In the digital world, numerous businesses have emerged around the delivery of video content via broadband.  Why? Online video is on an upward trajectory.  The digital citizens and immigrants are demanding consumers who look to receive information whenever they want, wherever they want. Can you blame them? Web 2.0 has put the power in their hands and it is up to us as marketers to put the ball in their court.

Throughout the years we have seen and will continue to see a consistent increase in online video viewers.  That is because Internet users see IPTV as a haven for:

The 5 Online TV Pull elements

·         More Choice of programs

·         Content upon instant request

·         More Interactivity

·         More Tailored Programming

·         More localized content

All this has been made possible outside conventional satellite, digital cable and terrestrial broadcasts.

As a result of this trend and demand from online users (VOD), companies like the following were founded and have become popular:

Various Online TV Business Models

Technology Suppliers

This model is used by companies whose primary function is to deliver a portion or all of an online video distribution.  The services include a “build your own” course providing content management software, SDN services, and advertising support technology mainly to large media organizations.

Aggregators

The companies that use this model are the major cable providers such as Comcast or Verizon who provide IPTV services in selected areas.  Internet portals such as AOL, MSN, Yahoo!, Apple’s iTunes, Amazon and Real Networks are a part of this business model solution as they support downloads of TV shows and video streaming.

Social Networks and Consumer and consumer sharing sites

Companies like YouTube, Metacafe, MySpace and MSN video SOAPBOX boast the business model that provides a forum for consumer to post Consumer Generated Content (CGC). 

Broadband Media Distribution

This business model involves a combined platform of services with media distribution elements to create a new way for publishers to reach and build audiences.  BrightCove is a perfect example of this model in which their approach targets makers, sharers, watchers and sponsors.  Other users of this model include Revver (www.revver.com) and the Roo Group (www.roo.com).

So which is the best?

Google’s YouTube has dominated the UGC market by logging 20 million unique visitors with video streams accounting up to 60% of all videos watched online. Here, personalization and user’s own viral content take precedence as anyone can upload, share, browse, search and rate videos. Now while Google continues it dominance, BrightCover plans to expand its broadband video distribution systems to professional publishers, content creators, advertisers, watchers and sharers thus hitting the sweet spot on the Internet’s TV space.

However, the TV model that will prevail would be that which implements solutions including the 5 online TV pull elements mentioned earlier.  BrightCove is pretty close but it lacks a UGC style lead by Google’s Youtube who then lacks the professional services supported by BrightCove.  It will not surprise me however, if Google bulldozes its way into the broadband media distribution establishing itself is a broadband media distribution and CGC hybrid.

Thanks to Carlton L. Bennett Jr for this splendid conlusions of what we have ben duiscussin lately in our classes. Your thoughts, my friends?

Best

Manuel A. Alonso Coto