Surprising to Many Video Platforms, HQ Video Is Essential for SMBs

I frequently write about the online video space because, well, that is the space my company lives in. And, I frequently underscore the seemingly obvious message that HQ video is "job 1" for small-to-medium sized businesses (SMBs) and video professionals. This is the target market segment we hope to satisfy at Sorenson Media.

Contentinople -- a highly respected publication in the digital media space -- recently released a video platform study that underscores this seemingly obvious point. 75% of survey respondents on which conclusions were based were SMB media companies. And, in the study's words, "respondents selected high-quality video distribution as the most important capability ...." The study further concludes that this result is, in significant part, to the poor video quality on YouTube and other online video sites.

Seemingly obvious, yes. But not obvious to many -- including most video publishing platforms. As I have also previously written on several occasions, video quality comes from the encoding process (apart from the initial video capture piece). And, only Sorenson Media's video publishing platform -- Sorenson 360 -- uses client-side encoding (and, in particular, the award-winning Sorenson Squeeze encoding engine). Client-side encoding is far superior to the server side encoding used in essentially all other video publishing platforms.

Video Quality & Client-Side Encoding -- Squeeze It Together, Only Via Sorenson 360

Yes, there are many video publishing platforms out there. But, only we -- Sorenson 360 -- puts the power of client-side encoding front and center. And, apart from the video capture itself, video quality comes from the encoding process. I have previously have written about our unique client-side encoding -- award-winning Sorenson Squeeze -- approach geared to video professionals.

Today, in a press announcement just hitting the wires (see full text below), one of our Sorenson 360 customers talks about how his company made its decision to choose our new video publishing platform over the myriad of others out there -- and what uniquely differentiates us from the others -- and why we call ourselves a video delivery network ... video publishing, re-imagined. The full press release is below:

Sorenson Media’s Unprecedented Client-Side Encoding, Control of Quality, and Company Reputation for Innovation Differentiate Sorenson 360 Internet Video Publishing Platform

· Unique to Sorenson Media’s Internet Video Delivery Network is Pre-Upload Encoding through Sorenson Squeeze, Resulting in Top Quality Video and Speedy Upload; Critical for Video Pros

· Customers Transition Readily from Best-in-Class Sorenson Squeeze Digital Encoding Software to Sorenson 360 Video Publishing Platform, Now Seamlessly Integrated

· Unlike Other Video Publishing Platform Providers, Sorenson Media has been an Internet Video Innovator for 14 Years; has a Strong Customer Base; and has been Profitable for Years

SAN DIEGO (July 29, 2009)—When Jim McLaughlin, executive producer for Sparks Milling, a digital media production company in St. Louis, Mo., began searching for a service to publish professionally produced video online, his priority was clear: “Nothing is more important than the quality and resolution of the video output.”

McLaughlin found that while other video publishing platform providers take away control from the video professional by providing only server-side encoding, Sorenson Media’s unique solution is to provide client-side encoding through its best-in-class Sorenson Squeeze 5 software and the Sorenson 360 Video Delivery Network (VDN).

“It’s exactly the solution I was hoping for,” said McLaughlin. “I know that the time and effort I put into my source files will be faithfully carried through.”

With the Sorenson 360 VDN, users select video encoding parameters for the highest video quality or choose a variety of pre-sets and then encode the video on their computer before uploading, saving time and retaining control. Alternatively, customers can simply drag-and-drop their videos through their browser without a separate application, maintaining high quality through the Sorenson Squeeze client-side encoding engine.

View a demo of Sorenson 360’s unique client-side encoding at:

http://www.sorensonmedia.com/streaming-video-software/video-publishing.php

The popularity of Internet video has businesses searching for ways to display products and drive sales with crisp, vivid video content onto their Web sites. The Sorenson 360 VDN enables small- to medium-sized businesses, video professionals and any content creator to quickly and seamlessly encode and publish the highest quality video content. Clients can upload an unlimited number of videos to embed, and then manage them on any number of Web sites.

As a video professional, McLaughlin was already using the industry-leading Sorenson Squeeze digital encoding software. “Having a direct path from Squeeze to Sorenson 360 VDN can’t be beat,” he said. “And, once I’m in Sorenson 360, I have all the control and information I need to present my product. Using Squeeze and 360 together is a huge help in keeping our high-resolution video looking great all the way through to delivery. It’s the right tool for the job, by far.”

“We’ve created a powerful, easy-to-use, all-in-one workflow solution designed to serve a professional client’s needs for Internet video publishing,” said Peter Csathy, Sorenson Media CEO. “Our Squeeze software has been the gold-standard for video encoding for years, so no one else in the marketplace can offer the clear benefits of high-quality client-side encoding.”

Numerous other companies offer Internet video publishing platforms using cookie-cutter server-side methods that prioritize other features over quality and client control, said Csathy, and many are folding up their tents in the rough weather of the current economy. “Only at Sorenson Media can we say that we have been innovators in the Internet video industry since the beginning, 14 years ago; we have a substantial customer base of video professionals; and we have been profitable for years. Our video customers tell us our long-standing reputation for innovation and stability were critical to their choice of Sorenson 360 VDN over the myriad of video publishing platform providers.”

About Sorenson Media

Sorenson Media (www.sorensonmedia.com) offers comprehensive, award-winning video solutions that empower customers to easily and affordably access and deploy the highest-quality video across the Internet. Included among its products and services are the Sorenson 360 Video Delivery Network (VDN); Sorenson Squeeze, the gold standard encoding application; Sorenson Squish and SquishNet, 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 today enables mobile devices and other consumer products to playback the largest selection of video on the Internet. Since its inception in 1995, Sorenson Media has been instrumental in mainstreaming Internet video, and is committed to dramatically improving the online video experience for content creators and consumers alike.

# # #

Press Contacts:

Jacob Moon

Sorenson Media Public Relations

801.490.1017

jacob@sorensoncompanies.com

David Parkinson

Sorenson Media Public Relations

801.490.1015

david@sorensoncompanies.com

How to Reinvigorate the TV Advertising Market -- Two Approaches (Google & IAC)

Traditional TV's ad-driven business model, of course, has been under threat for years as a result of DVRs and fast-forwarding through commercials. Internet poaching of viewers' eyeballs certainly hasn't helped, especially since no one yet has figured out a way to effectively monetize Internet TV viewing (although they will).

So, what's traditional TV, ad3 agencies and their clients to do when faced with this reality?

Google and IAC each have now announced two different approaches -- Google's, not surprisingly, more "high tech." Google has joined forces with Visible World Inc. (an advertising-related tech company) to more effectively serve up more targeted ads to TV viewers, whereas IAC has taken a much more "traditional" tact. Specifically, Barry Diller has joined forces with newly-ousted NBC TV exec Ben Silverman to create a new "integrated advertising" company -- integrated marketing includes tactics like including products and services directly into the TV programming itself so that the viewer does not think that such placement is a commercial. A great example of the latter is the prominent use of red Coke cups by all four judges throughout each show of "American Idol."

Two divergent approaches -- both, which could be effective in this brave new world.

VC Limited Partners -- Are You InvestNING in Marketing Rather than Sound Investments?

Last week I tweeted about VC firm LightSpeed Venture Partners' $15 million investment in social networking site Ning at a $750 million valuation. Though the press seems to love Ning, it is highly doubtful that the company is monetizing in any real way -- and, I see no reason for this to change any time soon (especially with its traffic apparently "flatlining").

So, especially in these crazy economic times where cash is king (or, at a minimum, sound investment strategies), why would LightSpeed seemingly be throwing cash to the wind. TechCrunch posits marketing. Pure and simple, marketing. Many VCs frequently want to associate themselves with name brands and Silicon Valley darlings -- and Ning fits the bill. Remember, apart from the relentless love Ning has received from the press, Marc Andreessen is a founder/investor. "The company you keep", indeed.

TechCrunch concludes that LightSpeed is simply trying to raise its profile and panache in the Valley. But, at a price tag of $15 million? That would be a pretty hefty ad spend.

As TechCrunch further points out, however, there is more than meets the eye here. It is highly likely that LightSpeed received a liquidation preference as part of its investment, meaning that it would get its cash paid back back first in any private or public sale. And, Ning IS a likely acquisition target given its high profile, whether or not it will ever make money. (In fact, it wouldn't surprise me if a major media company were to buy Ning for its own marketing reasons and in an effort to raise its own online profile and panache.)

Seen in this light, TechCrunch concludes that LightSpeed's investment makes sense.

But, does it? As an investor, do I really want my money to be spent on marketing rather than good old fashioned sound investment parameters and decisions? Do I really believe that my general partners will attract better deal flow by making questionable investments? And, do I really believe that my firm will be more highly respected as a result?

Internet Video -- Market Sizing & Research -- How Big? Already Massive & Still Very, Very Early

I am frequently asked if I have any data about the overall size of the online video market, the promise of mobile video, etc. I rarely, if ever, find anyone who believes the market will be anything but massive -- for both consumer generated content and professionally produced content. And, we are still in the very early innings -- as I like to say, "inning 2 of a 9 inning game" (and perhaps even at the bottom of the 1st).

I have frequently written about online video market sizing -- and linked to relevant studies -- and I have provided those previous posts here as a resource. I think these will be helpful (remember, these link to the analyst reports and summaries as well).

First, here is a link to the question of monetizing Internet video — and this post links to an important analysis and fascinating forecast numbers (including the massive growth for professionally produced and premier video content):
http://digitalmediaupdate.blogspot.com/2009/07/internet-video-monetizable-yes-we-can.html

Second, here is a link to a post that describes the overall video market opportunity — and provides a link to a study that tries to “size” that market opportunity:
http://digitalmediaupdate.blogspot.com/2009/06/hey-yahoo-which-is-it-in-or-out-of.html

Third, here is a link to a post that describes mobile video capture via the iPhone and the ultimate mobile video opportunity:
http://digitalmediaupdate.blogspot.com/2009/06/iphone-3g-s-doing-to-mobile-video-what.html

Fourth, as a bonus, here is a link that writes about the critical importance of high quality video and the role the encoding process plays in that quest:
http://digitalmediaupdate.blogspot.com/2009/07/for-video-professionals-its-encoding.html

Fifth, as an added bonus, here is a link to the recent review by online video expert Dan Rayburn of StreamingMedia.com of our new enhanced “Sorenson 360” video publishing platform service -- and the role it can play for the video professional and small-to-medium business:
http://digitalmediaupdate.blogspot.com/2009/07/sorenson-has-winner-with-sorenson-360.html

Sixth, as a final bonus, here is a link that describes the Sorenson Spark codec’s “place” in the Internet video eco-system (and why Verizon, Qualcomm and others license Spark) -- it is the world's most ubiquitous video codec:
http://digitalmediaupdate.blogspot.com/2009/06/want-all-youtube-video-you-need-spark.html

Amazon's Bezos Uses YouTube to Explain Zappos Deal - But, C'mon, THAT Vid Quality?

Yes, certainly the news of Amazon getting dressed with Zappos' shoes for the tune of $800+ million is interesting.

But, more interesting to me is the way that Amazon announced the deal yesterday. In a further sign of the critical importance and impact of online video -- and its inherently viral nature -- CEO Jeff Bezos posted a folksy video on YouTube to explain the deal to the world. That alone is quite newsworthy.

"Folksy" is good, especially for Amazon -- which has always prided itself in being the "regular guy" on the Internet giant block. But, terrible video quality is not. And, take a look at the video quality of Bezos's YouTube video -- it is downright horrible! As my head of marketing, Eric Quanstrom, wrote to me yesterday, "what were Amazon's marketing people thinking????"

Quality, quality, quality -- that is job 1 for Internet video. To maximize impact -- including viral distribution (i.e., getting your videos seen by the most people) -- the experience of the viewer is paramount.

And, quality comes from two primary places -- the video capture itself (i.e., the type of camera that is used), and the video encoding process (i.e., compression). As powerful and ubiquitous as YouTube is -- let's face it, we all use it all the time -- it is not an option to the video professional for many reasons (quality being top on that list). Why? Because YouTube and all other video publishing services use varying flavors of server-side encoding. This may be okay for consumers. But, quality is of utmost importance to video professionals, an nothing beats the quality, power and control of client-side encoding. I have written about this previously.

So, Amazon -- "A" for effort and marketing ingenuity with the Bezos YouTube video; but, "F" for execution (okay, maybe a D) ...

"Sorenson Has a Winner" With Sorenson 360 Vid Publishing, Says Dan Rayburn of StreamingMedia

Earlier today, I wrote about our new enhanced "Sorenson 360" product launch.

Early reviews are in -- and, I am pleased and proud to say -- they are glowing. One of the most respected voices in our online video space -- Dan Rayburn of StreamingMedia.com -- writes the following headline:

"Sorenson Has A Winner With Their New 360 Video Platform".

Now, Dan doesn't just read press releases. He spends a lot of time personally testing/using the products and services about which he writes. And, this was a formal product review. Which makes it even sweeter.

Dan also writes about the specific market segment that is in need of -- and is satisfied by -- Sorenson 360. The video professional and small-to-medium business (SMB). Squeeze-type users, in other words, where quality matters most.

Dan's last sentence also brings all of us a smile at Sorenson Media -- in his words, "I see [Sorenson Media] leading the small and medium sized market with this offering."

That is our strategy; that is our goal. And, that ultimately comes down to whether we succeed in giving the video professional and SMB what they need to get their prized video assets onto the web easily and with the highest quality -- so that they can make more money and better monetize their businesses.

It's Official -- Sorenson 360 Now Features Secure Vid Review & Customizable Player Options

Two months ago, my company, Sorenson Media, launched our new "Sorenson 360" solution -- what we call our video delivery network (or VDN), because it re-imagines what a video publishing platform should be. The reception for this new differentiated service was uniformly positive (if not downright effusive).

Today, and due to heavy demand both from existing Sorenson Squeeze users and new users alike, we are officially introducing secure password protected workflow/video and customizable player options. Our one-of-a-kind browser-based client-side encoding -- simple drag and drop video with the full client-side power and quality of Squeeze -- also has been enhanced and is now significantly faster. Bottom line -- our customers spoke, so we listened. Click here to read the full press release that goes into more of the details.

So, why is Sorenson Media playing in this evermore-crowded video publishing platform space? For a number of critical differentiating reasons -- summarized simply, we are uniquely situated:

(1) only Sorenson 360 places quality first and foremost -- we uniquely bring the power of client-side encoding (all other services use server-side encoding), achieved through the world renown Squeeze encoding engine;

(2) we are uniquely focused on meeting the needs of video professionals and small-to-medium businesses (SMBs), a customer base we know well because we already have been meeting their needs for years with Squeeze -- in other words, we are not trying to be everything to everyone;

(3) we already have an existing massive customer base of Squeeze users who are hungry for us to provide a full end-to-end workflow solution -- they needed a one-stop quality shop, and they know they can get that from us because they have for years; so, unlike others, we don't need to start from "Customer Zero";

(4) we have been a pioneer in the online video world for 14 years -- we have been here, and we will be here; we have a long history of profitability, and our balance sheet is strong (no need to raise money). How many others in our space can say that?

Test drive Sorenson 360 for free -- and, let me know what you think by sending me a note at bizdev@sorensonmedia.com

The iPhone & Blackberry -- Short on Market Share; Long on Profits

Ahh, yes, the promise of smart phones -- all the features consumers could ever want. And, for makers of smart phones, hefty operating profits that bring smiles to their faces. At least for Apple and RIM.

While the iPhone and Blackberry together represented only 3% of all mobile phones sold last year, they accounted for 35% of all operating profits according to Deutsche Bank. And, this year should bring even more positive chatter within the halls of the two companies, as their collective share is expected to rise to 5% and 58% of total operating profits.

Why the iPhone and Blackberry and not others? Because Apple and RIM's share of the specific smart phone market -- rather than the overall mobile market -- was 32% in Q1 of this year. And, of course, the overall smart phone market opportunity is expanding at a brisk clip, particularly with the onset of high quality mobile video.

Introducing "The iPhone Challenge" -- 1 Part Video + 2 Parts Twitter = iPhone 3G S

Question -- What do you get when you mix online video with Twitter and the new iPhone 3G S?

Answer -- A powerful demonstration of how drop dead easy it is to create and publish high quality extremely viral video in the form of a contest to win a new iPhone 3G S (complete with a one year service contract). Check out the "iPhone Challenge" by clicking on this link.

The "special sauce" that makes this all possible is Sorenson Media's new "Squish"-related technology -- Squish brings the full power of Squeeze's renown client-side encoding engine directly into your browser (no separate app needed). How cool is that? But, don't just believe me, check out the "iPhone Challenge" videos themselves and add your own.

This is the kind of creativity and passion you see with my team at Sorenson Media -- the hallmark of innovation.

Internet Video - Monetizable? Yes We Can!

To monetize, or not to monetize -- THAT is the question many are asking about Internet video. No one doubts that Internet video -- particularly high quality video -- is compelling and downright revolutionary. But, significant doubts abound about whether it can be monetized.

First, Internet video (as in the videos themselves) already are being monetized in a big way. In a new study, Strategic Analytics predicts global "paid" online video revenue to reach $3.8 billion this year ("paid" in this context means via pay downloads or subscriptions). This $3.8 billion eclipses the additional $3.5 billion expected to be generated via advertising. And, with online video expected to grow 38% annually up through 2012 (and, consume 90%+ of Internet traffic by 2013 according to Cisco), there is no doubt that online video itself will be directly monetized in a big way (though, to be fair, there will be much pain on the "traditional" TV side for quite some time by the TV content producers).

But, the relevant question of monetization for Internet video content is much deeper than this (and is oft overlooked) -- that is, 99% of businesses on the Internet today are not looking to make money from their online videos directly (i.e., they are not looking to sell or rent their videos). Rather, for virtually everyone other than a television producer, online videos are a revolutionary new means to their essential end -- i.e., building their business (and monetizing their businesses more effectively than previously ever possible). For "the rest of us", Internet videos enable us to better showcase our goods and services, sell those goods and services, educate our customers and prospective customers, and market to and interact with our customers and potential customers. I have blogged about this before and have laid this all out with much more depth.

Bottom line -- the answer to the topic question is a resounding "YES!"

Two Epic Battles -- Google v. Microsoft & Netflix v. Blockbuster

Two epic battles have taken shape in the last couple days -- first, you have the long-time champ in office software, Microsoft, being directly challenged by Google, which plans to introduce a new web-based suite of office services. And, second, you have long-time champ in movie rentals, Blockbuster, being directly challenged by Netflix, which already has harnessed online movie distribution in a very big way (although, still early compared to its mail-delivered core business).

In both cases, the contenders pose a huge threat to the reigning champs.

So, what do Microsoft and Blockbuster do to try to blunt these threats to their core business? They try to emulate them. Microsoft just announced yesterday that it will offer a free web-based version of its Office software some time next year (in an immediate response to Google's announcement last week regarding its Chrome OS challenge). And, Blockbuster Online -- which is a laggard behind Netflix in the nascent online distribution game -- just announced a major new deal with Samsung to bring its online movie services to Internet-connected consumer electronics devices (including TVs).

Who will win? In the long-run, both challengers have a real shot of making significant inroads (although, in the Microsoft/Google case, the "long-run" is much much longer, given Microsoft's dominant position on the desktop and everyone's long-time familiarity with the product).

Blockbuster is more immediately challenged in all respects. Case in point -- I just went to a Blockbuster store a few days back, only to find that it had been shuttered ...

Can Twitter Ever Make Money? Its CEO Says Nary a Chirp

It's that time of year -- Paul Allen's annual clash of the media titans in Sun Valley, Idaho.

Not surprisingly, this year, much of the chatter concerns Twitter -- and, the buzz is hot hot hot (who doesn't Tweet anymore?).

But, though they may be Twitter aficionados themselves, these media titans generally doubt that Twitter can ever make real money -- or, anything close to the kind of money necessary to be profitable. Both John Malone (Chairman of Liberty Media) and Barry Diller (CEO of IAC/Interactive Corp.) said as much during a conference panel, which was attended by Twitter CEO Evan Williams among others.

And, what did Williams say in response? Not a chirp ...

So, as hot and ubiquitous as Twitter is, who will shell out the big cash to buy it? Well, Google paid some big coin for Youtube (which bleeds money) for strategic reasons, and I have little doubt that someone will do the same for Twitter.

"Free" Isn't Really Free ... Certainly Not With Video Publishing Platforms

Chris Anderson, Editor of "Wired" and author of "The Long Tail" (among other things), and Malcolm Gladwell, author of "Outliers", "Blink", and "The Tipping Point" (among other things), recently have debated the concept of "free." The ultimate question is, "Is 'free" really free?"

In the video publishing platform space, the answer is an absolute "no", "nyet", "nada."

So-called "free" video publishing platforms have significant costs and simply are not real options for video professionals. They are, at best, consumer grade for a number of critical reasons:

(1) first and foremost, quality of video -- compare Youtube videos with videos encoded using Sorenson Squeeze and published into Sorenson 360 (I recently blogged about the critical, yet oft-overlooked, nature of encoding to the issue of quality);

(2) control #1 -- video professionals want to encode videos the way they want to (and client-side encoding which is featured in Squeeze is completely different from server-side encoding used in all other video publishing platforms, include "free" services like Youtube);

(3) control #2 -- video professionals simply don't want their videos to be featured next to dancing cats ... or worse ...;

(4) ads -- services like Youtube, of course, must monetize in some manner, and this usually is in the form of invasive ads; and

(5) stability/trust -- many so-called "free" services are offered by companies that simply will not make it due to the fact that they can't support their cost structures; so, "free" frequently suffers from the real-world problems of stability and trust -- can (and should) you trust your prized video assets with a service that may disappear tomorrow?

Look around you with respect to any "free" service -- the question is not whether something is free or not. The real question is what costs are you willing to bear in your specific circumstances.

Now the iPod Says to the Flip Cam, "Be Afraid. Very Afraid ..."

Apple's game-changing march into the mobile video has proceeded at break-neck speed, literally revolutionizing mass mobile video capture. And, Apple is now rumored to be taking its mobile video focus up yet another notch, looking to extend the new iPhone 3G S's video capture features into iPods across the board. This is a direct attack on Cisco and its recent near $600 million acquisition of Flip.

And, can there be any doubt that mobile live video -- and not just video capture -- will be front and center in both iPhones and iPods in the near-term? My guess is that this will happen in less than one year.

For Video Professionals, It's the Encoding Stupid! Their Quality Content Is King

Joost's demise has deserved lots of attention of course -- and from some of the biggest names and "influencers" in technology, including Om Malik and Michael Arrington. Why? Because the Joost rise and fall holds significant lessons to anyone running a technology company -- or, most any company for that matter. Om Malik's detailed and thoughtful analysis is particularly instructive and is worthy of a read.

There are many reasons why all of Joost's advantages -- and it had remarkable ones -- did not lead them to the promised land. At the end of the day, Om Malik concludes that "in the end, however, it all boiled down to a lack of content."

Very interesting conclusion -- perhaps content IS king after all?

And, for video professionals -- where their content IS their business -- quality video trumps all.

And, where does quality come from? Certainly in the video capture itself. But, after that, quality is made -- or broken -- in the encoding process. Video professionals know this -- that "it's the encoding, stupid!" But, this is an overlooked fact -- and reality -- for virtually every video publishing platform/CMS out there in the marketplace (and for many of their customers).

THIS is where Sorenson Media comes in -- and this is perhaps the single most important differentiator of "Sorenson 360" from the "new" Joost and any CMS that is in business today.

Sorenson Squeeze has been THE gold standard in video encoding for video professionals for years. Why, because of it's encoding quality and control -- we have been the market leader for encoding for years. And, our new "Sorenson 360" re-imagines what a video publishing platform should be -- that's why we call it a "video delivery network" or VDN. It is the only solution that features the full power of Squeeze and client-side encoding -- and all of its undisputed advantages -- front and center. And, we do it in 2 ways -- (1) seamless integration of our further enhanced Squeeze 5.1 with Sorenson 360; AND (2) browser-based encoding -- drag and drop with no separate application required -- but that still uses the Squeeze engine (yes, that's right, client-side encoding directly in the browser).

THIS is why it was a natural evolution for us, as a company, to launch Sorenson 360. Quite frankly, our existing substantial base of video professional Squeeze customers asked for it. They needed an "all in one" workflow solution that puts encoding -- and, hence, quality -- front and center. No one else in the marketplace gave that to them. And, we are in the business of serving the needs of these video professionals -- that is our focus. We are not trying to be everything to everyone. (This gets back to Om Malik's essential point regarding the need to focus, with which I wholeheartedly agree.)

This is our "special sauce." And, Sorenson 360 -- and our overall product/service eco-system -- is differentiated from all others in "the space" in other critical ways as well:

(1) Our unique heritage -- we have been innovators in Internet video for 14 years (i.e., we have been around, and we will be around); we have a reputation for quality and have been best in class for years; and we have a substantial existing customer base of video professionals -- a market segment we know very well indeed; and

(2) We have been profitable for years and have a very healthy balance sheet -- this speaks for itself, especially in this day and age.

And, this last point is critical -- a profitable and healthy business is especially important now, when seemingly every week there is a new entrant in the CMS space -- now it's the "new" Joost -- that treats video encoding as an afterthought. Most of them will simply fail ...

Joost Didn't - Tried to Sell ... Couldn't - Now What?

Joost -- the Internet TV service that launched in 2006 with an air of inevitable massive success -- has officially failed and is done (as anticipated several months ago when I wrote about the company). Joost simply couldn't compete with Hulu, despite its own traditional media roots. So, it tried to sell itself earlier this year, but couldn't.

So, what's a company to do? Re-invent itself of course. Joost now has a new CEO and shifts gears to try its hand at selling white box video platform services, apparently primarily focusing on large-scale media companies and enterprises (including cable and satellite operators and telcos). Lots of players, however, already are in this crowded space and focusing on that same market segment -- including Brightcove, Move Networks (which also just recently reinvented itself in the same manner as Joost) and Ooyala. The Ooyala situation is particularly worthy of "scratching of the head", since Ooyala has been Joost's partner to provide precisely the same kind of video platform services (in other words, Joost apparently will now compete directly with its partner).

My company, Sorenson Media, offers our own significantly differentiated video publishing and hosting service under the name "Sorenson 360."

Sorenson 360 is differentiated in several critical ways (we like to say we have re-imagined what such a service should be, and that is why we call it a "Video Distribution Network" or "VDN"): (1) we have a laser focus on what we call the "video professional" and the SMB space, a market segment we know extremely well because we already have massive numbers of customers in that segment via our "Squeeze" encoding products; (2) we are the only service that features client-side encoding which has a host of critical advantages over all the other guys (read more about that here); (3) we offer a full portfolio of services (Sorenson Spark, Sorenson Squeeze, Sorenson Squish, and Sorenson 360); and (4) our company has been a pioneer in Internet video for 14 years and has long been profitable with a rock solid balance sheet -- that means that we will be around in the future.