Flash Video Streaming Business Models


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Review of flash video streaming business models and web sites

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Flash Video Streaming Business Models

  1. 2. <ul><li>Innovation via business models </li></ul><ul><li>Market view </li></ul><ul><li>Business models </li></ul><ul><li>Share your business model </li></ul>
  2. 4. <ul><li>Video streaming technology existed for over a decade: </li></ul><ul><ul><li>Real </li></ul></ul><ul><ul><li>Microsoft </li></ul></ul><ul><ul><li>Apple </li></ul></ul><ul><li>So why Youtube hasn't happened over 10 years ago? </li></ul><ul><ul><li>User’s Bandwidth </li></ul></ul><ul><ul><li>Streaming server costs </li></ul></ul>
  3. 5. <ul><li>Eliminated the need for streaming server </li></ul><ul><li>Enable the use of file CDNs for video “streaming” (progressive download) </li></ul><ul><li>Without the decrease in server costs Flash created there was no Youtube </li></ul>
  4. 6. <ul><li>Adobe lowered FMS Pricing </li></ul><ul><li>This enables many new video business models which were not profitable in the past </li></ul><ul><li>Just like the use of flash enabled UGC video web sites in the past </li></ul>
  5. 8. <ul><li>Justin.tv is building a destination site for broadcasting and watching live video online while chatting with friends. The company’s mission is to enable viewers and broadcasters to interact and exchange ideas in real time through chat and live video…. Learn More </li></ul><ul><li>Website: www.justin.tv Location: San Francisco, California, United States Founded: October 1, 2006 </li></ul>
  6. 9. <ul><li>Ustream.tv is a live video community for everyone. Anyone with a computer, an Internet connection and a web cam can set up their own channel and broadcast live (similar to Justin.tv). The site launched in March 2007, </li></ul><ul><li>Website: ustream.tv Location: Los Altos, California, United States Founded: June 11, 2006 Funding: $13.1M </li></ul><ul><li>Learn More </li></ul>
  7. 10. <ul><li>With Kyte, you can share pictures and video from your mobile phone or the web that are instantly broadcast to multiple destinations. Friends interact with your shows and each other through multimedia chat, both online and via mobile phones. </li></ul><ul><li>Website: kyte.com Location: San Francisco, California, United States Founded: December 1, 2006 Funding: $23.4M </li></ul><ul><li>Learn More </li></ul>
  8. 11. <ul><li>“ Hello, blogTV is here! This is the place where you can show off your talent, build a fan base and share your opinions LIVE! You bring the webcam, we bring the stage. We’re here to help you get your 15 minutes of fame. </li></ul><ul><li>Website: www.blogtv.com Location: Israel Founded: May 1, 2006 Funding: $3M </li></ul><ul><li>Learn More </li></ul>
  9. 12. <ul><li>Stickam.com is a social networking site that focuses on live video streaming. It features embedding and social profile features for your web pages, online auctions, company web sites and blogs. </li></ul><ul><li>Website: www.stickam.com </li></ul><ul><li>Location: Los Angeles, California, United States Founded: February 1, 2006 </li></ul><ul><li>Learn More </li></ul>
  10. 13. <ul><li>Before Mogulus, the production control room was one fixed location, and all collaborators in the process had to be in the same building. Remote cameras for communication were possible, but also expensive since they required satellite feeds. </li></ul><ul><li>Website: www.mogulus.com Location: New York, New York, United States Founded: May 1, 2007 Funding: $2.7M </li></ul><ul><li>Learn More </li></ul>
  11. 15. YouTube will launch a live streaming service in 2008
  12. 16. <ul><li>Live Streaming costs more than progressive download. </li></ul><ul><li>How much? </li></ul><ul><ul><li>Industry numbers reports 20-30C per hour </li></ul></ul><ul><ul><li>JustinTV reports costs of 0.25C per hour </li></ul></ul><ul><ul><ul><li>Is that too good to be true? </li></ul></ul></ul><ul><ul><li>How could you finance this? </li></ul></ul><ul><ul><ul><li>(mostly by VC and Angles money) </li></ul></ul></ul>
  13. 18. <ul><li>Unlikely </li></ul><ul><li>Only in small niche market </li></ul>
  14. 19. <ul><li>Hard to get the right advertisement that will cover progressive download cost </li></ul><ul><li>Live streaming is </li></ul><ul><ul><li>More expensive requires more advertisers that will pay more </li></ul></ul><ul><ul><li>Unmanaged content (live content) </li></ul></ul>
  15. 20. <ul><li>VoIP market suffers from decrease in margins and strong competition. </li></ul><ul><li>What business model are used </li></ul><ul><ul><li>Pay per minute – small margin </li></ul></ul><ul><ul><li>Flat rate – risky / small margin </li></ul></ul><ul><ul><li>Advertisement – many companies, unproven model </li></ul></ul><ul><ul><li>Enabler of other services – mostly consulting </li></ul></ul>
  16. 21. <ul><li>VoIP – Kasamba / BitWine / Jyve </li></ul><ul><li>What are the benefits of video for consulting? </li></ul><ul><li>Is video an enabler of consulting services that are less efficient in VoIP only? </li></ul>
  17. 22. <ul><li>E-Learning </li></ul><ul><li>Medical Second Opinion and live conferencing (HBRLabs) </li></ul><ul><li>Help Center </li></ul><ul><li>Social Networks (Kyte) </li></ul><ul><li>Porn </li></ul><ul><li>Exit </li></ul>