Happy New Year from Twitter -- No Service!

Twitter is down. No retweeting this morning. Happy New Year folks!

VIDEO -- Sydney Australia Rings in New Year with Massive Fireworks

Happy New Year Sydney! Click here to watch the amazing fireworks display.

Jaw-Dropping Online Video Numbers -- Reflect on This!

U.S. comScore Video Metrix numbers are out for online video viewing in the month of October -- and they are jaw-dropping (as in "Wow!"). Consider these -- take a step back -- and compare these numbers to what they were not so long ago. And, then consider these jaw-dropping numbers today -- and how these will seem minuscule in a matter of just a few years. Remember, we are still early early early in the online video game.

Here you go --

-- in October, 184 million U.S. Internet users watched online video

-- each of those 184 million on average viewed 21.1 HOURS of video during that month (HOURS!)

-- total number of videos viewed online in the U.S. during October was 42.6 BILLION (yes, with a B!)

-- 7.5 BILLION ads were served during that viewing (and 53% of the U.S. population watched video ads during the month -- with an average of 47 video ads for that month)

Pretty amazing stuff ...

Makes it kind of fun to be an enabler here at Sorenson Media to make this all happen ....

My Top 5 Music Picks Right Now

Anyone who regularly reads my blog knows that I am a huge music fan -- I listen to music all day -- at work, at home. I like mostly indie, but have eclectic tastes. I attend festivals (Coachella, Outside Lands) and I like to discover new music. New artists. Most of my discovery comes via "SiriusXM U".

Here is what I am listening to right now -- band is named first, favorite song second:

(1) Caveman -- "Old Friend"

(2) Wye Oak -- "Civilian"

(3) Widowspeak -- "Nightcrawlers"

(4) Youth Lagoon -- "Afternoon"

(5) Sharon Van Etten -- "Serpent"

Bonus band/song -- Fleet Foxes -- "The Shrine/An Argument" (although the track devolves near the end).

And, THE single most overhyped indie artist right now? Lana Del Rey. She tries -- and sometimes succeeds -- in being the new Kate Bush. But a pale imitation she is ...

She will be the featured performer on Saturday Night Live in January, however (again, overhyped) -- let's she how she does ....

Xmas Redux 2 -- Mom Gets an iPad -- The Ultimate Grandma Test

Here is Xmas redux #2.

My mother has never been online ... ever! She lives in Minneapolis -- her grand-kids (my kids) live in San Diego. So, she rarely sees them.

Hence her new Xmas gift -- the iPad! Primary goal? FaceTime with the kids. One-touch video calling -- anytime. That's the promise. But, will that promise be realized? That's debatable. We shall see. We practiced -- a lot. Time will tell here. She seemed intrigued, but certainly wasn't enthralled ... yet. And, will it be as simple and intuitive as all of us -- who have been online for so many years -- believe it is?

This is the ultimate grandmother ease-of-use test!

Xmas Redux VIDEO -- In Praise of Old-Fashioned Building Blocks

Okay, back to work today. The Xmas glow is wearing off. But, still time for a few ruminations.

First on tap today? Yes, my kids received an Xbox Kinect from Santa. And, yes it is amazing. If you haven't checked out the Michael Jackson dance game, do it. How cool is it that it scans your image right there and puts you directly into the game? That ain't no avatar!

But, check out this video of my little man, Luca, and his Keva block creation. This is priceless ... and demonstrates the sheer joy and creativity that comes with good old-fashioned building blocks.

My First Guest Post on TechCrunch -- Live Now!

Today is a "first" for me -- my first guest post on TechCrunch -- about my 2012 video predictions. Here is the link. Earlier this year, I was featured on TechCrunch TV to discuss updates about my company, Sorenson Media.

The Future of TV Is Already Here -- Apple TV & AirPlay

Merry Xmas everyone! Here is a compelling argument about what the future of TV looks like -- and, the interesting part, is that it is already here via Apple. Apple TV + AirPlay. Click on this link to Jeremy Toeman's case that Steve Jobs has already "cracked it" -- i.e., the code to the future of TV. It isn't something wild and wacky -- it is something that is remarkably simple. And, that's why it makes so much sense ...

Telestream's Acquisition by Thoma Bravo -- What It Means

Yesterday, the big news in the online video world was that Telestream, a long-time leader (and highly respected Sorenson Media competitor) in the video transcoding market, was acquired by private equity firm Thoma Bravo for an undisclosed amount of cash. While perhaps surprising to some, the news was not surprising to me at all for a number of reasons -- most significantly, for what it represents for the macro online and mobile video business.

First, to what the acquisition represents. In my recently-posted 2012 video forecast (click here to read them), one of my top 5 predictions was the following: "HD Video Enabling Eco-System Growth Explodes." And video transcoding, of course, is at the heart of enabling technologies, solving all the increasingly difficult issues of device specification, format and codec licensing and optimization, video resolution, frame size, network detection and optimization, adaptive bitrate delivery. These are just some of the technically challenging issues that make the heads spin for content creators. So, the Telestream acquisition underscores the critical and increasingly-central role of transcoding in the multi-screen delivery world that is growing exponentially all around us. After all, private equity firms don't "just" invest in companies -- they acquire companies because they are extremely bullish on an overall market opportunity.

Second, now to practical considerations. Telestream has been privately-held for well over 10 years. At a certain point, traditional investors understandably get "itchy" for a liquidity event. This was the right time in this case.

Bottom line -- expect further M&A in the video enabling space in 2012 as more and more companies view such technologies as being strategically fundamental to their overall missions. And, don't forget, leading online video platform provider Brightcove filed for its IPO months ago -- although I haven't heard much about this since, the company must be going public early in 2012. Is Ooyala next? My prediction -- Ooyala will be acquired in 2012.

Finally, congratulations to Telestream's CEO Dan Castles and team. Well done!

My 2012 Online Video Predictions Featured in Streaming Media

My 2012 video predictions were just published in Streaming Media -- both online and in their print edition. Click here for the link to the online version.

2012 -- My Predictions -- My Vision for Video

Okay folks -- here are my digital media/video predictions for 2012. With these, I will try to be amongst the first to give his or her "two cents." And, feel free to give your responses, rebuttals, rebukes, refreshing thoughts, re-anything in the "Comments" to this post; note, I originally posted this a couple weeks back, but am posting again now before most of you ride off into the sunset for the rest of the year:

(1) TV Re-imagined. Long-time readers know that I have always expected Apple to release an all-in-one flat screen TV — think of a large-screen beautiful iPad on your wall — that will be called "iTV" in order to distance itself from Apple's current Apple TV "hobby." Apple's goal will be to re-think the living room experience to be, well, more of an "experience" (rather than simply a "dumb" TV); that means that, yes, it will be a beautiful and aesthetically appealing piece of hardware. But, it will be much more than that. It will aim to seamlessly marry that beautiful hardware with its underlying services, much as Apple was uniquely able to effectively do originally with the iPod/iTunes to transform the music business and overall consumer music experience. Apple's ultimate goal is to sell more hardware of course — using software and services as the Trojan Horse. And, Apple will be able to command higher prices — higher margins. There will be no doubt on this one. If Apple builds it, the Apple faithful (including my wife, Luisa) most certainly will come!

(2) Tablets on Fire. Apple's iPad will continue to be the #1 tablet, but Amazon's Kindle Fire will be closing in … Fast, fast fast (it already outsells the iPad at Best Buy); and, "Amazon Prime" will begin to significantly challenge Netflix, as more and more of us are introduced to Prime (via Amazon's brilliant Kindle Fire maneuver) and, accordingly, begin to watch premium video content on Amazon's hot new tablet. Interestingly, Amazon's strategy is completely reverse from Apple's. Amazon will use its hardware (the Kindle Fire) as the Trojan Horse to sell more services (premium video, etc.) -- and, of course (and most importantly) to enable mobile shopping. Anytime. Anywhere. That's why Amazon has a leg up over virtually every CE company — Amazon is willing to take a significant loss on its hardware sales, because it is gunning for long-term continuous purchases of goods and services. Brilliant Amazon. Absolutely brilliant!

(3) Battle for Your Living Room. Not to be outdone, Google will continue its massive push — and billions of dollars in investment — into the premium video and "TV" world. Google covets the living room experience — again for very different reasons than both Apple and Amazon. For Google, it's all about advertising of course — and monetizing video via ads is Google's next great frontier. That's why Google will stop at nothing. Google will even begin to take on the cable and satellite providers head on by offering full programming via the Internet initially in select markets. With these behemoths (Google, Apple) battling for a seat on your living room couch, smaller players like Roku will be faced with tremendous pressure to be swallowed up (or simply disappear). Expect significant consolidation in 2012.

(4) Personal Video Breakthrough. But 2012 won't be just about premium video content. As a result of massive growth of smart phones with easy HD video capture anytime and anywhere, your "personal video" -- intimate family and friend video memories/keep-sakes that you do not wish to share with the world on YouTube — will be, for the first time, easily archived, managed, shared and played back securely on any device and at any time (including in your living room and on the big screen) — and with HD quality intact. Companies will begin to significantly monetize this personal video opportunity in the latter half of 2012. Remember, family video memories are perhaps THE single most valuable possessions we have … These are snippets of your life that can live on forever …. You can do much of this via our partner Shutterfly already. But expect more ....

(5) HD Video Enabling Ecosystem Growth Explodes. As a result of these and other forces, the demand for HD video enabling services will grow exponentially — and video workflows will move at scale into the Cloud, beginning to seriously challenge legacy hardware providers.

Those are my holiday thoughts, predictions. Let me know what you think -- write a comment -- I will respond to each one. Or, send me a note directly to my attention at bizdev@sorensonmedia.com

Cheers!

Sorenson Media's 2011 Highlights -- 25% Y-O-Y Revenue Growth

We at Sorenson Media just released our 2011 financial and business results. Here is the text of our release that just hit the wires:

Sorenson Media to Cap 2011 with Two Consecutive Years of 25-Percent Revenue Growth, Streaming Media Readers Choice Award as ‘Best Online Video Technology Company’

· Other Major Awards Include “Best Cloud Encoding/Transcoding Service” for Company’s New Squeeze Cloud, “Best Encoding Software Under $1,000” for Sorenson Squeeze; Place on Streaming Media 100 List of Most Influential Online Video Companies

· Sorenson Media Was Only Video Solution Company Chosen to Participate on Cloud Commission that Presented Major Report to Obama Administration

· Company Released Major Updates to its Video Solution Portfolio, including Sorenson Squeeze 8 and On-Premise and Hybrid Versions of Squeeze Server

SAN DIEGO (December 19, 2011) – Sorenson Media is ringing out a productive 2011, capped by an expected second consecutive year of 25 percent year-over-year revenue growth, with a wave of awards from tech industry experts and users. Punctuating an active year for the company, the awards highlight the company’s continuing position as the global video transcoding leader for online video content creators and purveyors of all types and sizes.

“This has been an important and satisfying year for Sorenson Media and our rapidly-growing client base – from the individual to the enterprise,” said Peter Csathy, CEO of Sorenson Media. “Our position at the forefront of the worldwide online and mobile video markets is a result of our unique history, expertise and continued innovation in video transcoding and publishing. We now have the broadest portfolio of video encoding and transcoding workflow solutions. As video continues to proliferate across all screens, Sorenson Media customers will benefit from our unparalleled knowledge of the enterprise workflow and how their customers consume video. As strong as our growth was in 2011, much of our focus was on building out our differentiated video workflow platform for long-term success. We expect much more from ourselves in 2012. We are a passionate team. We like to lead the way.”

Highlights of Sorenson Media’s fast-paced 2011 include:

A Spate of High-Profile Awards. In addition to being named “Best Online Video Technology Company” by the readers of Streaming Media magazine, the company brought home the prizes for “Best Encoding Software Under $1,000” for Sorenson Squeeze and “Best Cloud Encoding/Transcoding Service” for the company’s innovative Squeeze Cloud solution. Sorenson Media garnered more awards from Streaming Media than any other company. It was also named to the prestigious Streaming Media 100 list of the most influential online video companies, and received the 2011 Streaming Media European Readers’ Choice Award for “Best Transcoding Solution.”

In addition, the company was named to AlwaysOn’s lists of “Top 250 Private Companies” and “Top 100 Mobile Companies,” and was named Best Internet Company at TechAmerica San Diego’s 18th Annual High Tech Awards. Sorenson Media’s continued innovation also garnered significant visibility in the industry’s most important media outlets, including TechCrunch.

Cloud and On-Premise Transcoding Power. Sorenson Media extended its industry leadership in cloud-based transcoding in 2011 by delivering unparalleled flexibility and power to high-volume users with the release of Sorenson Squeeze Server On Premise and Sorenson Squeeze Hybrid Solutions. Squeeze Server On Premise automates and optimizes the transcoding process for high-volume in-house encoding. Squeeze Hybrid, the first-ever solution to combine cloud and on-premise encoding, enables users to scale up or down to meet workflow needs.

Sorenson Media quickly followed up the release of Squeeze Server On Premise with a Squeeze Server 1.5, which brought the perennial gold-standard Sorenson Squeeze encoding engine more fully to the enterprise with full adaptive bitrate support.

Participation on Influential Industry Commission. In the summer of 2011, CEO Peter Csathy participated on the TechAmerica Foundation CLOUD² Commission, representing the industry as the only video solutions company invited to join the influential organization. In July, the commission presented a much-anticipated cloud computing roadmap to the Obama Administration, including detailed recommendations for the optimal deployment of cloud-based solutions to guide the federal government’s efforts to adopt cloud computing technologies and develop policies and practices to keep the United States on the forefront of computing innovation.

Release of Sorenson Squeeze Versions 7 and 8. The company was prolific on the product innovation front with the release of Squeeze 7 in early 2011 and Squeeze 8 in late 2011. The most sophisticated version of the gold-standard encoding and transcoding software, Sorenson Squeeze 8 now includes seamless Squeeze Server integration; adaptive bitrate encoding for new formats; unprecedented x264 support and optimization; and enhanced GPU acceleration. In addition, the company created Squeeze 8 Lite, the most cost-effective way for the fast-growing market of content creators such as web developers and videographers focused primarily on online publishing to encode and transcode in the most popular video formats. According to a recent review from PC World, the new Squeeze 8 achieves “the best possible transcoding and a wide variety of input and output options.”

Expanded Distribution Relationship with Avid and New Partnership with IBM. Sorenson Media also expanded its eight-year partnership with Avid, which bundles Sorenson Squeeze with Avid’s 64-bit video editing systems, including Media Composer® version 6, NewsCutter® version 10 and Symphony® version 6. In addition, the company formed a new partnership with IBM to provide enterprise cloud transcoding and video workflow solutions as part of IBM’s anticipated SmartCloud initiative.

Opening of Los Angeles and London Offices. Driven by accelerating demand for Sorenson Media products and services from enterprise users and media companies in the United States and Europe, the company opened offices in Los Angeles and London. The company’s resonance with enterprise users is highlighted by the fact that 70 of the Fortune 100 companies and 60 percent of the top 30 broadcast station groups – including CBS, Fox, NBC Universal, Hearst Television and Meredith Local Media Group – now use Sorenson Media products and services

About Sorenson Media

Sorenson Media (www.sorensonmedia.com) is an award-winning provider of the highest quality, differentiated video encoding and transcoding workflow solutions. With highly scalable cloud- and server-based encoding solutions and desktop applications, Sorenson Media empowers the enterprise and video professionals to easily and cost-effectively encode, transcode, manage and deliver the highest-quality video online and to mobile devices. Since 1995, Sorenson Media has been at the forefront of bringing online and mobile video into the economic and cultural mainstream. As video rapidly proliferates online, businesses and video professionals increasingly rely on Sorenson Media's innovative solutions and legacy of trust to meet their evolving needs.

Press Contact

Jacob Moon

Sorenson Media Public Relations

801-461-9797

Jacob@methodcommunications.com

FaceTime IS Really Cool -- We Take That for Granted

Last week was the first week in a long, long time that I was away from home all week. So, to keep in touch with my beautiful family (wife Luisa, and two kids -- Hunter & Luca) I re-discovered FaceTime on my iPhone, which I haven't used for a long, long time. And, the week away made me realize what I had somewhat forgotten -- that is, that FaceTime is really, really cool. That it -- and what it represents (i.e., video communication) -- is truly transformative. That it keeps us "together" in a way that simply isn't possible with an audio-only call; or a non-mobile PC/Mac-laden video call either.

When I call home with audio only, my kids are distracted -- we speak only for a few seconds. There is no real connection. But, with FaceTime (mobile video calling), everything changes. My kids are focused. They engage. They are playful. They are silly. And so am I ....

FaceTime is fun -- it's as simple as that. And, speaking of "simple", FaceTime IS simple -- easy to use. That too is critical. The kids can roam around the house while they FaceTime me, and I can feel like I am there too. They can hilariously hold the phone to our two dogs -- which they did -- and I could command them to "sit" (which they did)! Yes, they were a bit confused at first (their heads did that slight doggy tilt) -- but, they ultimately focused on the iPhone screen and both saw/heard me convince them to follow my command. Classic! All of us were rolling.

Long-time readers of my blog know that, prior to running Sorenson Media, I was CEO of SightSpeed -- THE video chat leader before video chat became main-stream (with Skype, FaceTime, etc.). So, I have always believed in the uniquely transformative power of video communications.

Nevertheless, I continue to be amazed at the true differentiating power of video over audio-only communication. I always believed it -- but, we now live it as an everyday part of our lives. Let's not forget that only a couple years back -- maybe 5 -- the vast majority of folks believed that consumer video chat would never amount to anything.

Now look at FaceTime. Now look at Skype. Now look at Logitech's Vid (which is the evolution of the SightSpeed video chat service that they acquired in 2008).

Now, just take a look ....

Did You Know Bose Makes HD TVs? I Didn't Either -- Check This Out

Bose -- you know them -- kings of great audio sound. That's all they do, right? Wrong.

I just learned that Bose now makes high-end TVs that feature revolutionary surround sound from -- get this -- invisible speakers built into the TV itself. It is called the Bose "VideoWave" entertainment system. Check Bose's site by clicking on this link. It features a 46 inch HD screen, and it goes for $5,499.

Sounds cool, right? Some of our guys at Sorenson Media just saw and heard a demo -- and, they were blown away. The sound was incredible.

How do they do it? Watch Bose's video (click on this link) to watch Bose describe its own audio break-through -- its invisible speakers from inside the VideoWave itself.

Did I Say "I Love Shutterfly"? YES, But I'll Say It Again -- CUSTOMER SUPPORT DONE RIGHT!

I have been a loyal Shutterfly customer since 2001 -- that's 10 years of loyalty and tens of thousands of photos (literally), as well as thousands of dollars to Shutterfly. Here's one significant reason why -- I am always -- ALWAYS -- impressed with Shutterfly's customer support. And, how many times can any customer really say that about its service provider? Don't like the way your photo book was printed? Return it -- get your money back (or books reprinted for free) -- no questions asked. (Here is my post from two years ago praising Shutterfly's customer support and absolute commitment to its customers).

Here's my latest example. Each Xmas season I spend scores of hours making my annual photo book -- essentially my "greatest hits" photos that reflect highlights of the past year. These are my single most important gifts to my mother, my mother-in-law ... and to me and my family. We display these proudly in our home -- they are time-capsules -- slices of life -- always there at our fingertips.

Now, these photo books aren't necessarily cheap (even though the value to me is priceless). Since I pack them with 100 pages of photos (that is their max), they run well over $100 each. But, Shutterfly offers frequent discounts -- especially to long-time loyal customers. Accordingly, this year, I ordered my first book about 2 weeks ago -- using a 20% discount. Then, I ordered my second book about 3 days ago -- I found a 30% discount. But then, imagine my surprise when, almost immediately after ordering that second book, I received an email from Shutterfly informing me of a new limited 40% discount on photo books. So, I ordered my third photo book -- but also sent a note to Customer Support requesting that I receive the benefit of the full 40% discount on my first two books (which I thought would be the right thing to do).

First, not surprisingly, I received a response back expeditiously (within 24 hours, which is pretty good especially during this busy holiday season). And, second, importantly -- and not surprisingly -- the response indicated that I will receive a full monetary credit equaling the full 40% discount on my next order. Now, that is the right thing to do! And, I was quite sure that Shutterfly would do it (since they have always done the right thing in the past.)

And, that's the point -- Shutterfly always does the right thing. ALWAYS! And, they are a success because of this. Case in point -- I ordered one more photo book today -- the last day of the 40% offer; that's an incremental sale to you and me. And, I will order even more photo books in the next several days -- and will apply that credit. Yes, I saved lots of money as a result of Shutterfly's generous discounts. But, yes, Shutterfly got more money from me -- hundreds of dollars more. And, I never -- never -- think of leaving the service. That means I will continue to spend thousands of dollars into the future. As a result, everyone here is happy. I am spending more money with a smile on my face.

THAT is good business my friends. Bravo to Shutterfly! All of us who run companies can learn from their example.

(Separately, I am very proud that my company, Sorenson Media, is Shutterfly's video service partner; this is completely separate from me being a customer, since -- as indicated above -- I have been a Shutterfly customer for 10 years; but, that's another big reason why our business partnership is so satisfying; it is great to be in business with a company that cares so much about its customers -- and understands that THAT is smart business.)

2012 -- Virtual Cable Companies Coming -- Apple, Google Likely Amongst the First

More and more signs point to more consumer choice for "real" live, linear TV programming coming soon -- in 2012.

Case in point -- the "virtual" cable company (click here to read a story from Peter Kafka of AllThingsD on this subject). No more will many consumers be limited to cable or satellite TV. Instead, they will look to familiar names -- most likely Apple, Google and Amazon, among others -- to provide the full Monty; the full Kit n' Kaboodle; the whole enchilada. I'm not just talking about Netflix-style video on-demand with its limited, and frequently frustrating, library of premium content. I'm talking about all the "real" channels of live TV that you want -- including ESPN. To do this, the new "virtual cable" guys will need to cut extremely expensive content distribution deals with all of those premium broadcasting channels. But, this will happen -- the ultimate rewards (and stakes) simply are too great for those candidates.

Think about it -- there will be no physical footprint limitation on this TV distribution opportunity. Unlike the cable guys, Apple, Google, Amazon and others can use the "dumb pipes" (broadband) laid by others to facilitate a fully national TV distribution service. In other words, these "virtual cable" guys will use the real cable guys' assets to cannibalize the real cable guys' business.

What do I think? Google most definitely will be amongst the first in 2012 -- first rolling out this kind of service in limited markets (I recently predicted this in my video predictions for 2012). But, my bet is that Apple too will be amongst the first. Why? As I have written repeatedly, there is no question in my mind that Apple will release its own REAL all-in-one flat screen TV (called "iTV") in 2012. And, make no mistake -- this iTV will contend that it completely re-imagines the entire TV experience to make it, well, more of a real fully seamless hardware/programming experience. This means full programming -- which must include "real" linear TV.

So, there it is. Q.E.D. Coming soon. Will be fun to watch ...

(Oh, and by the way, all is not lost by the cable companies in providing so-called dumb pipes; broadband services provide significantly higher margins than the content distribution services themselves, due to the massive costs involved in acquiring those content distribution rights. And, here's the deal -- the more "virtual cable" companies there are, the more consumers who will require high-speed broadband. That's a good thing for the "real" cable guys ....)

Why Spotify, Rhapsody & Others Can Never Be Profitable

Online music/digital media guru Michael Robertson today wrote a guest post in industry-leading blog, Gigaom, with the provocative title "Why Spotify Can Never Be Profitable: The Secret Demands of Record Labels." Click on this link to read it.

This is a "must read", because it gives an insider's view of how record labels structure their deals with online music services on a "take-it-or-leave-it" basis. And, the piece is definitely striking a nerve, because it already has been tweeted over 2,500 times! Bottom line -- those leading online music services -- despite their frequent bravado (especially Spotify) -- have little power.

Ahh, and there's one more critical thing -- despite the onerous terms the labels demand from those services, they hold back critical music content. Case in point -- last time I checked, neither Spotify nor Rhapsody has Coldplay's latest album or The Black Keys' latest album. And, these are just two examples.

(NOTE -- pure online "radio" services like Pandora -- where the user cannot select the precise tracks -- are exempt from most of the realities identified in Robertson's piece because they benefit from the licensing scheme of the Digital Millennium Copyright Act (DMCA); however, Robertson is not bullish on those services from a business perspective either; here is his earlier piece about the economics of Pandora.)

Netflix -- The Bears Are NOT Hibernating This Winter -- RedBox, Doh!

I have written several times about Netflix -- yes, I am a long-time subscriber to its streaming service (despite my persistent frustrations with the service's depth of content, or lack thereof); but, no, I am not bullish on the company from an investment perspective -- even as its stock continues to plummet. Here are some recent posts -- (1) a particularly dire analysis from industry pundit Dan Rayburn; (2) Netflix's season of continuing foibles.

Now, the certainty of increased competition is becoming a soon-to-be reality. RedBox -- you know the $1/DVD red kiosk guys (actually each DVD is now $1.20)? -- it is tossing its hat in the ring by powering an upcoming streaming service from Verizon. According to TechCrunch, this new "Netflix Killer" will launch end of May 2012.

Given RedBox's ubiquitous consumer brand -- those kiosks are everywhere! -- and given Verizon's ubiquitous reach, this competition could be formidable, especially if RedBox challenges Netflix on its overall depth of content.

Throw in Amazon Prime -- and its massive reach via Amazon's new Kindle Fire, among other things -- and you have some strong contenders in the online premium video streaming game.

Challenging times for Netflix indeed ....

Hey AT&T, Teach Your Technicians! My "Broadband" Experience

I run a technology company -- and have been in the technology business for years -- yet have had no real broadband available to me at home since I have moved into Rancho Santa Fe, California 18 months ago. I have AT&T DSL -- and DSL only. No cable. No other highspeed broadband options. And it has killed me! My down stream broadband is a meager 2.35 Mbps -- at best! That means that we are completely paralyzed here at home when we try to stream movies from Netflix (when we can stream at all!). Streaming music? Uploading pics to Shutterfly? Fuggedhubout it! No one else can be online.

Even worse, every time it rains (yes, contrary to popular belief, it does rain in SoCal), my DSL either comes to a complete stand-still or doesn't work at all. Case in point -- last Xmas time, and after some big rains, we had no DSL service at all for over 2 weeks! No Internet connectivity -- or phone service -- that entire time. And, AT&T simply said it was experiencing "unprecedented" demand and could not come to fix things any earlier.

Ultimately, did the AT&T techs really "fix" things for us? Yes, we got back online (at our snail's pace DSL speeds), but we continued to have outages. Things got so bad that I continue to pay $80 per month to have my Verizon broadband card back-up when necessary -- which is frequently necessary.

SO, imagine my surprise when I first learned -- last week -- that AT&T may have U-verse highspeed broadband service available in my 'hood. I was skeptical, but sure enough -- AT&T's website indicates that it is, in fact, available -- at a flavor of "up to 12 Mbps."

Did an AT&T technician ever tell us about this? Of course not (despite the fact that we have had at least 6 techs come to our home over the past year). Did we receive any marketing materials about this from AT&T? Of course not. This is the one time they chose NOT to spam us. Rather, I learned of this apparent fact simply by joining the broadband committee of my community -- at which all of us on the committee were completely shocked.

So, what did I do? I immediately went to AT&T's website and signed up for U-verse highspeed broadband. For some reason, the full U-verse package is not available to me (no TV, or digital phone). Nor are the highest speed packages -- my highest available package is "Max" (up to 12 Mbps -- which, according to AT&T's website, is not optimal for movie streaming, downloading, or Skype videoconferencing -- which are all important activities for me). That sounds ominous ... very ominous .... Yet, if I get even close to 12 Mbps, it should -- with emphasis on "should" -- be much, much better than my current 2 Mbps. Perhaps at least all of us at home can be online at the same time.

Color me skeptical -- highly skeptical. Nonetheless I am hopeful. I have been instructed by AT&T's highly personal email that I will be able to make the switch to this new U-verse package on December 19th -- after 8 pm.

Fingers crossed.

I will report back.

Netflix -- Not Long for This World -- A Worthy Analysis

Online video pundit Dan Rayburn just published a post in which he gives a detailed "blow by blow" analysis of the fundamental flaws in Netflix's business model. Bottom line -- he certainly is not an optimist of the long-term viability of Netflix (as a stand-alone company) amidst the increasing competition of other services offered -- or that will be offered -- by Amazon, Google and others. I agree with virtually every point Dan raises -- and have always been a bear on Netflix's stock prices (no matter how high or low, and even though I am a Netflix subscriber ... for now).

Click here to read his thorough analysis -- in my view, it is a "must read."

Mark Suster Interviews Eric Ries -- MUST WATCH Video

Must watch video -- Venture Capitalist, Mark Suster, interviews Eric Ries, author of "The Lean Startup." Yes, it is 70 minutes long -- but you will get much out of it. Every entrepreneur should watch this one. Enjoy.

'Tis the Season -- Give the Gift of the Giving Tree Movement

A woman pepper sprays 10 fellow shoppers as she reaches for an Xbox on Black Friday. Really? Has it really come to this?

Hey, I shop -- and certainly am not against consumerism in general. And, no, this isn't another post about the true meaning of the holidays. But, as we line up at midnight on Thanksgiving evening to be the first to rampage into the stores, what are we telling our kids? What are we telling ourselves?

We all want nice comfortable lives for our families -- I certainly do. But, we all (including myself) need to stop, take a breath, take stock, and reflect on the cues we feed our kids -- and the impacts of those cues. Rampant consumerism; rampant focus on "achievement" -- one scheduled activity after another (and the exhaustion that ensues); rampant focus on success -- without failure (and without the possibility of failure) -- are not the answers (at least in my book).

And, that's precisely what the new organization Giving Tree Movement is all about -- check it out here by clicking on this link.

Giving Tree Movement (GTM) does not claim to have all the answers. In fact, that's not the point. Rather, GTM aims to be safe forum for parents -- for all of us -- to discuss what it means to help us lead our kids to live truly authentic and purposeful lives amidst all the rampant pressures and expectations that they face. GTM was a direct response to many of the problems addressed in the widely-seen sobering documentary "The Race to Nowhere," which served as a wake-up call to many.

GTM's message is catching on fast down here in the San Diego area.

(NOTE -- in the interest of full disclosure, GTM's founder and Chief Inspiration Officer is my wife, Luisa. But, although she is a force in and of herself, that ain't why I am writing this. The message rings true ... and I try to take little steps each day to tailor my cues to our kids perhaps a bit differently than before because of GTM's message ....)

Amen to Michael Arrington -- On This Thanksgiving, Appreciate the Value of "Luck"

TechCrunch founder and overall tech svengali, Michael Arrington, just gave a speech at the Founders' Institute (an organization of which I am pleased to be a part) -- here is a link to the TechCrunch report of it. He talks about how "luck" plays a significant part in any success -- and in any failure. Just because you "succeed" does not mean you're great; nor does failure mean that, in his words, "you suck." We are all rather simply on a razor's edge where things can frequently go one way or another.

BUT, there is one part that increases your positive "Black Swan" moments - -and that is the need to keep putting yourself in a position to succeed (i.e., have good "luck") in the first place. That means that a "never say die" attitude can, among other things, help increase your odds.

For this reason, I don't call it "luck" exactly -- I consider it to be more a question of being "fortunate." There is free will -- and effort -- associated with it.

In the end, however, Arrington's overall theme rings true. So, consider it this Thanksgiving season. And, count your blessings and good fortunes. In other words, appreciate how "lucky" we are.

I certainly do ....

Thanksgiving -- The TryptoMYTH

This post -- nothing to do with digital media.

This post -- everything to do with Thanksgiving -- and turkey.

MYTH -- eating turkey makes you sleepy -- the tryptophan effect.

FACT -- apparently not true. As this article points out, eating turkey on Thanksgiving itself is not the cause of exhaustion. Rather, in its words, those f/x are due to "any combination of booze, bad conversation and a carbohydrate-heavy meal."

OUR THANKSGIVING PLANS -- my family and I are off later tonight to the land of the frozen tundra -- lovely Minneapolis, Minnesota -- home of the flailing Vikings -- and the Mall of America. That is part of our annual pilgrimage up north -- once again, we will be there. And, possibly with bells on!

Enjoy your families and friends this holiday week.

PC World Calls New Squeeze 8 "Nothing Short of Excellent"

As readers know, my company, Sorenson Media, just recently launched Squeeze 8 -- the new significant update of our award-winning desktop video encoding/workflow application.

Well, the reviews are coming in. And, amongst the first is PC World -- with a nearly 2 million monthly unique readers. And, PC World calls Squeeze 8 a hit in its product review (click on this link for the full review).

Some of the choice cuts from the review --

-- "Using Squeeze is a breeze."

-- "The transcoding results are nothing short of excellent."

-- "... output from either version (Squeeze or Squeeze Lite) is as good as it gets."

-- "If you're a pro who does lots of encoding, then Squeeze 8 is definitely worth the download."

Good stuff ....

Scratch That -- Amazon's Kindle Fire Ships Today -- 1 Day Early!

My previous post from earlier today is already old news -- Amazon is shipping the Kindle Fire TODAY -- 1 day early!

Amazon's Kindle Fire Ignites Tomorrow

The headline says it all -- tomorrow is the big day -- Amazon's launch (availability) of its new Kindle Fire. This will be big ... very big. And, smart ... very smart by Amazon for all the reasons about which you likely already have read. Estimates are that initial demand will approach 5 million units.

While Amazon Kindle Fire sales will not surpass the iPad in 2012, they will fast climb to #2 in terms of market share. Then, who knows? Lots of Amazon customers already out there. And, lots more who want an inexpensive tablet on which they can view Prime premium video and, oh yeah, shop, shop, shop ....

H.264, WebM & X.264 Codec Licensing -- An Overview

As dry as the issue of codec licensing may sound, it is also one of great interest -- primarily because everyone does need to know about the minefield that is licensing, and no one really feels comfortable that they do. Codec licensing is serious business - -and it is seriously confusing. That point was laid bare this past week at the Streaming Media West conference in LA, when an HTML5 panel devolved into a prosaic discussion of H.264 and WebM licensing (including royalties -- when triggered, and how much). For this reason -- because there is great interest and confusion in -- the issue of codec licensing, and because I know quite a bit about the subject (I was an IP lawyer early in my career after all), I am republishing my post from September 2010 in which I discuss H.264 v. WebM licensing (and the overall battle royale between those competing video codecs). The post generated great interest at the time, so here it is -- slightly updated.

Ahh, the promise of web and mobile video – HD video delivered anytime, anywhere, on any device. It sounds so easy. But, it isn’t. The overall workflow is complex – and the process from content creation to content syndication is both a technical and business minefield.

One central and critical piece in that workflow -- video encoding and transcoding – is one such minefield, fully appreciated by only a few. This is, in part, due to the fact that it sounds incredibly techie and complex. And, in many respects, it is. But, that doesn’t mean that you shouldn’t understand it. Encoding and transcoding is the process of compressing your video files so that they can be delivered anywhere you want (on the Internet, onto mobile devices). It is a morass, plain and simple -- and it is fraught with complexity, confusion and, yes, peril. This complexity and confusion is only accelerating in this day and age where we see an unending string of new platforms and products – not to mention new codecs, such as Google's sponsored open source WebM codec initiative.

Case in point, the new battle royale brewing between said WebM (and its VP8 video codec) – the burly upstart in this case – and MPEG LA’s MPEG-4 (and its H.264 video codec), the reigning heavyweight champion. H.264 is widely regarded as being the current “gold standard” high quality video codec– it is used by Apple, among others, to deliver pristine HDquality videos (Apple, in fact, is a member of the MPEG LA patent consortium). Google, as we all know, wants to unseat the champ by offering its newly sponsored high quality codec free to the world (I know it sounds incredibly generous, but Google has its own reasons, believe me).

Here’s the crucial rub – MPEG LA’s H.264 isn’t free – it is a royalty-bearing codec that requires a license.

But, you say, MPEG LA announced not too long ago that it will no longer charge royalties for the use of H.264. Yes, it’s true –MPEG LA did previously bow to mounting pressure from, and press surrounding, WebM and announced something that kind of sounds that way. But, I caution you to read the not-too-fine print. H.264 is royalty-free only in one limited case – for Internet video that is delivered free to end users. Read again: for (1) Internet delivery that is (2) delivered free to end users. In the words of MPEG LA’s own press release, “Products and services other than [those] continue to be royalty-bearing.”

But, you may ask (understandably confused by it all), what does that mean to me and why does this matter? Here’s why – any business that publishes and distributes its videos onto the Internet or across mobile networks (and that likely includes yours) is encoding those videos either themselves or, more likely, via a third party encoding service or online video platform (OVP). And – big gulp here -- encoders and decoders are specifically called out in MPEG LA’s press releases as continuing to be fully royalty-bearing. That means that MPEG LA absolutely takes the position that H.264 cannot be used for encoding without a license – and that means royalty payments in certain high volume cases. And, those royalties aren’t cheap – meaning that potential legal exposure for both past and present unlicensed usage can be significant … very significant ... in high volume cases if that license is not obtained.

Now, you and your service providers may take the position that no license is needed from MPEG LA for encoding, because you utilize FFmpeg, the best known open source video encoding solution in the marketplace. Many, if not most, professional encoding services an OVPs, in fact, do use FFmpeg. And, FFmpeg, in turn, features X.264, an open source video codec implementation of MPEG LA’s H.264 royalty-bearing video codec. X.264 is not H.264, so no MPEG LA license is required. Sounds rational, right?

Perhaps, but predictably MPEG LA, its consortium of patent holders and other licensing bodies vehemently – and I mean vehemently -- take the position that open source implementations of their codecs absolutely infringe (remember, this risk is not exclusive to MPEG-LA and its codecs). In their view, there is no free pass! Let’s face it – patent holders and their licensing bodies are in the business of getting paid – they are not in the business of philanthropy. MPEG LA, in fact, continues to make “noises” that even Google’s royalty free WebM gift to the world (which resulted from its acquisition of On2 and its VP8 video codec) infringes the rights of its patent holders. In effect, MPEG LA is telling WebM users “Buyers Beware!” (Surprising, huh, that MPEGLA consortium member Apple and Google disagree on this one?)

Don’t believe those risks are real? Take a look at FFmpeg’s own official website. Right there – in plain sight – FFmpeg not only acknowledges those risks, it expressly cautions its users that any commercial usage (which is what we are talking about here) is at their own peril. Specifically, here is FFmpeg’s official word on the subject in the form of a relevant Q&A that is taken verbatim from its website:

Q: Is it perfectly alright to incorporate the whole FFmpeg core into my own commercial product? 


A: You might have a problem here. There have been cases where companies have use FFmpeg in their products. These companies found out that once you start trying to make money from patented technologies, the owners of the patents will come after their licensing fees. Notably, MPEG LA is vigilant and diligent about collecting for MPEG-related technologies.

So, there it is. Right there. Thousands of companies use and rely upon FFmpeg right now to encode their videos (either directly or indirectly via an encoding service or OVP) for commercial purposes without a net; without the codec licenses and royalties that patent holders and licensing bodies contend are needed and must be paid. This is not meant to cause panic – it is simply meant to open eyes to one highly misunderstood and overlooked reality in this highly complex world of web and mobile video.

So, what’s a business to do if its videos are encoded with FFmpeg? Stop distributing those videos across the web or across mobile networks? Absolutely not – video is simply too impactful and, for most businesses, should be a central piece of its customer engagement and monetization strategy.

But, if your business does do video, do it smartly. Cover all your bases. Don’t take short-cuts. Ask questions. Ask your team or encoding service provider if they use officially sanctioned and licensed codecs. If they don’t, then the next question is whether, nonetheless, they have entered into licensing agreements with MPEG LA. If the answers to those two questions are "nyet", then you may want to switch. You are not immune from the risks that they take in the minds of patent holders (MPEG LA confirms this). (To add confusion to this already confusing subject, you also will likely need to pay royalties for the use of X.264 not only to MPEG LA, but also to those companies from whom you are using supported X.264 implementations -- as an example, we have done that at Sorenson Media with our new Sorenson Squeeze 8 product that launched last week.)

At the very least, if you decide that switching costs are too great, then you may want to ask your service provider for indemnification of those risks. But, depending on the size of your service provider, that may be cold comfort.