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 ...