Streaming Media White Paper 2008 - (Page 29) www.streamingmedia.com 29 Audience Targeting The web’s ubiquity and openness make it possible for publishers to identify, target, reach, and profit from highly specific interest groups much more easily than traditional television ever could.Traditional TV broadcasting is held prisoner by the confines of local broadcasting, competing cable and satellite networks, and even country-specific programming and distribution regulations. The web is virtually unencumbered by any of these restrictions.An online publisher can broadcast a channel of online video showing various ways to train an elephant, for example, and can likely attract and even monetize a global audience with it. Search engines, ad delivery networks, and RSS readers help make this wide targeting and audience acquisition possible. Here is a real world example: WatchIndia.tv is a small startup that saw the opportunity to reach expatriate Indians all over the world,offering TVquality online video content from India’s number 1 TV broadcast channel. In its first nine months in operation, the company already had 1.5 million monthly unique viewers and a large stream of steady revenue from subscribers paying $25 per month. This has created a million-dollar business within the first year, all from that single subscription-based revenue stream alone.It is just one of many monetization strategies the company is considering. Membership Model Subscriptions—Charge members a recurring fee to have access to select content. Even charge premiums for specialized, higher-value content. Transactional Models Pay-per-view/VOD—Charge viewers to access an event or one-time showing of a movie, for example. Downloads/rentals—Establish payment rules against specific content for downloading. Advertising Models Sponsorship—Charge ad partners to sponsor an entire video and/or a video player; include a premium for solo sponsoring (exclusive advertiser for entire video). Ad delivery—Using ad exchange networks (aggregatora of video advertising inventory), charge advertisers to post text, image, or video promotions prior to, during, or following your video content. Content Monetization There are a number of ways to monetize online video content. Below are just a handful that have worked very well for our clients. Making money (in online video) seems to rest in two areas: the receptiveness to messaging and the acquisition, measurement, and monetization of meaningful audiences in terms of both qualification and reach. (MEDIAWEEK, MAY 26, 2008) Online video advertising will be the Holy Grail in Internet TV revenue generation; however, it has yet to arrive. Many content owners, broadcasters, and online video software/service companies have already bet their businesses on this money being available, and many of them are now out of business. We recognize that video advertising (although a small opportunity at the moment) is likely a critical monetization tool in your portfolio. That being said, Onstream Media customers, just like you,are building profitable businesses utilizing a mixture of monetization tools combined with select distribution strategies to hedge and diversify their opportunities for success. And just like most things,making money is all about creating something people are interested in and willing to pay for. The hard parts are developing quality goods and services, locating would-be customers,and finding a viable means of charging and collecting money. Online video is no different. However, it does lie within the confines of perhaps the most fertile,unchartered, open, and regulation-free environment on the planet Earth. The time to take advantage of this enormous opportunity is now, and Onstream Media is here to help with the right know-how, tools, and technology to make you successful while you do it. ABOUT ONSTREAM Onstream Media Corporation (NASDAQ: ONSM) is a leading online service provider of live and on-demand internet video, corporate web communications and content management applications. Onstream Media's pioneering Digital Media Services Platform (DMSP) provides customers with cost effective tools for encoding, managing, indexing, and publishing content via the Internet. The DMSP also provides an efficient workflow for transcoding and publishing user-generated content in combination with social networks and online video classifieds, utilizing Onstream Media's Auction VideoTM (patent pending) technology. In addition, Onstream Media provides live and on-demand webcasting, webinars and web and audio conferencing services.In fact, almost half of the Fortune 1000 companies and 78% of the Fortune 100 CEOs and CFOs have used Onstream Media's services. Select Onstream Media customers include: AOL, AAA, AXA Equitable Life Insurance Company, Bonnier Corporation, Dell, Deutsche Bank, Disney, National Press Club, NHL, MGM, PR Newswire, Rodale, Inc., Televisa, WireOne, Shareholder.com, and the U.S. Government. Onstream Media's strategic relationships include Akamai, Adobe, eBay, FiveAcross/Cisco and Qwest. For more information, visit Onstream Media at www.onstreammedia.com or call 954-917-6655. Partnership Models eCommerce—Online promotional videos can help sell your offerings even better than static or banner ads,as they evoke emotion that persuades individuals to purchase. Cobranding—Allow content providers to have unique sub-channels under the umbrella of your primary channel,similar to how cable and satellite companies operate. Syndication—Enable thirdparty sites and blogs to repurpose your content for a price. http://www.streamingmedia.com http://WatchIndia.tv http://www.onstreammedia.com
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