Digital Media Update

Online Vid Expert Jan Ozer's "Buyer's Guide" for Software Encoders

2012-02-24T07:34:00.006-08:00

Yesterday, online video expert Jan Ozer published his "Buyer's Guide" for software video encoders, which features Sorenson Media Squeeze desktop and server products, as well as the products of Telestream, Adobe and Apple (and gives a feature-by-feature comparison).

Definitely worthy of a read by all video professionals -- and an objective assessment of how we stack up against the competition. Here is the link to Jan's free and highly informative analysis/report.

Tweeter Csathy -- My Goal to Inform & Amuse

2012-02-24T05:43:00.003-08:00

I am an avid blogger and tweeter, as many of you know. Have been for years.

On the blogging front, I am nearing 1,000 posts -- and I am gratified to now have over 400 followers on Twitter. That's a lot of early mornings, as I drink my coffee, scour my "go-to" sites -- and select what I believe to be interesting, amusing, or simply intriguing topics in digital media, technology ... but, yes, also music and everyday life (and the sorry state of my Minnesota Vikings). I also add to sprinkle in a bit of breaking news from my own company, Sorenson Media -- but, I am absolutely committed NOT to make my blog and tweets my company's soapbox. It is intended to be a general purpose source of information -- amusement -- and perhaps a few nice music nuggets/recommendations that you can check out every now and then.

Here are my everyday "go-to" sites -- in the relevant order I generally peruse them:

-- TechCrunch -- still the "bible" in my book, even with recent soap opera

-- Gigaom -- a worthy second on the digital media/tech front

-- Dan Rayburn's Streaming Media blog -- one of the foremost online video experts

-- FierceOnlineVideo -- overall weekly compilation of online video news

-- Mashable -- general "go to" source of tech ... but much more ...

-- Wall Street Journal -- scandal-ridden of late, of course, but still the WSJ

-- Matt Taibbi's Blog (Rolling Stone) -- my favorite muckraker of the day on overall politics, big bank financial machinations and greed -- always entertaining, always controversial, but always insightful -- he wields a sledge-hammer (not a scalpel), but his P.O.V. is one that frequently rings true ... MUST check him out (but be prepared ....)

-- Jon Stewart's Daily Show -- muckraking with a hilarious spin ... always! Yes, it is comedy, but it is significantly more insightful and informative (and entertaining) than any other video "news" -- mandatory viewing ... for me

Throughout the course of the day, I certainly am exposed to several more.

I do my best not to simply repeat news -- even in my tweets, I try to add my own "spin" to the info nugget.

Citybot -- Founder Institute San Diego's Pitch Night Winner

2012-02-23T13:00:00.000-08:00

A couple week's back was "Pitch Night" at the San Diego chapter of Silicon Valley-backed incubator, Founder Institute. 6 start-ups competed to win the prize in front of a panel of 5 judges, "American Idol" style. I was one of those judges (along with good friend Kevin Hell, DivX's former CEO and currently CEO of San Diego incubator EvoNexus) and am also a Founder Institute mentor.

So, there we were -- our mission, should we choose to accept it -- was to (1) listen to each company give a 5 minute pitch and demo of their product or service, (2) ask questions, (3) score each pitch on a scale of 1 to 5 -- although our "3's" were taken away so that we were forced to take a stand, and (4) give individualized feedback. To build suspense, we literally used paddles with numbers on them as our scoring mechanism -- and each of us 5 judges lifted our numbers at the same time (so that we couldn't "cheat" by looking at any other judge's score). 5 judges -- with 5 being the highest possible score -- meaning that 25 was the highest possible number. (I personally gave out only one "5", two "4's", and 3 "2's.")

The big winner? Citybot with a score of 21. Check out Citybot (you can sign up for the beta of their mobile app). This one feels real -- it is a mobile application that enables travels to plan their trips over 100X faster using artificial intelligence algorithms. Sounds dry? It's not. Think of it this way -- you are in a city on a biz trip -- you have 3 hours to kill, but don't know where to go. Add some preferences with a couple clicks and, bam, Citybot instantly churns out a personalized itinerary -- complete with directions, descriptions, etc. Very cool -- I would use it. And, Citybot's co-founder & CEO, Greg Solovyev, gave a textbook pitch. He knocked it out of the park. Priceline, Expedia -- take note. And, VCs -- take a look at this one. I certainly would.

Second was Wembli, which scored a close second with 20 points -- and the only time that all 5 judges gave the same score (doing the math, that's a 4 from each of us). Wembli enables users to shop for events with friends -- like a U2 concert -- and buy tix together, parking together, restaurant reservations, etc.

Cluster, an interactive website that gives users the power to turn their memories (photos, etc.) into stylish personalized canvas wall art, came in third with a score of 18. For the family archivist, I could see this take off -- but, not sure if it can be a stand-alone business. I could see it as an incremental monetization opportunity for a company like Shutterfly (which also happens to be a partner of ours at Sorenson Media).

CayaViV came in 4th with 15. This is a company literally on a mission to help breast cancer survivors restore their self-image and vitality with an application that tracks and measures variables that cause poor self-image, gives tools to counter-act that, and gives much-needed "community." All judges saw the opportunity, but we didn't understand the business model and monetization path ... yet.

Coming in 5th was Cameo with 12 points. Cameo is a mobile application designed to help vintage shoppers and vintage store owners connect. Yes, the market opportunity here is surprisingly massive (apparently vintage is a $60 billion market), but so is the competition -- which includes behemoths like eBay. How can Cameo break through this noise?

Finally, Foodsavvi, a company geared to help restaurants connect directly with potential customers by featuring their best dishes across web and mobile applications, finished 6th with 11 points. Many of us (myself included) simply were confused. There may be something here, but it was lost in an unfocused sprawling pitch.

All in all -- great experience. And, congrats on all of these entrepreneurs -- it was a tough venue and tough audience. I give each of them a lot of credit for putting themselves out there and believing in themselves and their vision. After all, this was only one night. All should keep striving.

Google Becomes Virtual MSO -- REAL Google TV Is Nye

2012-02-23T05:23:00.000-08:00

Breaking news -- while I have long expected Google, Amazon, Apple and others to officially enter the "real" TV distribution business -- Google is striking first. The age of REAL Google TV is nye. And, Google will become a true virtual MSO soon -- with its first roll-out, as anticipated, in Kansas City, Missouri.

Virtual MSO, what is that? Think of offering a true cable programming package -- including live linear TV stalwarts such as ESPN -- but doing it over the Internet (with Google being the packager of the programming, while the cable company being only the "dumb pipes" on which that programming flows). THAT's a virtual MSO.

Yet more challenges to big cable's ongoing struggle to hold onto its long-established programming business model.

(On the other hand, the content providers are loving this proliferation of distribution outlets -- more and more monetization!)

Comcast Remarkably May Use Competitor Pipes to Fight Netflix -- Doing a Tom Petty

2012-02-22T05:26:00.000-08:00

We've all listened to Tom Petty's classic hit "I Won't Back Down" in moments of defiance. Comcast apparently has too.

Not satisfied with being relegated to "dumb pipe" status -- despite a strong business case for focusing on the provision of higher-margin broadband services -- Comcast has entered the ring to fight Netflix head on. In the challenger's corner, we have Comcast's new hoped-for Netflix killer, "Xfinity Streampix."

Comcast's new service goes well beyond its current video-on-demand offerings for its subs. Netflix-ian content will be available on demand (think of TV back catalog, etc.) both on TVs and Internet-connected devices. And, Comcast is charging $4.99/month versus Netflix's $7.99/month for a similar offering -- although, those customers in higher-paying cable content packages will get this new service for "free" as part of their overall Comcast subscription.

Not convinced yet about Comcast's passion to win here? Here's the kicker. While Comcast is launching its new service only to its current cable customers (i.e., in those territories in which it provides cable services), the company has negotiated nationwide content distribution rights. That's right, Comcast will now be able to expand its physical footprint to the entire U.S. -- just like Netflix and others do. That means -- yes, you guessed right -- that Comcast ultimately can (and will!) become an OTT service riding on the broadband of competing cable companies!

Chew on that for a second! Comcast has fought tooth and nail for years with Internet TV/OTT services like Netflix and Hulu -- exerting tremendous pressure on content providers NOT to provide their content to those services which disrupt its own biz model. And, Comcast, of course, launched its closed "TV Everywhere" IPTV initiative (as did other big cable companies) to limit the online availability of that premium content only to those customers already paying for cable.

Xfinity Streampix has the potential to cast all that history aside -- and using the broadband services of competitors to boot! If you can't beat Netflix, join 'em!

This may be a smart move -- especially because Comcast also is a major producer of premium content of course (NBC Universal) -- but that makes it no less remarkable. Comcast's new Xfinity Streampix service has the potential to represent a remarkable 180 degree turn of events.

Comcast has a "dumb pipe" complex -- let's see if this ultimately is a smart move ....

More Proof That Providing Dumb Pipes Is Smart ... Very Smart

2012-02-21T07:24:00.001-08:00

I have written previously about the smartness of cable companies focusing on providing so-called "dumb pipes" -- i.e., broadband -- despite more press being written about those companies losing content subscribers. In fact, I wrote about this very topic last week as well.

Here's more proof of why that is smart, very smart. In a statement issued by broadband provider Hong Kong Broadband Network (HKBN), as reported initially by Gigaom, the company stated that it "embrace[s] Over-The-Top (OTT) content providers who help fill up our excessively Big Fat Dumb Pipes. We happily co-exist with OTT providers ...."

Now THAT's the spirit! Why? Because the margins for providing broadband are significantly higher than margins for providing cable content packages themselves. For HKBN, it reported a healthy 17.5% return on equity.

As HKBN points out, its broadband biz benefits brazenly by the beautiful bounty of accelerated growth of online video -- which requires fatter and fatter pipes. The more compelling content that is out there, the more consumer demand for fatter pipes. And, the fatter the pipes, the more creation of compelling OTT video content.

It is a beautifully synergistic world. Kumbaya!

Online Video January 2012 Metrics -- comScore Style

2012-02-21T06:45:00.000-08:00

Industry leading measuring firm comScore just released its January 2012 online video metrics -- which, again, not surprisingly reflect the relentless growth of online video. Here are salient numbers for the month of January:

-- 181 million U.S. Internet users watched 40 billion videos online

-- this represents 84.4% of the U.S. Internet audience

-- Google sites (primarily YouTube) led the way with 152 million unique viewers

-- VEVO was a surprising second with 51.5 million uniques, Yahoo! sites third with 49.2 million

-- average viewer of online video watched 22.6 hours of video online -- think about that!

-- VEVO finished with the highest engagement of any site with 62 minutes per viewer

-- the average online video was 6.1 minutes in duration

-- Americans viewed 5.6 BILLION video ads in January (2.3 billion video ad minutes)

-- Hulu delivered the highest frequency of video ads to users, averaging 43 per viewer

-- video ads accounted for 12.2% of all videos viewed

Silicon Valley's Ski Week -- Should Have Been Last Week

2012-02-20T05:24:00.000-08:00

Shhh ... do you hear that uncharacteristic silence in the sacred halls and offices of Silicon Valley VCs and tech companies? Today is President's Day -- and that means that today marks the official beginning of Silicon Valley's annual rite of passage for families called "Ski Week." You see, many schools in the Valley (and elsewhere) are off for the entire week for winter break -- and many flock to the slopes. And that means crowds. Huge crowds. And that means long lift lines. Very long lift lines. And that means less skiing. Much less. And that means frustration. Much frustration.

All of this could have been avoided, of course, if families jumped the gun and attacked the slopes last week. Which is what my family and I did ... thanks to our school in North County, San Diego which took last week off. We have school today on President's Day as a result, but that is a small price to pay for having the mountains of Deer Valley virtually all to ourselves. And with fresh powder to (ski) boot!

Smart. Very smart. And, much more family harmony ....

[NOTE TO MY DIGITAL MEDIA/TECH READERS -- I rarely write about personal "stuff"; but, indulge me for this rare time. Having a personal life IS important -- even in the tech world! And, it was priceless seeing my two kids, Hunter & Luca, attack black diamonds and double blues for the first time! Trust me on one more thing -- ski week is a significant gathering of the Silicon Valley/tech "tribe" in all of the various slopes on the West Coast. The tech world will be much quieter this week.]

VIDEO -- L.E.D. Snow Boarder -- Glowing ...

2012-02-17T06:16:00.000-08:00

Just finished 4 days of skiing in Deer Valley, Utah with my family. Inspired by this video -- check it out.

Cable Companies, Don't Fear the Reaper (of OTT Video)

2012-02-16T05:32:00.000-08:00

Cable giant Comcast just reported its financial results. And, guess what? Despite all the sturm and drang about over-the-top (OTT) premium video services like Netflix and Hulu cannibalizing its subscription content distribution business, Comcast did just fine. Specifically, Comcast reported healthy profits -- 26% increase in profits from one year earlier.

How did that happen?

Yes, Comcast continues to shed TV subscription customers. But, Comcast's core broadband business -- i.e., so-called "dumb pipes" which carry that video -- is expanding markedly. Comcast added 336,000 high-speed Internet subscribers in its last quarter. And, importantly, Comcast's profit margins for its broadband business are significantly higher than margins in its content distribution business (I have previously written about this).

The accelerating consumer demand for broadband-intensive OTT premium video -- from the growing list of behemoths (Netflix, Amazon, Hulu, Vudu, Google/YouTube) -- will only continue this trend for big "dumb pipe" providers like Comcast.

So, enough with fearing OTT video cannibalization. Providing dumb pipes seems pretty smart to me ....

On Vacation on Valentine's Day With No Cards in Sight -- egreetings To the Rescue!

2012-02-14T05:37:00.000-08:00

So, here I am with my family on a long-overdue ski vacation in Deer Valley, Utah. The conditions are epic -- fresh powder. Everyone healthy. My two little ones, Hunter (12) and Luca (9) are skiing with my wife, Luisa, and me for the first time -- and are all over the mountain (in a good way)!

But, today is Valentine's Day of course -- and there ain't a card store in sight. So, what's a husband and father to do? Well, being in the digital media world, how about good old-fashioned online greeting cards from egreetings! Yes, that egreetings. Not exactly the most emotional or deep alternative, but still at least something.

Here's the crazy part, I haven't sent an egreeting since late 1999, after I left my long-time gig at Universal Studios and began my permanent joining of the land of the Internet/digital media/technology world -- beginning with ... egreetings (yes, that egreetings)! I joined egreetings in late 1999 right before its much anticipated and high profile IPO which, ultimately, fizzled and was one of the first real bellwethers of the coming web 1.0 crash. And, I stayed for a blip after I received my first offer to run (as COO) a real viable and innovative digital media company -- eNow (which later became Relegence and was ultimately acquired by AOL).

Egreetings -- my digital media/technology journey began there. I guess my egreeting card to my wife and kids is meaningful after all ....

The Fisker Karma - Not Just THE Ultimate Driving Machine -- It Is the Batmobile!

2012-02-08T04:00:00.000-08:00

Move over BMW. Move over Porsche. Move over Mercedes, Ferrari, Lamborghini.

Make room for Fisker's "Karma" -- the most incredible hybrid -- scratch that, automobile -- you will see on the road today. And, of course, it is funded by Silicon Valley tech titans, including Kleiner Perkins (private funding of over $500 million), as well as hundreds of millions more in government loans.

I know, I know -- Tesla is the tech/digital media darling car. And, yes, it is cool, very cool.

But, Fisker's Karma is akin to an Apple product -- it is the automobile equivalent to an Apple product -- it is absolutely beautiful, sleek, stunning ... and the overall user experience (i.e., the drive!) is intuitive and incredible.

I now know this because I experienced the Fisker "experience" first-hand. No, it isn't my car. No, I did not test drive it. But, someone I do know has one -- and I experienced it as a passenger -- and I am sold (and I'm not even that much of a car guy).

And, oh yes, once again, it is a hybrid. It is smart. Very smart.

Here's one thing that blew me away -- the Karma's cost. I had thought it would be at least $150K (like all other ridiculously overpriced so-called "ultimate" driving machines). But, no -- substantially less at a bit over $100K. Don't get me wrong, I have no plan to spend that kind of cash to buy a car. Still, that massive sum of money is not that much more massive than a fully loaded BMW 750. And, the Karma blows the 750 away in every single respect.

The Karma, in a word, is the batmobile. That's what it looks like. That's what it drives like. And, that's the impact it has. It is other-worldly compared to all other cars I have seen and touched. Like an Apple product, it represents the seamless embodiment of art and technology.

And, to think, this is just the beginning for Fisker -- this is v1.0.

I am a believer ....

You Down With O.V.P. (Yeah You Know Me) -- Or, A Tale of Two $300 Million Exits

2012-02-07T02:39:00.000-08:00

Lots of activity in online video platform (OVP) land, as investors' quests for exits heats up. The pitch is inspired by Naughty By Nature's classic early '90s song, "O.P.P." (lyrics here) and its memorable chorus echoed in my headline. (By the way, for you trivia fans interested in what O.P.P. means, check out Wikipedia).

First, as you all likely saw, the OVP world's original gangsta' -- Brightcove -- just filed its amended S-1 in preparation for its upcoming IPO. The company, which ended 2011 with $63.6 million in revenues, hopes to raise up to $70 million at a valuation somewhere in the $300 million range (which represents about a 5X multiple on trailing revenues).

Second, from the "Somewhat Surprising Move" department, Barry Diller's IAC is looking to sell a significant share of rival OVP old-schooler, Vimeo. Vimeo targets a very different market than Brightcove, and apparently -- and very surprisingly -- only generates $5 million in revenues. Yet, despite this huge revenue gap between itself and Brightcove, Vimeo values itself at $300 million as well. Hmmm, let me do the math here -- that's a fairly healthy 60X multiple.

Expect more OVPs seeking exits throughout the course of the year in one shape or form. And, don't be surprised if one of those is Brightcove's biggest rival --- Ooyala. Not original gangstas. But, their moves make them rise with a bullet on the charts. Ooyala v. Brightcove is a classic case of West Coast v. East Coast rap -- Silicon Valley (at least, originally) v. Boston -- yo! (As in OVP IPO, yo!)

One more thing -- if you want to see a train-wreck of Founder behavior, read the comments to the Vimeo post by Vimeo founder -- unbelievable that a Founder would act this way at any time, let alone in a public forum like that! Sad, sad, sad ....

Apple Schooled Music Execs -- Lessons Learned for Online Video?

2012-02-05T22:03:00.000-08:00

I wrote this post for TechCrunch, which published it today -- on Super Bowl Sunday of all days (a bit overshadowed, don't you think?)! I actually really like this one -- and put some real time into it. It covers all the bases of my perspectives from my 20+ year careers. The content owner/licensor's perspective (my time at major studios like Universal Studios), and the online distributor/licensee perspective (online music pioneer Musicmatch, and online video innovator Sorenson Media).

Apple’s all-in-one physical flat-screen iTV is coming, make no mistake. And, when it does, it will represent Apple’s attempt to reinvent the television experience in much the same way it did for music. But, while media execs were hopelessly naive in Apple's presence back then, they feel they are ready this time. They are determined not to let Apple rule the premium online video world like they did (and still do) for online music. The question is, do they have the will?

Apple will, of course, follow its established playbook – which most CE companies inexplicably still do not follow -- and seamlessly marry its beautiful hardware (the iTV) with its underlying software and services (in this case, movies and television) in the same way it did with music via the iPod and iTunes. Apple’s goal is to be the center of the online movie and television universe for consumers (just like it is for music). Yes, content is king to Apple, but only because content serves as the Trojan Horse consumers ride into Apple’s kingdom of riches (initially Macs and iPods, and later iPhones, iPads and the inevitable iTV).

There’s the rub. The content king-makers – motion picture and television studio execs – now know this. They have seen this movie before, and this time they are determined to monetize content more directly for content sake – for themselves. Apple transformed itself into the #1 most valuable global company and juggernaut that we see today precisely because those media execs handed Apple the keys to unlock music value in the online world. Steve Jobs wooed them with his charms, pitched a great story, and established the rules of the online music licensing game. Apple’s massive growth in the past decade all started there with its iPod-iTunes 1-2 knockout punch. That, in turn, led to the resurgence of Macs, which led to the iPhone, then the iPad. Apple would be a very different company today if didn’t get the music it needed 10 years ago.

And, how did Jobs’ playbook work out for the labels and musicians? Not so well. Online music sales (and royalties) were an asterisk next to iPod sales. Don’t get me wrong. Rampant piracy – and the music industry’s misplaced attack strategy – destroyed significant content value. Nevertheless, the music industry’s negotiations with Jobs one decade ago resulted in a massive transfer of value and wealth to Apple.

So, what lessons have media executives learned from this past decade?

Lesson #1 – Dictate the Rules of the Game, Rather Than Have Them Dictated to You.

Music execs were on their heels reeling in fear when Jobs approached them a decade ago with the promise of iTunes. They had no real experience with the Internet. They certainly had no experience with technology (many still do not) – and how it could be used for both good and evil. Piracy was rampant. Napster ruled the day (the bad one, not the good one). Kazaa’s Niklas Zennstrom was public enemy #1 (now of course he is a media insider with Skype, Joost and others). The music industry was understandably panicked.

Jobs promised a way out – under three conditions. First, Apple must be able to sell individual tracks unbundled from albums. Second, its price for those unbundled tracks must be $.99 each. Third, Apple must define and control the entire online music experience. The music industry capitulated, and these 3 commandments are fundamental rules of the game that still largely rule the day.

Well, those rules haven’t worked out too well for music creators and owners. Lesson learned. So, one decade later, media execs are striving to proactively dictate the value of their content and support multiple online experiences and business models. But, even now, they frequently significantly under-value their content. More on that later.

Lesson #2 – Never Again Put Too Much Power in the Hands of One Distributor.

Prior to iTunes, piracy was rampant, and only relatively small players (including my former company, Musicmatch) played legitimately in the online music world. Amid this backdrop, media execs empowered Apple to be the first and only established online music source and experience. As a result, iTunes incredibly still commands 60-70% of all online music sales. That represents incredible power in the hands of one. It represents a downright monopoly.

Media execs are determined not to allow that kind of power in the hands of any single player in the online video world. They instead are committed to fostering an eco-system of as many legitimate distributors as possible. They actively license their prized motion picture and television assets to all those willing to pay.

That’s why we already have myriad established behemoths in the premium online video game. We have Netflix, Amazon Prime, Hulu, Google/YouTube, Comcast. The list goes on and on. Apple too is on that list, but it is behind the curve this time. Those same media execs who ceded control to Apple ten years ago have refused, thus far, to broadly license their crown jewels on Apple’s terms. But Apple – or more accurately, Apple’s massive hoards of cash – can be very persuasive. More on that later.

Lesson #3 – License Broadly & Make the Licensing Landscape as Confusing and Opaque as Possible.

Media execs aren’t panicked this time. They have a decade of learning under their belts. Yes, piracy continues to be rampant, but they now understand that it cannot simply be litigated into oblivion. The best defense truly is a better offense. Support better customer experiences, make your content available broadly to those legitimate distributors willing to pay, and experiment with business models and terms.

That’s why we have over-the-top (OTT) “Internet TV” models in which content is monetized via paid downloads, subscriptions, and ads. We also have big cable’s “TV Everywhere” models in which consumers must continue to pay their monthly cable fees. And, coming soon, Google and others will become virtual cable operators that will also distribute live linear programming like ESPN. Apple too wants to be on that “virtual MSO” list, because that is the kind of premium content that ultimately moves mountains of consumers. Case in point – DirecTV’s “NFL Package.”

This melange is great for the studios. No two content licensing deals are the same. Each negotiation takes place in a black box. No clarity. No certainty. Just the way media execs like it (I know, I have been there). Now THAT's power! Right? Up to a point. More on that later.

Lesson #4 – Be Audacious – After All, Content is King.

Jobs ultimately taught music execs one fundamental truth – that content is THE key to unlock tremendous value online. The corollary to this is that without content, value is lost. That’s why all the deep-pocketed tech titans are lining up for a chance to play in the premium online video game. Just as it is for Apple, premium online video distribution is strategically central to their business. Apple? Sell its hardware. Amazon? Sell more goods and services. Google? Sell more ads. Comcast? Hold onto those cable subscriptions. Netflix? Survive!

These players have inked a steady stream of significant licensing deals just in the past few months, the financial terms of which are almost never disclosed (remember, just the way the studios like it). But, one telling deal’s terms did slip out – Netflix agreed to shell out nearly $1 billion to stream shows from the CW Network. Think about that – if the CW can command those kind of numbers today, think about the price tag for real “premium” content like ESPN. And, we are still in the early innings of this premium online video game.

Apple – with its head-spinning $100 billion war chest – is a lock to win (or at least be a massive winner in) the online video game, right? Most likely, the answer is yes. The inevitable iTVs will fly off the shelves. But, Apple isn’t alone this time. It is playing on a crowded field with other deep-pocketed and committed players (including CE guys like Samsung). Even more importantly, to really hit it out of the park, Apple’s coming iTV must be an experience. That means Apple must offer an extremely deep pool of compelling video content from the start (including sacred programming like ESPN). Otherwise, consumers will find holes, get frustrated, and look to fill those holes with programming offered by others.

Each frustrated customer represents real significant loss, which is especially magnified in Apple’s case because of its closed product eco-system. For Apple, it’s not just about a single product sale (like an iTV). That sale, instead, marks the beginning or continuation of a long-term lucrative purchase relationship, which is the key driver of Apple’s stratospheric growth. That’s why Apple will be willing to strike very different content licensing deals with media execs this time around.

Of course, Apple doesn’t control the content – the studios do. So, who really holds the cards here? Will the studios be as audacious as Steve Jobs was one decade earlier and demand terms that they believe reflect the true value their content creates for distributors over time? In Apple’s case, one truly audacious idea could be to seek a share of revenue for every iTV sold. Remember, not every license deal must be the same. Value means very different things to different players. If Apple, or any other online distributor, refuses to play, then they lose out. No soup for you! There are many others (including the studios themselves), but only one ESPN!

Or, will media execs instead go for the quick-fix of easy money? After all it’s hard to say “no” to someone writing a big check. If they do go this instant gratification route (which is more consistent with their DNA), at least they should realize that their prized motion picture and television assets will be worth significantly more than they think in the online world over time. Avoid long-term deals!

So, yes, media execs have learned their lessons well. Content is, in fact, king. Apple will continue to wear the crown, however, unless media companies have the will and creativity to take it back. After all, Apple made $46.3 billion this past quarter alone, a number that dwarfs global motion picture box office receipts for the entire year. Apple could buy Hollywood. But, will Hollywood let it?

Our New "Fitness/Team-Building" Benefit -- Recommendation to All Entrepreneurs

2012-02-03T05:22:00.000-08:00

I just recently wrote about several team members from Sorenson Media's San Diego office participating together in last week's grueling 8.6 mile Spartan Race. It was an incredible experience to behold (I had to sit on the sidelines due to injury, which killed me).

It also was an incredible example of the power of fitness -- and team-building. From the time we announced that we would do this together (which took all of 30 seconds after learning about this race), we talked about the race incessantly -- we also trained incessantly (and talked incessantly about our incessant training). We immediately shared a common fitness goal -- and we commit to doing it together.

That got me thinking. Why not build this type of experience directly and permanently into our company culture by providing a "Fitness/Team-Building" benefit to each member of the team? Why not build a benefit that both promotes (1) a healthy/active lifestyle, and (2) a healthy/active team that works together and builds overall esprit de corps both on and off the Sorenson Media playing field?

So, that's what we did. This past week I announced a new $500 annual "fitness/team-building" benefit for each member of the team. It is a "use it or lose it benefit" -- essentially each team member can sign up for a "qualifying event", and the company will reimburse them up to $500 for the calendar year. A "qualifying event" includes a race (like the Spartan Race), a walk (like a benefit walk for Epilepsy), or even membership to a gym. And, the goal is to sign up together with others in the company -- and "just do it" (the event) together.

I can tell you this -- this new benefit earned unanimous rave reviews from the team. There is deep appreciation. They consider this to be an extremely cool -- and differentiating -- benefit.

And, look at what this simple gesture promotes. Great physical and mental health. Great team-building. This is all good for each person (including myself), and for the company.

I urge each entrepreneur who reads this to do the same. The benefits are myriad -- including increased productivity.

Meet Sorenson Media's Executive "A" Team -- Talented, Dedicated, Passionate

2012-02-03T05:07:00.000-08:00

I have how had the pleasure to work at Sorenson Media for 3 full years -- and with an extremely talented, accomplished, passionate and dedicated team throughout this time. These are also just good old "good" people. This is a team that innovates, develops and creates to make the lives better for our customers -- and, in turn, for our customers' customers. It is a team motivated by passion -- both on the job and off (just one recent case in point -- just this past weekend a number of the team participated in the grueling 8.6 mile Spartan Race in San Diego -- where 2 of our guys finished in the top 18 overall out of over 2,000 hard core racers! Andrew Ashbacher #3, Doug Cebik #18).

This includes Sorenson Media's executive team, some of whom have been with the company for over a decade. I can say that -- across the board -- this executive team defines passion. Passionate to out-innovate all others in our space. Passionate to "win."

We have just updated our bios on our website -- so, meet Sorenson Media's executive team by clicking on this link.

Forget Facebook's IPO, Apple's "AirPlay" Is Cool

2012-02-02T05:14:00.000-08:00

Yes, yes, yes -- everyone is talking about Facebook's upcoming $5 billion IPO. (See this "must read" analysis by industry guru Om Malik about what Facebook's IPO means to the rest of the tech community.)

But, you know what's cool? No -- not $8 billion -- that is an absurdly unfathomably big number. Apple's AirPlay feature is cool, way cool. I know AirPlay has been an iOS feature for some time, but for some reason I simply never tried it.

Here's what AirPlay does for those who have an iPhone/iPad and Apple TV in their homes -- it allows you to DIRECTLY stream your videos, pics and more directly to your flat screen TV in your living room. That means, among other things, that you can capture HD videos on your iPhone and then immediately -- and, I mean immediately -- watch them on your large flat screen from your living room couch. No fuss no muss -- no need to connect your iPhone/iPad to your Mac first. No need to upload anything. All you do is click from your device and -- voila -- it is right there for your viewing pleasure! Cool. Very cool.

If you have an iOS device -- and an Apple TV in your home -- you gotta check it out. I absolutely believe that easy viewing of your HD captured "home" movies (family, friends) in your living room is a massive consumer use case that still is largely untapped. Add one-click sharing of your mobile HD captured videos directly from your "phone" to your family and friends for their immediate in-living room viewing, and you really got something. Apple still doesn't have that piece of the puzzle.

But, Apple certainly is well on the way to solving it. Listen up CE guys!

Content Is King -- Especially in the Cloud

2012-01-31T04:00:00.000-08:00

[NOTE -- I recently participated in a "content in the cloud" panel at CES. Some of my thoughts below were reflected in that panel. And, this post was just featured in the DCIA's weekly newsletter.]

The era of long-predicted video ubiquity is now upon us. It has been inevitable. Now here it is, thanks in large part to the power of the cloud. This new reality is welcome to both consumers and to premium video content owners and creators (including the major studios).

For consumers, cloud-based access to premium motion picture and television content gives tremendous freedom and flexibility to buy once, consume anywhere, anytime, on any device, and even seamlessly shift viewing from one device to another.

For content creators, the cloud opens up tremendous new power to reach those consumers -- anywhere, anytime, and on any device. This means that premium video content can touch - and touches - all of our lives more relentlessly than ever before. And, this means that cloud delivery opens up unprecedented new ways for content owners to drive (and monetize!) significantly broader video consumption. While this may surprise some, content will be king like never before.

It is no wonder then that major premium content distribution outlets like Netflix and Apple already have been joined in the scrum by Amazon, Google, Wal-Mart (Vudu), Hulu, Comcast and a host of others large and small. Others, like Redbox, are waiting in the wings to pounce soon. The core strategies of these companies are founded on, or at least significantly influenced by, the need to be a force in video distribution. Much is at stake to "win" in the distribution game.

Due to competition from these behemoths to button up and market the deepest pool of scarce (unique) motion picture and television content in a never-ending quest for differentiation, major studios and other content owners and creators are starting to see the first real green (as in money) shoots sprouting up in this brave new cloud-enabled world. Just recently, most of these over-the-top (OTT) and "TV Everywhere" providers have ponied up big bucks to license necessary rights to distribute that premium video content. As just one example, Netflix ponied up nearly $1 billion to stream shows from the CW Network. If the CW can command those kind of numbers, just think what real "premium" video content (like ESPN) can fetch! And, we are still only in the early innings of this online video game.

In this midst of this cloud distribution revolution, yes, there is significant disruption to existing business models. As examples, the major studios and cable operators have long relied upon established and cozy business terms which ultimately limited access to premium content to those consumers willing to shell out significant fees for programming packages. Cloud-based distribution challenges these established rules of the game and overall economics. Why? Because consumers are demanding it for all the reasons noted above.

That means there absolutely will be new winners and losers here. For one, "big" cable likely will lose its power over time as a principle source for premium video content - and likely will fall instead to the long-feared "dumb pipe" status (although fear not MSOs, more OTT distribution requires ever-fatter pipes!).

For content owners, this fundamentally different cloud-based distribution model leads to ever-increasing complexity. New video formats. Variable network conditions. New mobile devices. New smart TVs. And, a new "renting" versus "owning" delivery paradigm that means less direct control over how all of this happens. There is tremendous freedom in "letting go" of all this complexity and handing it over to a service provider, of course, but there is also justifiable ambivalence. Can the service provider give the studio the security it needs? Is the service provider buttoned up with regard to all licensing and patent issues? Even more fundamentally, is the service provider funded for the long term? As President & CEO of a company that has been on the leading edge of the online video eco-system for more than a decade, I have seen that scenario play out time and time again.

We here at Sorenson Media have all of these issues covered for content owners of all stripes (including media companies large and small) so that they can focus on what they do best - their craft of video creativity. Our job is to handle this ever-increasing complexity. That is our expertise. Our cloud, on-premise and hybrid cloud/on-premise transcoding and delivery solutions offer content creators the quality, power, flexibility, ease and automation they need. And, they are cost-effective, which is a fundamental hallmark of any compelling cloud service.

That's what we do.

Sorenson Media -- WE ARE SPARTANS!

2012-01-29T07:23:00.000-08:00

Today was San Diego's "Spartan Race" -- the grueling 8.6 mile mud run/obstacle course that took place in Temecula. If you never heard of it, and if you are into fitness at all, you should. It is absolutely grueling. And, today was hot, very hot (80+ degrees!) -- the course was steep, very steep (and all-terrain of course), and there were 28 different "obstacles" -- including crawling under barbed wire -- and getting bloody doing it; jumping over walls, crawling under them, hauling heavy weights up hill, and getting pummeled by Spartans at the finish line just when you think you were done!

5 brave Spartans from Sorenson Media were in the very thick of it -- Andrew "the Animal" Ashbacher (who finished 6th out of over 1200 with an incredible time of 1 hour and 47 minutes!); Doug "I'm An Ironman -- I Can Do These in My Sleep" Cebik (who finished 2nd in his age group overall just 9 minutes behind Andrew); Josh "I Mock Pain" Ettwein (who had blood pouring from his eye after being hit with some barbed wire); Bruce "Zeus" Carlson (who through the javelin like a lightning bolt from the gods! Hwas the only 1 of the 5 who made the Javelin stick -- and thereby avoided doing 30 burpees); and Kirk "Killer" Punches (who stared the flu in the face and said, "No Time for You!"). It was an amazing spectacle -- and am very very proud of these guys.

We started with 8 of us (including me) who had signed up about 3 weeks ago and trained hard. By the end of our training, and before race day, sadly, 3 of us (including me) had injured ourselves. But, the others persevered. On a glorious 80+ degree day at Vail Lake outside Temecula, they came, they saw, they conquered.

The pics speak for themselves ....

Sorenson Media -- Spartans all!

Apple's $100 Billion -- Will Be Used to Build Its Differentiated iTV "Experience"

2012-01-27T05:52:00.000-08:00

Apple has an insanely amazing $100 billion cash cache. Ponder that for a while -- your head can spin. So, what can it do with that cash to really move its next needle?

Stock up on premium online motion picture and television content for its coming iTV experience, that's what. TechCrunch's Editor Erick Schonfeld writes a similar POV today in his post "What Apple Should Do With Its $100 Billion Cash: Buy Hollywood!", with which I absolutely agree. You see, Apple's playbook -- taken to the next level brilliantly with the iPod/iTunes 1-2 punch -- is to create a revolutionary consumer experience buy seamlessly marrying its beautiful hardware (in this case, the coming iTV) with great software and rich services (in this case, motion picture and television content).

For Apple's iTV to be the juggernaut it has the potential to be, it must be a true differentiated Apple-like experience, not just "TV." That means that Apple must build a deep and differentiated pool of video content -- including premium linear TV programming channels like ESPN (yes, Apple will become a virtual cable operator). And, cash is king, of course, to the Hollywood content king-makers. So long as Apple puts up -- and they certainly have lots to put up -- they will get what they want.

And, if they do, Apple will be the true kings of content, just like they have been in the online music game for a decade. Remember, Hollywood's gross box office receipts for all of 2011 were significantly less than that number (in North America, gross movie receipts were about $10 billion). Apple's revenues just for last quarter were $46.3 billion! Content, to Apple, is just the Trojan Horse for consumers ride into their kingdom of riches -- Macs, iPad, iPhone, iPod ... and its inevitable iTV.

The question is -- will studio execs take the easy money from Apple, or will they shake things up to capture more of the value they create for it?

"Big Cable" Rolls Out Lower Cost "TV Economy" Packages -- Because They Must

2012-01-24T05:22:00.000-08:00

Yesterday, it was reported that cable operator Cox Communications is rolling out a low-cost $35 monthly "TV Economy" package as one of its customer options. Comcast and Time Warner are following suit. Although these lower cost TV content packages exclude higher cost channels such as ESPN and other regional sports networks, they include many of the programming stalwarts. Bottom line -- finally "big cable" is beginning to respond (albeit slowly) to consumers' basic need NOT to pay for channels they don't want.

So, why are Cox and the others finally beginning to go this route? Because they must -- they have no other choice. Despite skeptics, cutting of the cord is becoming a reality for consumers who are increasingly getting only the shows and programs they want by other means -- the Internet, in particular. As I have written several times before, the MSOs are trying to beat back the inevitable consumer march toward other significant competitive movie and TV distribution channels a la Netflix, Amazon, Apple, Vudu, Google. Cable's long fear -- of becoming more and more simply the "dumb pipes" that deliver the video content from other distribution sources -- is in process as we speak.

But, here's the good news for cable. As consumer demand for high quality Internet-delivered premium video programming continues to accelerate, so will their need for faster and faster broadband. "Big cable" can be the provider of these fatter pipes -- and margins for broadband service provision are significantly higher than margins for distribution of motion picture and television programming.

My Response to TechCrunch -- Why We Still Watch Movies (& Go Out to See Them)

2012-01-23T05:29:00.000-08:00

Alexia Tsotsis of TechCrunch today writes a post titled "I'd Rather Watch Instagram Than a Movie," in which she essentially argues that Hollywood is at a competitive disadvantage to Instagram, Twitter, Pinterest and others for our limited time and attention. To a certain extent, her thesis is true -- we only have so much time, and all entertainment minutes consumed with Instagram and others of that ilk limit our available time for watching movies (both online and offline).

This is rather obvious. But, it misses the point.

First and foremost, we all like story-telling. That thirst is in our collective DNA. And, while each of us can tell our individual life "happenings" to both friends and non-friends online, we still like to gather around someone who spins a great yarn. And, even with all of the garbage, "Hollywood" still does that. And, for certain types of stories, nobody does it better. (To be clear, I use the term "Hollywood" to refer to all professional motion picture and television content creators, not just the industry behemoths -- I personally like the indie films).

That's why virtually all tech behemoths -- Apple, Amazon, Google -- are clamoring to win big in the online video world (and are now beginning to shell out big bucks to license movies). They each ultimately will spend billions of dollars to be the "go to" source for Hollywood content. Why? Because our appetite for movies will only increase massively over time as we increasingly are able to find and view what we want, anytime, anywhere and on any device.

Second, although Tsotsis's piece does not focus on in-theater viewing of movies, we also do like to gather around the fire. Always have. Always will. There is something fundamentally different about the offline communal experience that comes with seeing the movies in theaters. We see others seeing and experiencing the same thing (and we can also talk about this shared experience around the water cooler and from the same frame of reference, something that can't be done with personal media). In other words, we share that experience. We feed off that energy. It is the type of collective/communal tangible experience that the online world (which I know and love) never can match. There is no substitute. It is simply a fundamentally different experience than being online.

Listen, I love the online world -- I have been in the digital media/online game for a long, long time. But, every now and then, I want to sit back and watch a great indie movie. And, I want to do that in a theater (much in the same way that I want to go offline and physically meet someone, even if I can virtually chat with them -- and I previously ran a video chat company for god's sake!).

After all, every now and then we need to get out!

Congress' SOPA Opera -- Jon Stewart's VIDEO "Take" -- And My "Two Cents"

2012-01-19T05:08:00.000-08:00

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Ahh, yes, the SOPA debate -- everyone is an expert and has an opinion. But, how many of us have done more than read brief summaries of the proposed legislation? (Here is Gigaom's "SOPA for Dummies" primer). I know I haven't, and I am a former (and reformed) IP attorney (as well as former major studio/content executive at Universal Studios and New Line Cinema). As just one example, did you know that SOPA apparently is focused on foreign-based websites (according to the Wall Street Journal)?

Here is Jon Stewart's always hilarious "take" on the SOPA subject.

And, yes, this video is legally being shared on my blog via the sponsored embed code from Jon's own Daily Show site!

(For the record, I personally oppose SOPA and its Senate companion legislation PIPA because I know enough about legislators and media companies to know that, if nothing else, the proposed legislation is imprecise, ambiguous and severely overly broad in terms of its scope and the hammer that legislation wields -- not to mention the fact purported violators can be found to be "guilty before proven innocent" and suffer the potentially significant consequences. While I understand the sentiments behind the legislation -- and the justifiable concerns of content creators -- these are not the right weapons to fight the IP infringement war. You simply can't sue all infringers or purportedly infringing sites. Rather, the best defense is a great offense -- i.e., provide superior and unmatchable authorized and licensed web experiences; if you build it, people will come. To wit -- Netflix, Amazon Prime, Hulu. And, remember, we are still very early in the online video game.)

Content Still Is King -- Always Will Be -- Money Will Come

2012-01-17T05:30:00.000-08:00

Janke Roettgers of Gigaom just wrote a piece titled "Netflix, Hulu & the Golden Age of Content", in which his major premise is that we have reached a new high point for video content because virtually all major online distributors are now developing original programming (a la HBO). That includes Netflix, Hulu, YouTube, and even Amazon! His major point -- it's not just about the major studios and indie film-makers anymore.

And, yes, that is a big deal. But, why are all of these major online players now getting into their own major video content creation game?

Quite simple. Economics. Pure and simple. Economics.

You see, we are, in fact, entering a new golden age for video content creators. But, for very different reasons than Roettgers' main premise.

Here is the real deal. He (or she) creates the video content, ultimately gets the gold. In other words, video content creators are now discovering -- or re-discovering -- that it is their content that ultimately drives the entire online video engine. You see, there are scores of video distributors, all of whom essentially do the same thing. They bring you, the consumer, the same content that others can also bring you. But, the video content they bring you -- on the other hand -- is absolutely unique. No two programs are identical. And, if any online distributor wants to deliver that unique work of content to you, they must pay the content creator. And, those content payments (licenses) for online distribution are now finally becoming big, very big. All of these major online players -- Netflix, Amazon, Hulu -- are starting to pay big big bucks to deepen their pools of content. And, we are still only in the early innings of the online video revolution.

These licenses will substantially increase over time, as all major online video distributors will fight to offer the deepest pool of online video content to their users (and have the bragging rights that they do so). We have already seen that happen in the online music business. All online music distributors -- iTunes, Rhapsody, Spotify, Rdio, Napster -- always boast, first and foremost, that they have gazillions of tracks to offer. This is simply a price of admission to be a real player in the online music game.

Same thing is happening in the premium online video game. Real bucks are being paid. And, yes, these major players are now trying to pull an HBO and augment (and differentiate) their libraries from the others with their own self-produced programming. But, the real bread and butter will come from shows they don't produce.

And, that's great for all of the kings of content ....

Samsung's Smart TVs -- My Winner At CES

2012-01-16T08:24:00.001-08:00

Apple was nowhere at CES. But Samsung was everywhere ... with a vengeance.

Samsung is in an unstoppable phase right now -- selling more TVs than anyone; leading the way in Smart TV innovation; and more.

The coolest thing for me? Samsung's OLED ultra-thin flat-screen TVs. Amazing color/picture -- amazingly thin. They aren't in production yet, but soon will be. Here's a pic (upper right) I took at CES from the side of the OLED. Can't get much thinner than that! Beautiful.

So, where do Smart TVs go when they essentially can't get any thinner? Well, Samsung showed the way again. How? Facial recognition and remote-less gesture control (in this regard, think of changing your channels in a very Kinect-like with a wave of your hand). Voice activation isn't far behind.

What else? Samsung's "Family Story" (check out the above photo on the left of the prominence of the "Family Story" app on the home screen.) This is secure personal media sharing (photos now, but videos later). Now you can take your still photos from your Galaxy smart phone, upload them with a click of a button, and immediately share them (or view them) on your and your family's smart TV -- all from the convenience of your couch. And, you can share that sharing experience together remotely via play-by-play chat as you watch the same images -- and you can bet that video chat sharing is just around the corner.

Anything else? Of course.

One fascinating thing was Samsung's "Full HD Dual Experience" -- you can share the couch with a loved one and watch the same smart TV but see two entirely different TV shows/channels. I ain't talking picture-in-picture -- I am talking literally watching two different shows full-screen on the same TV at the same time. Wild, absolutely wild. Am not sure how practical that is -- or how interactive it is. I mean, is it really that meaningful to plant yourself next to someone bodily if the two of you are engaged in entirely different experiences (especially when you each need to wear special glasses to take advantage of this functionality)? Nonetheless, it is cool -- and it demonstrates the level of innovation taking place at Samsung.

Listen. Apple's iTV is inevitable. It is coming later in 2012.

But, Samsung isn't standing still. And, they won't be reacting. They are innovating in hardware -- and they have taken the lead on the Smart TV side.

Smart. Very smart ....

The Spartan Race -- (Or What Have I Gotten Myself Into ...)

2012-01-15T10:36:00.001-08:00

8 of us from the San Diego office of Sorenson Media are participating in the 8 mile "Spartan Race" on Sunday, January 29. If you've never heard of it (I hadn't), watch this video. Yikes ... 2 weeks to train!

Inspiration: Powerful Beyond Measure (how great are you?) from Ben McDonald on Vimeo.

Join Me at My CES Cloud Panel Discussion Today

2012-01-11T05:46:00.000-08:00

Today will be day 1 for me at CES -- I arrive later this morning for two days.

Later this afternoon, I will take part in the "Content in the Cloud" event sponsored by the DCIA -- and will be one guest on the "Impact on Entertainment Industries of Cloud Computing" panel discussion from 4 to 4:45 pm (in the LVCC's North Hall N258).

Join me if convenient. I definitely have some strong perspectives. Whether they are value-add perspectives is for you to judge!

Video -- Sorenson Media's 2012 Commitment to Our Customers

2012-01-10T05:03:00.000-08:00

Here is our (Sorenson Media's) commitment to our great customers for 2012 (in my words):
CEO New Year Message

Must See LG Video Ad -- Clever Indeed ...

2012-01-09T07:22:00.000-08:00

It's CES Time -- Happy New Year!

2012-01-09T06:37:00.000-08:00

CES -- the annual tech/digital media rite of passage -- begins this week. Are you excited yet? Are you an MG Siegler -- or more of a Jordan Crook? (Both, by the way, are TechCrunchers ...).

Once again, I will participate in the madness -- most likely Wednesday and Thursday. I believe this marks my 10th anniversary of consecutive attendance -- and starting off the New Year with a bang (essentially going from 0 to 60 overnight!).

See you there.

Comcast's & Disney's New Content Pact -- What It Means to Apple, Google, Amazon, Netflix & Others

2012-01-05T08:07:00.001-08:00

Big news yesterday on the online live/linear television front -- Comcast and Disney just brokered an unprecedented 10-year deal for Comcast to carry ABC, ESPN and other Disney owned channels to all Comcast subscribers anywhere -- including online via their smart phones, tablets, etc. In other words, essentially anywhere. This is an important (and likely incredibly expensive) win for Comcast's TV Everywhere initiative -- a closed environment available only behind the pay firewall for Comcast subscribers (in other words, live/linear ABC and ESPN channels will not be available for "free" over-the-top via services like Hulu.

So, what does this mean for Apple's iTV ambitions? Google's living room ambitions? Amazon's Kindle Fire and Prime ambitions? Netflix, Vudu and a host of others? Does this Comcast/Disney deal mean that live channels of television programming from the major networks -- such as the critical ESPN channels -- will never be available by these other non-cable service providers? Does this mean that the tech giants of today are now frozen out for at least 10 years?

Absolutely not!

So long as these tech titans (such as Apple) act in the same manner as Comcast, then they too will have the privilege of providing those critical television programming channels to their customers. How can they do that? By paying big, big, big -- that's how -- just like Comcast has done with Disney. And, by requiring their customers to act like cable customers -- in other words, by requiring customers who want that premium television programming to pay for it via programming packages accessible only to those who subscribe. In other words, the new Comcast/Disney deal simply means that Apple, Google, Amazon and the others will simply need to act like virtual cable companies -- something that I have long believed is inevitable in any event.

Make no mistake. Although the Disney deal is an important "win" for Comcast, cord cutting from traditional cable providers like Comcast will continue to accelerate ....

Cable Cord Cutting Happening Now In a Big Way -- Here is the Data to Prove It

2012-01-05T05:30:00.000-08:00

Well, the inevitable cutting of the cable cord by consumers is already happening now in a big way -- contrary to the entrenched parties -- according to leading global analyst firm Deloitte. In Deloitte's new study, "State of the Media Democracy," some of the juicy highlights include:

-- 9% of those surveyed have already cut the cord of their cable companies to provide them with premium video programming

-- 11% more are considering cutting the cord right now

-- 15% indicate they will be watching premium online video (motion pictures and TV) from online sources in the near-term

-- 42% have already streamed a movie from online services (as compared to 28% in 2009)

-- 14% now consider streaming movies to their computer or television as their favorite way to watch a movie (as compared to 4% in 2009)

-- only 19% have NOT viewed a movie from any source (including rental) over the past 6 months (as compared to 37% back in 2007) -- in other words GREATER DISTRIBUTION OPTIONS DOES LEAD TO GREATER CONSUMPTION! (Content owners, take note!)

-- 42% own smartphones (as compared with 25% in 2009)

-- 52% are considering purchasing smartphones now (compared with 40% in 2010).

My Interview About Cloud Workflows at Streaming Media West

2012-01-05T05:10:00.000-08:00

video platform video management video solutions video player

Just published -- my interview at the Streaming Media West conference in LA this past November. We had just launched Squeeze 8, and I primarily discuss the Cloud -- and my strong feeling that the majority of video workflows will gravitate to Cloud-based solutions within the next 3 years.

Your Personal Memories -- Safe For 100 Years ... Then What?

2012-01-03T04:02:00.000-08:00

The holidays are over. Time for a fresh start. Time to get back to business.

Your mental recall of the past few weeks of holiday festivities may be fading, but your digital memories -- your still photos and videos -- are fresh, fresh, fresh. At least they are for now ...

But, how about later?

During the holidays, I read a profile piece on personal archiving software company Evernote -- click here to read it from Gigaom. In it, Evernote's CEO, Phil Libin, underscores his persistent theme that he wants Evernote to be a "100 year company." At first blush, 100 years sounds downright audacious. But, think about it. And, think about 100 years in the specific context of archiving. Is 100 years really enough?

Okay, let's say that Evernote -- and other personal memory companies (photo sharing sites, etc.) -- can hold your personal memories for 100 years. What happens after that? Remember, our family and friend digital photos and videos are perhaps our most precious possessions. Once we entrust them to Evernote and other companies, do we really believe that they will safeguard those precious forever? While we all fully understand our own mortality, do we really believe that Evernote and others of their personal archiving ilk are immortal? Or, are we simply resigned to the fact that our memories will be meaningful -- really meaningful -- for about 100 years; but our family and friends essentially won't "matter" after several generations and after 100 years?

Yes, you can save your digital memories on your internal and external hard drives. But, those crash. Yes, you can save them onto discs. But, those ultimately are not lasting and also become obsolete. And, of course, the "Cloud" sounds great -- until your user names and passwords are forgotten after ... gulp .... you have checked out or after your service provider rides off into the sunset (taking your digital memories with them ...). This IS a stark reality. After all, one of the largest keeper of memories -- Flip (which seemingly was in the "safe" hands of Cisco!) -- shocked its millions of users (who trusted them) last year when they announced they will be completely shutting down the service at the end of 2013. All digital memories in FlipShare (the companion service to the Flip cam) will simply be gone, baby, gone!

At the end of the day, maybe the best course is the tried and true course -- the proverbial box of photos (hard copies). Yes, those fade away too -- but, at least we have proof that they can last over 100 years ....

Happy New Year from Twitter -- No Service!

2011-12-31T08:07:00.001-08:00

Twitter is down. No retweeting this morning. Happy New Year folks!

VIDEO -- Sydney Australia Rings in New Year with Massive Fireworks

2011-12-31T07:50:00.000-08:00

Happy New Year Sydney! Click here to watch the amazing fireworks display.

Jaw-Dropping Online Video Numbers -- Reflect on This!

2011-12-28T14:00:00.000-08:00

U.S. comScore Video Metrix numbers are out for online video viewing in the month of October -- and they are jaw-dropping (as in "Wow!"). Consider these -- take a step back -- and compare these numbers to what they were not so long ago. And, then consider these jaw-dropping numbers today -- and how these will seem minuscule in a matter of just a few years. Remember, we are still early early early in the online video game.

Here you go --

-- in October, 184 million U.S. Internet users watched online video

-- each of those 184 million on average viewed 21.1 HOURS of video during that month (HOURS!)

-- total number of videos viewed online in the U.S. during October was 42.6 BILLION (yes, with a B!)

-- 7.5 BILLION ads were served during that viewing (and 53% of the U.S. population watched video ads during the month -- with an average of 47 video ads for that month)

Pretty amazing stuff ...

Makes it kind of fun to be an enabler here at Sorenson Media to make this all happen ....

My Top 5 Music Picks Right Now

2011-12-28T08:54:00.001-08:00

Anyone who regularly reads my blog knows that I am a huge music fan -- I listen to music all day -- at work, at home. I like mostly indie, but have eclectic tastes. I attend festivals (Coachella, Outside Lands) and I like to discover new music. New artists. Most of my discovery comes via "SiriusXM U".

Here is what I am listening to right now -- band is named first, favorite song second:

(1) Caveman -- "Old Friend"

(2) Wye Oak -- "Civilian"

(3) Widowspeak -- "Nightcrawlers"

(4) Youth Lagoon -- "Afternoon"

(5) Sharon Van Etten -- "Serpent"

Bonus band/song -- Fleet Foxes -- "The Shrine/An Argument" (although the track devolves near the end).

And, THE single most overhyped indie artist right now? Lana Del Rey. She tries -- and sometimes succeeds -- in being the new Kate Bush. But a pale imitation she is ...

She will be the featured performer on Saturday Night Live in January, however (again, overhyped) -- let's she how she does ....

Xmas Redux 2 -- Mom Gets an iPad -- The Ultimate Grandma Test

2011-12-27T06:32:00.001-08:00

Here is Xmas redux #2.

My mother has never been online ... ever! She lives in Minneapolis -- her grand-kids (my kids) live in San Diego. So, she rarely sees them.

Hence her new Xmas gift -- the iPad! Primary goal? FaceTime with the kids. One-touch video calling -- anytime. That's the promise. But, will that promise be realized? That's debatable. We shall see. We practiced -- a lot. Time will tell here. She seemed intrigued, but certainly wasn't enthralled ... yet. And, will it be as simple and intuitive as all of us -- who have been online for so many years -- believe it is?

This is the ultimate grandmother ease-of-use test!

Xmas Redux VIDEO -- In Praise of Old-Fashioned Building Blocks

2011-12-27T06:21:00.000-08:00

Okay, back to work today. The Xmas glow is wearing off. But, still time for a few ruminations.

First on tap today? Yes, my kids received an Xbox Kinect from Santa. And, yes it is amazing. If you haven't checked out the Michael Jackson dance game, do it. How cool is it that it scans your image right there and puts you directly into the game? That ain't no avatar!

But, check out this video of my little man, Luca, and his Keva block creation. This is priceless ... and demonstrates the sheer joy and creativity that comes with good old-fashioned building blocks.

My First Guest Post on TechCrunch -- Live Now!

2011-12-26T11:03:00.000-08:00

Today is a "first" for me -- my first guest post on TechCrunch -- about my 2012 video predictions. Here is the link. Earlier this year, I was featured on TechCrunch TV to discuss updates about my company, Sorenson Media.

The Future of TV Is Already Here -- Apple TV & AirPlay

2011-12-24T07:21:00.001-08:00

Merry Xmas everyone! Here is a compelling argument about what the future of TV looks like -- and, the interesting part, is that it is already here via Apple. Apple TV + AirPlay. Click on this link to Jeremy Toeman's case that Steve Jobs has already "cracked it" -- i.e., the code to the future of TV. It isn't something wild and wacky -- it is something that is remarkably simple. And, that's why it makes so much sense ...

Telestream's Acquisition by Thoma Bravo -- What It Means

2011-12-22T06:46:00.001-08:00

Yesterday, the big news in the online video world was that Telestream, a long-time leader (and highly respected Sorenson Media competitor) in the video transcoding market, was acquired by private equity firm Thoma Bravo for an undisclosed amount of cash. While perhaps surprising to some, the news was not surprising to me at all for a number of reasons -- most significantly, for what it represents for the macro online and mobile video business.

First, to what the acquisition represents. In my recently-posted 2012 video forecast (click here to read them), one of my top 5 predictions was the following: "HD Video Enabling Eco-System Growth Explodes." And video transcoding, of course, is at the heart of enabling technologies, solving all the increasingly difficult issues of device specification, format and codec licensing and optimization, video resolution, frame size, network detection and optimization, adaptive bitrate delivery. These are just some of the technically challenging issues that make the heads spin for content creators. So, the Telestream acquisition underscores the critical and increasingly-central role of transcoding in the multi-screen delivery world that is growing exponentially all around us. After all, private equity firms don't "just" invest in companies -- they acquire companies because they are extremely bullish on an overall market opportunity.

Second, now to practical considerations. Telestream has been privately-held for well over 10 years. At a certain point, traditional investors understandably get "itchy" for a liquidity event. This was the right time in this case.

Bottom line -- expect further M&A in the video enabling space in 2012 as more and more companies view such technologies as being strategically fundamental to their overall missions. And, don't forget, leading online video platform provider Brightcove filed for its IPO months ago -- although I haven't heard much about this since, the company must be going public early in 2012. Is Ooyala next? My prediction -- Ooyala will be acquired in 2012.

Finally, congratulations to Telestream's CEO Dan Castles and team. Well done!

My 2012 Online Video Predictions Featured in Streaming Media

2011-12-21T05:48:00.000-08:00

My 2012 video predictions were just published in Streaming Media -- both online and in their print edition. Click here for the link to the online version.

2012 -- My Predictions -- My Vision for Video

2011-12-20T06:00:00.000-08:00

Okay folks -- here are my digital media/video predictions for 2012. With these, I will try to be amongst the first to give his or her "two cents." And, feel free to give your responses, rebuttals, rebukes, refreshing thoughts, re-anything in the "Comments" to this post; note, I originally posted this a couple weeks back, but am posting again now before most of you ride off into the sunset for the rest of the year:

(1) TV Re-imagined. Long-time readers know that I have always expected Apple to release an all-in-one flat screen TV — think of a large-screen beautiful iPad on your wall — that will be called "iTV" in order to distance itself from Apple's current Apple TV "hobby." Apple's goal will be to re-think the living room experience to be, well, more of an "experience" (rather than simply a "dumb" TV); that means that, yes, it will be a beautiful and aesthetically appealing piece of hardware. But, it will be much more than that. It will aim to seamlessly marry that beautiful hardware with its underlying services, much as Apple was uniquely able to effectively do originally with the iPod/iTunes to transform the music business and overall consumer music experience. Apple's ultimate goal is to sell more hardware of course — using software and services as the Trojan Horse. And, Apple will be able to command higher prices — higher margins. There will be no doubt on this one. If Apple builds it, the Apple faithful (including my wife, Luisa) most certainly will come!

(2) Tablets on Fire. Apple's iPad will continue to be the #1 tablet, but Amazon's Kindle Fire will be closing in … Fast, fast fast (it already outsells the iPad at Best Buy); and, "Amazon Prime" will begin to significantly challenge Netflix, as more and more of us are introduced to Prime (via Amazon's brilliant Kindle Fire maneuver) and, accordingly, begin to watch premium video content on Amazon's hot new tablet. Interestingly, Amazon's strategy is completely reverse from Apple's. Amazon will use its hardware (the Kindle Fire) as the Trojan Horse to sell more services (premium video, etc.) -- and, of course (and most importantly) to enable mobile shopping. Anytime. Anywhere. That's why Amazon has a leg up over virtually every CE company — Amazon is willing to take a significant loss on its hardware sales, because it is gunning for long-term continuous purchases of goods and services. Brilliant Amazon. Absolutely brilliant!

(3) Battle for Your Living Room. Not to be outdone, Google will continue its massive push — and billions of dollars in investment — into the premium video and "TV" world. Google covets the living room experience — again for very different reasons than both Apple and Amazon. For Google, it's all about advertising of course — and monetizing video via ads is Google's next great frontier. That's why Google will stop at nothing. Google will even begin to take on the cable and satellite providers head on by offering full programming via the Internet initially in select markets. With these behemoths (Google, Apple) battling for a seat on your living room couch, smaller players like Roku will be faced with tremendous pressure to be swallowed up (or simply disappear). Expect significant consolidation in 2012.

(4) Personal Video Breakthrough. But 2012 won't be just about premium video content. As a result of massive growth of smart phones with easy HD video capture anytime and anywhere, your "personal video" -- intimate family and friend video memories/keep-sakes that you do not wish to share with the world on YouTube — will be, for the first time, easily archived, managed, shared and played back securely on any device and at any time (including in your living room and on the big screen) — and with HD quality intact. Companies will begin to significantly monetize this personal video opportunity in the latter half of 2012. Remember, family video memories are perhaps THE single most valuable possessions we have … These are snippets of your life that can live on forever …. You can do much of this via our partner Shutterfly already. But expect more ....

(5) HD Video Enabling Ecosystem Growth Explodes. As a result of these and other forces, the demand for HD video enabling services will grow exponentially — and video workflows will move at scale into the Cloud, beginning to seriously challenge legacy hardware providers.

Those are my holiday thoughts, predictions. Let me know what you think -- write a comment -- I will respond to each one. Or, send me a note directly to my attention at bizdev@sorensonmedia.com

Cheers!

Sorenson Media's 2011 Highlights -- 25% Y-O-Y Revenue Growth

2011-12-19T05:34:00.001-08:00

We at Sorenson Media just released our 2011 financial and business results. Here is the text of our release that just hit the wires:

Sorenson Media to Cap 2011 with Two Consecutive Years of 25-Percent Revenue Growth, Streaming Media Readers Choice Award as ‘Best Online Video Technology Company’

· Other Major Awards Include “Best Cloud Encoding/Transcoding Service” for Company’s New Squeeze Cloud, “Best Encoding Software Under $1,000” for Sorenson Squeeze; Place on Streaming Media 100 List of Most Influential Online Video Companies

· Sorenson Media Was Only Video Solution Company Chosen to Participate on Cloud Commission that Presented Major Report to Obama Administration

· Company Released Major Updates to its Video Solution Portfolio, including Sorenson Squeeze 8 and On-Premise and Hybrid Versions of Squeeze Server

SAN DIEGO (December 19, 2011) – Sorenson Media is ringing out a productive 2011, capped by an expected second consecutive year of 25 percent year-over-year revenue growth, with a wave of awards from tech industry experts and users. Punctuating an active year for the company, the awards highlight the company’s continuing position as the global video transcoding leader for online video content creators and purveyors of all types and sizes.

“This has been an important and satisfying year for Sorenson Media and our rapidly-growing client base – from the individual to the enterprise,” said Peter Csathy, CEO of Sorenson Media. “Our position at the forefront of the worldwide online and mobile video markets is a result of our unique history, expertise and continued innovation in video transcoding and publishing. We now have the broadest portfolio of video encoding and transcoding workflow solutions. As video continues to proliferate across all screens, Sorenson Media customers will benefit from our unparalleled knowledge of the enterprise workflow and how their customers consume video. As strong as our growth was in 2011, much of our focus was on building out our differentiated video workflow platform for long-term success. We expect much more from ourselves in 2012. We are a passionate team. We like to lead the way.”

Highlights of Sorenson Media’s fast-paced 2011 include:

A Spate of High-Profile Awards. In addition to being named “Best Online Video Technology Company” by the readers of Streaming Media magazine, the company brought home the prizes for “Best Encoding Software Under $1,000” for Sorenson Squeeze and “Best Cloud Encoding/Transcoding Service” for the company’s innovative Squeeze Cloud solution. Sorenson Media garnered more awards from Streaming Media than any other company. It was also named to the prestigious Streaming Media 100 list of the most influential online video companies, and received the 2011 Streaming Media European Readers’ Choice Award for “Best Transcoding Solution.”

In addition, the company was named to AlwaysOn’s lists of “Top 250 Private Companies” and “Top 100 Mobile Companies,” and was named Best Internet Company at TechAmerica San Diego’s 18th Annual High Tech Awards. Sorenson Media’s continued innovation also garnered significant visibility in the industry’s most important media outlets, including TechCrunch.

Cloud and On-Premise Transcoding Power. Sorenson Media extended its industry leadership in cloud-based transcoding in 2011 by delivering unparalleled flexibility and power to high-volume users with the release of Sorenson Squeeze Server On Premise and Sorenson Squeeze Hybrid Solutions. Squeeze Server On Premise automates and optimizes the transcoding process for high-volume in-house encoding. Squeeze Hybrid, the first-ever solution to combine cloud and on-premise encoding, enables users to scale up or down to meet workflow needs.

Sorenson Media quickly followed up the release of Squeeze Server On Premise with a Squeeze Server 1.5, which brought the perennial gold-standard Sorenson Squeeze encoding engine more fully to the enterprise with full adaptive bitrate support.

Participation on Influential Industry Commission. In the summer of 2011, CEO Peter Csathy participated on the TechAmerica Foundation CLOUD² Commission, representing the industry as the only video solutions company invited to join the influential organization. In July, the commission presented a much-anticipated cloud computing roadmap to the Obama Administration, including detailed recommendations for the optimal deployment of cloud-based solutions to guide the federal government’s efforts to adopt cloud computing technologies and develop policies and practices to keep the United States on the forefront of computing innovation.

Release of Sorenson Squeeze Versions 7 and 8. The company was prolific on the product innovation front with the release of Squeeze 7 in early 2011 and Squeeze 8 in late 2011. The most sophisticated version of the gold-standard encoding and transcoding software, Sorenson Squeeze 8 now includes seamless Squeeze Server integration; adaptive bitrate encoding for new formats; unprecedented x264 support and optimization; and enhanced GPU acceleration. In addition, the company created Squeeze 8 Lite, the most cost-effective way for the fast-growing market of content creators such as web developers and videographers focused primarily on online publishing to encode and transcode in the most popular video formats. According to a recent review from PC World, the new Squeeze 8 achieves “the best possible transcoding and a wide variety of input and output options.”

Expanded Distribution Relationship with Avid and New Partnership with IBM. Sorenson Media also expanded its eight-year partnership with Avid, which bundles Sorenson Squeeze with Avid’s 64-bit video editing systems, including Media Composer® version 6, NewsCutter® version 10 and Symphony® version 6. In addition, the company formed a new partnership with IBM to provide enterprise cloud transcoding and video workflow solutions as part of IBM’s anticipated SmartCloud initiative.

Opening of Los Angeles and London Offices. Driven by accelerating demand for Sorenson Media products and services from enterprise users and media companies in the United States and Europe, the company opened offices in Los Angeles and London. The company’s resonance with enterprise users is highlighted by the fact that 70 of the Fortune 100 companies and 60 percent of the top 30 broadcast station groups – including CBS, Fox, NBC Universal, Hearst Television and Meredith Local Media Group – now use Sorenson Media products and services

About Sorenson Media

Sorenson Media (www.sorensonmedia.com) is an award-winning provider of the highest quality, differentiated video encoding and transcoding workflow solutions. With highly scalable cloud- and server-based encoding solutions and desktop applications, Sorenson Media empowers the enterprise and video professionals to easily and cost-effectively encode, transcode, manage and deliver the highest-quality video online and to mobile devices. Since 1995, Sorenson Media has been at the forefront of bringing online and mobile video into the economic and cultural mainstream. As video rapidly proliferates online, businesses and video professionals increasingly rely on Sorenson Media's innovative solutions and legacy of trust to meet their evolving needs.

Press Contact

Jacob Moon

Sorenson Media Public Relations

801-461-9797

Jacob@methodcommunications.com

FaceTime IS Really Cool -- We Take That for Granted

2011-12-19T04:00:00.000-08:00

Last week was the first week in a long, long time that I was away from home all week. So, to keep in touch with my beautiful family (wife Luisa, and two kids -- Hunter & Luca) I re-discovered FaceTime on my iPhone, which I haven't used for a long, long time. And, the week away made me realize what I had somewhat forgotten -- that is, that FaceTime is really, really cool. That it -- and what it represents (i.e., video communication) -- is truly transformative. That it keeps us "together" in a way that simply isn't possible with an audio-only call; or a non-mobile PC/Mac-laden video call either.

When I call home with audio only, my kids are distracted -- we speak only for a few seconds. There is no real connection. But, with FaceTime (mobile video calling), everything changes. My kids are focused. They engage. They are playful. They are silly. And so am I ....

FaceTime is fun -- it's as simple as that. And, speaking of "simple", FaceTime IS simple -- easy to use. That too is critical. The kids can roam around the house while they FaceTime me, and I can feel like I am there too. They can hilariously hold the phone to our two dogs -- which they did -- and I could command them to "sit" (which they did)! Yes, they were a bit confused at first (their heads did that slight doggy tilt) -- but, they ultimately focused on the iPhone screen and both saw/heard me convince them to follow my command. Classic! All of us were rolling.

Long-time readers of my blog know that, prior to running Sorenson Media, I was CEO of SightSpeed -- THE video chat leader before video chat became main-stream (with Skype, FaceTime, etc.). So, I have always believed in the uniquely transformative power of video communications.

Nevertheless, I continue to be amazed at the true differentiating power of video over audio-only communication. I always believed it -- but, we now live it as an everyday part of our lives. Let's not forget that only a couple years back -- maybe 5 -- the vast majority of folks believed that consumer video chat would never amount to anything.

Now look at FaceTime. Now look at Skype. Now look at Logitech's Vid (which is the evolution of the SightSpeed video chat service that they acquired in 2008).

Now, just take a look ....

Did You Know Bose Makes HD TVs? I Didn't Either -- Check This Out

2011-12-16T03:00:00.000-08:00

Bose -- you know them -- kings of great audio sound. That's all they do, right? Wrong.

I just learned that Bose now makes high-end TVs that feature revolutionary surround sound from -- get this -- invisible speakers built into the TV itself. It is called the Bose "VideoWave" entertainment system. Check Bose's site by clicking on this link. It features a 46 inch HD screen, and it goes for $5,499.

Sounds cool, right? Some of our guys at Sorenson Media just saw and heard a demo -- and, they were blown away. The sound was incredible.

How do they do it? Watch Bose's video (click on this link) to watch Bose describe its own audio break-through -- its invisible speakers from inside the VideoWave itself.

Did I Say "I Love Shutterfly"? YES, But I'll Say It Again -- CUSTOMER SUPPORT DONE RIGHT!

2011-12-15T04:11:00.000-08:00

I have been a loyal Shutterfly customer since 2001 -- that's 10 years of loyalty and tens of thousands of photos (literally), as well as thousands of dollars to Shutterfly. Here's one significant reason why -- I am always -- ALWAYS -- impressed with Shutterfly's customer support. And, how many times can any customer really say that about its service provider? Don't like the way your photo book was printed? Return it -- get your money back (or books reprinted for free) -- no questions asked. (Here is my post from two years ago praising Shutterfly's customer support and absolute commitment to its customers).

Here's my latest example. Each Xmas season I spend scores of hours making my annual photo book -- essentially my "greatest hits" photos that reflect highlights of the past year. These are my single most important gifts to my mother, my mother-in-law ... and to me and my family. We display these proudly in our home -- they are time-capsules -- slices of life -- always there at our fingertips.

Now, these photo books aren't necessarily cheap (even though the value to me is priceless). Since I pack them with 100 pages of photos (that is their max), they run well over $100 each. But, Shutterfly offers frequent discounts -- especially to long-time loyal customers. Accordingly, this year, I ordered my first book about 2 weeks ago -- using a 20% discount. Then, I ordered my second book about 3 days ago -- I found a 30% discount. But then, imagine my surprise when, almost immediately after ordering that second book, I received an email from Shutterfly informing me of a new limited 40% discount on photo books. So, I ordered my third photo book -- but also sent a note to Customer Support requesting that I receive the benefit of the full 40% discount on my first two books (which I thought would be the right thing to do).

First, not surprisingly, I received a response back expeditiously (within 24 hours, which is pretty good especially during this busy holiday season). And, second, importantly -- and not surprisingly -- the response indicated that I will receive a full monetary credit equaling the full 40% discount on my next order. Now, that is the right thing to do! And, I was quite sure that Shutterfly would do it (since they have always done the right thing in the past.)

And, that's the point -- Shutterfly always does the right thing. ALWAYS! And, they are a success because of this. Case in point -- I ordered one more photo book today -- the last day of the 40% offer; that's an incremental sale to you and me. And, I will order even more photo books in the next several days -- and will apply that credit. Yes, I saved lots of money as a result of Shutterfly's generous discounts. But, yes, Shutterfly got more money from me -- hundreds of dollars more. And, I never -- never -- think of leaving the service. That means I will continue to spend thousands of dollars into the future. As a result, everyone here is happy. I am spending more money with a smile on my face.

THAT is good business my friends. Bravo to Shutterfly! All of us who run companies can learn from their example.

(Separately, I am very proud that my company, Sorenson Media, is Shutterfly's video service partner; this is completely separate from me being a customer, since -- as indicated above -- I have been a Shutterfly customer for 10 years; but, that's another big reason why our business partnership is so satisfying; it is great to be in business with a company that cares so much about its customers -- and understands that THAT is smart business.)

2012 -- Virtual Cable Companies Coming -- Apple, Google Likely Amongst the First

2011-12-14T05:37:00.000-08:00

More and more signs point to more consumer choice for "real" live, linear TV programming coming soon -- in 2012.

Case in point -- the "virtual" cable company (click here to read a story from Peter Kafka of AllThingsD on this subject). No more will many consumers be limited to cable or satellite TV. Instead, they will look to familiar names -- most likely Apple, Google and Amazon, among others -- to provide the full Monty; the full Kit n' Kaboodle; the whole enchilada. I'm not just talking about Netflix-style video on-demand with its limited, and frequently frustrating, library of premium content. I'm talking about all the "real" channels of live TV that you want -- including ESPN. To do this, the new "virtual cable" guys will need to cut extremely expensive content distribution deals with all of those premium broadcasting channels. But, this will happen -- the ultimate rewards (and stakes) simply are too great for those candidates.

Think about it -- there will be no physical footprint limitation on this TV distribution opportunity. Unlike the cable guys, Apple, Google, Amazon and others can use the "dumb pipes" (broadband) laid by others to facilitate a fully national TV distribution service. In other words, these "virtual cable" guys will use the real cable guys' assets to cannibalize the real cable guys' business.

What do I think? Google most definitely will be amongst the first in 2012 -- first rolling out this kind of service in limited markets (I recently predicted this in my video predictions for 2012). But, my bet is that Apple too will be amongst the first. Why? As I have written repeatedly, there is no question in my mind that Apple will release its own REAL all-in-one flat screen TV (called "iTV") in 2012. And, make no mistake -- this iTV will contend that it completely re-imagines the entire TV experience to make it, well, more of a real fully seamless hardware/programming experience. This means full programming -- which must include "real" linear TV.

So, there it is. Q.E.D. Coming soon. Will be fun to watch ...

(Oh, and by the way, all is not lost by the cable companies in providing so-called dumb pipes; broadband services provide significantly higher margins than the content distribution services themselves, due to the massive costs involved in acquiring those content distribution rights. And, here's the deal -- the more "virtual cable" companies there are, the more consumers who will require high-speed broadband. That's a good thing for the "real" cable guys ....)

Why Spotify, Rhapsody & Others Can Never Be Profitable

2011-12-12T06:09:00.000-08:00

Online music/digital media guru Michael Robertson today wrote a guest post in industry-leading blog, Gigaom, with the provocative title "Why Spotify Can Never Be Profitable: The Secret Demands of Record Labels." Click on this link to read it.

This is a "must read", because it gives an insider's view of how record labels structure their deals with online music services on a "take-it-or-leave-it" basis. And, the piece is definitely striking a nerve, because it already has been tweeted over 2,500 times! Bottom line -- those leading online music services -- despite their frequent bravado (especially Spotify) -- have little power.

Ahh, and there's one more critical thing -- despite the onerous terms the labels demand from those services, they hold back critical music content. Case in point -- last time I checked, neither Spotify nor Rhapsody has Coldplay's latest album or The Black Keys' latest album. And, these are just two examples.

(NOTE -- pure online "radio" services like Pandora -- where the user cannot select the precise tracks -- are exempt from most of the realities identified in Robertson's piece because they benefit from the licensing scheme of the Digital Millennium Copyright Act (DMCA); however, Robertson is not bullish on those services from a business perspective either; here is his earlier piece about the economics of Pandora.)

Netflix -- The Bears Are NOT Hibernating This Winter -- RedBox, Doh!

2011-12-08T06:19:00.000-08:00

I have written several times about Netflix -- yes, I am a long-time subscriber to its streaming service (despite my persistent frustrations with the service's depth of content, or lack thereof); but, no, I am not bullish on the company from an investment perspective -- even as its stock continues to plummet. Here are some recent posts -- (1) a particularly dire analysis from industry pundit Dan Rayburn; (2) Netflix's season of continuing foibles.

Now, the certainty of increased competition is becoming a soon-to-be reality. RedBox -- you know the $1/DVD red kiosk guys (actually each DVD is now $1.20)? -- it is tossing its hat in the ring by powering an upcoming streaming service from Verizon. According to TechCrunch, this new "Netflix Killer" will launch end of May 2012.

Given RedBox's ubiquitous consumer brand -- those kiosks are everywhere! -- and given Verizon's ubiquitous reach, this competition could be formidable, especially if RedBox challenges Netflix on its overall depth of content.

Throw in Amazon Prime -- and its massive reach via Amazon's new Kindle Fire, among other things -- and you have some strong contenders in the online premium video streaming game.

Challenging times for Netflix indeed ....

Hey AT&T, Teach Your Technicians! My "Broadband" Experience

2011-12-06T06:06:00.000-08:00

I run a technology company -- and have been in the technology business for years -- yet have had no real broadband available to me at home since I have moved into Rancho Santa Fe, California 18 months ago. I have AT&T DSL -- and DSL only. No cable. No other highspeed broadband options. And it has killed me! My down stream broadband is a meager 2.35 Mbps -- at best! That means that we are completely paralyzed here at home when we try to stream movies from Netflix (when we can stream at all!). Streaming music? Uploading pics to Shutterfly? Fuggedhubout it! No one else can be online.

Even worse, every time it rains (yes, contrary to popular belief, it does rain in SoCal), my DSL either comes to a complete stand-still or doesn't work at all. Case in point -- last Xmas time, and after some big rains, we had no DSL service at all for over 2 weeks! No Internet connectivity -- or phone service -- that entire time. And, AT&T simply said it was experiencing "unprecedented" demand and could not come to fix things any earlier.

Ultimately, did the AT&T techs really "fix" things for us? Yes, we got back online (at our snail's pace DSL speeds), but we continued to have outages. Things got so bad that I continue to pay $80 per month to have my Verizon broadband card back-up when necessary -- which is frequently necessary.

SO, imagine my surprise when I first learned -- last week -- that AT&T may have U-verse highspeed broadband service available in my 'hood. I was skeptical, but sure enough -- AT&T's website indicates that it is, in fact, available -- at a flavor of "up to 12 Mbps."

Did an AT&T technician ever tell us about this? Of course not (despite the fact that we have had at least 6 techs come to our home over the past year). Did we receive any marketing materials about this from AT&T? Of course not. This is the one time they chose NOT to spam us. Rather, I learned of this apparent fact simply by joining the broadband committee of my community -- at which all of us on the committee were completely shocked.

So, what did I do? I immediately went to AT&T's website and signed up for U-verse highspeed broadband. For some reason, the full U-verse package is not available to me (no TV, or digital phone). Nor are the highest speed packages -- my highest available package is "Max" (up to 12 Mbps -- which, according to AT&T's website, is not optimal for movie streaming, downloading, or Skype videoconferencing -- which are all important activities for me). That sounds ominous ... very ominous .... Yet, if I get even close to 12 Mbps, it should -- with emphasis on "should" -- be much, much better than my current 2 Mbps. Perhaps at least all of us at home can be online at the same time.

Color me skeptical -- highly skeptical. Nonetheless I am hopeful. I have been instructed by AT&T's highly personal email that I will be able to make the switch to this new U-verse package on December 19th -- after 8 pm.

Fingers crossed.

I will report back.

Netflix -- Not Long for This World -- A Worthy Analysis

2011-12-02T06:30:00.000-08:00

Online video pundit Dan Rayburn just published a post in which he gives a detailed "blow by blow" analysis of the fundamental flaws in Netflix's business model. Bottom line -- he certainly is not an optimist of the long-term viability of Netflix (as a stand-alone company) amidst the increasing competition of other services offered -- or that will be offered -- by Amazon, Google and others. I agree with virtually every point Dan raises -- and have always been a bear on Netflix's stock prices (no matter how high or low, and even though I am a Netflix subscriber ... for now).

Click here to read his thorough analysis -- in my view, it is a "must read."

Mark Suster Interviews Eric Ries -- MUST WATCH Video

2011-11-29T05:36:00.000-08:00

Must watch video -- Venture Capitalist, Mark Suster, interviews Eric Ries, author of "The Lean Startup." Yes, it is 70 minutes long -- but you will get much out of it. Every entrepreneur should watch this one. Enjoy.

'Tis the Season -- Give the Gift of the Giving Tree Movement

2011-11-28T07:16:00.000-08:00

A woman pepper sprays 10 fellow shoppers as she reaches for an Xbox on Black Friday. Really? Has it really come to this?

Hey, I shop -- and certainly am not against consumerism in general. And, no, this isn't another post about the true meaning of the holidays. But, as we line up at midnight on Thanksgiving evening to be the first to rampage into the stores, what are we telling our kids? What are we telling ourselves?

We all want nice comfortable lives for our families -- I certainly do. But, we all (including myself) need to stop, take a breath, take stock, and reflect on the cues we feed our kids -- and the impacts of those cues. Rampant consumerism; rampant focus on "achievement" -- one scheduled activity after another (and the exhaustion that ensues); rampant focus on success -- without failure (and without the possibility of failure) -- are not the answers (at least in my book).

And, that's precisely what the new organization Giving Tree Movement is all about -- check it out here by clicking on this link.

Giving Tree Movement (GTM) does not claim to have all the answers. In fact, that's not the point. Rather, GTM aims to be safe forum for parents -- for all of us -- to discuss what it means to help us lead our kids to live truly authentic and purposeful lives amidst all the rampant pressures and expectations that they face. GTM was a direct response to many of the problems addressed in the widely-seen sobering documentary "The Race to Nowhere," which served as a wake-up call to many.

GTM's message is catching on fast down here in the San Diego area.

(NOTE -- in the interest of full disclosure, GTM's founder and Chief Inspiration Officer is my wife, Luisa. But, although she is a force in and of herself, that ain't why I am writing this. The message rings true ... and I try to take little steps each day to tailor my cues to our kids perhaps a bit differently than before because of GTM's message ....)

Amen to Michael Arrington -- On This Thanksgiving, Appreciate the Value of "Luck"

2011-11-22T04:00:00.000-08:00

TechCrunch founder and overall tech svengali, Michael Arrington, just gave a speech at the Founders' Institute (an organization of which I am pleased to be a part) -- here is a link to the TechCrunch report of it. He talks about how "luck" plays a significant part in any success -- and in any failure. Just because you "succeed" does not mean you're great; nor does failure mean that, in his words, "you suck." We are all rather simply on a razor's edge where things can frequently go one way or another.

BUT, there is one part that increases your positive "Black Swan" moments - -and that is the need to keep putting yourself in a position to succeed (i.e., have good "luck") in the first place. That means that a "never say die" attitude can, among other things, help increase your odds.

For this reason, I don't call it "luck" exactly -- I consider it to be more a question of being "fortunate." There is free will -- and effort -- associated with it.

In the end, however, Arrington's overall theme rings true. So, consider it this Thanksgiving season. And, count your blessings and good fortunes. In other words, appreciate how "lucky" we are.

I certainly do ....

Thanksgiving -- The TryptoMYTH

2011-11-21T06:16:00.000-08:00

This post -- nothing to do with digital media.

This post -- everything to do with Thanksgiving -- and turkey.

MYTH -- eating turkey makes you sleepy -- the tryptophan effect.

FACT -- apparently not true. As this article points out, eating turkey on Thanksgiving itself is not the cause of exhaustion. Rather, in its words, those f/x are due to "any combination of booze, bad conversation and a carbohydrate-heavy meal."

OUR THANKSGIVING PLANS -- my family and I are off later tonight to the land of the frozen tundra -- lovely Minneapolis, Minnesota -- home of the flailing Vikings -- and the Mall of America. That is part of our annual pilgrimage up north -- once again, we will be there. And, possibly with bells on!

Enjoy your families and friends this holiday week.

PC World Calls New Squeeze 8 "Nothing Short of Excellent"

2011-11-18T06:10:00.000-08:00

As readers know, my company, Sorenson Media, just recently launched Squeeze 8 -- the new significant update of our award-winning desktop video encoding/workflow application.

Well, the reviews are coming in. And, amongst the first is PC World -- with a nearly 2 million monthly unique readers. And, PC World calls Squeeze 8 a hit in its product review (click on this link for the full review).

Some of the choice cuts from the review --

-- "Using Squeeze is a breeze."

-- "The transcoding results are nothing short of excellent."

-- "... output from either version (Squeeze or Squeeze Lite) is as good as it gets."

-- "If you're a pro who does lots of encoding, then Squeeze 8 is definitely worth the download."

Good stuff ....

Scratch That -- Amazon's Kindle Fire Ships Today -- 1 Day Early!

2011-11-14T07:27:00.001-08:00

My previous post from earlier today is already old news -- Amazon is shipping the Kindle Fire TODAY -- 1 day early!

Amazon's Kindle Fire Ignites Tomorrow

2011-11-14T06:41:00.000-08:00

The headline says it all -- tomorrow is the big day -- Amazon's launch (availability) of its new Kindle Fire. This will be big ... very big. And, smart ... very smart by Amazon for all the reasons about which you likely already have read. Estimates are that initial demand will approach 5 million units.

While Amazon Kindle Fire sales will not surpass the iPad in 2012, they will fast climb to #2 in terms of market share. Then, who knows? Lots of Amazon customers already out there. And, lots more who want an inexpensive tablet on which they can view Prime premium video and, oh yeah, shop, shop, shop ....

H.264, WebM & X.264 Codec Licensing -- An Overview

2011-11-11T06:30:00.000-08:00

As dry as the issue of codec licensing may sound, it is also one of great interest -- primarily because everyone does need to know about the minefield that is licensing, and no one really feels comfortable that they do. Codec licensing is serious business - -and it is seriously confusing. That point was laid bare this past week at the Streaming Media West conference in LA, when an HTML5 panel devolved into a prosaic discussion of H.264 and WebM licensing (including royalties -- when triggered, and how much). For this reason -- because there is great interest and confusion in -- the issue of codec licensing, and because I know quite a bit about the subject (I was an IP lawyer early in my career after all), I am republishing my post from September 2010 in which I discuss H.264 v. WebM licensing (and the overall battle royale between those competing video codecs). The post generated great interest at the time, so here it is -- slightly updated.

Ahh, the promise of web and mobile video – HD video delivered anytime, anywhere, on any device. It sounds so easy. But, it isn’t. The overall workflow is complex – and the process from content creation to content syndication is both a technical and business minefield.

One central and critical piece in that workflow -- video encoding and transcoding – is one such minefield, fully appreciated by only a few. This is, in part, due to the fact that it sounds incredibly techie and complex. And, in many respects, it is. But, that doesn’t mean that you shouldn’t understand it. Encoding and transcoding is the process of compressing your video files so that they can be delivered anywhere you want (on the Internet, onto mobile devices). It is a morass, plain and simple -- and it is fraught with complexity, confusion and, yes, peril. This complexity and confusion is only accelerating in this day and age where we see an unending string of new platforms and products – not to mention new codecs, such as Google's sponsored open source WebM codec initiative.

Case in point, the new battle royale brewing between said WebM (and its VP8 video codec) – the burly upstart in this case – and MPEG LA’s MPEG-4 (and its H.264 video codec), the reigning heavyweight champion. H.264 is widely regarded as being the current “gold standard” high quality video codec– it is used by Apple, among others, to deliver pristine HDquality videos (Apple, in fact, is a member of the MPEG LA patent consortium). Google, as we all know, wants to unseat the champ by offering its newly sponsored high quality codec free to the world (I know it sounds incredibly generous, but Google has its own reasons, believe me).

Here’s the crucial rub – MPEG LA’s H.264 isn’t free – it is a royalty-bearing codec that requires a license.

But, you say, MPEG LA announced not too long ago that it will no longer charge royalties for the use of H.264. Yes, it’s true –MPEG LA did previously bow to mounting pressure from, and press surrounding, WebM and announced something that kind of sounds that way. But, I caution you to read the not-too-fine print. H.264 is royalty-free only in one limited case – for Internet video that is delivered free to end users. Read again: for (1) Internet delivery that is (2) delivered free to end users. In the words of MPEG LA’s own press release, “Products and services other than [those] continue to be royalty-bearing.”

But, you may ask (understandably confused by it all), what does that mean to me and why does this matter? Here’s why – any business that publishes and distributes its videos onto the Internet or across mobile networks (and that likely includes yours) is encoding those videos either themselves or, more likely, via a third party encoding service or online video platform (OVP). And – big gulp here -- encoders and decoders are specifically called out in MPEG LA’s press releases as continuing to be fully royalty-bearing. That means that MPEG LA absolutely takes the position that H.264 cannot be used for encoding without a license – and that means royalty payments in certain high volume cases. And, those royalties aren’t cheap – meaning that potential legal exposure for both past and present unlicensed usage can be significant … very significant ... in high volume cases if that license is not obtained.

Now, you and your service providers may take the position that no license is needed from MPEG LA for encoding, because you utilize FFmpeg, the best known open source video encoding solution in the marketplace. Many, if not most, professional encoding services an OVPs, in fact, do use FFmpeg. And, FFmpeg, in turn, features X.264, an open source video codec implementation of MPEG LA’s H.264 royalty-bearing video codec. X.264 is not H.264, so no MPEG LA license is required. Sounds rational, right?

Perhaps, but predictably MPEG LA, its consortium of patent holders and other licensing bodies vehemently – and I mean vehemently -- take the position that open source implementations of their codecs absolutely infringe (remember, this risk is not exclusive to MPEG-LA and its codecs). In their view, there is no free pass! Let’s face it – patent holders and their licensing bodies are in the business of getting paid – they are not in the business of philanthropy. MPEG LA, in fact, continues to make “noises” that even Google’s royalty free WebM gift to the world (which resulted from its acquisition of On2 and its VP8 video codec) infringes the rights of its patent holders. In effect, MPEG LA is telling WebM users “Buyers Beware!” (Surprising, huh, that MPEGLA consortium member Apple and Google disagree on this one?)

Don’t believe those risks are real? Take a look at FFmpeg’s own official website. Right there – in plain sight – FFmpeg not only acknowledges those risks, it expressly cautions its users that any commercial usage (which is what we are talking about here) is at their own peril. Specifically, here is FFmpeg’s official word on the subject in the form of a relevant Q&A that is taken verbatim from its website:

Q: Is it perfectly alright to incorporate the whole FFmpeg core into my own commercial product?  

A: You might have a problem here. There have been cases where companies have use FFmpeg in their products. These companies found out that once you start trying to make money from patented technologies, the owners of the patents will come after their licensing fees. Notably, MPEG LA is vigilant and diligent about collecting for MPEG-related technologies.

So, there it is. Right there. Thousands of companies use and rely upon FFmpeg right now to encode their videos (either directly or indirectly via an encoding service or OVP) for commercial purposes without a net; without the codec licenses and royalties that patent holders and licensing bodies contend are needed and must be paid. This is not meant to cause panic – it is simply meant to open eyes to one highly misunderstood and overlooked reality in this highly complex world of web and mobile video.

So, what’s a business to do if its videos are encoded with FFmpeg? Stop distributing those videos across the web or across mobile networks? Absolutely not – video is simply too impactful and, for most businesses, should be a central piece of its customer engagement and monetization strategy.

But, if your business does do video, do it smartly. Cover all your bases. Don’t take short-cuts. Ask questions. Ask your team or encoding service provider if they use officially sanctioned and licensed codecs. If they don’t, then the next question is whether, nonetheless, they have entered into licensing agreements with MPEG LA. If the answers to those two questions are "nyet", then you may want to switch. You are not immune from the risks that they take in the minds of patent holders (MPEG LA confirms this). (To add confusion to this already confusing subject, you also will likely need to pay royalties for the use of X.264 not only to MPEG LA, but also to those companies from whom you are using supported X.264 implementations -- as an example, we have done that at Sorenson Media with our new Sorenson Squeeze 8 product that launched last week.)

At the very least, if you decide that switching costs are too great, then you may want to ask your service provider for indemnification of those risks. But, depending on the size of your service provider, that may be cold comfort.

Sorenson Media Wins 3 Streaming Media Readers' Choice Awards

2011-11-09T14:19:00.000-08:00

Live here from the Streaming Media West conference -- just announced, Sorenson Media wins a record 3 coveted Readers' Choice Awards, more than any other company. Here are the big wins:

-- BEST ONLINE VIDEO TECHNOLOGY COMPANY

-- BEST CLOUD ENCODING/TRANSCODING SERVICE

-- BEST ENCODING SOFTWARE (UNDER $1000)

This is a big win for us -- as these are the awards that matter most in our industry, not just because of the Streaming Media name -- but also the fact that over 6,500 people voted (most of whom are actual users of industry products, including ours). And, the specific awards themselves say much about us as a company -- (1) innovation (best online video technology company), (2) where our business is going (best cloud transcoding service), and (3) where our business began and our established legacy (best encoding software -- Squeeze).

Lots of smiles in all of our offices -- San Diego, Salt Lake City, LA, Portland, Las Vegas, London, Seoul and Tokyo.

Subscription Services' Achilles Heel -- CONTENT! It's Still King Baby!

2011-11-07T06:05:00.000-08:00

I love the promise of online music and video subscription services -- "all-you-can-eat" for a monthly recurring rate. Access to millions of music tracks -- thousands of motion picture and TV shows. I myself subscribe to Rhapsody, Pandora and Netflix (and have for years).

But, as great as these services are (and they are, for the most part), they also constantly remind me that content is -- and always will be -- king. And, if the content (album, movie) you want ain't there, then you are dissatisfied with the whole service. I feel that much of the time with Netflix (I mean, how many Scooby Doo cartoons can you watch?).

And, I am now reminded by it with Rhapsody. Case in point -- as a long-time Coldplay fan (yes, I freely and proudly admit it!), I couldn't wait for its new 3-year-in-the-making album, Mylo Xyloto, to come out two weeks ago. Normally, I would simply wait for "new music Tuesday" to hit Rhapsody and stream it over-and-over on-demand. But, this time I noticed that iTunes had it the day before -- so I bought it. Even so, I wanted to check it out on Rhapsody beginning on Tuesday and -- voila -- it was'nt there (as in "NOT"). How could this be, I thought? The biggest music release of the year, and not on Rhapsody? That is a blaring and embarrassing gap.

But, here we are two weeks later -- and still no Mylo Xyloto! What gives?

So, even I -- a long-time passionate Rhapsody fan -- am frustrated with the service. Very irritated really -- not just for this specific glaring hole in its content, but also for what it represents.

Now, I know that this gap is likely a direct result of business shenanigans by the music label and/or the band itself. But, that doesn't matter to the customer. At the end of the day, it is the subscription services' responsibility to plug those holes.

In this case, Rhapsody didn't. And, here I am writing about it. Bottom line -- if I am frustrated, thousands (and in this case, likely tens of thousands) of customers are frustrated. And, that ain't good for the service.

In this case, score iTunes "1" -- Rhapsody "0."

(Separately, was Coldplay's new album worth the wait? Check out my track-by-track review by clicking on this link.)

Hosting Company PEER 1 Launches Cloud Service -- Partners with Sorenson Media

2011-11-07T05:50:00.000-08:00

Can anyone doubt that the world of enterprise services -- including video workflows/transcoding -- are moving to the Cloud and away from legacy providers?

Global hosting provider PEER 1 is the latest data point in this regard, as it goes "all in" as of today -- launching its own cloud-based IaaS/PaaS service called "Zunicore." And, I am pleased to report that PEER 1 chose to partner with Sorenson Media to provide value-added video workflow and transcoding solutions in this increasingly multi-screen world. Click here to read PEER 1's just-issued press release -- which prominently features us (and our star Director of Business Development, Doug Cebik). And, here is Gigaom's "take" on the announcement.

PEER 1 hopes to differentiate its service from others in two primary ways -- by offering (1) "resource pools" rather than virtual machines; and (2) auto-scaling. And, the company chose Sorenson Media not only because of the power of our brand, but also because we are the first and still-only enterprise-grade cloud-based transcoding company (servicing multi-billion dollar customers like Shutterfly and Technicolor).

We are pleased to count PEER 1 as our new enterprise partner.

Florence & The Machine -- What Coldplay Lacks in Passion, She More Than Makes Up For It

2011-11-04T07:28:00.000-07:00

Florence & The Machine's new album -- "Ceremonials" -- immediately grabs you. And never lets go. "Shake It Out" gives chills. Stunning piece of work. I just texted my musical Svengali and partner-in-crime -- An Nguyen -- who is my brother's partner and oncologist extraordinaire and told him that Florence is the new Kate Bush. He texted back, "Totally. The love child of Kate Bush and Tori Amos." Precisely! Both of Florence's musical parents drove their music with passion and mystery -- THAT is Florence.

And, that takes me to Coldplay and its new album "Mylo Xyloto." What Florence's new album has in passion, Coldplay's new tunes lack it ... utterly. Sadly uninspired. Sadly going through the motions. Here is the link to my track-by-track review which ultimately gives it 2 starts out of 5 -- the band's low-point. And, that comes from me -- a long-time Coldplay fan.

While it took me a long time to warm up to Florence on her last album, I am now fully there. Meanwhile, Coldplay is falling fast on my charts ....

Watch This -- "On the Brink" of A Connected World -- 21 Minute Documentary

2011-11-04T05:14:00.000-07:00

Watch it -- it is worth the 21 minute investment of time. Gets you thinking about how much has happened in just the past 15 years -- and how much more will happen in the next. And -- 1 out of 6 marriages now originate from online dating? Wow! That stat blew me away ...

Apple Speculation Rampant On the Certainty of a Coming iTV

2011-11-03T14:50:00.000-07:00

While most were skeptical until just recently, the tide has now completely turned -- and now it seems that virtually everyone believes that an all-in-one "real" flat-screen TV will become a reality in the near-term. I have always believed this -- and started writing about this nearly two years ago (here is one relevant post from May 2010). And, Steve Jobs himself essentially confirmed this to his biographer before he recently passed away -- here is my relevant post about this.

Here is a compelling "take" on what is needed to make iTV a successful reality -- this story is from leading blog "gdgt" (click on the link here). You can see my "counter"-take to the author's perspective in the comments section below -- I am the "petercs" commentator. And, not to be outdone, my esteemed COO here at Sorenson Media -- Eric Quanstrom -- gives his own "take" as "EQ" in the comments section.

Here is Gigaom's own separate "take" on what iTV needs to be in order to be successful -- click here to read this worthy story as well.

What's funny is this -- now, not only virtually everyone seems to be calling this new Apple product launch a near-certainty, but also virtually everyone seems to be referring to it as "iTV." As I stated way back then, I agree.

Avid - Our Long-Time Partner -- Launches Its New Products Today Featuring New Squeeze 8

2011-11-03T10:30:00.001-07:00

Today, our long-time partner Avid announced its new major product launch -- all new versions of Media Composer, Symphony, and NewsCutter -- click here to read Avid's official press release. And, importantly, all of these Avid products will now feature new Squeeze 8 (in an optimal coordination of timing with our Tuesday launch) -- Squeeze 8 is prominently featured in the press release.

This event marks a significant expansion of our distribution partnership with Avid -- across more product lines than ever before. Avid's overall opportunity in the NLE space is greater than ever with the growing ubiquity of, and need for, high quality video -- and with the departure of Apple Final Cut from the professional video space (in favor, instead, of consumer use cases).

"Green Wheels" -- The World's First Eco-Only Car Dealership

2011-11-03T03:00:00.000-07:00

Here's a cool new concept and company that everyone should be talking about. It's called "Green Wheels" and it's the first eco-friendly only car dealership in the world. Check it out by clicking on this link. And start talking it up.

The concept is simple -- and the simplest of concepts are frequently the most powerful. In the words of entrepreneur Jason Davis -- a longtime auto exec who just "launched" the first Green Wheels dealership in San Diego -- "Green Wheels is a specialty car-dealership focusing on energy-efficient, pre-driven vehicles." Davis's mission statement from his website gives more color to what drives him and Green Wheels:

"Driving an environmentally friendly vehicle is not a fad and you do not need to be an environmentalist to sit behind the wheel. Owning a “pollution solution,” provides peace-of-mind benefits and, of course, much lower payments to the gas-pumps. Green Wheels will find the best, energy-efficient vehicles available in the market at a competitive price, and will make certain that they are inspected to super-high standards. One car at a time, we can truly make a difference."

You gotta love that passion! Green Wheels aims to make a real difference -- and it already is by making a statement. You don't need to buy a car to be moved by Davis's mission (although many people already are as the pace of sales in this one-month old dealership already is accelerating). The mission itself gets you thinking -- and, that's what it's all about. In the inimitable words of Steve Jobs, "Think Different." What YOU do DOES matter. So, think about what you do before you do it -- and think about the impact of your actions.

You can feel even more of that passion when you check out his website. Notice the attention to detail as you navigate the tabs on the home page. Check out the "footprint" tab -- describing how each of us impacts climate change (about which I have previously written). And, check out the "eco-links" tab where Davis lists some of his favorite kindred spirit causes and businesses, none of which are car-focused! How cool is that? Davis gives his own personal stamp to these, because he is building his business his way.

My personal favorite on the "eco-links" tab is Giving Tree Movement (www.givingtreemovement.org) -- that grass roots movement is definitely worthy of reflection (and not simply because my wife is the Founder & Chief Inspiration Officer). That cause speaks to me. But, the speaker herself is pretty amazing -- as is her passion and voice. Watch this video to see what I'm talking about.

Green Wheels -- spread the word ....

Sorenson Media -- Finalist in Record 5 Streaming Media "Readers' Choice" Categories

2011-11-02T13:09:00.000-07:00

Okay, okay, okay -- I know that Sorenson Media propaganda has been taking over my blog posts in the past few weeks. And, I know, I know, I know -- I have always vowed to focus most of my energies on digital media and technology stories of general interest. And, I am committed to that pledge (as you can see if you look back at my posts over time).

At the same time, what can I say? We continue to receive kudo after kudo in the past few weeks. And, I don't mean this boastfully -- yes, we are proud. But, we are also truly honored and humbled by the recognition. It means a lot to us -- especially when the recognition comes from actual users of our products.

Case in point -- we just learned earlier today that we are a Finalist in a record 5 categories for the coveted U.S. Streaming Media "Readers' Choice" awards that will be announced next week in LA. (click on this link to see the relevant official announcement from Streaming Media.) No other company -- of any size or shape -- is a finalist in more categories. And, we are a finalist in every single category in which we were originally nominated -- based on over 6,000 votes. Here are those categories:

-- Best Online Video Technology Company

-- Best Cloud Computing/Transcoding Service

-- Best Encoding Software (Under $1,000)

-- Best Encoding Software (Over $1,000)

-- Best Online Video Platform

Note, there are only 3 finalists in each category, so this recognition is meaningful already. We are all smiles over here today -- especially after our Squeeze 8 product launch (and exhaustion) yesterday.

Thanks for the votes of confidence. A few weeks back we won the European Streaming Media "Readers' Choice" award (for the second year running) for "Best Transcoding Solution." And, this past Friday, we won TechAmerica San Diego's "Best Internet Company" award. But you knew that already after reading my earlier blog post on that subject.

After next week, I assure you there won't be any more Sorenson Media propaganda for a while .... unless we win some more awards, in which case I have no choice to pat the backs of the team around here because it is well-deserved. This team is good .... really good. And, they care a lot -- and for all the right reasons.

Sorenson Squeezes Out NEW Version 8 -- The First & Only Total Seamless Video Workflow Solution

2011-10-31T21:00:00.000-07:00

Sorenson Squeeze 8 officially launches today -- that means that it is available now -- check out www.sorensonmedia.com.

Here are the headline stories from this launch, as we continue our relentless focus on customer experience and continued innovation (the full press release can be accessed by clicking on this link):

(1) Integration of all Sorenson Media products (including our enterprise-focused products) -- previously, we uniquely and seamlessly integrated our 360 online video platform into Squeeze (including industry-first "review and approval" workflows); NOW, in Squeeze 8, we seamlessly integrate enterprise-grade Squeeze Server into the workflow so that video professionals can collaborate and offload encoding jobs to separate servers and streamline high-volume workflows. This power works both behind-the-firewall and in the Cloud, where we have led -- and are absolutely committed to continue to lead -- the way in terms of innovation. And, this power, of course, frees up work stations to focus on the highest ROI activities possible.

Don't think of Squeeze as a separate stand-alone product anymore -- Squeeze 8 is simply part of our overall completely unique video workflow ecosystem in which all of our products and solutions (Squeeze desktop, Squeeze Server, Sorenson 360, Sorenson Spark) all work together. That's our statement. That's our mission. That's the big story. The macro story.

(2) Continued relentless focus on enabling the highest quality video -- we always do more here than anyone else (hence the awards -- to see our latest click this linke) -- including our new support for industry leading video codec X.264; we are honored that our brand stands for highest quality video -- and has for years; this relentless focus on quality will always be job 1;

(3) Full adaptive bitrate encoding -- speaking of quality, all three major "flavors" are now supported (Apple HTTP Adaptive Streaming, Microsoft Smooth Streaming, and Adobe Dynamic Streaming) -- which is absolutely necessary to optimize quality across varying network conditions;

(4) Enhanced GPU acceleration -- speed, speed, speed! Enough said; your time matters; we get that (and offloading tedious encoding jobs to Squeeze Server anyone? See (1) above;

(5) Enhanced Ease-of-Use -- let's face it, Squeeze packs a powerful punch. That is the good. But, candidly, it can also be a challenge for some users. So, we listened. We provided significant enhancements to walk the user through every feature every step of the way. You can read more about these enhancements by clicking on the official press release link here;

(6) Lower Priced -- yes, again, we listened. New Squeeze "classic" is now $200 cheaper out the gates than prior Squeeze 7 ($200 cheaper to be exact); that alone is a big deal we think -- and, Jackie Dove of Macworld agrees -- click here to see her review;

(7) New Prosumer Edition -- with high quality video increasingly mission critical for more people and more ubiquitous than ever (due to HD smartphone video capture, among other things), we again listened to the market and are introducing a new "Squeeze Lite" prosumer edition at $199; Squeeze Lite packs the full quality punch of full Squeeze -- and gives broad format support and everything else prosumers and many video professionals need. Check out the features here by clicking on this link. We are excited about expanding our consumer base to fit the ever-changing realities of our increasingly video-rich lives. Macworld agrees that Squeeze Lite is a big deal -- read here;

I want to give a special thanks to the entire Sorenson Media team for this exciting launch. It is the best team in the business. The most expertise. The most ingenuity and creativity. The most passion to do things right. The most dedication to our customers. Trust me -- every single person cares and wants to change the video world.

But, you tell us -- let us know what YOU think. Are we succeeding in your eyes?

Big News Coming Soon ... Very Soon ...

2011-10-31T08:22:00.001-07:00

Stay tuned ....

Sorenson Media Wins TechAmerica's "Best Internet Company" in San Diego

2011-10-28T16:07:00.000-07:00

The phenomenally talented and passionate crew at Sorenson Media (some of us are pictured here) and I just returned from TechAmerica's annual technology awards in San Diego. And, I am honored to report that we just won the "Best Internet Company" award for San Diego (we are holding the award in the pic). This is another important honor for us, and we are thrilled to win it. Lots of great talent and companies here in San Diego -- we fly under the radar sometimes, but that's okay. We get to do things our way -- including wearing flip-flops while we do it. And, TechAmerica is a great organization that holds lots of clout. Earlier this year, I was honored to serve on TechAmerica's Cloud Commission that made recommendations directly to President Obama and his Administration. We were the only video solutions company to be represented on that Commission, reflecting Sorenson Media's unique reputation in the online/mobile video world.

Speaking of flip-flops, this most recent kudo follows immediately on the heels of winning Streaming Media's coveted European "Readers' Choice" award for "Best Transcoding Service." And, we also were just named to Streaming Media's 100 companies "that matter most" in video. And, that's not all -- we are also nominated for a record 5 Streaming Media U.S. "Readers' Choice" awards. Those will be announced in two weeks.

We are honored. And we are humbled. The team here is dedicated -- we are passionate -- and we really want to change the world.

Goliaths -- bring it on. This David has legs!

Coldplay's Cold Play -- My Track-By-Track Review (2 Stars Out of 5)

2011-10-28T05:32:00.000-07:00

Coldplay -- a band you either love or hate. I am on the "love" side. Ever since I saw the video for their first hit "Yellow" well over 10 years ago when I traveled to Europe, I have been hooked. I remember coming back to the States and looking for their first album, "Parachutes," at the Virgin Megastore in LA. They only had the import. No one had even heard of them yet. That soon changed of course.

So, their new album -- Mylo Xyloto -- just dropped on Tuesday. This was a highly anticipated event for me. (In fact, I was able to buy it on iTunes on Monday -- much to my delight; whereas, it still isn't even available as of today, Friday, on Rhapsody! Ahh, the problems with music subscription services, but I digress ....).

What do I think? My headline says it all to me -- from the album's title, to the overall impact of the collective body of work, this album leaves me, well, "cold." This is Coldplay's 5th full album -- and, for me, it ranks near the bottom of the list. Although not completely lacking in magic, the album kept me asking "Where's the beef?" as I listened through it -- over and over again to make sure that I wasn't jumping to conclusions. At times it sounded like the Coldplay we know and love; at other times, I thought I was listening to an album from the 80s band "Aha" (you know, "Take on Me"?). The album clocks in at 14 songs -- but 3 of the 14 aren't really songs; they are more like intros to other songs (each of these 3 are less than 1 minute long).

Here is my track-by-track review --

(1) "Mylo Xyloto" -- the namesake track; this is an intro that comes and goes; nothing to review here;

(2) "Hurts Like Heaven" -- this is the album's opening track; I heard one of the band members on Sirius XM radio saying that they chose this song to open the album because it was different than anything they have recorded before; well, that can be a good or bad thing -- here, it ain't good. While the upbeat song sounds pleasant enough, there is no substance. Think of it as ear candy. It comes and goes without making any lasting impact. Next ....

(3) "Paradise" -- this is the album's second single -- and the stand-out track. THIS is what Coldplay is all about. Beautiful soaring melodies. Passion. This will become a stadium sing-a-long -- but, the only one from the album. Keep this one -- and discard many of the others.

(4) "Charlie Brown" -- this one is much in the same vein as "Hurts Like Heaven" -- upbeat fluff. Do we really need synth pop again? Pleasant enough, but skip to the next ....

(5) "Us Against the World" -- from the building pointilism of the guitars, to the spare, soft and gruff vocal by Chris Martin, this U2-like track is a keeper. Coldplay is frequently compared to U2 -- and this one is the only track on this album that fits that bill. This one could be found on U2's "Joshua Tree" album -- it is beautiful. But, Bono would sing it better .... Nonetheless, this one is worth the wait.

(6) "M.M.I.X." -- this is an ambient intro track -- producer Brian Eno in full force here -- leads us to the next track.

(7) "Every Teardrop is a Waterfall" -- the album's first single -- synth pop again. And, once again, tastes great, but is less filling. Will it play well in concert in a stadium? Of course it will. But, will it leave a lasting mark? No it won't. High production values. Low impact. And, the lyrics -- "I'd rather be a comma, than a full stop" -- really? C'mon Chris, is that all you got?

(8) "Major Minus" -- up-tempo again -- and the chorus sounds a bit U2-like once again (although the rest of the song doesn't). But, the U2-like chorus is U2 when it is off its game (which also happens). In other words, this one doesn't work. Once again, skip on to the next ....

(9) "U.F.O." -- every Coldplay album needs at least one song with Chris Martin singing alone -- and simply -- over an acoustic guitar for the most part. This is that one on this album. But, while the melodies usually are beautiful for this formula, this one is forgettable ... sadly. Again, a big disappointment.

(10) "Up in Flames" -- this down-tempo spare track is just that -- a downer. Cold. Dull. A throw-away. Is this really one of the top 14 tracks (11 really) that Chris Martin and the boyz could pen in the period of 3 years? I certainly hope not. But, somehow it did find its way onto the album. Skip it.

(11) "A Hopeful Transmission" -- this is the third and final less-than-one-minute intro tracks. Nothing to review -- but the next one is.

(12) "Don't Let It Break Your Heart" -- finally, something to stand up and be inspired by! A stand-out track on the album. Soaring! Inspired! Big! This one will fill the arena. This one stirs the soul. Coldplay can do that when they are "on." This one is. Most of the others on this album aren't. Keep this one. Everyone will be on their feet for this one.

(13) "Up With the Birds" -- this one almost closes the album -- and it begins in typical "album closing mode" with Chris Martin, once again, singing sparely. It then builds. And the "build" is stronger than the spare intro. A middling track. Not memorable. Not a throw-away either. At least it belongs on a Coldplay album ... but by a thread.

(14) "Princess of China" -- well lookie lookie here -- Rihanna joins the band for this one. But who doesn't Rihanna join at this point? Exciting possibilities, right? Wrong. She is largely wasted. As is the band itself. As a closing track on the album, it leaves me cold. No passion yet again. Much like the first real track, it is ear candy. It tastes alright. But then it's gone. No lasting impact.

And, voila -- there it is. If I were a writer for Rolling Stone -- I would give "Mylo Xyloto" 2 starts out of 5.

A big disappointment.

Too bad -- two of my favorite bands, Death Cab for Cutie -- and now Coldplay -- seem to be losing their way (here is the link to my track-by-track review of Death Cab's latest album, "Codes & Keys", which improved on their previous album "Narrow Stairs"). I understand they both want to break-away from their original "sound" and try new things. I really do understand that. It worked for Coldplay on their last album -- "Viva la Vida (or Death and All Its Friends)" -- but it doesn't work here.

Coldplay -- it's time to "Fix You." As the soup nazi would say, "NEXT!"

Apple's "REAL" Apple TV IS Coming ... Sooner Than You Think

2011-10-26T13:58:00.000-07:00

Apple's TV "hobby" business will soon be a hobby no more. I have always believed that Apple will absolutely tackle the living room -- with an easy-to-use and beautiful "all-in-one" flat panel TV with seamlessly integrated services and experiences. Here is one of my earliest posts on the subject. Here is a further prediction -- when it is announced, it will be called "iTV" -- and not "Apple TV" -- in order to distance itself from today's current hobby.

Well, here's an article I just found today on CNN about the inevitable reality of iTV -- and real nuggets pointing to that direction. Enjoy. You should. Because you soon will enjoying an Apple flat panel TV in your living room ....

(CNN) -- A fully integrated Apple television, one of Steve Jobs' final visions, might be on the way soon, according to multiple reports.

In "Steve Jobs," a biography of the late Apple co-founder released Monday, author Walter Isaacson writes that Jobs told him he'd finally figured out a way to make a TV practical. He said it would wirelessly synch with other Apple devices.

"It will have the simplest user interface you could imagine," he told Isaacson. "I finally cracked it."

On the same day, analyst Brian White of Ticonderoga Securities issued a report titled "A Full-Blown Apple TV Is On The Way."

In it, he says the book confirms what his multiple trips to China have suggested. He said Ticonderoga has seen evidence that early stage prototypes of an "Apple Smart TV" are already making their way through Chinese factories.

"We believe a product could hit the market in the coming quarters, opening up a new growth category for Apple and driving sales of existing products that play into the Apple digital ecosystem," White wrote.

On Tuesday, Bloomberg cited three unnamed sources saying that Jeff Robbin, the software engineer who built iTunes, is in charge of developing the television set.

The news service quoted another analyst, Gene Munster, of Piper Jaffray Cos., saying that the iPhone 4S's Siri voice-command app could be integrated into a TV system.

Since 2007, the company has made a product called Apple TV, a set-top Web-streaming box that competes with rival Google TV and independent offerings like Roku and Boxee. But compared to hits like the iPhone and iPad, it has largely underperformed, leading Jobs last year to acknowledge that Apple TV has "never been a huge hit."

In September, Apple slashed its price from $299 to $99, but even that hasn't made the service a household name.

In his report, White notes that a refresh of Apple TV set for later this year has been scrapped, potentially signaling the television system's pending arrival.

Guest Post -- Dan Rayburn On How Amazon's Kindle Will Fire Streaming Video

2011-10-25T06:01:00.000-07:00

Here is a "must read" from streaming media guru Dan Rayburn -- how Amazon's Kindle Fire may transform the online video streaming business -- here is the link to Dan's actual post on his own personal blog

"I Think He (Jobs) Would've Loved to Have Conquered Television" -- Says Biographer

2011-10-24T06:50:00.000-07:00

Steve Jobs' authorized biography is now on digital bookshelves everywhere. Who isn't going to buy it? Am watching the 60 Minutes piece tonight.

One choice intriguing cut -- Jobs' biographer, Walter Isaacson, writes the following about Jobs after becoming stricken with cancer:

"He knew the couple of things he wanted to do, which was the iPhone and then the iPad. He had a few other vision. I think he would've loved to have conquered television."

And, conquer television Apple will! The Apple faithful will absolutely fulfill Jobs' dream by releasing an all-in-one REAL flat-screen Apple TV (most likely called iTV) that will attempt to revolutionize the television viewing experience in much the same way that Apple first revolutionized the music experience (with the iPod and iTunes) and, second, the communications experience (with the iPhone). I have written about this several times -- and it isn't a question of "if." It is absolutely a question of "when."

Sorenson Media -- Readers' Choice Europe Best Transcoding Solution Winner

2011-10-19T04:39:00.000-07:00

I am pleased to announce that Sorenson Media, once again, won "Best Transcoding Solution" in the Streaming Media Europe "Readers' Choice" awards! Here is the full press release we just issued -- click here. And, we are nominated for a record 5 more in the US version of this coveted award.

This is a big one for us -- these mean a lot, because it is the users themselves who vote.

Spotify -- Losses Mount & Facebook Won't Help ... Or Will It?

2011-10-17T02:00:00.000-07:00

I have written several times about Spotify. It is the critics' darling online music service. It is Facebook's darling (Zuckerberg's featured music service). It is the biggest thing in the music business to come across the pond since, well, the Beatles.

But, despite all of this hype, Spotify continues to hemorrhage money -- with losses mounting significantly from 2009 to 2010 (growing ominously from $26 million to $42 million during that period of time). That's a lot of digital music! And, the service's revenues are significantly skewed (70%+) to subscription revenues over ad revenues -- significantly more so than Gigaom's Editor and leading pundit Om Malik had expected.

That doesn't bode well for Spotify's recent poster child status with Facebook. Yes, that kind of distribution will be massive. At first blush, that seems great, right? But, here's the rub -- I doubt many Facebookers will use anything more than the free service. And, that means massive COGS from massive free music streaming -- music licensing, bandwidth -- that likely won't be effectively recouped. And, if that is the case, that means ever-growing losses -- with no end in sight.

That ain't a great business model.

Or, is it? Massive mounting losses didn't hurt YouTube ultimately. That was because YouTube was picked up by a juggernaut that didn't really care, because YouTube meant so much more strategically to Google than the service itself.

And, the same thing may be happening with Spotify and Facebook. As a stand-alone independent business, Spotify is difficult to justify. But, in the strategic hands of Facebook the world starts looking altogether different ....

Sorenson Squeeze -- Best Transcoding Solution Finalist -- Streaming Media Europe

2011-10-14T08:06:00.001-07:00

Hot off the presses -- Sorenson Squeeze is a top 3 finalist for the coveted Streaming Media Europe "Readers' Choice" award for Best Transcoding Solution. Click on this link to see the full scoop.

Last year we won it -- next week we find out at this year's Streaming Media Europe show in London. Mark Lawson, our head of EMEA, is leading the charge for us over there -- and is speaking on a panel. Check it out. And then join him at the pub.