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Real Cost of Physical Media Distribution

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View the slides from this webcast and you'll better understand the real cost of physical media shipments. …

View the slides from this webcast and you'll better understand the real cost of physical media shipments.

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  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
  • Copyright 2010 Signiant
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  • Copyright 2010 Signiant
  • Transcript

    • 1. File-Based Content Distribution Management Has Immediate ROI The Real Cost of Physical Media Shipments
    • 2. Physical Media Distribution
    • 3. Physical Media Physical Media Capacity (minutes) Cost $/Minute Film 9 minutes $450 $50.00 Video Tape HD (HDCAM SR) 33 minutes $100 $ 3.03 Video Tape SD (Digi Beta) 33 minutes $20 $ 0.61 DVD 120 minutes SD (4.7GB) $10 $ 0.08 DVD Blue Ray 120 minutes HD (25 GB) $20 $ 0.17 Hard Drive 4800 minutes HD (1TB) $100 $ 0.02 Solid State Memory 300 minutes HD (64 GB) $150 $ 0.50
    • 4. Physical Media Physical Media Capacity (minutes) Cost $/Minute Film 9 minutes $450 $50.00 Video Tape HD (HDCAM SR) 33 minutes $100 $ 3.03 Video Tape SD (Digi Beta) 33 minutes $20 $ 0.61 DVD 120 minutes SD (4.7GB) $10 $ 0.08 DVD Blue Ray 120 minutes HD (25 GB) $20 $ 0.17 Hard Drive 4800 minutes HD (1TB) $100 $ 0.02 Solid State Memory 300 minutes HD (64 GB) $150 $ 0.50
    • 5. Physical Media Physical Media Capacity (minutes) Cost $/Minute Film 9 minutes $450 $50.00 Video Tape HD (HDCAM SR) 33 minutes $100 $ 3.03 Video Tape SD (Digi Beta) 33 minutes $20 $ 0.61 DVD 120 minutes SD (4.7GB) $10 $ 0.08 DVD Blue Ray 120 minutes HD (25 GB) $20 $ 0.17 Hard Drive 4800 minutes HD (1TB) $100 $ 0.02 Solid State Memory 300 minutes HD (64 GB) $150 $ 0.50
    • 6. Physical Media Physical Media Capacity (minutes) Cost $/Minute Film 9 minutes $450 $50.00 Video Tape HD (HDCAM SR) 33 minutes $100 $ 3.03 Video Tape SD (Digi Beta) 33 minutes $20 $ 0.61 DVD 120 minutes SD (4.7GB) $10 $ 0.08 DVD Blue Ray 120 minutes HD (25 GB) $20 $ 0.17 Hard Drive 4800 minutes HD (1TB) $100 $ 0.02 Solid State Memory 300 minutes HD (64 GB) $150 $ 0.50
    • 7. Why Physical Media? Why Not?
      • Why?
      • Price
      • Portability
      • Installed Infrastructure
      • “ The Standard”
      • Why Not?
      • Physically shipped
      • -Time
      • -Cost
      • Labor Intensive
      • Price
      • Security
    • 8.
      • Cons
        • Failure (mechanical)
        • Security – theft – large capacity
        • Wasted Capacity
      • Pros
        • Large Capacity – Low Cost
        • Data Managed with IT Policies (security, backup, etc)
        • Ideal for Transmission of Files over Networks from Disk-to-Disk
      Hard Disk?
    • 9. Day in the Life of a “Dub” 1. Duplication $75 $50 $50 $25
    • 10. Day in the Life of a “Dub”
      • Duplication
      • Pack Ship
      $75 $50 $50 $25
    • 11. Day in the Life of a “Dub”
      • Duplication
      • Pack / Ship
      • Track / Deliver
      $75 $50 $50 $25
    • 12. Day in the Life of a “Dub”
      • Duplication
      • Pack / Ship
      • Track / Deliver
      • Ingest
      $75 $50 $50 $25
    • 13. Summary of Cost
      • International Shipments Can Be Substantially More
      • “ Bad Dubs” Can Result in Missed Deadlines and up to $700 in replacement cost
      • Shipping tapes or Disks has hard costs
      Total Hard Cost to Ship Tape or Disk Duplication $75 Shipping $50 Tracking / Deliver $25 Ingest $50 Total ~$200 Range $100-500
    • 14. Solution: Content Distribution Management
      • Files are Moved Over Networks
        • Low Cost of Media - hard drive – remember $0.02/min
        • Low Cost of Labor – files move and are tracked automatically
        • Can Be Faster Than Shipping
      • Perceived Barriers?
        • Cost of Bandwidth
        • Network Latency
        • Cost for Content Distribution Management Solution – ROI
    • 15. Theoretical Times to Transmit 1 Hour of Content Network speed CD 1.5Mb/s DVD 5Mb/s MPEG2 50Mb/s Std Def 270Mb/s High def 1.2Gb/s 128Kb/s 12 hrs 39 hrs 16 days 88 days 13 mth 1.5Mb/s 1 hour 3 hrs 33 hrs 8 days 33 days 10Mb/s 9 min 30 min 5 hrs 27 hrs 5 days 100Mb/s 1 min 3 mins 30 min 2hr42m 12 hrs 400Mb/s 14 sec 45 sec 8 min 40 min 3 hrs 1Gb/s 5 sec 18 sec 3 mins 16 min 72 min
    • 16. Theoretical Times to Transmit 1 Hour of Content Network speed CD 1.5Mb/s DVD 5Mb/s MPEG2 50Mb/s Std Def 270Mb/s High def 1.2Gb/s 128Kb/s 12 hrs 39 hrs 16 days 88 days 13 mth 1.5Mb/s 1 hour 3 hrs 33 hrs 8 days 33 days 10Mb/s 9 min 30 min 5 hrs 27 hrs 5 days 100Mb/s 1 min 3 mins 30 min 2hr42m 12 hrs 400Mb/s 14 sec 45 sec 8 min 40 min 3 hrs 1Gb/s 5 sec 18 sec 3 mins 16 min 72 min
    • 17. Theoretical Times to Transmit 1 Hour of Content
      • What about latency? LA  NY
      Network speed CD 1.5Mb/s DVD 5Mb/s MPEG2 50Mb/s Std Def 270Mb/s High def 1.2Gb/s 128Kb/s 12 hrs 39 hrs 16 days 88 days 13 mth 1.5Mb/s 1 hour 3 hrs 33 hrs 8 days 33 days 10Mb/s 9 min 30 min 5 hrs 27 hrs 5 days 100Mb/s 1 min 3 mins 30 min 2hr42m 12 hrs 400Mb/s 14 sec 45 sec 8 min 40 min 3 hrs 1Gb/s 5 sec 18 sec 3 mins 16 min 72 min
    • 18. Theoretical Times to Transmit 1 Hour of Content
      • What about latency? LA  NY
      Network speed CD 1.5Mb/s DVD 5Mb/s MPEG2 50Mb/s Std Def 270Mb/s High def 1.2Gb/s 128Kb/s 12 hrs 39 hrs 16 days 88 days 13 mth 1.5Mb/s 1 hour 3 hrs 33 hrs 8 days 33 days 10Mb/s 9 min 30 min 100 hrs 27 hrs 5 days 100Mb/s 1 min 3 mins 30 min 2hr42m 12 hrs 400Mb/s 14 sec 45 sec 8 min 40 min 3 hrs 1Gb/s 5 sec 18 sec 3 mins 16 min 72 min
    • 19. Theoretical Times to Transmit 1 Hour of Content
      • What about latency? LA  NY
      • With Signiant?
      Network speed CD 1.5Mb/s DVD 5Mb/s MPEG2 50Mb/s Std Def 270Mb/s High def 1.2Gb/s 128Kb/s 12 hrs 39 hrs 16 days 88 days 13 mth 1.5Mb/s 1 hour 3 hrs 33 hrs 8 days 33 days 10Mb/s 9 min 30 min 100 hrs 27 hrs 5 days 100Mb/s 1 min 3 mins 30 min 2hr42m 12 hrs 400Mb/s 14 sec 45 sec 8 min 40 min 3 hrs 1Gb/s 5 sec 18 sec 3 mins 16 min 72 min
    • 20. Theoretical Times to Transmit 1 Hour of Content
      • What about latency? LA  NY
      • With Signiant?
      Network speed CD 1.5Mb/s DVD 5Mb/s MPEG2 50Mb/s Std Def 270Mb/s High def 1.2Gb/s 128Kb/s 12 hrs 39 hrs 16 days 88 days 13 mth 1.5Mb/s 1 hour 3 hrs 33 hrs 8 days 33 days 10Mb/s 9 min 30 min 5 hrs 27 hrs 5 days 100Mb/s 1 min 3 mins 30 min 2hr42m 12 hrs 400Mb/s 14 sec 45 sec 8 min 40 min 3 hrs 1Gb/s 5 sec 18 sec 3 mins 16 min 72 min
    • 21. Cost of Internet Bandwidth Network speed Price / Month Theoretical Data Transferred (TB) / Month $/TB 1.5Mb/s (T1) $ 300 0.5 $ 597 10Mb/s $ 1,500 3.3 $ 448 45Mb/s (DS3) $ 5,000 15.1 $ 332 100Mb/s $ 7,500 33.5 $ 224 155Mb/s (OC3) $ 10,000 51.9 $ 193 1Gb/s $ 25,000 334.8 $ 75
    • 22. Measuring ROI
    • 23. Example 1: 120,000 Tapes Annually: 100 Locations
      • 4 Month Payback Period
    • 24. Example 2: 12,000 Tapes Annually: 20 Locations
      • 7 Month Payback Period
    • 25. Example 3: Company Owned Trucks Marginal Cost Savings Physical Media Shipment Tapes Shipped Per Month between 2 locations 16,000 Truck Trips / Month 16 Cost Per Month Trucks $44,000 Cost Per Month Tapes $240,000 Total Cost Per Month $284,000 Investment: Content Distribution Management Bandwidth (155Mb/s x2) $20,000/ Month Hardware $12,000 Software / Maintenance Yr1 $100,000 Implementation $50,000 Total Fixed Investment $162,000 Payback Period Marginal Cost Savings Monthly – Physical Media Shipments $284,000 Increment Month Expenses Bandwidth $20,000 Monthly Savings $264,000 Fixed Investment $162,000 Payback Period 0.6 Months
    • 26. Example 4: Tape Infrastructure Replacement Cost
      • Aging Tape Infrastructure Requires Maintenance
      • Professional Tape Machine Maintenance = $20K / Machine
      • Company had 100 Machines or a $2M Expenditure
      • Implementation of Content Distribution was less than $500k or ¼ Machine Maintenance cost PLUS Marginal Cost Savings of Moving Files vs. Tape
    • 27. Environmental Life Cycle of a Tape
      • Production of the plastic and metal tape - energy, pollution, waste material
      • Assembly and packaging - energy, packaging waste
      • Shipping to the warehouse - energy in the form of fuel for boats, planes and trucks
      • Distribution to the end user - energy in the form of fuel for boats, planes and trucks
      • Duplication - energy to run tape machines, pollution in the form of heavy metal due to tape heads running across metal oxide tape
      • Shipping - energy in the form of fuel for boats, planes and trucks, more packaging waste
      • Ingest - energy to run tape machines, pollution in the form of heavy metal due to tape heads running across metal oxide tape
      • Disposal - thrown in a landfill at the end of its useful life
      • Imagine – multiplied by 130,000
      World’s Tallest Building 130,000 Tapes 4X as tall
    • 28. International Value Added Tax
      • VAT on Digi BetaCam Tape
        • 20% x $20 tape cost = $4
      • VAT on “Intellectual Content”
        • 20% x Revenue Stream Generated by Content on Tape
        • 20% x $100,000 = $20,000
      • This is the difference between making and losing money on international distribution of content
    • 29. Time to Market
      • Time to deliver a Tape is 24-48 hours
        • From Dub to Ingest
      • Time to deliver a File is Minutes to Hours ~ 5 Hrs
      • Delays cost real money:
        • Syndication = lost revenue – statistics show that the longer it takes to offer content from original air date – the less revenue captured
        • Production = increased cost – delays in the production / post production process increase the costs to product content
    • 30. Conclusion
      • Physical Media Shipment is
        • Deeply Entrenched
        • Business As Usual
        • Continued Use Will Actually Make You Less Responsive and Less Competitive
      • Moving to File-Based Distribution offers
        • Faster Delivery Time
        • Lower Overall and Labor Cost
        • Immediate ROI
      • Every Month You Wait is Wasted Dollars
    • 31. For More Information Go To: www.signiant.com/tapewhitepaper www.signiant.com www.digitalmediagalaxy.com