I’ll be moderating a session at Mediapost’s OMMA show in NYC on Sept. 25th entitled "Access and Activism: Harnessing Video Distribution and the Clip/Mash-Up Revolution". It’s being put together last minute so I’ve got the potential to add one or two last minute speakers to the round table panel. In particular I’m looking for content owners and/or agencies who can talk to the implications for content owners and producers to adapt to the Web 2.0 world of viewer control. If you’re interested in speaking, contact me now! Spots will be gone in a day or two.

In addition, if you know of someone who you think would make a good speaker for this panel and can introduce me to them, I’ll be happy to get you a free pass to the event.

Session Details:
Tuesday, Sept. 25th. 12pm-12:45pm

Access and Activism: Harnessing Video Distribution and the Clip/Mash-Up Revolution
How should content owners – used to placing tight controls on their content – adapt to the Web2.0 world of viewer control?  With digital distribution of top-tier video content expanding and new services and tools evolving to let viewers capture, clip and mash content – what are the implications for content owners and producers?  How "fluid" should the content economy become and what challenges (if any) does that pose for ad-based monetization?  Join a panel of programmers, distribution enablers, and agency executives to initiate a discussion of the coming age of "content malleability."

For many years, the online video industry has always had some who like to point to limitations on the technology as being the excuse and reason why the industry is not grow as fast as some may like. For years it was people complaining that video quality is not good enough, that it’s  too hard to deliver and too difficult to scale. Today, those arguments are no longer valid. The technology is here today to have great quality video, to deliver it with performance and to reach as big of an audience as today’s business models support.

But when it comes to online video advertising, there is a valid argument that the technology today does not have the functionality that is needed for us to see video advertising growth on a faster scale. Will we get there? Yes. But it’s taking longer than it should due to these ten technical and industry issues:

• There is no set standard for the length of an ad based on the length of the content. We all get ads at 10, 15 and 30 seconds in length for both long and short form content, with each content site doing it differently. And in some cases, like I outlined with Yahoo!, some sites deliver different ad lengths in the same piece of content. What a bad user experience. How can we expect viewers to get use to watching ads when the experience is different on each site?

• Many times, ads are delivered at a lower quality and smaller window size than the content itself. This is a trend I am seeing more and more of lately. I click to watch a video that is encoded at 300 or 500Kbps but the ad I get before it is only encoded at 100kbps and the ad only fills up a fraction of the video window. What a poor experience. For instance you are given a 320×240 window but then the ad shows up as 240×180. The only reasoning behind this that I can think of is that it’s cheaper to deliver the ads this way since they are at a lower bitrate and/or the agency encoded all of it’s ads at only one bitrate. It looks like crap.

• There is still very little being done in the way of targeted ads. Due to many technical issues, ads are still being churned out and delivered to web users with almost no insight into what the user wants to see or more importantly what the user should see based on their location. I always use the example of how I see Crispy Creme donut ads yet the closest Crispy Creme to where I live is 43.3 miles away in Milford CT. I know some ad platforms are doing more and more with targeting, but still not enough. This needs to be figured out faster. If you can’t deliver ads based on a persons interests, geographic location or even gender, then the majority of these video ads are completely being wasted. It’s no wonder the pre-roll ad format is dying.

• Reporting metrics. Where are they? It seems that every ad network I talk to all measures and records user metrics for ads very differently. What is the problem here? Not being able to give advertisers back the reporting they want, thereby enabling them to try and come up with their own metrics to judge if their campaign was a success or not is like shooting the industry in the foot. No service, product or offering is worth anything if you can’t give the person who is paying for it the data they need to analyze if they should keep paying for it. The ad vendors make this WAY too difficult. For instance, if you look at the top six to eight vendors websites who provide these services, why can’t you download a product sheet from their website that shows exactly what type of reporting is offered? Why are they hiding this info and keeping it mysterious?

• CPM rates. Ok so this one is not a technical issue but it is one of the biggest problems in the industry. Why is it that no one is willing to say what they get per CPM for online video ads? I ask content owners all the time, I ask the portals, I ask the major networks and to date, I don’t know of a single specific example I could tell someone of what the rate is. I could not point you to one major content owner and say I know what price they are getting for CPMs rates and no one shares this info. Yes, everyone says it’s between $10 and $60 and that’s completely useless. All of the major studios keep telling us how well they are doing online with their content and how well the advertisers love to sponsor it and how much growth they are seeing yet, none of them will give any numbers, to anything. Short-sided thinking folks. You know how many content owners actually have good content worth syndication or licensing but don’t as they have no idea what type of rates they can get? There is such a lack of information in the market for CPM rates and no one is doing any educating of the market. It’s a losing proposition for everyone when this information is hidden away as if it’s some sort of patented trade secret. They always have excuses like the one where the major broadcasters say advertisers are buying ads across many different platforms and they can’t break out the P&L from just one platform like the web. What crap.

I’m certainly not the first person to point out some of the technical problems the online video advertising industry is facing and I won’t be the last. We all see the potential that online video advertising holds and see the many ways that content owners and portals are embracing all forms of online video ads for pre-roll, post-roll, in page, in stream etc.

Part of the problem is the industry itself but a good deal of the problem lies with the technology of the entire ecosystem for video ad creating, selling, fulfillment, delivery and tracking. I’m as big a fan as anyone when it comes to ways that content can be monetized, but the industry as a whole needs to do a lot better job of working together to create as much in the way of standards as they can.

Last week was a busy one for news. By now, everyone has already read many articles about the Microsoft and Adobe announcements along with many other mainstream news from IBC. In addition to the major announcements, there were some news stories and articles less mainstream that I found of interest.

• From Rich Miller over at DataCenterKnowledge.com, which is a great blog about the data center industry, Rich has a post from last week entitled "Dueling Data on Volume of P2P Traffic" which talks to some new data released in the market that about what percentage of traffic on the Net comes from P2P. Lots of competing data, lots of different results.

• From the last100.com website, a post from last week entitled "11 video download stores compared" gives a good detailed overview of the services lack of innovation and technology choices on how they are implementing DRM.

• Scott Kirsner, who runs the CinemaTech blog is putting on a class entitled "Digital Distribution and Marketing" at The Film Arts Foundation in San Francisco. The class will be featuring a lot of case studies and Scott’s asking for help in spreading the word. I am always up for helping to promote anyone who is trying to educate the industry. Don’t know if Scott is still looking for good case studies, you can contact him at his website.

• There was plenty of talk last week about how the Justice Department said Internet service providers should be allowed to charge a fee for priority Web traffic. Some sites already covered the news, but if you have not read about, do so now. It’s important.

• Chris Albrecht over at NewTeeVee.com had a great post last week entitled "What Constitutes an Online Hit?" where he addresses the problem with the way video sites measure traffic. Chris addresses a great question and one that I have been complaining about forever when it comes to online video metrics. This industry lacks any and all standards.

Troy Dreier over at WebVideoUniverse.com published an except from the "Hands-On Guide to Flash Video" book, by Stefan Richter and Jan Ozer, which looks at the history of Flash video and how it started life as an animation package called SmartSketch, to it’s current incarnation at Adobe (ADBE) today.

Makes for some interesting reading if you want to learn how Flash started and the steps it took to evolve into the platform it is today. You can read more details about the book and it’s table of contents on Amazon.

Love it or hate it, the topic of P2P delivery has been coming on strong over the last twelve months. While our industry has been talking about P2P for many years, this year we’ve seen many signs of actual adoption on the way. As I outlined in a post back in April entitled "P2P Delivery Networks Can’t Survive On Their Own" the biggest thing stopping P2P from becoming a mainstream product is companies thinking of it as a replacement for CDN, as opposed to a compliment. That is about to change.

By the end of this year many of the major CDNs will announce a hybrid CDN/P2P service for customers who want to leverage P2P in situations where it makes sense. No one solution of any kind works for all customers and for all types of content, so it’s only natural that CDNs are going to be forced into offering the widest selection of delivery options possible. While these P2P services may not be commercially available until early next year, expect to see three or four of the major CDNs announce a service sometime in the fourth quarter. I won’t say what companies are launching, when, and with what P2P technology or platform as I am not at liberty to share the details I’ve received from multiple people, but the service is on it’s way sooner than people may think.

For content owners and CDN providers, this is a good thing. What content owner really wants to deal with how their content is delivery and the protocol or technology used? They want it delivered to the right user, at the right time, to the right device and for the right price with performance, which is defined in many ways. And for CDN vendors, why not give customers more options and potentially different levels of performance and price?

This will be a positive step in the right direction for all involved as with choice comes more adoption and with more adoption comes more growth.

Other P2P Posts

– Confusion Reigns Supreme When It Comes To P2P Delivery Networks

– Do P2P Networks Really Support Streaming?

– P2P Delivery Networks Can’t Survive On Their Own

– Online Video Distribution Requires A Hybrid Approach

– Carriers Speak Out On Peer to Peer

I had a last minute cancellation from a round-table panel at the Streaming Media Europe show taking place in London next month. If you are interested in taking on the role as moderator for the below panel, please contact me ASAP. This is open to everyone, vendors included. The first qualified person to write in gets it. Thanks.

Friday, October 5, 2007
3:00 p.m. -4:00 p.m. – B204
From the Web to your TV: New Media Delivery Revolution
AppleTV, TiVo, Slingbox and a host of other hardware and software products are starting to deliver new media content from the Web to TVs. Learn what latest devices are being used to deliver consumer content and find out how content creators big and small are utilizing these new tools. Also discussed will be how online content is being treated differently from traditional broadcast content and what potential business models are being created for the monetization of consumer content.

This morning, The Wall Street Journal is reporting that Thomson has acquired SyncCast Corporation for an undisclosed amount. California based SyncCast is best known for providing tailored digital rights management solutions to customers in the media and entertainment industry since early 2001. While SyncCast really focused on building products for the protection of digital media content and the entire ecosystem around protected media, they also distributed content via their regional content delivery network.

While terms of the deal were not disclosed, my guess is that it was less than $30 million.