Internet video business models are in their infancy, but one thing is becoming clear. Consumers get to watch content whenever they want and increasingly on whatever device they want. It is an evolution of the time-shifting that TiVo and DVR’s introduced, into a fully on-demand world. Consumers are choosing to consume video in this way, despite the experience is not yet on par with traditional delivery models, and despite of a smaller screen experience. Consumer behavior, technology, distribution and business model are changing.
Experts say the trend today is back to professional content, toward dual offerings of both ad-supported and pay media business model. Initially it was about user-generated content and small content creator going to consumers. But that business model hasn’t paid off, and the dollars just aren’t there.
Some say that Comcast’s On-Demand Online and Time Warner’s TV Anywhere initiatives are good examples of service providers with chances of succeeding. They will build more value into the subscription by offering online access to cable programming. That’s a natural extension to their business. (And for nov, “cord-cutting” or dropping your cable/satellite/telco service in favor of only-only viewing is not happening.)
In the broadband industry, there is a strong consensus that online-only aggregators will struggle in 09, because they are not getting a big enough share of the ad pie, and they don’t have an existing business to grow from, not being able to differentiate. This was a very hot space for investors just a year ago, now it looks like it’s going cold. The realities are that it’s difficult to build audience and generate ad dollars.
The Internet will overtake broadcast TV in Europe
European watch less TV than Americans do; they prefer the Internet. A Microsoft reports finds than European Internet consumption in 2010 will average 14.2 per week compared to 11.5 hours a week spent watching TV.
The report notes how the TV experience is changing. It is becoming a two-way experience via PC, mobile, and set-top boxes. Soon TV won’t refer to the big screen in the home but to audio and visual content that will be watched everywhere.
Internet is becoming the most popular media, while TV content is turning into a two-way experience. The three screens –TV, mobile and PC- will remain the most important media.
Apple App Store hit a billion downloads
Nearly one billion mobile apps for iPhone and iPod Touch have been downloaded in the Apple store. That is a rate of 900 apps downloaded per second. To celebrate it, Apple has installed a counter here, and drawing to win $10K in commemoration of the milestone.
Just four months ago, in January, Apple announced it had surpassed 500,000 downloads.
KIT digital acquires Narrowstep
Narrowstep London-based Internet TV platform won’t be longer part of Onstream Media. This Florida-based company has terminated Narrowstep’s acquisition. Onstream does not see much value on keeping Narrowstep.
This British company now goes into the hands of KIT digital, who is getting the company in exchange for 25,000 shares of restricted KIT stock, according to its press release.
Narrowstep’s proprietary telvOS Internet TV platform specializes in long-form video-on-demand and live streaming for enterprise customers, using Silverlight and its own content delivery network (which is really un-standard in an industry dominated by Adobe Flash-technology and open CDN as distribution servers). Founded in 2002, Narrowstep, Inc. was a pioneer in delivering Internet TV. Still now, they continue to say that “its telvOS suite is the only IPTV platform that can deliver to viewers long-form, full screen programming of true TV-like viewing experience over the Internet.”
KIT digital management estimates Narrowstep’s current, recurring revenues to be approximately $110,000 per month.
“The transaction includes a transition of Narrowstep’s client relationships to KIT digital, including the Outdoor Channel, The Paralympics, BBVA, and the Red Cross. As part of the transaction, KIT digital will also acquire and integrate Narrowstep's reseller relationships which include Can Communicate, a UK-based digital agency specializing in creating brand generated content, and Vivocom, a provider of IPTV technology and production services based in Spain.”
