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Webcaster 
An individual(s) misguided enough to 
think he/she can change the way the 
world is entertained and communicate...
We’ve come a long way in 4 years…. 
Streaming Media is causing us to rethink 
the big media picture and face 
important is...
#1 
What is Media 
 Media used to be defined by its spectrum 
– TV by channels 
– Radio by stations 
 Not in a streaming...
#2 
What is Content 
 It used to be defined by its packaging 
capacity 
– CD - 62 Minutes / VHS - 1 Movie 
– DVD - 3.7gb ...
#3 
What is a Broadcaster ? 
 Every company is a broadcaster 
– Dell, GM, Intel, P&G… 
 Everyone is a broadcaster 
– For...
#4 
What is TV ? 
 TV is an alternative to boredom 
– Its what you do when you have nothing better to 
do 
 Cable TV 
– ...
#5 
How do Corporations 
Communicate ? 
 Real Time Communications is having a 
profound effect on the business world 
– C...
But our progress is being hindered …. 
Not everyone is doing their part…..
#1 
Digital Millenium Copyright Act 
 Webcasters have become the poster 
children for record label abuse. What they 
coul...
#1 
DMCA Economics 
 RIAA is asking for as much as .5 cents per 
song from webcasters 
– There 12 to 20 songs played per ...
#1 
DMCA Programming Politics 
 Artist Complement Act 
– Limits # of songs from an artist/CD that can be 
played in a tim...
#1 
What you should do... 
 Talk to a copyright attorney about your 
options 
 Join lists like the webcasting.net list t...
Deep Linking 
 Linking directly to Media Files is a way for all of us 
to subsidize wanna-be portals. 
 Direct Links Dep...
Audience Reporting 
 We have got to stop playing this game of 
my webcast is bigger than yours 
– As an industry we are s...
Audience Reporting 
 May I suggest, that if you choose to report 
on the size in terms of users to an event, 
that we emp...
Audience Reporting 
 There are 3rd party ways to at least 
qualify numbers to some extent 
 All 3rd party streamers incl...
Vendor Issues 
 Real, Do Not Mislead Users to a Paid Player 
– Too many users are mislead into thinking they must 
pay fo...
Vendor Issues 
 Stop making ridiculous player download 
claims. 
– They are meaningless and misleading 
– Let us know wha...
The Business of Streaming Media 
Some Observations…..
Webcasting -The Business Side 
 This industry is just beginning. 
– It is probably about a 250mm business in 1999 
– I ex...
Growth will be Incredible ! 
 We will see the number of events broadcast over the 
web EASILY TRIPLE each of the next 5 y...
Profitability is King ! 
 Webcasters must operate for profitability 
 Everyone is a genius in a bull market, 
– But the ...
Advertising Supported Content 
Sites will have it Rough. 
 The toughest asset to create on the net is traffic. 
– Generat...
Picking Who Streams Your Content 
Finding the Best Solution
The Decision Criteria 
 Can your provider help you generate 
demand ? 
 Will your provider stay in business ? 
 Can you...
How will you generate demand 
 This is the greatest challenge for any content 
provider 
– Everyone thinks their event is...
Will Your Provider be in Business 
? 
 The best providers establish long term relationships 
with their customers 
– We g...
Scalable Networks - Unicast 
 The greatest challenge to Streaming Service Providers 
is NOT scaling unicast audience size...
Scalable Networks - Multicast 
 True Scalability for Streaming Media will come from 
Multicasting 
– There is no limit to...
Multicast Affiliates 
52+ and growing 
 Accesscom 
 ACI 
 ATMLink 
 BorderNet 
 Carrier1 
 Cais 
 CharmNet 
 Coast...
The Real Scalability Challenge 
 The reality of the streaming market is that the # of 
live streaming events is exploding...
The Cost Breakdown of a 
Broadcast 
 A typical live broadcast today requires the following 
bitrates to be streamed 
– 20...
The Benefit of a Centralized 
Network 
 At Y!Broadcast the links between the encoders and 
servers are localized to one o...
Streamingmedia from Broadcast.com Presentation 1999 ybs3
Streamingmedia from Broadcast.com Presentation 1999 ybs3
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Streamingmedia from Broadcast.com Presentation 1999 ybs3

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Broadcast.com presentation about its broadcast services

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Streamingmedia from Broadcast.com Presentation 1999 ybs3

  1. Webcaster An individual(s) misguided enough to think he/she can change the way the world is entertained and communicates
  2. We’ve come a long way in 4 years…. Streaming Media is causing us to rethink the big media picture and face important issues
  3. #1 What is Media  Media used to be defined by its spectrum – TV by channels – Radio by stations  Not in a streaming media world – All digital media is just a stream of bits – Whats the difference between Digital Cable and Streaming Video ? – Both are just streams of video sent to a computer output to a monitor ! – Streaming Video can vary its bit rates – Streaming Video can be inherently interactive  Streaming Media is already dominant in the office. – Only 9% of office workers can get TV while more than 95% can receive streaming media !
  4. #2 What is Content  It used to be defined by its packaging capacity – CD - 62 Minutes / VHS - 1 Movie – DVD - 3.7gb – Not in a digital world  Content is now available live or on demand  Its defined by its availability as a stream or transportability as a file – Do I have to go to a website – Can I send it as an email or take it on my Rio  The amount of video content on the net far exceeds the amount available through any other medium
  5. #3 What is a Broadcaster ?  Every company is a broadcaster – Dell, GM, Intel, P&G…  Everyone is a broadcaster – For Free you can reach your friends using MP3 streaming or Windows Media from your home – For 5k a month you can reach a niche audience using a provider  This is just the beginning – within 3 years there will be >1mm video channels – within 10 everyone will have a personal channel
  6. #4 What is TV ?  TV is an alternative to boredom – Its what you do when you have nothing better to do  Cable TV – is a video monitor connected to a stupid computer (STB), connected to a wired network that is limited in what it can provide  Streaming Video – is a video monitor connected to a smart, but ugly computer, connected to a wired network that is unlimited in what it can provide  When computers start looking like they belong in the living room, and broadband becomes more available, streaming will change the definition of TV
  7. #5 How do Corporations Communicate ?  Real Time Communications is having a profound effect on the business world – CEOs can now speak to their employees on a regular basis – Product Introductions can be held online – Quarterly earnings conference calls and Shareholder Meetings can now reach all shareholders – Multimedia can be added to product descriptions  Applications continue to appear and streaming is becoming mainstream in many corporations !
  8. But our progress is being hindered …. Not everyone is doing their part…..
  9. #1 Digital Millenium Copyright Act  Webcasters have become the poster children for record label abuse. What they couldn’t get from Radio, they try to take in abundance from webcasters!  We should have to pay copyright owners for their work. – The question is how much – RIAA is not asking for fair compensation
  10. #1 DMCA Economics  RIAA is asking for as much as .5 cents per song from webcasters – There 12 to 20 songs played per hour – Using .3 x 15 songs = 4.5cents which equals – $45 CPM per hour of listening – This is CRAZY Pricing  Or a Percentage of Revenue – As high as 15% has been reported  Penalizes those that have revenue, rewards those that don’t …  Corporate Intranets have it even worse – Company Intranet Radio stations and events could cost you a fortune !
  11. #1 DMCA Programming Politics  Artist Complement Act – Limits # of songs from an artist/CD that can be played in a time period – Requires that pre-recorded loops be a minimum length – Requires us to show title and artist – Prohibits webcasters from pre-announcing songs – None are hard, but all put us on uneven ground with traditional broadcasters – Only makes it harder for us to compete with traditional media. – They can run 24 hour Beatles, we cant  This might have been OK 2 years ago when this was being negotiated, but with MP3s and Jukeboxes everywhere, its ancient, and it needs to change
  12. #1 What you should do...  Talk to a copyright attorney about your options  Join lists like the webcasting.net list to get educated  Call your Congressman and Senator…  Move your servers to Canada – Laws are realistic – They are supportive of webcasters – They are looking for ways to create bandwidth flow OUT of Canada – www.iceradio.com for a great example
  13. Deep Linking  Linking directly to Media Files is a way for all of us to subsidize wanna-be portals.  Direct Links Deprive webcasters of sales of Banner Ads, Interstitial ads, Sponsorship and Branding.  This is not the same as linking to a webpage. – The cost to deliver a webpage is negligible – The cost to deliver a stream is not – ASCAP/BMI – DCMA - $30CPM – Bandwidth – Stream Licenses – Server Capacity – Support  We need to stop this as an industry #2
  14. Audience Reporting  We have got to stop playing this game of my webcast is bigger than yours – As an industry we are starting to look more clueless than the reporters who write about these events  A hit, stream served or visitor is not a UNIQUE user. – All of these terms have been misused to mislead #3
  15. Audience Reporting  May I suggest, that if you choose to report on the size in terms of users to an event, that we employ the following metrics – # of Unique Users – Ave. time spent on each stream – Its not hard to capture, its all right in our logs  This will at least demonstrate that as a medium we understand our own statistics and we are able to convey the reporting advantage of streaming - actual usage  And to help keep us honest... #3
  16. Audience Reporting  There are 3rd party ways to at least qualify numbers to some extent  All 3rd party streamers include a defining URLs in their presentations – http://www.broadcast.com/thisevent.asx  Media Metrix tracks these URLs – Media Metrix ratings/uniques per mo. – Broadcast.com 6.0 - 3.7mm – RBN.com 1.4 - 864,000 – Intervu.Net .7 - 438,000 – Netaid.org - not enough – Winloud.com - will be interesting – All URL driven webcast audiences show up #3
  17. Vendor Issues  Real, Do Not Mislead Users to a Paid Player – Too many users are mislead into thinking they must pay for a player because they cant find the free one. – It makes the users mad at us, not you  Its time to offer some server management tools, any tools – Its not that we cant create them we can. – But every time you change your software, client and server, which is often, our tools and services are immediately out of date – Then we spend far too much time figuring out what to change to match your changes ! #4
  18. Vendor Issues  Stop making ridiculous player download claims. – They are meaningless and misleading – Let us know what percent of new PCs are shipped with your product to alleviate download fears  If you say you are compatible with a particular operating system, please release compatible versions on a timely basis. – We are tired of being told we just upset an entire company because we upgraded a server and their players are no longer compatible  Real, please pick a consistent pricing plan. – Its no fun to compare notes with friends and find out that pricing is all over the map. – We don’t mind paying for streams nearly as much as we hate the fight we go through to buy them ! #4
  19. The Business of Streaming Media Some Observations…..
  20. Webcasting -The Business Side  This industry is just beginning. – It is probably about a 250mm business in 1999 – I expect it to grow to 750mm the following year, and at least triple each of the next 3 years – Streaming media will be expected as part of almost every major website  The base of revenue will be services – EVERY company and website in the world can benefit from real time streaming communications – 80% of revenue will be streaming services – 20% will be advertising around content #1
  21. Growth will be Incredible !  We will see the number of events broadcast over the web EASILY TRIPLE each of the next 5 years. – But this will only increase audience fragmentation per event. – The number of Victoria Secret size commercial webcasts of more than 1.5mm UNIQUE users will number less than 5 per year. – Only breaking news will surpass Vic Sec on a regular basis  Service companies should focus on selling services and events, NOT in pushing bandwidth – Value added services will mean profitability – Selling needs to be a core competency – Customers wont show up at your door, you need to go find them  The Sky is the limit #2
  22. Profitability is King !  Webcasters must operate for profitability  Everyone is a genius in a bull market, – But the market wont stay hot for ever – Nor will VC funds always be available  Within 12 months it will be put up or shut up time – Investors will have been able to see what webcasting models work, and which don’t.  We are starting to see the impact of this with the lagging valuations of streaming related stocks and companies like – AudioHighway – Tunes.com – ForeignTV  They are all underperforming other internet stocks or private company equivalents #3
  23. Advertising Supported Content Sites will have it Rough.  The toughest asset to create on the net is traffic. – Generating traffic for original content without any inherent demand is the hardest of all – Without critical mass traffic its impossible to generate any level of revenue  Audience fragmentation will make it far harder to create hits on the net than on TV  The best original content model ? – The 1 minute video that can be sent as an attachment with email #4
  24. Picking Who Streams Your Content Finding the Best Solution
  25. The Decision Criteria  Can your provider help you generate demand ?  Will your provider stay in business ?  Can your provider scale ? – UniCast Networks – Multicast Networks – Number of Streaming Events #7
  26. How will you generate demand  This is the greatest challenge for any content provider – Everyone thinks their event is the next Victoria’s Secret – The reality is that most events don’t reach 1,000 simultaneous users  You must be realistic in setting expectations  The right partner will assist you in determining how to acquire the most relevant & largest possible audience  It’s the key to a successful event, and for content based businesses, it’s the key to financial success. – A content based site without eyeballs, wont be in business very long  For DiskJockey.Com we increased their audience by more than 500% in less than 5 months ! #7
  27. Will Your Provider be in Business ?  The best providers establish long term relationships with their customers – We get to understand our customers business – We invest in our customers and provide ongoing support and resources – We have customers that have been with us for four years !  Many providers are in business to play the stock market rather than show a profit – Is your provider profitable ? – Or are they showing ever increasing losses ?  Yahoo is one of the most profitable companies on the net and Y!Broadcast is a profitable contributor !  Before choosing a vendor, make sure they will be in business ! #7
  28. Scalable Networks - Unicast  The greatest challenge to Streaming Service Providers is NOT scaling unicast audience size. – Anyone can add servers and buy bandwidth – Regardless of what city the servers are in – If you connect them in any way to the top 20 networks they will work until you run out of bandwidth or servers  At Yahoo!Broadcast we pass 1gbs of unicast streaming traffic on normal weekdays #7
  29. Scalable Networks - Multicast  True Scalability for Streaming Media will come from Multicasting – There is no limit to audience size – True Broadcast Model – The Problem with Existing Distributed Servers Networks is that they are not MultiCast Capable  Multicast Streaming is thriving at Yahoo!Broadcast – Yahoo!Broadcast is the only provider with experience at multicasting at all bit rates, all streaming vendors – Yahoo!Broadcast is the only Commercial, Multi-Network, MultiCast enabled Network in the world – With more than 50 MultiCast Enabled Partners – We can reach more than 1mm simultaneous users on multicast networks ! – Yahoo!Broadcast has done thousands of 100% multicast broadcasts – As many as 40k simultaneous multicast users ! #7
  30. Multicast Affiliates 52+ and growing  Accesscom  ACI  ATMLink  BorderNet  Carrier1  Cais  CharmNet  CoastLink  CyberZone  DirecPC  dotSTAR  Electric Lightwave  FlashNet  Galaxy Star  Granbury.com  Great Basin Internet Services  IDT  IIJ  Information Highway  InLink  InMotion  InReach  Insync  Jato  Jump Net  Level 3  Lightspeed  Megsinet  MicroCore  Midwest Web  Mobile Star  NetCarrier  NetConcept  Network Internet  Nortel  Nova  PIXINet  South West Plains Communication  Splitrock  Sprint  SysNet  Teleglobe  Telepak  The Internet Connection  The-OnRamp.Net  Transport Logic  UniComp  uniView  Verio  WebNet  ZebraNet  ZipLink #7
  31. The Real Scalability Challenge  The reality of the streaming market is that the # of live streaming events is exploding. – But most live events are narrowcast events that are designed for under 100 simultaneous users – Distance Learning, Corporate Presentations,etc – Most require multiple BitRates and Multiple Streaming Formats – The challenge is to be able to cost effectively deliver thousands of simulaneous events, each with top level quality, with out any failures – The cost issues for doing many events, with multiple bitrates are very different than doing a couple large events #7
  32. The Cost Breakdown of a Broadcast  A typical live broadcast today requires the following bitrates to be streamed – 20k, 32k, 100k, 300k, 1mbs – In total 1.452mbs – In two formats, WMT and Real – Total encoded bits sent to servers - 2.9mbs  Send these streams to 20 distributed servers across the net and you are using 58mbs just to reach the servers before you have served a single stream to an end user ! – Now imagine if you are streaming 1000 of these events at once. – You would be using 58gbs of internet bandwidth before serving a single end user ! – Its hard to make those economics work #7
  33. The Benefit of a Centralized Network  At Y!Broadcast the links between the encoders and servers are localized to one of 2 networks in Dallas, or a 3rd Redundant location in San Diego – This gives us the lowest cost to deliver the greatest number of events, large or small – It removes any Internet Risk of the encoded stream not reaching a server – It allows us to leverage our multicast network to scale audience size – We can deliver any any bitrates, from 6kbs to more than 1mbs with the equal ease and reliability.  So, when chosing a service provider, consider all the issues, not just meaningless capacity claims ! #7

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