Happy (Almost) New Year! (That Means CES Next Week)

Yes, it's that time of year again ... quiet end of Decembers ... and then we start the new year with the annual CES show in Vegas. Sorenson Media will be there again, of course.

Send me a note to bizdev@sorensonmedia.com if you would like to meet there and discuss business opportunities (including Spark codec licensing, business partnerships, etc.).

And, don't forget to get plenty of sleep before you go ...

Sorenson Media -- Ends 2009 with 50%+ Q4 Revenue Growth

It's been an exciting year at my company, Sorenson Media. I posted my own version of our 2009 "Greatest Hits" last week. Today, we just issued an official year-ending retrospective/press release that identifies our "Top 10" 2009 highlights.

And, hot off the presses, we are announcing our that our Q4 year-over-year revenue growth (Q4 2008 vis-a-vis Q4 2009) already is well over 50% -- suffice it to say, a great way to end this year and enter what we anticipate being an even more eventful year in our storied 15 year history.

In that regard, stay tuned for more exciting announcements soon after we enter the new year.

And, thanks to all for your support in 2009 -- it's been a fun ride so far ... and it's just beginning ... we are fast drivers!

2009 -- As Seen By JibJab

Ahh yes, it's the end of the year -- time for all those year-end retrospectives (including mine that I posted last week).

For some light-hearted fare, watch JibJab's "year in review" here.

Enjoy.

Sorenson Media v2009 -- The Year in Review -- Our Top 10 Highlights

It's end of year -- the holidays are upon us -- so it's a great time to step back and take a look at 2009, Sorenson Media-style. Bottom line -- 2009 was an exciting year for our company across the board. Here are just some of the highlights -- I call this our "Top 10 Highlights of the Year":

(1) a highlight for me, I joined the company as President & CEO in February and we significantly expanded our overall executive management team, which now includes Eric Quanstrom (VP Marketing & Strategy), David Dudas (VP Product Development), Mike Flathers (CTO), Charles Sismondo (VP Engineering), Kirk Punches (VP Sales), and Mark Ivins (Controller) -- a true "A Team" if ever I've seen one; we added other key hires to our already-all star team (including senior engineer Glenn Clapp who previously worked at our company) -- I would like to name each team member here, but space does not permit (but that doesn't detract from the fact that each person is critical -- we wouldn't be able to do anything close to what we do if that weren't the case);

(2) we expanded our business operations into the hub of digital media -- Southern California -- my backyard here in San Diego; we now have half the team here and can tap into the rich talent pools of both Salt Lake City and Southern California; we hired aggressively in both locations throughout the year -- and we are hiring aggressively now in both locations and across all departments;

(3) as a natural extension of our award-winning technology and services -- and because our customers demanded it -- we launched "Sorenson 360", our differentiated service that re-imagines what an online video platform (OVP) should be, to rave reviews;

(4) later in the year -- just recently in fact -- we launched our first major "point" release of our flagship Sorenson Squeeze product (v6.0) to more rave reviews and to our biggest sales days in our company's history; Squeeze 6 -- like Sorenson 360 -- represent major milestones in our industry, offering the first "total workflow solutions" for the video professional and for businesses of any size -- SMBs and enterprises;

(5) we completed a full corporate re-branding -- with a completely new website -- and a fully consistent "look and feel" (and unified experience) across our product line; this was motivated by many reasons, the most important of which being an obsessive dedication to ease of use, usability, and overall customer experience; the feedback from the press, our partners and our customers has been downright effusive;

(6) we signed a number of partnership deals with blue-chip companies in connection with our "Sorenson Spark" codec, the world's most ubiquitous video codec -- these partners include Qualcomm and Verizon;

(7) we expanded our long-time partnership with Avid and its suite of editing applications, and we seamlessly integrated our solutions in Apple's Final Cut Pro, Final Cut and iMovie products (we also are now featured as a "staff pick" download by Apple);

(8) we significantly expanded our company profile overall -- including a major feature story in USA Today -- USA Today expressly recognized the role our company has played throughout the course of Internet video (in its words, "Every time you watch a video online, you probably have Sorenson Media to thank" ... couldn't say it better myself);

(9) we continued to win all major awards in our industry for innovation and developing the "best" products and services, including the prestigious Streaming Media "Readers' Choice" award (for the third straight year) and "Fierce 15" by FierceOnlineVideo; and

(10) finally, we worked with more passion, excitement, enthusiasm, creativity and dedication than ever before -- fundamental ingredients to overall success. Without this kind of company culture, you may as well hang up the towel. I can tell you this -- this is a team of winners. We love the overall market opportunity. We love our differentiated and unique history and position within it. We love what we do (innovate, create, empower our users). And, we love who we do it with (each other). As corny as this sounds, we have a uniquely empowering and "fun" environment. I enjoy every day with my team. And, if you ain't havin' fun, why do it? Right?

These are just some of the highlights of the year.

But, time to stop looking back. Now, it's all about moving forward -- and continuing to out-innovate the competition and offer the most compelling video solutions to video professionals and businesses of all size.

Where are we going in 2010? All I can say is this -- you ain't seen nothing yet. Stay closely tuned -- we have many significant announcements tee'd up for the first part of the New Year, including several which will show you where we are heading with Sorenson 360. And, 2010 overall will be a pivotal year in the overall online video market opportunity, as businesses of all size begin to recognize -- on a massive scale -- that nothing is as impactful as the power of video. Not pictures. Not text. Absolutely nothing.

LIVE Mobile Video Goes LIVE on the iPhone! Was There Any Doubt?

The number of live mobile video streaming apps officially available in Apple's iPhone App Store has now doubled -- Bambuser is the latest to join UStream to give iPhone users this cool ... nay, revolutionary ... functionality.

Make no mistake -- these latest developments are just the beginning for live mobile video streaming. The power to not only have a mobile live vid chat (which is clumsy now on the iPhone because there is only one camera), but also live "See What I'm Seeing" from anywhere you are (which is how these initial iPhone apps will primarily be used) will change the way we communicate with each other and will become standard fare in the not-too-distant future. My prediction is that one-way "See What I'm Seeing" use will far surpass live two-way video chat.

I predicted this -- and wrote about this several times -- long long ago ...

Live mobile video streaming ... IT'S HERE! And it's here to stay ... and grow ... and grow ... and grow ...

Apple Now Features New Squeeze 6 Front & Center!

I am pleased to say that the continuous drumbeat of positive press, exposure and best of all -- sales -- continues unabated at Sorenson Media as we end the year and approach the next.

Now, Apple prominently features Sorenson Squeeze 6 -- our latest award-winning release -- front and center on its website (on the Downloads page). And, Apple gives Squeeze its own thumbs up by giving it the highest visibility (a "staff pick").

Why? Because Squeeze 6, among other things, promotes powerful seamless integration with Apple's Final Cut, Final Cut Pro, and iMovie products. What does that mean? That means that all of the power of new Squeeze 6 can be accessed directly and easily from those Apple products themselves -- i.e., you don't need to even open Squeeze! Virtually every reporter in our pre-launch press briefings nearly fell off their chairs when they saw this in action via our live demos!

So, if you use these Apple editing tools as part of your workflow, you now can get the full power of new Squeeze 6 -- not only the industry-winning encoding features that give you the highest quality video, but also the new innovative features that nobody else has, including: (i) direct publishing to YouTube, Twitter, Akamai, Limelight and Sorenson 360; (ii) notification via SMS and email when your encoding jobs are done (so that you can have a life outside of your editing bay), and (iii) secure "review and approval" workflow.

Trust me -- you will want to check this out -- and you can entirely for free for 30 days. As many reporters said, this seamless integration with Apple's Final Cut, Final Cut Pro and iMovie alone are worth the price of admission to new Squeeze 6.

Sorenson Media -- We're Fierce! A Fierce 15 Winner!

Hot off the presses -- am very proud to say FierceOnlineVide, one of our industry's most respected publications, just named my company, Sorenson Media, a "Fierce 15 Winner"!

Here is why they believe we are "Fierce" -- full story below and linked here.

Sorenson Media - Top Online Video Company 2009: FierceOnlineVideo, Fierce 15

December 14, 2009 — 5:45pm ET | By Jim O'Neill

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Sorenson Media

Where it’s based: San Diego, Calif.
When it was founded: 1995
Investors: Privately held, no venture capital
Website: www.sorensonmedia.com

Why it's Fierce: Video encoding stalwart Sorenson Media has been around since, well, online video's Dark Ages, and it's done something few of its competitors have managed to do: it's made money. Its Sorenson Squeeze has been the industry's encoding software of choice through a number of upgrades (currently on Squeeze 6), and is in use by editors and other video pros at some of the world's largest media outlets, including NBC, Gannett and Hulu, as well as a chunk of the Fortune 500 companies.

"We've been self sustaining for a number of years and have a very strong balance sheet without the need for VC funding," says Peter Csathy, Sorenson CEO. "Sorenson Squeeze is the 'best-in-class' technology to the point that in a (recent) USA Today story they wrote: 'Every time you watch a video online, you probably have Sorenson Media to thank.' We appreciate that we have been the gold standard." So much so, Csathy said, that the company is determined to maintain its position by improving its product.

Squeeze 6 just recently launched with a laundry list of features designed to ease some of the more annoying pain points in video editing; it wants to provide an end-to-end solution in a single piece of software. And, it does. Squeeze does things like sending you an email or text message when it finished encoding a video, so you no longer have to "hatch" it; it makes it easier to share videos with clients during the approval process, including making annotations on clips simple and shareable ... and you get notifications of those, too. It's already won awards as the best encoder under $1,000.

Sorenson also in May launched its own Video Delivery Network, Sorenson 360. It's designed to be a quick and affordable route to the Internet for high-quality video with a white label video player. It comes free with Squeeze 6.

The company's roots go deep; it introduced the first video codec in 1997, used by YouTube, Macromedia Flash and Apple, and it's determined to maintain its video currency for the long haul.

Read more: http://www.fierceonlinevideo.com/special-reports/sorenson-media-top-online-video-company-2009-fierceonlinevideo-fierce-15#ixzz0ZreEP2HN

'Tis the Season to Be Hiring -- Santa Says, "Jobs, Jobs, Jobs"

It's that time of year again. And, my company, Sorenson Media, is thankful for the year it has had -- and extremely bullish on 2010 and overall growth not only of our business, but also the entire online video market opportunity.

So, our holiday gift is hiring, hiring, hiring -- across the board -- sales, marketing and engineering in both the San Diego and Salt Lake City offices.

Here is today's press release (which contains the job reply links) -- and go to our website for more descriptions (the new job reqs will be added in the next few days; the ones you see are still outstanding).

We need applicants who emulate our current team -- top talent, top dedication, and top passion to "win."

Spread the word ...

V-Men! Vikes Improve to 11-2, But is That Digital Media Worthy?

My Minnesota Vikings improved to 11-2 yesterday by destroying the division leading Bengals 30-10.

But, is that a digital media story? Does that have anything at all to do with my blog?

Well, I could, of course, find some kind of digital media angle (like, you can watch NFL video highlights on NFL.com for free). But, that would be trying way too hard.

Instead, here is the plain Midwestern truth. I am from Minnesota (born and raised there -- proud Gopher alumnus from the esteemed University of Minnesota). That means that my blood has bled purple from my earliest of days. That also means that I have endured the promise -- and the pain -- that are the Minnesota Vikings from the time I was a tot. 4 Super Bowls -- YES! But, doh! 4 Super Bowl losses. And, the best chance we had to destroy the demons of old -- 1998 (Randy Moss's first year) -- we finished 15-1 and made it to the NFC Championship. Everyone expected my beloved Vikes to not only make it to the Super Bowl that year, but to win it ... handily. But, alas, those demons, once again, got to the Purple People Eaters as they, instead, were fed their lunch by the hapless Atlanta Falcons as I watched in horror from the 50 yard line of that wind-tunnel of a stadium, the Metrodome.

So, fast forward to the Vikes of this year. 11-2. Brett Favre. Adrian Peterson. Sydney Rice. Jared Allen. Antoine Winfield. And on, and on ... the talent is second to none.

This year FEELS different. It just does. Everyone expects us to easily wrap up our division. And, everyone considers us a real contender for the Super Bowl.

I pinch myself -- is this real? Could this finally be the year that the Vikes shake that proverbial monkey off their collective backs? The entire city of Minneapolis is counting on it, for I have not suffered alone over these past 40 odd years. An entire state's psyche rides upon the success -- or not -- of the Minnesota Vikings. And, believe me, this is no exaggeration.

Just think about it. The Vikes are THE single most important draw in my beloved state where the alternatives are shopping at the Mall of America or shoveling snow. As go the Vikings, so go we ...

("Okay, Peter, take a deep breath and your feet on the ground ... take it week by week ...")

Steve Jobs & Apple -- Changing Their iTunes Again?

For years, Steve Jobs & iTunes emphatically pronounced that consumers want simple pricing -- "All songs $.99!", he said. He also criticized all other services for not "getting that" fundamental truth. Well, uh, consumers tastes apparently changed, and iTunes quietly instituted a variable pricing model like other services. Jobs had a "George Bush-ian" (George Bush I) "read my lips, no new taxes" moment.

And, for years, Steve Jobs & iTunes have emphatically pronounced that consumers want to own, not rent their music! He has criticized ... nay, mocked ... other services for not "getting that" fundamental truth (streaming services like Rhapsody, Pandora, Napster). Well, uh, consumers tastes apparently are changing once again. We don't know this for sure yet, but we have clues as a result of Apple's just recently announced acquisition of music streaming site Lala (which TechCrunch reported was bought for $17 million -- whereas today's Wall Street Journal reports Apple paid $85 million -- a "slight journalistic discrepancy" there ...)

According to a front page article in today's Wall Street Journal -- which is definitely worthy of a read -- Apple will do one of two things to fundamentally alter the iTunes service via streaming: (1) redefine "ownership" by making all purchases $.10 (a la Lala) but keeping those purchases "in the cloud" -- stream-able to you via the Web, but not down-loadable); or (2) actually institute a subscription streaming model -- i.e., pay an annual or monthly fee to access all music in iTunes. Either way, this ain't true "ownership" (at least, not as Jobs and iTunes have defined it for years).

Now, to be fair, iTunes may leave its current true "ownership" model as one option amongst its new Lala model.

Still, after such vehemence (and downright mocking) year after year about this fundamental issue, it is "interesting" -- needless to say -- when Jobs and Apple change their tune ...

... but will the media -- long-time Apple cheerleaders -- call iTunes out on this one? Doubtful -- Apple is one of those companies that simply gets a hall pass ...

Veni Vidi Vevo? Music Vid Site Launches Tonight

Vevo -- the new music video site backed by most the major labels -- launches tonight both on its own site (www.vevo.com) and on YouTube. You see, YouTube is a major partner in this new site, not wanting to lose traction with premium music video content in the same manner it did a la Hulu with premium television content.

I was skeptical when the major media companies first concocted Hulu -- but, it has enjoyed surprising success. So much so that it has been under pressure by major media forces like Comcast to pare it back to become a shell of its former self (especially now that Comcast is taking a controlling interest in media giant NBC Universal, one of the primary investors in Hulu).

So, the question becomes -- will Vevo (the "traditional" music label response to YouTube) come to the Internet, see the promise of the Internet, and ultimately conquer?

One thing is certain -- with YouTube in tow, distribution reach will not be an issue. Stay tuned ...

Fa LaLa La La -- 'Tis the Season for Apple to Buy Music Streaming Site

Lala -- the online music service started in 2006 with $35 million in venture funds -- has just been acquired by Apple for an undisclosed sum.

UPDATE AS OF TUESDAY, DECEMBER 8 -- As I anticipated in my original post (see below), Apple apparently acquired Lala for much less than the $35 million invested -- it is reported that the purchase price is $17 million.

Lala didn't start out as a music streaming site at all. Its first vision was to be a CD trading site, but morphed into something completely different in 2008. And, apparently Apple is interested in Lala's technology that allows users to stream their songs to their mobile phones from an in-the-cloud music "locker" for $.10. PC World gives a great analysis -- click here -- of the possible ramifications for iTunes.

The interesting thing is that Google just recently partnered with Lala to help power its own music initiatives -- so, you can kiss that partnership good-bye.

Although Apple's purchase price has not been disclosed, you can bet that it's a lot less than what investors have invested in Lala to date. So, although 'tis the season of giving, Apple likely has left some lumps of coal in Lala investors' stockings.

On2 Pitches Its Investors to Approve Google's Acquisition

Video codec technology company On2 -- on deck to be gobbled up by Google for $106M -- just published its "pitch" to investors to approve the deal (read it here). Very interesting indeed, as the company tries to assuage shareholder concerns as the closing date nears ...

NBC Universal's Content Is Now Comcastic!

Hot off the presses -- Comcast and GE (parent company of media giant NBC Universal) -- just announced their long-anticipated mega-deal. And, it is a complex one, pursuant to which the cable giant -- wanting to ensure that its long-term raison d'etre is more than "dumb pipes" -- takes control (i.e., a 51% stake) of NBC Universal. A nice overview of the deal terms are here.

Interestingly, assuming that the deal passes regulatory scrutiny, Comcast now may "see the light" with respect to maximizing revenues from online movie distribution. The Wall Street Journal reports that Comcast may start to test enabling home viewers to watch first-run movies at the same time those movies are still playing in theatres ... for a premium price, of course.

Now THIS concept -- which is called modifying the motion picture distribution "window" -- is a smart one! I have small kids at home -- and I assume some of you do too -- and I certainly would pay more than the usual pay-per-view fee to watch a new motion picture from the comfort of my own home and big screen. Just think of the babysitter savings!

THAT kind of thinking is what leads to new revenue streams ... and that's the kind of thinking that is a "win win" for content holders and consumers alike.

As Predicted, iPhone Frings Up Video Calling -- "See What I'm Seeing"

It was only a matter of time before live video calling came to the iPhone. Video was THE big story for iPods in last summer's major product launch -- and iPhone video recording has been a big story for many months.

Now, live video calling is here, easily, via fring and its iPhone app (fring is an Israeli-based start-up).

Here's the hitch. For now, the iPhone only has one camera which is on the "other side" of the touch pad. This is great for video recording, but ain't so great for video calling (since you can't see the person with whom you are having the video call if you are pointing the camera at yourself during that call).

So, for now, fring's app only works for inbound video calls, which significantly limits its utility.

Or does it?

As I have long written -- since I was in the live video communications space for years with my former company, SightSpeed -- the promise of mobile video calling may actually live in one-way "see what I'm seeing" calling (rather than 2-way video conversations). In other words, call your buddy from the U2 concert -- point your iPhone at Bono -- and show him live in all his glory to your friend thousands of miles away who couldn't attend the show. Think of all the other utility with live mobile "see what I'm seeing" calling (check out my former blog post here on the subject by clicking on this link).

And, in any event, there is no doubt in my mind that the iPhone also ultimately will ship with two cameras and its own vid calling service. My prediction is that this will happen with the next several months -- by the end of 2010.

Yes, there may be doubters. But, I am not one of them. Mobile video calling -- both "See What I'm Seeing" and 2-way video calling -- will be big, big, big. Very very big ...

Reflections From Last Week's OVP Summit -- I Like Where We Uniquely Stand

Last week, several of us from Sorenson Media attended the Streaming Media West Conference/Online Video Platform (OVP) Summit -- was a great show.

There literally were 20 or so video platform providers in attendance. But, do any of us really think all (or even most) will survive even one year? Highly unlikely, given that virtually none of these companies have generated any meaningful revenues or profits of any kind. And, virtually none of these have any differentiated approach and simply treat video management/hosting as a commodity.

This all bolstered my confidence even further that Sorenson 360 -- our "Video Delivery Network" (which re-imagines video publishing) -- is uniquely positioned ... positioned to be a long-term winner. Think about it -- who else can say the following?

(1) We don't treat encoding as a commodity! We alone place video encoding at the forefront of our video solutions, because video encoding is absolutely critical to producing the highest quality video -- that video quality is lost at the encoding phase if not done right (and only we do it "right" via client-side encoding and all the power and control that comes with it). THIS is our bread and butter -- we are, and have been, THE video encoding specialists and gold standard for years. As an exclamation point on this point, we won the prestigious Streaming Media "Readers' Choice" award at the conference for the third straight year for "Best Video Encoding Application."

Not surprisingly, the competition understands their significant Achilles Heal here with respect to video encoding -- they simply cannot compete in terms of video quality. So, what do they do? Instead of offering their own real technology, they instead are now attempting to use smoke and mirrors to manufacture a quality encoding story. But, look past the smoke and see what is really going on -- they are using free open source encoding solutions (Ffmeg). No matter how you slice it, Ffmpeg is Ffmeg! Even if they now enable the user to "tweak" Ffmeg settings, it is still Ffmeg! It is a free solution with no proprietary technology by the OVP whatsoever. And, this is what the other guys are using (just ask them). Bigger files do not solve the problem ... just compare video quality -- no one ... no one ... can compete with Sorenson. And, at the end of the day, in the words of one of our 360 customers, "Quality is Credibility" for your business;

(2) We alone -- and this is critical -- offer a total video workflow solution. All other services ignore the fact that the video professional's workflow begins well before the video publishing phase -- it begins at the creative process (story boarding, etc.); then video capture; then editing, then encoding; and only then -- publishing and beyond. Our total workflow solution offers choice as well -- either (a) seamless integration of Sorenson Squeeze with 360; or (b) 360 alone (via our one-of-a-kind innovative client side encoding engine in the browser); all the others begin when half the workflow is done;

(3) we have been innovating in video for nearly 15 years (no one else comes close) ... one of the name presenters at the show, in fact, followed us up by saying "we've been around only a couple of years";

(4) we have been profitable for a number of years (no one else can say that) -- we are a stand-alone company with a very healthy balance sheet and in no need of VC cash (virtually all other companies in our space are in need of cash infusions); we have multiple revenue streams and are not a "one trick pony" like all the others (we have codec licensing, Squeeze licensing, and our 360 service); this really does matter, since you, the business/video professional are entrusting your prized video assets with a service and you need to know that that service will be here in the future;

(5) we have a brand/reputation for quality -- that's why we won the Streaming Media "Readers' Choice" award for the third straight year last week; and

(6) we already have hundreds of thousands of users -- not hundreds of users! How? Because we have been doing this for a long long time and video professionals and businesses have used our products/services for years (all the way from the solo video professional to the biggest media companies in the world). Our products work together -- seamlessly -- and uniquely powerfully.

I left the Streaming Media Conference/OVP Summit smiling ... not because of cockiness ... but rather confidence. Confidence in our proprietary differentiated technology. Confidence in our uniquely experienced team. Confidence in our uniquely powerful brand and reputation for quality and innovation; And, confidence in our uniquely differentiated "total workflow solution" approach and understanding of the needs of video professionals and businesses.

A good feeling indeed as we break soon for Thanksgiving ...

Marketers -- Here's an Epiphany of How Online Vid Ads Change Everything

Calling all marketers -- watch this video -- it is an epiphany using video (or, "epipheo"):


See, it worked! Yes, this is a video ad for an agency -- but, because the content "works", it has created a shared experience ...

It's a Three-peat! Sorenson Squeeze Wins Streaming Media's Coveted Readers' Choice Award Again!

Very gratifying indeed ... our flagship product, Sorenson Squeeze, just tonight won the Streaming Media Readers' Choice award for the third year in a row (for best video encoding software). Yes, it's a three-peat -- and I am here at the Streaming Media West conference (and OVP Summit) with my talented team -- and we held the award aloft tonight. AND, our new Sorenson Squeeze 6 wasn't even the nominated version -- it was the earlier version, Sorenson Squeeze 5. Given the reaction to Squeeze 6 (which just launched two weeks ago) -- click here to see and read the buzz about our launch -- imagine the new power of Squeeze! If you thought Squeeze 5 was cool, you gotta check out new Squeeze 6 (we make it easy -- you can sign up for a 30 day free trial at www.sorensonmedia.com).

And, our new video delivery network -- Sorenson 360 (which is only 6 months old) -- was also one of three finalists in the online video platform category.

It's a good night ... congratulations to the entire extremely talented and dedicated team at Sorenson Media. And, thanks to all of you readers and customers who made this all possible. As corny as it sounds, we truly do try to make it happen for you ...

One more thing -- Squeeze and 360 shouldn't be seen as two separate products -- they really are integral parts of a singular total workflow solution. If that is unclear to you, check out VP of Product Development David Dudas's video demo tomorrow, Thursday, at 11:30 am at the OVP Summit.

San Jose -- I Do Know the Way, and Am Here Now -- Let's Meet

I have arrived at Streaming Media West (and the Online Video Platform) Conference/Summit in San Jose. Took the Southwest "bus" this AM -- and am ready to meet.

Let me know if you would like to connect -- if so, send a note to my attention at bizdev@sorensonmedia.com

As great and powerful as video is, it is still critical to meet "in the flesh" when you get the chance.

Sorenson Media -- Meet Us at Streaming Media West This Week (and OVP Summit)

Several of us from Sorenson Media will be at this week's Streaming Media West (and OVP) Summit in San Jose. Eric Quanstrom, our VP Marketing & Strategy, is there starting today. David Dudas, our VP Product Development, and I will fly in tomorrow AM and will be there all day Wednesday and Thursday. David gives a live demo of our industry-leading products on Thursday, and I will be on Larry Kless's panel about "monetizing video" on Thursday afternoon.

See you there -- and, for those of you who don't know us -- this is what we, at Sorenson Media, do. We are all about video ...

There Must Be Believers Out There, as Music Subscription Services Multiply

I have always been a believer in the power of online music subscription services. And, I have eaten my own dog food in this regard, consuming them voraciously from their very beginning -- first, with my own company's service, pioneering online music company Musicmatch (way back in the day in 2003 -- in the online media world, that IS way back in the day). After Yahoo! acquired Musicmatch in 2004 -- and then unceremoniously killed the Musicmatch service -- I had no choice but to switch to Yahoo Music's branded subscription service. But Yahoo! subsequently unceremoniously killed its own creation, so I was forced to switch again, this time to Rhapsody -- which I still use. I also pay for -- and regularly use -- Pandora. And then there are online music subscription stalwarts Napster, Slacker and a host of others.

But, none of them have really caught on in a big way with the mass public because everyone, to date, has been obsessed with Apple, iTunes, and its pay-for-download (and no subscription choice) consumption model. To date, that is ...

... is that now changing?

Certainly investors must think so, as a slew of new online music subscription services are joining the already-crowded fray, including Euro-based service Spotify and now MOG. Why, even grand-daddy MySpace Music is joining the subscription craze.

Maybe there really is gold in them thar ears ... I mean, hills.

(But there certainly will be a lot of road-kill along the way ...)

Sorenson Media Featured Front & Center Today in USA Today

My company, Sorenson Media -- and online video's unique power to help any sized business (including every small-to-medium business) market better, interact with customers better, and sell more -- are featured front and center today in USA Today. Check it out at your newstand -- and check out USA Today's accompanying video about our company.

I especially like this headline from the article when it refers to us -- "Giving online video its start" -- and the first line of that article ain't bad either (and is so true by the way) -- "Every time you see a video online, you probably have Sorenson Media to thank."

No one -- NO ONE -- has this kind of long-term legacy of innovation in the video space. 14 years of it ... and still going strong ...

Logitech -- First SightSpeed and Now LifeSize -- Now 100% Committed to Business Videoconferencing

The video communications/conferencing space is near and dear to me, of course, since I ran the desktop video communications leader, SightSpeed, for 3 years and until we were acquired by Logitech in November of last year.

Well, Logitech is at it again -- taking a major shot across Tandberg's, Cisco's, Polycom's and HP's bows -- by announcing that it will acquire videoconferencing company LifeSize Communications for $405 million in cold hard cash. Looking at Logitech's balance sheets, that price represents a nice slice of the company's cash war chest (Logi held approximately $490 million in cash as of the end of Q1 2009).

Why SightSpeed first and LifeSize now? Quite simple. Logitech is looking for new growth vehicles, and it sees business videoconferencing as one such driver. So, do the other companies I mention in this post. But, with its 1-2 punch of LifeSize and SightSpeed (the consumer version of which is now called Logitech's Vid), Logitech will now be able to uniquely seamlessly integrate the business videoconferencing experience from the boardroom with the desktop (via the SightSpeed technology), providing potentially millions of videoconferencing endpoints (rather than simply conference room to conference room). This flexibility will be a critical point of differentiation for the company as it battles the other videoconferencing behemoths.

Lots of bets are being placed that we are only in inning 2 of a 9 inning videoconferencing market opportunity with billions of dollars ultimately at stake.

My bet is with the power of video ... and my bet is that Logitech will be a significant winner ...

Best Buy's Napster, First & Partners With CinemaNow, Second

Great article from today's Los Angeles Times about Best Buy's digital media ambitions -- definitely worthy of a read.

Remember, Best Buy acquired online music company Napster last year for $121 million. And, just recently, Best Buy partnered with online movie company, CinemaNow.

Why, because Best Buy's CD & DVD sales are dropping fast -- the physical goods store is seeing its entertainment-related physical goods going the way of the dodo world in the next few years.

So, what's a physical retailer to do? Start pushing online media services front and center now, so that the "blue shirts" in its stores can take the mystery out of digital music and movie services and teach consumers how to enjoy them when they buy their physical electronics.

But, will it work? Many are skeptical -- but, the pride of Minneapolis stores have little choice but to go full throttle into the brave new world of digital media rather than sit idly by as consumers ignore their CD/DVD shelves.

"Damn, If I Was a Video Professional I'd Be All Over This Thing," Says TechCrunch About New Squeeze 6

Today is official day 1 of new Sorenson Squeeze 6 -- which I discussed in my post yesterday afternoon.

And, I am pleased -- very pleased -- to report that the press keeps coming ... and keeps coming back better than I/we could have hoped over here.

Here is a representative sampling of some of the great press so far ...

(1) TechCrunch (Devin Coldewey) -- "damn, if I was a video professional I'd be all over this thing." (those are his italics by the way)

(2) Broadcast Newsroom (Kevin P. McAuliffe) -- "Normally I say that you owe it to your clients to get a product. Well, you owe it to yourself to buy this product, and make YOUR life easier ... Sorenson has taken Squeeze 6, and made it not only THE choice for video compression, but the application that other companies will look to when developing upgrades for their own products." (those are his CAPS by the way)

(3) Macworld (Jackie Dove) -- "The program's interface has been re-designed to simplify the video compression workflow and provide easy access to features such as encoding presets, high-quality audio and video filters, DVD burning tools, and the new review, approval and notification functions."

(4) StreamingMedia.com (Jan Ozer) -- "Sorenson announced Squeeze 6 today and it looks impressive from both a technical and workflow perspective ... I've needed this type of easy review and approval for years -- it's a great way to familiarize both parties (encoder and client) with the benefits of an online video platform in general, and specifically Sorenson 360, and so is a smart marketing play for Sorenson ... The interface itself has been updated and streamlined, but there will be little or no learning curve for current users ... From a performance perspective, Squeeze 6 can now encode to VP6 format in parallel, a huge time saver for VP6 publishers ..."

(5) HotHardware (Daniel A. Begun) -- "... videophiles should be happy to learn that the software's next generation, Sorenson Squeeze 6, is available starting today."

I will continue to update ... but, lots of smiles over here ...

Squeeze 6.0 -- A Total Workflow Solution, Not Just An App -- Launches Tomorrow (Well, Today ...)

At long last -- well over 1 year in the making -- Sorenson Squeeze 6.0 arrives today (well, it was supposed to be announced tomorrow, but TechCrunch beat everyone to the punch).

Our gold standard video encoding product just got, well, "golder" ... a lot golder. Previously, Squeeze was known as being the best in class video encoding application for video professionals. Now, think of it as a total workflow solution. It is unlike any Squeeze you have seen before (and I can tell you this having done 30 pre-release press briefings, everyone who has seen it in action agrees.)

Video quality, better? Check -- the best codecs, the most filters, Sorenson's expertise.

Speed, better? Check -- up to 5X better in certain circumstances.

But, it's all the other innovative "stuff" that my team has developed that truly makes Squeeze 6.0 downright revolutionary and stand alone. The ultimate goal of our team was to reduce the pain that previously came with encoding video ... and with all other parts of the video pro's workflow. The ultimate goal was to free the video pro from their desk so that they could spend more time shooting videos, building their businesses, and living their lives.

How did we go about doing this?

First, a familiar, yet streamlined and redesigned UI -- more intuitive, easier to use, and more pleasing to the eye.

Second, email and SMS notifications to the video professional when their encoding job is done -- in other words, "set it and forget it." That means that the video pro can start the job, leave his or her desk, and then receive notification (even on an iPhone) when the job is done.

Third, secure "review and approval." Gone are the days when time is lost by the video pro having to burn a DVD and messenger it over to his or her client. Now, all of this can be done online and on the iPhone -- and all securely.

Fourth, direct publishing and syndication from Squeeze to YouTube, Twitter, Akamai, Limelight and more (including Sorenson 360).

Fifth, seamless integration now with Apple's FinalCut Pro in addition to our great partner Avid.

Sixth, a new community element to Squeeze called the "Preset Exchange." Now, each of us can simply download complete presets -- think of them as encoding recipes -- from some of the industry's most renown video experts (both in-house at Sorenson Media, as well as outside the company).

And on and on and on and on ... Read the full press release (click here or read below) to get more detail.

Think of all the time savings -- and efficiency gains -- the comes from all this? It ain't just that Squeeze 6.0 encodes much faster. It's also about the fact that Squeeze 6.0 saves you and your clients time at every step of your workflow.

And, listen to this -- for existing Squeeze 5 Pro users -- the upgrade price is only $199 to get all of this, PLUS a complementary Sorenson 360 Review & Approval account (Sorenson 360 is what we call our "video delivery network", or VDN -- a video publishing/hosting solution to manage all of your videos on the Internet). We very much appreciate the loyalty of our existing customers, and we want to continue to earn their trust.

One more thing about which I am especially proud. We set the launch date for Squeeze 6.0 months ago. And, the Sorenson team is so good and dedicated that they did whatever necessary to get it done on time ... no slippage (which is almost unheard of in the world of software and technology). And, the team did it right ... attention to detail ... pride and passion in their work.

Exciting times ...

Sorenson Media Launches Sorenson Squeeze 6 – Higher Quality, Faster, and Now the First Total Workflow Solution for Video Encoding and Publishing

· Video Quality, Encoding Speed Significantly Improved

· New Review and Approve Capabilities and Notification Features Simplify Encoding Workflow

· New Direct Publishing and Syndication of Professional-Quality Video to YouTube, Twitter, Limelight, Akamai and Sorenson 360

· Enhanced Interface Improves Intuitive Design, Making Encoding and Managing Video Files Easy

· New Integrated Online Preset Exchange Gives Users Video Encoding ‘Recipes’ of Experts

· Users Receive Complimentary Sorenson 360 Review & Approval Account

View a demo of Sorenson Squeeze 6 at: www.sorensonmedia.com/squeeze-tour

SAN DIEGO (Nov. 3, 2009) – Sorenson Media today announced the immediate availability of Sorenson Squeeze 6, a significant update to the gold-standard video encoding software application. Sorenson Squeeze 6 provides the first total workflow solution for video professionals, enabling customers to employ innovative tools – such as email and text notifications and a secure review and approval process – that simplify the overall workflow and allow them to more easily encode and publish video files on the Internet. Optimized video codecs and new filters have also been added, significantly improving video quality and encoding speed.

Video Management Made Easy

Working in tandem with the Sorenson 360 Video Delivery Network (Sorenson Media’s re-imagined online video publishing platform), Sorenson Squeeze 6 includes a variety of new unique features that make encoding and publishing videos online easier:

- E-mail and Text Notifications. Sorenson Squeeze 6 can now send automatic notifications to clients, colleagues, supervisors, friends or the users themselves via e-mail and text message (SMS) when encoding jobs are completed. With this new feature, users can start an encoding job and walk away, knowing they will be notified immediately when the process is done.

- Review and Approval Workflow. Video professionals can now add their clients’ and supervisors’ contact information to Sorenson Squeeze, which will automatically send them secure, password protected videos for review and approval after encoding jobs are completed. This automated workflow is accessible from desktop computer Web browsers as well as the iPhone, enabling busy professionals to review and approve content on the go. After viewing a video, reviewer feedback and comments are immediately sent back to the Squeeze user, thereby streamlining the workflow of today’s video professionals.

- Direct Publishing and Syndication. In addition to seamless publishing to the Sorenson 360 Video Delivery Network, Sorenson Squeeze 6 users can upload high-quality encoded video directly to popular social media sites, such as YouTube and Twitter, as well as to content delivery networks, including Akamai and Limelight.

- Enhanced User Interface. The Sorenson Squeeze 6 interface has been re-designed to simplify the video compression workflow and provide easy access to the software’s powerful features, including encoding presets; high-quality audio and video filters; DVD burning tools; and the new review, approval and notification functions.

- Complimentary Sorenson 360 Review & Approval Account. Every purchase of Squeeze 6 includes a complimentary one-year Review & Approval account to the Sorenson 360 Video Delivery Network, making Squeeze the first end-to-end encoding and publishing solution.

Higher Quality, Faster Encoding, Expanded Compatibility

Sorenson Squeeze 6 surpasses previous versions of the software in both speed and quality by incorporating and optimizing the latest On2 VP6 and MainConcept H.264 codecs. Internal benchmark tests have shown Sorenson Squeeze 6 is up to 500 percent faster than Sorenson Squeeze 5 when encoding in the H.264 and VP6 formats, both of which are standard formats included with every copy of Squeeze 6. New video filters, including blur, RGB, tint, white balance and timecode, have also been added to improve the quality of any encoded video.

New input and output formats have also been added to Sorenson Squeeze 6, including:

- New Input Formats: AVC-Intra and WMV with VC-1 for use in Blu-ray and Microsoft Silverlight

- New Output Formats: AVI, AIFF, DV Stream, Image Sequence, Wave, and WMV with VC-1

To coincide with the release of Squeeze 6, Sorenson Media has also launched an innovative new Preset Exchange (http://presets.sorensonmedia.com), an online repository of professional “video encoding recipes” or presets. The presets in the Exchange have been created by top industry compression experts, thereby providing Squeeze 6 users with direct access to the same encoding tools used by seasoned encoding professionals to get the best quality out of their encoding processes. Because the Preset Exchange is seamlessly integrated with Squeeze 6, users can instantly import new presets into Squeeze by clicking “Install” on the Preset Exchange Web site.

Along with previous integration with Avid’s suite of editing applications, Sorenson Squeeze 6 also now works seamlessly with Apple’s Final Cut Pro and iMovie. This process significantly improves workflow times by eliminating the need for cumbersome exporting and importing between applications and enables users to tap into the powerful Squeeze feature set directly from their favorite editing software.

Pricing and Availability

Sorenson Squeeze 6 and Sorenson Squeeze 6 for Flash are available immediately for electronic download or for shipping in CD form. Sorenson Squeeze 6 is $799 and Sorenson Squeeze 6 for Flash is $499. Upgrades from previous versions of Sorenson Squeeze begin at $199. The complimentary one-year Sorenson 360 Review & Approval account includes 5 gigabytes (GB) of storage, 100 streams per month and a maximum video length of 30 minutes.

For additional information about purchasing Sorenson Squeeze 6 or to find a reseller, visit www.sorensonmedia.com. A webinar with more details about Sorenson Squeeze 6 and Sorenson 360 will be held November 3, 2009 at 1 p.m. Pacific Time. Participants can register by visiting: https://www2.gotomeeting.com/register/799993763

Online Press Room

The Sorenson Media online press room is available at www.sorensonmedia.com/presskit, and includes downloadable press releases, company and product information, and high-resolution images.

About Sorenson Media

Sorenson Media (www.sorensonmedia.com) offers comprehensive, award-winning solutions that empower businesses and video professionals to easily and affordably publish the highest-quality video to the Internet and other media. Included among its products and services are the Sorenson 360 Video Delivery Network (VDN), Sorenson Media’s re-imagined video publishing platform; Sorenson Squeeze, the gold-standard for video encoding applications; Sorenson Squish and SquishNet, which together create an easy-to-use browser-based video publishing platform for user-generated content; and Sorenson Spark, the industry’s most widely used video codec, which enables mobile devices and other consumer products to playback the largest selection of video on the Internet today. Since its inception in 1995, Sorenson Media has been instrumental in bringing Internet video to mainstream applications and is committed to dramatically improving the online video experience for both content creators and consumers.

Who Would Have Thought That Northwest Airlines Pilots Were So Techie?

Ahh, yes, Northwest Airlines. I have had a love/hate relationship with the airline from the very beginning. We are both Minnesotans after all -- and we both were originally "based" in Minneapolis, land of the free and home of the brave (Vikings, at least with Brett Favre at the helm). And, now that I live in San Diego (for the past 7.5 years), Northwest Airlines is essentially the only way to fly non-stop back to my home city (which I will be doing again this year for Turkey Day).

So, it was with special pride that I embraced the news that Northwest pilots -- on that San Diego to Minneapolis flight the other day -- apparently decided to hone their techie chops by spending time on their laptops in the cockpit. Perhaps, I thought, Northwest (now Delta) had trained its pilots to be digital media mavens? Could this be?

Alas, not so fast. There was one hitch with this admirable plan to bring pilots into the 21st century land of laptop technology. They forgot that they were flying 20th century technology planes -- and, that, they actually had to fly those planes!

Well, what's the big deal here, you may say. Those fortunate to have flown on this "Laptop Special" flight likely enjoyed 4 views of my original fair city -- twice while they flew past it and back to it (only 150 miles past! Enough to see beautiful Lake Superior!) and twice more when they made their (what ultimately became their) final approach.

Double the pleasure, double the fun!

(Remember, Northwest Airlines was the airline that also flew the "Cocktail in the Cockpit Special" a few years back.)

Northwest Airlines -- bringing new meaning to the word "Festive" during this very festive time of year!

Skype Approaches $800 Million Annual Revenue Run Rate

While Skype's very existence is threatened by those who birthed the revolutionary IP communications company, the company's numbers continue to grow impressively.

Now, Skype's registered user count is 521 million (whereas it was 370 million same time last year -- or a year-over-year growth rate of 41%). And, even more importantly, Skype's monetization efforts are paying off. Skype is now approaching an annual revenue run rate of $800 million -- specifically, Skype's revenues hit $185 million in Q3 (whereas they were at $143 million same time last year -- or a year-over-year growth rate of 29%).

Perhaps even more importantly, just think of the revenues lost by the major telecoms who have been Skyped -- likely tens of billions of dollars.

And, with the major telecoms about to lose a key FCC vote today on net neutrality, it is not a happy time for them ...