology Strategy, MTV Networks
• Jeff Misenti, Manager, VP, Fox News Digital

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
DRF1, which gets you $200 off the ticket price.

Streaming sites like Hulu, CBS, ABC, and others have proven that savvy audiences are turning to their computers for entertainment, and in a way that's profitable. How are traditional and cutting-edge companies capitalizing on this trend?

At the Streaming Media East show on May 11th and 12th, we've got Dan Frommer, Deputy Editor for The Business Insider moderating a panel on "How Streaming Video is Changing The Television Landscape". The session will discuss how content owners are taking advantage of this connected platform and how online video based subscription offerings may affect cable
companies.

• Dan Frommer, Deputy Editor, The Business Insider
• Anthony Soohoo, SVP, GM, Entertainment and Lifestyle, CBS Interactive
• Nick Johnson, VP Sales, NBC Universal Digital Media
• Scott Doyne, Sr. Director, Business Operations, Turner Sports,
  NASCAR.COM
• Roxanne Austin, CEO, Move Networks

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 DRF1, which gets you $200 off the ticket price.

Recently I got my Netflix disc in the mail that enables me to stream movies to my Wii console but I've been too busy to even try it out. Yesterday, I got an email from Netflix telling me that if I use the disc and active streaming on my Wii within the next seven days, Netflix will give me a 10% discount on next month's bill. While the savings is not a big deal and amounts to just over a dollar for me, you've got to love Netflix's approach.

The whole idea behind this is that Netflix is pro-actively encouraging their customers to adopt the streaming service due to the positive impact is has on their business and the company is even willing to give customers some financial encouragement to follow through with the activation. Netflix did confirm for me that this applies only to the Wii and not to any other gaming console.

I'm going to activate Netflix on my Wii tonight, not because I can save a dollar, but because I want to support Netflix being so pro-active in getting customers to stream. To me, Netflix is like the Zappos of the entertainment industry where it's nearly impossible to be un-happy with their service. Yes, their stock price is crazy and hit a record high of $102.49 today, but they deserve it.

The day before the Streaming Media East show takes place, I've
organized a one day summit for Monday May 10th on the Content Delivery
industry (www.CDNsummit.com).
The summit brings together nearly all of the major content delivery vendors,
as well as telcos, ISPs and content owners to discuss what's taking
place with the infrastructure of online video.

Most of the speakers have already been placed, but I have a few speaking spots still available. Take a look at the below agenda and contact me ASAP if you think you have a fit for one of the panels. Recently added speakers from MTV Networks, MLB, Yahoo CDN, HD Cloud and Windows Azure will be joining Deutsche Telekom, Level 3, Verizon, AT&T, Ankeena, 3Crowd Technologies, Conviva, Limelight Networks, CDNetworks, EdgeCast, EPIX, Encoding.com,
Adobe, Tata Communications, Highwinds and Ustream.

CDN Data: Pricing, Contract, Volume and Market Sizing Trends
This presentation will share the latest data on the size of the content delivery market, as well as expected growth forecasts for both revenue and traffic volumes. Attendees will also learn the current pricing points for video delivery services and hear about the market drivers and trends that will determine what customers pay in the future. There will also be an extensive Q&A session, so this is your chance to ask any questions pertaining to current or future CDN pricing and market drivers.

HD Video and Live Streaming: Revenue Generator or Marketing Hype?
Large broadcast events have been the stuff of legend of the CDN industry, but to date, their impact on a CDNs' bottom lines hasn't been substantial. This panel takes a fresh look at large-scale live internet broadcast operations to learn about current technology trends, success stories, and obstacles facing large-scale live events and their future impact on the CDN industry.

Moving Beyond Video: Application Delivery and Dynamic Site Acceleration
As more CDNs look to diversify their revenue away from just video related content, dynamic site acceleration and application delivery are quickly becoming the next big thing. But with these product lines come questions around how the services are deployed, priced, and sold. This session will detail how these services work, what they cost, and what their value is to a CDN's product portfolio.

The CDN Ecosystem: Moving from Bit Delivery to Video Management
While video delivery is important, content owners continue to demand that CDNs provide more services outside of just pushing bits. Video platforms that enable customers to ingest, transcode, manage, and track videos are necessary for the true monetization of content. This session will discuss how the CDN market is evolving to address customer demands for these new platforms and debate why so many CDNs are still focused on the business of delivering bits when it continues to get further commotized each year.

CDN Economics: Consolidation And Evaluation
Analysts have widely speculated that we're going to soon see merger and acquisition activity grow in the CDN space, but to date, little has taken place. CDNs continue to raise large amounts of VC money, and each quarter more CDNs enter the market. What are the current valuations for CDN companies, and where will VC money be directed in the future? What types of deals are being pitched to bankers, which ones are they having the most success selling, and what are the characteristics of the ones they are searching for. Come hear speakers discuss the current M&A and VC environment  and assess whether the economics of the CDN industry make it ripe for rapid consolidation.

Cloud Versus CDN: Service, Technology and Pricing Comparisons
The battle lines have been drawn, with self-service cloud providers like Amazon Web Services going head-to-head against CDNs. This session will outline the pros and cons of each service and define the different types of delivery needs in the market. Come hear who we think the winners will be and whether you should buy or outsource your video delivery to a cloud-based or traditional CDN network.

Telcos and Their Future Role in the Content Delivery Business
While most telcos continue to re-sell or work pure-play CDNs, it's only a matter of time before they need to own the CDN product and jump into the market with both feet. This session will discuss what needs to take place in the market for the telcos to make an investment, what the service would look like, and whether they will buy, build, or invest in third party technology.

CDN Demos: The New Startups
Within the past year, a host of new companies offering different solutions in the video delivery chain have launched in the market. This special demo session will give three new companies in the space the chance to showcase their technology and answer questions about their solutions. Come see first-hand what they have to offer and bring any questions you may have, as these companies will join the moderator for a Q&A session after their demos.

Friend or Foe? MSOs, ISPs, and the Impact of TV Everywhere
As TV Everywhere services begin to deploy, some are questioning whether MSOs and ISPs will begin to bypass CDNs in favor of operating their own video delivery inside their network. Come hear about some of the different deployment models being evaluated, their impact on capacity planning, and whether or not services like TV Everywhere will change the landscape of how video is delivered amongst the networks.

Monetization and Video Advertising: The Holy Grail for CDNs
For all the buzz about online video advertising, most content owners have yet to be able to turn their online video from cost center to profit center. Still, strong signals suggest that video monetization is around the corner, provided content owners don't once again pull back in a tight economy. When will we reach that tipping point, and what direct cost and revenue impact will it have on the CDNs?

CDN at a Penny a GB: What's the Future of the CDN Business?
As the size of video files grows, traffic volumes increase, and monetization models take hold, the need for CDN services becomes even more critical. Yet in some cases, prices have already collapsed to the long-sought-after $.01/GB, which leaves little room for CDNs to make money. In this wrap-up session, come hear the debate on where the market is going, where the real opportunities lie, and what the disruptors will be-good and bad-for the CDN industry moving forward.

A reminder that readers of my blog can register for the CDN Summit for only $395 using the discount code DRF1

It seems every few months the blogsphere gets all worked up whenever a report comes out saying that Hulu's going to offer a subscription based model. Frankly, I don't see why it continues to get so much press as we already know Hulu plans to offer a subscription service. The company has already confirmed that it has been part of their plans from day one. Until they actually release it in the market, how many times can you write about or speculate on the same topic?  While today's report from the LA Times says the price will be $9.95 a month, the real debate should be what kind of quality consumers expect when paying for online video.

Of course, for any subscription based service, the inventory of content that's available is important. But there is no way consumers are going to pay for content on Hulu unless the company offers a better level of video quality with the subscription. That may be their plan, offer HD quality and use that as an incentive for people to pay for a better experience. But if Hulu doesn't offer content in at least 720p, users aren't going to pay to get the same poor Hulu video quality that exists today. Hulu's encoding only supports up to 480p and full-screen does not look great. I always get lots of stuttering, pixelation in scenes with fast movement and quite a bit of buffering. As we've see with other successful subscription offerings like MLB.com or the NFL.com, content needs to encoded at 2+Mbps, be available in at least 720p HD quality, and provide a very good quality of service.

Unless Hulu plans to add at least 720p support for their subscription service and make the user experience much better, they have no shot at charging anything for access to their content.

The past weeks' events surrounding the new language in Apple's iPhone Developer Program License Agreement — which prohibits developers from using such software as Adobe's CS5 suite for converting Flash content for the iPhone — have exposed the San Jose software giant's shortcomings in the mobile space. Interestingly enough, these problems for Adobe didn't pop up overnight or come about simply due to Apple changing their licensing language. Yet, because of Apple, it's caused a lot of people to realize just how late to the mobile space Adobe has been.

Over the past few months, I've spent a lot of time talking to current and former Adobe executives off-the-record who have revealed to me details regarding plenty of red flags in Adobe's mobile strategy which were brought to the company's attention years earlier. Those I spoke with agreed that Adobe's recent shift in management style and insistence on staying the course rather than adapting resulted in their shortcomings in the mobile market.

For many years, Adobe's rise to the top of the software industry was the result of having a vision for its products, not just sales goals. Former Adobe engineers I spoke with attest to the "good old days" when co-founders John Warnock and Charles Geschke roamed the office halls, tested products first-hand, and chatted with team members who were developing the company's industry standard software. This type of vested interest and on-the-ground awareness instilled a sense of camaraderie and motivated engineering teams to ship products that were the best, not just "good enough." Adobe made software with a clear goal of fulfilling critical needs for their users, and the entire company — from the top-level execs to the engineers in the design labs — were in sync with this common objective.

But within the past few years, Adobe's focus shifted from being at the top of its class solely to growing its bottom line. Cost-cutting became the company's priority as each year brought no less than 10% in staff cuts. Naturally, the engineering teams became demoralized as they knew every Q4, after they shipped the product they were working on and after putting in long hours, their jobs could be shipped out as well. The executive team's quality-killing concentration on profits started adversely affecting not only the products that made Adobe what it is today, but also its design strategy and adaptability to the changing industry.

Continue reading »