Streaming Media - October/November 2007 - (Page 74) hand, some topics that are accepted in the U.K. are considered too racy for U.S. audiences. Borakas emphasizes the importance of “having boots on the ground in the markets you intend to work in. Do your research and understand the landscape. Learn what is wanted and needed, and what actually sells.” A lack of established digital business models is a challenge that media companies will continue to face in most new markets they enter. The online advertising market, especially for video, is still being formed in the U.S. Other markets are nowhere near having a marketplace for online advertising. Other models, like subscription and pay-per-view, don’t seem to be any more prevalent in other markets than they are in the U.S.—nor does there seem to be much interest in them, says IBB’s Boxa. “Instead, companies are attempting to build advertisingsupported business models. The challenge is that internet advertising remains new in most markets outside of North America and Western Europe,” says Boxa, “and video advertising is almost non-existent. Some publishers in areas such as South America and Southeast Asia are serving static display ads before streaming video to receive some monetization while they develop the advertising market for more lucrative pre-roll video ads.” The biggest problem by far seems to be the lack of infrastructure in emerging markets to handle the delivery of rich media. “The infrastructure within cable systems in emerging markets is OK,” says Rockwell. “It is the streaming ‘round the globe “doesn’t require a contract with the local telco and can also work without advanced fiber connectivity.” However, Borisov warns media companies relying on P2P as an entry strategy for emerging markets that “P2P fails economically when internet is metered (charged by usage as opposed to a flat monthly rate) and it fails technically when upstream rates are basically dial-up.” Borisov also advises to be respectful of the telcos in emerging markets, particularly in Europe. “They are the gatekeepers to success in most markets.” Advice Two things are clear from speaking with our international streaming experts. First, international streaming presents a tremendous market opportunity. Second, the landscape is full of challenges from infrastructure to cultural differences to best business practices. Despite all the challenges that might be in the way, the experts believe that the international opportunity is too large to pass up. We close the article with the following advice from ROO’s Rob Petty: “Success in this space is to think globally and to act locally. You need to think globally when it comes to quality, technology, and infrastructure, and think locally when it comes to culture and requirements. Find the right local partners, especially when you are new to a market. Your business model is the key to your success in this ecosystem. Start small and learn. Your users will tell you what they Babelgum CEO Valerio Zingarelli describes his company as “a global personal media company” that is programming content based not on geographic boundaries but rather on language and cultural “passion verticals.” JumpTV’s Ben Borakas believes that India provides a giant growth opportunity not only within mainland India, but also in the growing Indian diaspora around the globe. JumpTV offers several packages targeting Indian expatriates. connection between the systems that is terrible and causes the internet to ‘break’ when delivering heavy files.” Companies like ROO and Babelgum are making investments in P2P technology to try to bypass infrastructure constraints. ROO recently purchased P2P assets from Wurld Media and is “integrating them into the core technical architecture to be able to maneuver through the current challenging state of broadband infrastructure in emerging markets,” according to CEO Rob Petty. Babelgum’s Zingarelli describes his product as “peer-to-peer web TV” and says that its architecture 74 STREAMING MEDIA October/November 2007 want. Also, a win in the United States doesn’t mean a win in other markets. This can be a tough and costly lesson to learn first-hand—look at the auto industry as a case study.” Tejpaul Bhatia (bhatia@tejmedia.com) is the founder of Tej Media Networks Inc., a production studio that specializes in multiplatform storytelling. Previously, he was senior manager of international business strategy for ESPN New Media. Comments? Email us at letters@streamingmedia.com, for check the masthead for other ways to contact us.
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