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June 22, 2006
More Evidence that Online Video can generate real money
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CBS President-CEO Leslie Moonves said analysts and investors aren't giving his media empire the credit it deserves for modernizing. Speaking at the "Outlook 2010" seminar hosted by PricewaterhouseCoopers, Mr. Moonves was asked why CBS isn't getting more credit from Wall Street for its many digital innovations of the past six months.
Here is part of his reply as reported in AdAge:
"There is a perception out there that we are 'old media,' that we are stuck in the old days … [but since we formed [the digital media division in] Jan. 3, we have probably done over 20 new-media deals. We did a Comcast deal. We've done a Google deal. We've done numerous deals with Verizon. We're doing video on demand on our own website. We did the NCAA basketball tournament."
What caught my attention this morning was that Mr. Moonves said CBS took in $4.2 million in new revenue from advertisers supporting its March Madness webcasts, and he expected that figure to double next year.
So, a let’s do a simple calculation: 21 days of March Madness averages to $200,000 per day in ad sales from one web site (albeit a very popular web site).
Next, let’s find a comparison. National Cable Communications is the rep firm for the cable MSO’s. While they do not sell all the ads for local cable television, they do (presumably) target the same type of advertisers that CBS covets: nationally focused and large. NCC probably sells $3 Million in ads per day; that is $1 Billion in national ad sales for spot cable last year. Let’s keep in mind that this business represents national ad sales inventory for the entire country across Comcast, Time Warner, Cox, Cablevision, Charter, etc.
The two metrics are not an apples-to-apples comparison and people could pick it apart. But I find it interesting that one very popular web site can generate 1/15’th the daily gross revenue from national advertisers as all of local cable can.
Some of the data in this email may be so television ad industry specific that it is clear to me but not clear in type. Please contact me if it is confusing.
Posted by Martino Mingione at 10:50 AM | Comments (0) | TrackBackJune 13, 2006
Brightcove
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March 21, 2006 | |
| Founded in 2000, MetaStories is a provider of rich-media publishing solutions, used by a wide variety of top-tier media companies including Yahoo!, MSN, USATODAY.com, Discovery Networks, National Geographic, and Scripps Networks. Brightcove plans to continue to develop, market and distribute MetaStories StoryMaker. The product will be available as a stand alone solution and offered as an integrated component of the Brightcove service. |
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February 20, 2006 The New York Times Company Selects Brightcove to Help Build its Broadband Video Offerings | |
| The New York Times Company plans to use Brightcove to program and deliver broadband video content throughout its online properties. Brightcove will make it possible to syndicate video produced for About.com and other Times Company broadband channels to Web affiliates, thus extending the reach of The New York Times Company brands and driving additional traffic to their content. |
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December 20, 2005 Reuters hires Brightcove for Distribution | |
| Reuters is testing a streaming video service called Reuters Affiliate Network, Site operators will get access to tools for embedding the Reuters video player, which is Windows and Mac compatible. The player is integrated into a Web page, and doesn't use pop-ups or need software installs. Advertising, however, may be shown. The new program stems from a partnership between Reuters and Internet TV service provider Brightcove. |
| November 22, 2005 | ||
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Barry Diller, the chairman of IAC/InterActiveCorp and Expedia, Joins Brightcove Board of Directors |
| November 22, 2005 | ||
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AOL, IAC/InteractiveCorp, The Hearst Corporation and Allen & Company invest $16.2 | |
| AOL, IAC/InteractiveCorp, The Hearst Corporation and Allen & Company invests $16.2 million in a second round of funding. Publishers using Brightcove will have the option to syndicate their video content directly to AOL.com, with the potential to generate revenue from advertising and sales of their programming. A co-branded version of the Brightcove service will be marketed as the self-service platform for publishing video on AOL.com. |
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January, 2005 Closes Series A Round of Financing | |
| Raises $5.5M from Cambridge-based General Catalyst Partners LLC and Accel Partners of California. |
June 08, 2006
Online Download Preferences: Many Choices, Little Concensus
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Read the entire report by Ipsos Insight >>
Change in Blogging Strategy
I apologize for the lack of postings in the last month. I’ve been busy investigating and writing a possible business plan for the broadband video advertising market. Presently, that market is only $225 Million in size, expected to exceed $1.5 Billion in the next three years. As a result, I am making a change in blogging strategy.
First, small postings that are either news oriented or my idle kibitzing about that news will be hosted on a different site called DigitalTV Weblog. I encourage you to visit and bookmark that site as part of your daily reading.
Second, I will repurpose the ReinventTV web site as a location to post some of my business plan research information for convenient retrieval. For example, company information, small bite-sized factoids, org charts, bios, etc.
My intent is to segregate the two very different types of postings so that one web address does not look like an incoherent jumble. If you have suggestions that help make this better, please don't hesitate to let me know.
Posted by Martino Mingione at 11:21 AM | Comments (1211) | TrackBack
