Any Company's Biggest Challenge -- Focus (Or, What NOT To Do)

I have written many times about what I believe the key ingredients to success are for any digital media/technology company (or any company, for that matter) -- most important of which is passion (from which all else flows). Hopefully, my team and I are putting those into action at Sorenson Media.

In this vein, Jim Collins' classic business book "Good to Great" is a must read. His central thesis -- backed by years of research -- is that THE key to great success (and not just good success) is an unwavering focus on what your company can do better than any other company in the world. In other words, the key to great success -- once you have identified that "thing" -- is to only resource that "thing" and just say "no" to everything else.

This is especially true for smaller companies, I would argue, given their particularly limited resources. All of us are barraged with loads of opportunities -- many of which seem truly "great." But, as Collins points out, the truly successful companies understand that they must relentlessly focus only on those limited opps that are directly in their defined sweet spot. So, no matter how great other opps may seem, no resources should be expended pursuing them.

The bottom line is that management teams must learn that saying "no, no, no" is as important -- perhaps even more so -- than saying "yes, yes, yes."

On2 Shareholders Google "Deal Done" -- Acquisition Approved

BREAKING NEWS -- On2 shareholders today finally approved the acquisition by Google. This is big news in the online video world and has potential significant ramifications (that I will discuss more later). The acquisition's actual closing date apparently is February 19.

Sorenson Media -- "Like a Rock"

Stability is critical as video professionals and businesses select their video platform provider. Sesame Vault -- an OVP itself -- presents a cautionary tale in this regard. The company earlier today put itself on the eBay auction block after it failed to get additional funding. Think about that! What happens to your videos when your platform goes out of business? (UPDATE -- starting bid on eBay for Sesame Vault is $500,000 -- no takers yet.) To be clear in this particular case, Sesame Vault may have a plan to migrate its customers' videos elsewhere, but the basic point remains -- in the immortal words of Allstate, are your videos "in good hands"?

Now think about Sorenson Media and our differentiated online video platform and overall total video solutions, which we together call our Sorenson 360 video delivery network or VDN. In our relevant space, we alone have been in business for well over 10 years (15 actually now). And, only we have had a long history of profitability.

So, whether it's the words of Allstate -- or Chevrolet (channeling Bob Seger's words "Like a Rock") -- your prized video assets are safe and secure with us.

YouTube Ain't Even 5 Years Old! Online Video Is Still a Toddler

In one of my last posts, I wrote something that I say all the time to anyone who will listen (and even to those who try not to!) -- i.e., online video is only in the 2nd inning of a 9 inning game. In other words, although online video already is such a pervasive part of our lives, it is still early, early, early -- as they say, "you ain't seen nothin' yet!"

How early?

This early -- it seems like YouTube has been here with us forever, doesn't it? But it ain't even 5 years old yet. Did you get that? YOUTUBE AIN'T EVEN 5 YEARS OLD YET!

So, although sometimes it seems like we've seen it all, the reality is that online video is just moving beyond its toddler years. Creators will amaze with new forms of high quality video content that we can't yet even imagine. This video will entertain. This video will showcase. This video will tell a story. And, most of all, this video will engage -- in a way that nothing else can. Not text. Not pictures.

That is the power of video.

And, that is why we have fun doing what we are doing in this industry.

Samsung Sparks Partnership with Sorenson Media

Today, we at Sorenson Media have another exciting blue-chip partnership to announce -- with consumer electronics giant Samsung in connection with Sorenson Spark, the world's most ubiquitous video codec.

Click here to read the full press release.

We are gratified to be partnered with Samsung as it joins our family of blue-chip global partners.

Online Vid in Inning 2 and Long Tail Vid is Alive and Well

Online video is alive and well -- and, still early, early, early -- Inning 2 of a nine inning game. You want proof? Total videos viewed in the U.S. leaped from 14 billion to 33 billion in one year (December 2008 to December 2009). One year! Think about it -- we haven't even really begun to actively watch videos on mobile handsets.

And, long tail video thrives, with over 50% of all online video viewing falling outside the top 25 video sites according to comScore. This number will only grow each day, as virtually every business with an online presence will begin to prominently feature video -- front and center -- in the next couple years.

Of course, YouTube still has a strangle-hold on the lion's share, streaming more than 13 billion (that should be a capital "B"!) videos per month -- representing nearly 40% of total video streams. Number 2 site -- Hulu -- just crossed 1 billion.

VEOH-ver -- The Original YouTube Folds Up Its Tent

Veoh -- the pioneering Internet video destination site (which later morphed into other incarnations) -- is done. Veoh is over (although its website and services are still live for now). Founder and CEO writes about this in his own words -- click here -- and blames the company's battles with Universal Music Group as the primary culprit for its demise.

Veoh actually had its roots back in the fall of 2004 -- under the name "TV Drive" -- and, to my knowledge, was the original YouTube. In other words, Dmitry's vision pre-dated YouTube -- and Dmitry pitched his YouTube-ian vision well before YouTube was a glint in anyone's eye. I know this, because I was there.

But, VCs didn't bite on the TV Drive pitch first -- YouTube got funding first (perhaps as a direct result of our pitches to Sequoia itself which then proceeded to invest in YouTube rather than in TV Drive). And, the rest is history.

It's a sad day for Veoh. Great vision. Great innovation. Undoubtedly, lots of talent. And, lots of cash -- $70 million was invested in the company.

Gone now. My thoughts go out to Dmitry and everyone involved in this fellow digital media company in San Diego.

And, my thoughts to those that hear Dmitry's next vision and pitch -- invest immediately. The guy is a visionary. But timing is everything ...

My 600th Post -- a True Digital Media Update -- Apple, iTunes & TV Pricing

Today marks my 600th post! (I know, a big deal for me only.) And, what better way to mark the occasion than with a true digital media story merging (converging?) content and technology -- in this case, iTunes and TV programming.

Remember, when Apple first launched iTunes? Steve Jobs' central content pricing battle-cry was "Simplicity, Simplicity, Simplicity! -- one-sized pricing for all tracks ($.99 to be exact) -- anything else is confusing, wrong, and just plain stupid (meaning that all competing services were to be condemned for those attributes). Later, however, content licensing reality set in and iTunes now features tiered pricing for music tracks.

When iTunes first started carrying TV content for pay downloads, that reality was there from the start -- no simplicity (no "one-sized-fits-all" pricing); just reality. Standard definition (SD) programming for most TV episode downloads is $1.99, while HD TV episodes are generally $2.99.

In advance of actual availability of its new iPad, however, the Wall Street Journal reports that Apple is in talks with media companies to lower pricing of SD programming to -- you got it -- $.99 per episode. That wouldn't mean multi-tiered pricing goes away, but it certainly would be greeted by consumers.

Stay iTuned for developments on this front.

RealNetworks' Rhapsody in Blue

RealNetworks and MTV -- joint owners of the online music subscription service Rhapsody -- have had enough. They will spin off Rhapsody into an independent company, controlled by neither (Real previously owned 51% of the service).

Despite being a great service -- and great bargain (unlimited on-demand tracks for less than $15 per month) -- Rhapsody has never taken off. I seem to be one of the few long-time customers, as the service continues to shed customers (the service most recently announced 700,000 subs, down 100,000 from several months earlier).

I continue to believe in the subscription music model -- as an example, there is much talk that Apple's iTunes will launch a new subscription service later this year -- but, Real and MTV apparently find it to be a distraction. Despite the tremendous opportunity they had to lead the way in the online music world, the companies dropped the ball and never fully harnessed the tremendous promotional power of MTV (just think of the mind-share they had!).

Call Real's departure from its long-time service its "Rhapsody in Blue." Or, is it signing off from its pioneering singing "Bohemian Rhapsody"?

Favre Plays in Super Bowl -- Scores Big!

Brett Favre didn't need his football team -- my beloved Minnesota Vikings -- to score big in yesterday's Super Bowl. His 2020 MVP commercial scored big amongst Internet voters (in the top 3) -- click here for the full round-up.

Sorenson Squeezes "5 Out of 5" Moos from the Cow

Hot off the presses -- one of the most respected publications for video professionals, Creative Cow, just awarded new Sorenson Squeeze 6 its coveted "5 out of 5 cow" rating! It doesn't get better than that!

In the Cow's own words -- after intensive analysis and comparison with other products (in particular, Apple's Compressor):

"The most dramatic upgrade for Squeeze in Sorenson Media's history has happened. It's Squeeze 6."

"Being a user and fan of the software, Squeeze 6 is the best version yet by far."

"The package really is more than just an encoder. It's a complete solution."

"In conclusion, I've been running Squeeze for a very long time, and gone through all of its updates through the years. But this upgrade stands apart. A new interface, a new upload and approval site, a preset exchange, more filters, Blu-Ray encoding, and very high quality (and much faster) encoding makes this the most important update to Squeeze ever."

"I can heartily recommend this professional level encoding software to anyone running on a Mac or a PC. There are versions for both."

"It's innovative, forward-thinking, and making the mysterious world of encoding a lot less esoteric."

"Run, don't walk to www.sorensonmedia.com for more information. A winning piece of software any way you look at it."

"It's easy to give this product a 5 cow rating."

I am very proud of my team for their dedication, expertise, and continuous innovation. And, I am very pleased that the team continuously gets singled out for all of the above ... and more. This time by Creative Cow ...

John McCain's New Video "Wall" -- First-of-its-Kind Use of Internet Video in Politics

U.S. Senator John McCain just launched his new website -- www.johnmccain.com

And, digital media enthusiasts rejoice -- no matter what your politics, you will find something very very cool and very very novel when you visit the site -- i.e., an innovative new use of Internet video featured front and center. I am talking about the interactive video "wall" (the wall is featured on the bottom of the home page -- and when you click the "All Videos" button you link to the video wall at http://www.johnmccain.com/supporters/ ) Check it out. With a click of your mouse, visitors to the site can (1) watch videos from other supporters, AND (2) easily add their own video to the wall with one-click if they so choose! All seamlessly from the site and within their browser!

I am proud to say that it is the continued ingenuity and innovation of my team at Sorenson Media that powered this novel way for political supporters to share their views and interact with each other through the powerful medium of Internet video. And, we know of no other political site/campaign that has ever done anything like this.

Here is our official press release with the McCain camp.

Move Networks' Schizophrenic "Moves"

Move Networks seems to be having an identity crisis.

The company, with undoubtedly great adaptive bit-rate technology for video streaming, up until recently was an infrastructure company -- courting media companies to be their back-end video solution for video streaming over the Internet. That business model didn't work out, so recently the company shifted gears to become an IPTV company -- enabling TV over the Internet with a "closed" traditional cable linear TV programming model, rather than Hulu's "open" Internet TV approach (the company is featured today in the Wall Street Journal).

But, what's this? As I had understood things previously, Move's new, um, "move" was to enable IPTV for the cable companies and telecoms -- and, the company does help to power Comcast's new IPTV "TV Everywhere" initiative (I have written about this several times before). In the Wall Street Journal article, however, Move's CEO, Roxanne Austin underscores that the company also has designs on DIRECTLY offering consumers its own IPTV services that it dubs "Move TV." In other words, Move apparently intends to compete directly with the cable companies and telecoms that it hopes to otherwise woo with its IPTV solution.

That seems like a dangerous -- and schizophrenic -- game to me. Which one is it? Can you be both enabler and direct competitor?

What will be the company's next move?

iPad -- Real Potential as a Communications Portal?

Today I link to a very interesting perspective on the true potential of Apple's new iPad -- as a paradigm-changing communications device. Whose perspective? None other than my friend, serial entrepreneur and former colleague Edo Segal, who wrote this "thought piece" for TechCrunch yesterday. Click here to read it -- it is worthwhile.

According to Edo, bigger really is better with the iPad -- and, a front-facing camera (which undoubtedly will be coming soon), has the potential to mainstream two-way video chat in a massive way. This aspect of his article is of particular interest to me, since I previously ran two way video chat leader SightSpeed (which was acquired by Logitech in late 2008).

As I said, I have known Edo for some time. In fact, Edo is the person who got me "into this mess" of running tech companies into the first place! (and, I am very thankful he did!) Edo founded eNow -- a company ahead of its time that was acquired by AOL -- and brought me on board at the beginning of 2000 to be his COO and business partner. Since I worked so closely with Edo I can tell you this -- the guy is brilliant. He is a visionary.

When he talks, people should listen (and they do, believe me). That's why he has an ongoing column at TechCrunch. And, that's why you really should read his piece about the iPad ...