Streaming Video Report

December 4, 2008 STREAMINGVIDEO A look at today’s streaming media technologies By: Madeleine Ehrnrooth 1

CONTENTS December 4, 2008 STREAMING VIDEO Product Demos and Training Customer Service and Support Streaming Media and Applications 3 Technical 8 Facts about Streaming Media 4 Online Video Means of Distribution Streaming Methods Content 5 Streaming Formats What Content Works Delivery Methods How People are Consuming Content Attracting Viewers Measurement: Tracking and Analysis 12 Trends 6 Cost Assumptions 13 Vertical Integration Cost Effectiveness 15 Synchronized Content Deployments in the Workplace Challenges and Opportunities 16 Viral Video Recommendations: Now and Later 17 Applications for Business 7 Getting Started Advertising/Branding/Marketing Looking Ahead Campaigns 2

STREAMINGVIDEO December 4, 2008 A look at some of the trends and benefits of using Streaming Media Solutions for business Streaming Media and Applications An Effective Business Communication Tool By Madeleine Ehrnrooth Streaming Video is widely used on the and continues to receive data ahead of distributing video content as viewers can web to play video clips and video time without storing the file permanently avoid waiting through long download broadcasts. Unlike movie files, that on the clients computer. Delivering digital times. require a file to be downloaded and video to viewers in real time, streaming stored onto the destination computer, video has become a popular method of When deciding to stream video content streaming video is received by a buffer there are three important preliminary questions to ask: Will the content be live or prerecorded? Who is your target audience? How to measure ROI? Depending on the nature of the content It is important to understand who your While the details of reports provided by a of your webcast, you may be required to viewers will be, where they will be service provider vary, essentially broadcast live. Live-streams are more accessing your broadcast from, and the information on how many people expensive and are technically more times they will view your webcast. These watched your broadcast and the length of complex than simply recording and factors are not only important when time they viewed will be measured. In archiving content. creating your content but also may impact Addition, qualitative research is key to the cost of the webcast. understanding user needs. 3

Facts about Streaming Media STREAMINGVIDEO December 4, 2008 Online viewers watched an average of 158 In the same survey, web conferencing and web minutes of streaming video per streamer. casting held 40.3% and 46.2% of business usage [Figure 2]. Nearly three out of four (74.3 percent) U.S. Internet users streamed video online. The average video stream duration was 2.5 minutes. The average online video viewer consumed 63 video streams, or more than two per day. More than one out of three (35 percent) U.S. Internet users streamed video on According to a survey conducted by YouTube.com. StreamingMedia.com and the Aberdeen Group,“74.1% of business and personal users access streaming media at “Men aged 18 to 34 were over twice as leasttwo or three times per week [see Figure likely to check out user-generated video sites as women, with YouTube being their number one 1]. (Rayburn, 2004)” Overall Online Video Usage: US Home & Work, July 2008 Reference: Comscore Video Metrix Report, Unique Viewers 119146000 May 2007. Total Streams 8526733000 Streaming Media Report, Time Spent Viewing Per Viewer 170.5 minutes 4

STREAMINGVIDEO December 4, 2008 Content “74.1% of business and personal users access streaming media at least What Content Works? The subject matter and production two or three times per value are less important than the week.” reliability and quality of the online video StreamingMedia.com being offered. While there is no formula and Aberdeen Group to predict which content works and what doesn’t, certain types of online video have been “sticking to the wall” so to speak. Content that is tied to things audiences already enjoy such as after shows for popular television programs have proven popular. Videos that feature interesting and charismatic personalities have also attracted viewers. Personality has been a strong driver for podcasts as well. According to Ceo of Revision3 online media company, Jim Louderback, “whats really important is to ﬁnd people who have a proven ability to create communities around their interests.” Louderback goes on to describe some of How People are Consuming insight from their viewers. When setting these personality traits which include up your online video environment you Content being an expert in the subject, and want to create a place that gives the What separates traditional media from having passion and enthusiasm for what viewers the ability to provide feedback online media is the ability for audiences their talking about. The most important and make them feel like their voices are to interact and provide feedback. This thing to keep in mind when producing being heard. When producers notion gets back at the importance of online video is to build your content communicate and connect personally catering videos to your audience. Viewers around your audience and where they with their audience, it has a tendency of are seeking out what they want to watch are. Online video tutorials and tips have driving up viewership. The lesson here is and are enjoying engaging in a two-way been successful at initially establishing an when producing for the web, one must stream of communication the online audience. The producer then after environment provides. On the other side, always keep in mind the elemental capturing a loyal audience has been able difference between online and traditional content producers are better able to to broaden the scope of content to attract media, which is the ability to appeal to their target because they are new viewers. receiving direct and immediate input and communicate. Attracting Viewers ability to attract new audiences depending on its scope. Broaden the Online content has gained viewers for scope and you will broaden the type of various reasons. However, the actual audience, however when doing this you content is the variable least responsible must be careful not to stray from what for achieving reach. As stated by Geoff appealed to your original audience. Daily in an article in Streaming Media, When trying to build an online audience, “It is not so much content that drives the best way is to distribute through success in online video as it is distribution multiple channels that bring viewers back and syndication.” After identifying your to your site. Referring back to the idea of audience, the ﬁrst goal is to retain your feedback, serving broader audiences and current viewers by simply providing them reading their comments can provide with what they are interested in. useful information about who your Depending on what your goals are, you audience is and what content works (or Reference should strive to make your site the “go-to doesn’t work) for viewers. These broader Streaming Media Magazine, destination” for that subject matter. mediums, to name a few, include: October/November 2008 Adding new content while keeping the YouTube, Veoh, Viddler, Myspace and interest of your current audience has the Metcafe. 5

STREAMINGVIDEO December 4, 2008 Viral Video Veoh, Break.com, and MySpace Video are popular destinations for posting and viewing user generated content. According to Trends Nielson, these sites are popular due to the viral nature of user- Streaming Content is less about premium content and being generated video. "With shorter clips and a viral nature, used more as a cost-effective business tool. The most common [Consumer Generated Media] Web sites are much more about video’s streamed online include: Product videos, allowing discovery, and consumers are likely to view content on more potential customers to learn more about a product before than one," said Nielsen Online's Michael Pond.” buying; Instructional videos (a.k.a distance learning) that teach users about a topic; and entertainment including movies, television shows, short clips, or home videos. The leading trend Case Study: Car Dealers Success with Viral Video however, in the application of streaming video technology is to educate, instruct, and inform both internal and external players In reference to an article in Advertising Age by Jean Halliday, of enterprise corporations [Figure 2, p 2]. automotive dealers have been “embracing web video as a marketing vehicle to entertain, inform, and sell.” According to Vertical Integration Larry Pryg, national marketing and ad manager for General Corporations are converging streaming media with other Motors Corp.’s certified-used-auto business, their websites with standard communication technologies establishing it as an video are “twice as likely to generate calls or e-mails from effective, vertically integrated, business communications tool. shoppers to dealers than without.” The types of videos featured While web conferencing and webcasting have become the most have included customer testimonials, showcases of models, popular uses, corporations are applying streaming media in a introductions from the dealers, and even a popular tell all that variety of ways including: video emails, product has become viral called “The Seven Ways Dealers Screw You.” announcements, distance learning, meetings and collaboration While vehicles sold have not been able to directly correlate with sessions [Figure 2, p 2]. number of video views, they have increased “stickiness” of automotive sites making visitors stay longer. Synchronized Content : Interactivity, real time feedback Interactivity is currently popular in video streaming, providing viewers the opportunity to be engaged in a two way stream of communication. Customer assistance has been improved as customers can access online operators with face to face Reference: interaction through live web conferencing. Additionally, Halliday, Jean. Car dealers learning art of viral video; A interactive video streaming has consisted of business meetings quarter now use the tactic for its low cost and fast, or presentations to live events such as sporting events or rock easy measurability. Advertising Age 0001-8899 Sept concerts. Afterwards providing a chat forum allows viewers to 29, 2008, v79 i36, p3 (2008). Retrieved by InfoTrac exchange communications with one another and contribute real time feedback about the content. Deployments in the Workplace Streaming media is being used in the workplace to supply corporate training, provide distance learning and is even serving as a marketing vehicle. Used for marketing and sales, Reed Exhibitions, a marketing firm, records its conferences and broadcasts them after the event. Streaming video has also been effective at educating prospective customers about a firm. In the UK, nearly 80% of quoted companies feature live webcasts with their financial results for investors and analysts. Deloitte has created a library of training sessions that are sent to the desktop of the trainee and viewed at their leisure. Similarly, pharmaceutical giant Novartis implements video streaming technology to communicate with each of its employees. Instead of having its own television station, webcasts are affordable and effective as a PC with internet access is all that is necessary to reach employees. 6

STREAMINGVIDEO December 4, 2008 “When producing for the web, one must always keep in mind the elemental difference between online and traditional media, which is the ability to communicate.” Reference: Larry Bouthillier & Tim Napoleon. “Streaming Media’s Success Story”. Enterprise Streaming Solutions 2004. Retrieved December 3, 2008, from http://www.streamingmedia.com Streaming Media Applications for Business Advertising/Branding/Marketing Campaigns demos and added functionality, streaming media is an effective Streaming Media can effectively be used to acquire new tool used to improve websites. customers and establish brand identity. DoubleClick* reported that “ in Q1 2004, click-through rates for rich media web site Customer Service and Support ads are four times those of traditional static-image (.gif, .jpg) The solutions streaming media provides for improving ads.” Data also proves that “rich media delivers [as] conversion customer service and support serve both enterprises and rates for rich media ads are 2.30%, fully half-again the 1.47% customers. By featuring tutorials and explanatory video clips conversion rate for static ads” (Bouthillier & Napoleon). for frequently asked questions, call-center waiting times can be signiﬁcantly reduced. Not only is the customer phone support Product Demos and Training experience enhanced, but costs can be cut by reducing the need Effectiveness for a large call center staff. Web Chat can also provide customers with face to face interaction making customer service Online consumer shopping behavior has become more more personable ad helpful. “sophisticated” according to DoubleClick SiteAdvance Web analytics data that shows “ they are spending more time on web sites, looking at more pages, using search functions, more frequently” (Bouthillier and Napoleon, 2004). The * DoubleClick is the leading provider of solutions for opportunities are endless when it comes to creating interactive advertising agencies, marketers, and Web publishers to plan, site features using streaming media and ﬂash. Considering the execute, and analyze their online marketing programs. positive response by end users to its application for product 7

Technical STREAMINGVIDEO December 4, 2008 What Components are Involved Online Video Means of Distribution There are 4 standard methods of delivering video online: “You can either operate your own CDN, peer to peer, streaming, and progressive download. server through purchase or lease, or Other methods include TV Contribution and Multicast. sign up for a hosted streaming plan As this literature is concerned with streaming video, let’s take with your Internet service provider.” a look at the technical components of streaming. The technical resources selected are the key influencers of cost and Content encoding - a process for converting video or audio complexity. Essentially there are two main things to consider into small digitized packets for network transmission when streaming, the streaming method and streaming format. Before getting into a more technical realm, the following are a Delivery or distribution - Streaming methods few things to bear in mind. Website interface integration - Embedding streaming Audio and/or video capture there are 4 formats to video to website Streaming Video: Real Media/Quicktime, Windows Media (WMV), Flash Media (FLV), and MPEG4/H.264. Streaming Methods Storage - files are measured in megabytes, gigabytes, terabytes etc. Storage size (in megabytes) is calculated by Streaming with a Web Server multiplying the length (in seconds) by the bit rate (in kbit/s) After creation, the audio or video file is compressed into a and dividing that number by the product of (8*1024). See single “media file” for delivery over a specific network Appendix for a more detailed explanation and real world bandwidth. The media file is then uploaded onto a web server examples. along with the web page containing the embedded media file. When the web page is accessed the streaming player plays the Caching - creating a temporary storage area where file while downloading. Using a buffer, or collecting the first frequently accessed data can be stored for rapid access. part of the media file before playing, the media file plays instantly and is not stored locally. Web server streaming does Digital asset management- Business strategy to streamline not require new software infrastructure to be installed or the acquisition, retrieval, and storage of digital media. managed as it uses an already existent infrastructure. Reference: Emigh, Jacqueline. “Streaming Media Trickles into the Enterprise.”June 5, 2003 Retrieved October, 31 2008 from http:// www.enterprisen Technical Requirements Support for content delivery A controlled, but flexible publishing process allowing for preview and approval Ability to Monitor what people watched and the quality of their experience Integration with In place Internet technologies and communications 8

Production STREAMINGVIDEO December 4, 2008 Rich Internet Applications Streaming with a Media Server “Using a separate server for video Streaming Media with a media server is similar initially to web server streaming but instead uploaded onto a specialized streams allows higher bandwidth and streaming media server. A web page then with a reference to continuous, smooth streaming, the media file is uploaded onto the web server. This improving the viewing experience by differentiates the delivery process as the content is delivered at providing speed and quality.” the exact data rate associated with the audio and video streams. Using a separate server for video streams allows HTTP which could classify it as not “true” streaming, as video higher bandwidth and continuous, smooth streaming, storage occurs however, video is stored on the web server improving the viewing experience by providing speed and instead of locally. quality. However, there are added training and staffing costs Http Streaming Video associated with installing and managing a media server. Http streaming video is a cheaper alternative than using a Self Hosting, Third Party- Hosting, or Split- Hosting streaming server to stream video. Typically used by small to A streaming video server is a specialized application that runs medium-sized websites that don’t receive heavy site traffic, http on an Internet server. Termed “true streaming,” a streaming streaming requires just a host server that can recognize video server is capable of handling large traffic loads, detect common video files. user’s connection speeds to automatically supply the appropriate data, and has the ability to broadcast live events. Streaming Formats Content can either come in the form of a pre-recorded webcast, also called Video-on-Demand (VoD), or be streamed Flash vs. Silverlight live. There are two methods to have access to a streaming Both Flash and Silverlight offer media players, development server. You can either operate your own server through environments, and streaming servers. Flash is the most popular purchase or lease, or sign up for a hosted streaming plan with format choice as it is widely supported by most browsers. your Internet service provider. Because of the added technical difficulty that comes with the need for smooth streaming, live Customizability streams require split-hosting where the organization hosts the Both Flash Media Players and Silverlight Media Players are launch site only and redirects requests for the streaming similar in their customizability. The sophistication of Flash content to a third party server. VOD streaming is often the enables branding and extensive design capability while preferred method as an organization can self host both the maintaining ease of use. Silverlight is better served for non- launch site and streaming content not to mention the lower programmers and can be accessed by Expression Encoder 2 cost of production. This form of streaming is also more and XML. With Expression Encoder the player can be popular among viewers than live-streaming, as they can access customized with metadata, chapter markers, trigger events the content at their own convenience. (such as to run a browser for captioning) and offers different templates. While Flash has these capacities, it takes Encoding, Serving, and Playback programming skills to incorporate those features. Streaming media involves three steps: encoding, serving and playback. Videoservers are used to compress and encode source files and in conjunction with web servers, store and deliver the data to the launch site. Apple, RealNetworks, and Microsoft have the most popular software video servers Flash Silverlight available. Another option for more demanding content where video quality is of highest concern is hardware encoders. In comparison, software video servers are better suited for lower Platform Win/Mac/ Win/Mac/ Linux,Solaris Linux speed or congested networks where the main consideration is bandwidth consumption. Windows Media uses what is called Real Time Streaming Protocol (RTSP). RTSP sends data to Penetration 98% overall 82% 1.5 million the server as needed which makes it more bandwidth efficient can play H.264 downloads a day because there is no cache, or storing files. Flash uses Real Time Messaging Protocol (RTMP) which is similar to RTSP as it supports “cache-less” playing. Silverlight uses generic Download Windows 1.4MB Mac 4.3 MB size Mac 4.9MB 9

STREAMINGVIDEO December 4, 2008 Delivery Windows Media include .MP4, .M4V, .MOV, .F4V, .3GP, .MPG, and W4V. Windows has been the popular choice amongst corporations When encoding content, it is important to know the target as their Microsoft technologies occupy most desktops. WMV playback platform whether a device (iPod/iPhone) or however, is undergoing radical changes if not abandonment as computer. a result of Microsoft’s new Silverlight software. Depending on the target platform, the profile chosen will Quicktime determine the bitstream. There are 7 Profiles that rank in quality from the lowest, Baseline, to highest, High 4:4:4 While the penetration in business and media is small, Predictive. The highest profile supported by computer Quicktime is an affordable and well featured server offering, playback is Main, falling just below the median in quality. A multi-cast, live, DRM to name a few features. Quicktime being device would use the Baseline profile which is the lowest the “first champion” of H.264 has iTunes, iPod, and iPhone support lending to its great reputation. profile. Low High H.264/MPEG4 H.264 is one of the newer file formats and is gaining acceptance due to its high quality footage. The drawback to this format however, is the larger file sizes and consequently slower upload speed. To lessen download times H.264 can be compressed into MPEG 4, which is still better quality that FLV. Baseline - Extended - Main - Producing H.264 Video for Computers and Devices High - High 10 p - When producing, the most important considerations are High 4:2:2 - format (FLV, WMV, Quicktime, etc.) and optimizing video for computer playback. As a bonus, if playback on devices is High 4:4:4 Predictive desired, optimization for devices would also be considered. The max video bit rate for Baseline, Extended and Main H.264 file format is the standard codec for streaming and profiles is 384 kbit/s. High profile’s max video bit rate streams adopted by the top three streaming providers (Apple, Adobe, at 480 kbit/s. and Microsoft). The different types of H.264 file formats Silverlight Expression Encoder Interface 10

STREAMINGVIDEO December 4, 2008 Top: Silverlight Video Streamer Bottom: Flash Video Streamer Flash Video Streamer Delivery Methods design tools to complement. The Silverlight design application is called Expression Studio and while lacking Mac platform Generally there are two methods of delivery. Depending on the support and complementary design tools, Silverlight uses more type of content and desired functionality of the streaming programming languages including, .Net (VB/C#), AJAX, Iron video one would utilize codecs or a platform/design Python, Iron Ruby. Flash operates in the wider used environment. programming languages, AS3 and AJAX. These features can be considered either pros or cons depending on what you are Codecs looking to develop. Silverlight is considered to have a minimal Video designed in HTML, Flash or Silverlight that is plugged learning curve. However, most web design pros are already into a webpage. Codecs include Flash, WMV, VC-1, and familiar with the programming languages in Flash. Quicktime. Platform/Design Environments The development details make Flash the more appealing development environment than Silverlight as Flash is supported both on Windows and Mac Platforms and has Adobe CS3 11

STREAMINGVIDEO December 4, 2008 Measurement Tracking and Analysis In measuring effectiveness there are some variables to consider Quality of Experience in order to judge how successful a Rich Media Application Quality of Experience (QoE) metrics relates to the user was. Essentially, having a specific set of objectives before perceived performance. These measurements are an objective implementing streaming technology will enable you to see measure of the subjective user experience and received your ROI as you know how, when, and what to track. through customer feedback. Some questions QoE answers Currently streaming media does not have a lot of analytics include: to what degree was the customer satisfied with available. Service providers typically report how many people service; how many happy customers are there; did the content watched the video and the length of viewing. However, the meet customer demands and expectations etc. Other things to quality of the message, clarity, concise delivery and proper consider may include the customers satisfaction with frame format are all important factors to consider in conjunction rate, and picture resolution. with metrics. Another great way to measure effectiveness is to provide a method for viewers to give feedback. This can be Quality of Service achieved through a comment module or collecting contact Quality of Service (QoS) metrics were first introduced during information to send a follow up questionnaire. To provide voice communication’s switch from fixed line networks to further insights into performance, performance data should be Internet based networks. With the migration of video to new joined with meta data of the video. Internet platforms, QoS is being used to measure the performance of streaming video, for example the data rate Flash has gained great foothold as the Rich Internet and delay. By this standard, QoS differs from QoE as it does Application of choice due to its extensive tracking capability. Flash lets you track natively using Actionscript. With Flash you not consider user experience. Instead, QoS looks to for problems such as dropped packets, delay, out-of-order delivery, can track almost anything, as it doesn’t have to communicate jitter, error, and overall buffering behavior. with the browser through Javascript. However, you need a Flash developer to implement analysis. An aspect that highlights the importance of defining objectives and purpose Reference: Leonard Franken. Quality of Service of applications pre-launch. Management: A Model-Based Approach. PhD thesis, Centre for Telematics and Information Technology, 1996 Chad Parizman.(Jan 10, 2007). “Measuring Streaming Media and Flash Interview with Chad Parizman”. Retrieved December 8, 2008 from http://www.webanalyticsassociation.org Some examples of measurements to determine ROI: Adoption and performance Percentage of users interacting with video - Know not only who the people are coming to areas, but what they are doing. Meeting consumers needs - Does it satisfy what they want? Videos consumed per usage - Identify what percentage of users you are getting to consume video 12

STREAMINGVIDEO December 4, 2008 “The obvious benefits of outsourcing is the ability to shop around matching costs to needed service. Additionally for businesses lacking the technical expertise and necessary tools, outsourcing can simplify the entire process” Cost Assumptions A number of factors figure into costs Production Costs enhance interface and ease of use for PC and TV users a media control server can be added which costs around $5000. In-House This system would now allow employees to watch enterprise To build a full streaming video system you would first need a video content such as training videos, meetings, product streaming video appliance. Such a product would accept introductions, company broadcasts and would total about standard NTSC video and audio from a recording device or $30,000. Other costs that must be factored in when considering other source and connects to your standard ethernet network. setting up an in house system would be training or hiring a Such an appliance would figuratively cost $5000. Upgrading Video System Developer and Content Producer, as well as the system to stream both high quality video on the LAN and increased costs associated with quality. lower quality streaming video to remote employees would require a dual encoder. Additionally one may want to add set Outsource top boxes that allow groups of people to watch video on There are plenty of companies that provide streaming video television monitors totaling a cost under $10,000. Next, if on- solutions from basic production to full system support and demand functionality is desired to make recorded video platform distribution. The obvious benefits of outsourcing is available at any desired time, a video on demand server system the ability to shop around matching costs to needed service. will be needed and starts at approximately $15,000. To Additionally for businesses lacking the technical expertise and 13

STREAMINGVIDEO December 4, 2008 necessary tools, outsourcing can simplify the entire process. When looking to implement a complete rich media publishing Some of the major companies recommended by Streaming solution, the integration of technologies can become quite Media that can provide a full IT enterprise solution include complex. There are a few requirements to consider when IBM, CISCO, and MPI. deciding on a company to use. Outlined by PEREY Research & Consulting Inc. the requirements that provide combined “customer beneﬁts” with a “solid return on investment” include (Streaming Media, 2004): Open Standards Based Automated Distribution Sophisticated search capabilities Flexible recording and delivery options Simple, ﬂexible control over content presentation and viewing Easy multimedia content creation Asset Management Tools Small Footprint Reporting Tools Flexibility Security Ease of Use Cost to create full streaming video system Streaming Video Appliance $5,000 Dual Encoder Upgrade and Set Top Boxes $5,000 On- Demand Functionality $15,000 Media Control Server $5,000 $0 $7,500 $15,000 $22,500 $30,000 Additional un-factored in costs: Cost to Learn; Cost of Quality; Software - sound and picture editing and encoding; Hardware - AV Deck, AV Rated Hardrive, Backup Drive Reference: “Simplifying Rich Media Communications” Enterprise Streaming Solutions. Streaming Media Inc. Retrieved December 3, 2008 from http://www.streamingmedia.com 14

STREAMINGVIDEO December 4, 2008 Cost Effectiveness Proven Benefits to Implementing a Digital Media Delivery Solution Cost- Effectiveness increased by 37 percent, brand awareness increased by 46 Today’s high-speed connections, advanced computer percent, and message association increased by 68 percent. processing power, and Universal Standards have helped to reduce costs and complexity of delivering rich media. As Digital Media Delivery Solution reported by Macromedia, Macromedia’s Flash player has There are some benefits to using a Digital Media Delivery incredibly broad distribution both at home and at work as Service. Most beneficial is the time and cost savings the plug-in is installed on 98% of Internet enabled associated with the use of a pre-configured rich media computers. Therefore, streaming video is gaining acceptance infrastructure. Most solutions are a package deal without the as a cost-effective method to disseminate information and unanticipated cost that arrive when trying to develop the IT direct traffic to a company’s site. According to studies infrastructure in house. With advanced monitoring and conducted by the National Association of Broadcasters, analysis software, popularity and effectiveness is easier to DoubleClick, and others have shown that streaming video as measure as well. Lastly, ease of use allows non-technical users well as flash animation produce double the clickthrough rates to publish videos and deliver live broadcasts quickly and of traditional banner ads. In a study of an Ameritrade efficiently. campaign conducted by Dynamic Logic “Intent to buy Reference Return on Investment Larry Bouthillier & Tim Napoleon. According to VitalStream, a streaming media service “Streaming Media’s Success Story”. provider, through experience “streaming’s ROI potential is Enterprise Streaming Solutions 2004. as strong for organizations with 1,000 employees as it is for Retrieved December 3, 2008, from http:// corporations with 100,000 on staff ” (Rayburn, 2004). Some www.streamingmedia.com savings to consider include: Streaming Media Report, November 2008. Tangible: Profits and Cost or Time-Saving Intangible: Effective Information Sharing Travel Savings Advertising to Customers Train employees and clients remotely Reach broader customers at a quicker speed to announce new products and services. Time to Market Have a greater impact Better advertising and product information distribution Through company meetings, online training and overall increases product launch rate. corporate communications. 15

STREAMINGVIDEO December 4, 2008 “Concerns arise when trying to serve users who may have slow connections or limited connectivity as when using a mobile device.” companies typically stream video at a bit are still trying to deﬁne what data and Challenges and rate of about 400 kbps. On the upside, when to capture it along with how to Opportunities high broadband penetration across analyze metrics. In reporting, there are households and corporations (79% at- questions demanding more information work) enable widespread rich media than page views such as the kind of Network Capacity delivery and consumption.2 interaction with the web site. The major challenge in delivering video Furthermore, video and Flash does not is securing adequate network bandwidth Time Zones and Live Streamed show up in search engines. and capacity. When streaming video, the Video user experience is of highest concern. If For companies operating globally, Cost the production delivery is of low quality, streaming live video isn’t effective due to The innovations by Macromedia’s Flash no matter how well produced the time zone differences. On-demand and Windows Media have created content, the video is unlikely to be viewership is therefore a better option. standards for encoding and delivering viewed. While nearly 55% of broadband However, viewership rates are lower for online video that have encouraged users have at-home access, concerns arise on demand than live streamed video. universal browser and computer platform when trying to serve users who may have support. With the challenge of slow connections or limited connectivity Measurability incompatible formats and versions, as as when using a mobile device. Streaming Media users are struggling well as browser incompatibility virtually Organizations that have high speed with standardization. Additionally eliminated, cost of delivery are connections and adequate bandwidth still confusion arises when considering how decreasing while the production tools face challenges when serving large much a page needs to refresh when continue to advance and become more numbers of users. To compensate, showing an ad. Syndicated research efﬁcient. companies such as Nielson/Comscore 16

December 4, 2008 In implementing new media specific programs it is important to understand what the challenges are and what the value of tracking is. Recommendations Now and Later The decision to use streaming Getting Started separate area for Tekla employees video should reach beyond the Due to Tekla.com’s small size and to share, watch, and communicate desire to increase web site traffic. low site traffic, Tekla can execute amongst each other. In essence Instead, the main goal should be http streaming video using the creating a community and to establish the Tekla experience current host server. For now, a collaborative work environment. as a personal one. By creating a separate web page within flowing stream of Tekla.com with embedded video To increase site traffic and communication, Tekla can use files will suffice. attempt to make video viral, streaming video to connect with As Tekla builds a library of videos should be uploaded to potential and current customers. content a separate website should popular general video platforms Eventually Tekla can implement a be developed, organizing video including: streaming video solution that content by category such as, Break.com connects the entire corporation Featured Videos, Testimonials, Blip.tv and improves internal Tutorials, Product Demos, etc. Google Video communications. When ready, this website can be Spiketv.com further developed to include a Youtube.com 17

STREAMINGVIDEO December 4, 2008 sales are caused by an array of variables. Content Instead, a better determinate of success Tekla has the opportunity to provide a would be: the increase of time spent on wide array of content serving both Tekla’s website; a higher rate of customers and employees. The types of returning site visitors; overall increased “The main goal should be to videos featured should include product demonstrations and tutorials, customer communications either through establish the Tekla comments, calls, or email; and of testimonials, introductions from the staff, experience as a personal one.” course positive direct feedback about and feature videos about various the content. industry related topics. When maintaining a library it is important to continue to add new Cost Assumptions content that is current, up-to-date and The initial cost to get started with accurate. New content should be added streaming online videos are relatively at minimum bimonthly. low. Cost considerations at this point surround the production of content, Streaming Method software needed, and the development For now, the focus should be on VoD of a proper webpage/site to host the Streaming. While Tekla may in the future videos and maintenance of that site. consider streaming live webcasts, the demand is not there yet. Live streaming is Streaming Video Platform and also costly and at this beginning stage of Delivery implementation is unlikely to produce a ROI. In regards to the streaming host, the ability for viewers to comment, provide feedback, and ask questions about what Streaming Format they saw is an important module to With 98% penetration, Flash is the include. recommended format to use. However, Quicktime should not be discounted as its software is user friendly and a cost Looking Ahead effective alternative. Depending on You should consider using streaming production level, Quicktime can serve video as a business communication tool smaller projects. Therefore format to train employees, stream meetings, and selection should rather be based on conduct video conference calls. A library preference, access, and software of training sessions can be created that availability. are sent to the desktops of trainees. Furthermore, distance learning can be Measuring ROI expanded upon to conduct training An ideal return on investment would be seminars for users of Tekla software. In converges all telecommunication increased product usage, measured by the future, Tekla could have their own technologies providing a platform for sales. However, this return cannot be full streaming video system that better more efficient communication. expected to be so immediate. Also, higher Suggested Streaming Video Uses Executive Communications: Top Live Web Customer Assistance: With Managers can send direct messages to a global client base you need to provide their employees by filmed address. better methods of communication and customer service Product Demos and Training: Multimedia and Video for training With a global workforce streaming purposes can save costs associated with video should be Used in Addition to travel and time. Email. Email is limited in it’s ability to transport rich media content being used Product Tutorials: Providing online today. Streaming Video can provide the tutorials to customers can help answer platform to support business frequently asked questions, reducing communications that email cannot customer assistance call traffic volume. sustain. 18

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Streaming Video Report

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Streaming Video Report — Document Transcript