4G Networks -- Even Skeptical Industry Pundits "Blown Away" By Mobile Video Experience

As everyone knows (because we experience it daily first-hand), streaming video on mobile devices historically has been a hit or miss proposition (well, largely a miss). Certainly, video quality on mobile devices to date has been severely challenged; and challenges seriously inhibit optimized growth and the overall multi-billion dollar mobile video market opportunity. (Of course, we at Sorenson Media can help here, because our services -- including adaptive solutions -- are core to squeezing -- so to speak -- the most video bang for your network's bit ... but I digress ....).

Welcome to the wonderful world of 4G networks. And, if you believe mobile video streaming is big now, you ain't seen nothin' yet ....

Video industry guru Dan Rayburn of Streaming Media -- who doubles as a secret agent for leading analyst firm Frost & Sullivan -- just spent significant time streaming video on smart phones over Verizon's 4G network. His verdict? In his words -- and, Dan is no easy customer -- "I am blown away by the quality of the video being delivered over Verizon's 4G network." And, he concludes, "video to mobile is the future of our industry."

Click here to read Dan's full review and story which just appeared today on Streaming Media.

The Massive Consumer Smart Phone Video Capture Opportunity

You have a smart phone, right? And, you capture personal HD videos of your family and friends now all the time, right?

Well, you are not alone. Important new data underscores what we already know -- consumers are now ditching their traditional stand-alone camcorders in favor of their smart phones that are with them all the time. A whopping 45% of consumers now use their smart phones to capture personal video at least once per week; while a full 17% do it at least once per day! And, this is just the beginning my friends ... mark my words here.

Why? Because no more thinking is required. No planning for a video capture-worthy event. Your smart phone is simply there ... all the time. This is now the era of serendipitous vid capture. And, of course, this is now beautiful HD video.

But, here's the problem -- as pointed out in this post from Gigaom (click here) -- consumers simply don't know what to do with those captured HD videos. How do I, as a consumer, easily get those videos off my phone and into a secure personal video locker so that I can archive them and manage them? And, how can I easily share those personal HD videos with family and friends without dumbing down the HD quality via email or text messaging? Remember, these are your personal videos -- these are your kids, your families, your friends. You don't want those to be shared to the world via YouTube.

So, there's the massive opportunity -- right there. Whoever solves this consumer personal video "store and share" opportunity will win ... and win big.

Funny how we, at Sorenson Media, already have cracked that nut. We power Shutterfly video "store and share" after all. And, we absolutely believe that we are only at the beginning of this overall opportunity ...

Keep capturing those videos ... your easy-to-use and highly secure solution awaits ...

New Luxury Cinemas -- Like a Living Room, So Why Leave Yours?

Last week, with great anticipation, I took my two kids to the new luxury cinema complex in Del Mar -- called Cinepolis. I had heard great things about this completely new luxury cinema experience which displaced the old traditional multi-plex on that site that served us well for years. If you are not familiar with this new cinema concept, click on this link to see pictures.

As we walked in, an audible gasp flowed from my kids -- "this is sooooo cool!" And, indeed it is. Instead of the traditional multi-plex lobby, now there is a full bar right along side the popcorn. Instead of hot dogs, you can buy sushi. On one of the walls, a massive big screen video screen was showing a baseball game. Apparently, this is for the parents, who can now deposit their kids to watch a movie and sit at the bar to watch their favorite game. And, in the lobby, the new luxury Lazy Boy-like reclining leather seats that are in the cinemas are proudly on display so that the kids can try them out and "ooh" and "ahh." All of this, of course, is a bid for cinemas to attract a different clientele -- those willing to shell out significantly more (about $20 for adults and $17 for kids) to watch a movie inside.

After our pre-cinema dinner in the lobby, finally, we entered the hallowed grounds of the new cinemas themselves to watch the very un-luxury-like movie, "Smurfs" (which perhaps is the single most painful kids movie I have ever experienced). Another "soooo cool!" spewed from the mouths of my babes as we stepped inside and took our places at our 3 reclining leather seats (which, strangely, are configured only in groups of "two", meaning that one of us three were always separated from the other -- disconnected actually -- during the movie itself). And, table service! Yes, simply push a button and a friendly server stops by to take your order -- even during the movie! As the movie began, all three of us felt "this is the future of going to the movies!" Essentially, this new cinema complex had perfected the art of making "going to the movies" as comfortable as watching a movie in your living room and on the big screen!

But, as the movie painfully went on, this luxury experience lost its movie "experience" for me completely. At the end of the day -- for me -- why go out to enjoy (and pay for!) a "living room" experience when you can do the same in the luxury of your own home a la Netflix or Amazon? We have our comfy couches at home. We have our big screen. We have our surround sound. We have our kitchen right there for snacks. We have our bathroom right down the hall. And we can pause anytime (or stop the "Smurfs" movie completely and move on to the next if we want!). Ultimately, for me, this new luxury cinema experience lost the very heart and soul of a primary reason I go to the movies in the first place -- the energy and anticipation of watching a movie collectively with others! After all, going to the movies has always been one of the last great communal human experiences. We laugh together, we tear up together (although I won't admit it).

At Cinepolis, you feel alone -- it is sooooo quiet before the movie. You can hear no munching of popcorn around you. And, although that sounds great, it ain't so great when you think about it. Strangely, the only time you realize there are others around you is when someone rings for the server to bring some more popcorn (or a cocktail in the 21+ only cinemas) -- and, then, it is incredibly distracting as the server walks right in front of you to get to that other person!

Oh, and one more thing, the cost of this experience. I'll tell you this, the cinema's mission was accomplished for us! Here's a breakdown of how much this "living room-like" experience cost for me that night --

(1) 3 tickets (1 adult, 2 children) -- $54

(2) pre-movie food & drinks (sushi roll, mini-burgers, one drink) -- $40

(3) in-theatre snacks (popcorn, quesadilla, one water) -- $30

Grand total? About $125! This is likely more than 2X what the three of us would have paid in our UN-luxury-like earlier multi-plex experience!

VERDICT? Cinepolis is cool, very cool. It looks very very nice. It feels very very nice. But, it is so cool that I now will stay at home if I want a living room movie experience. I like my home --it is cool enough. And, I'd rather use that money for school supplies .... (today is my kids' first day of school after all) ....

Online Music Darling Pandora Opens Its Box -- Q2 Numbers Revealed

Followers of my blog know that I have written about online music darling Pandora several times. In the eyes of most in the digerati, Pandora -- much like its European cousin Spotify -- can do no wrong. And, while I too am a Pandora fan -- I have been a paying customer for several years now -- candidly, I have always questioned the service's long-term ability to become a meaningful profit-generating machine. I also certainly recently seriously questioned its market valuation. As we sit here today, Pandora (which just recently went public) is now valued at a whopping $2 billion! What justifies these lofty numbers you ask?

Well, Pandora just opened its box of numbers for the first time as a public company. Yesterday, the company released its Q2 numbers. And, while Pandora's revenue growth is impressive (it generated $67 million in revenues -- up 117% year-over-year), it continues to lose money. By my calculations, Pandora lost $3.3 million in Q2 alone.

Now don't get me wrong, Pandora has lots of money in the bank -- $95.3 million to be exact. But, a $2 billion valuation on these numbers? Call me crazy, but I simply don't get it. And, I am a music lover who streams music 24/7.

Steve Jobs -- In Video -- Highlights, Tribute

With Steve Jobs resigning late yesterday, it goes without saying that it is the end of a watershed era -- both for Apple ... and for the entire tech world. Not to mention the legions of fans outside the tech bubble. Gigaom posted a video tribute -- a compilation of Jobs' "greatest hits" -- earlier today. It is a worthy tribute -- I encourage you to click on the above link to view and experience it.

Hulu Bids Due Today -- My Money Is On Yahoo!

I have written several times about Hulu -- and its current aspirations to be acquired. I have also given my thoughts to USA Today in separate recent interviews.

Well, today is judgment day -- final bids by suitors are apparently due today. Most believe that Amazon, Google, DirecTV and Yahoo! are likely to enter the fray.

But, all things being generally equal (especially price), my money is on Yahoo! Yahoo! is most in need of a big win -- and it likely sees Hulu as the most visible immediate "story" in that regard. After all, next to Netflix, Hulu is widely considered to be "the next best thing" (although, a distant cousin). And, importantly, Hulu's big media investors likely are less threatened with the notion of Yahoo! pulling the strings. Amazon and Google are scary powerful industry behemoths (in their eyes), and DirecTV is less familiar to them.

If Yahoo! is willing to pony up -- many believe the winning price tag may be a few billion dollars -- then it will be Hulu's proud owner. But, be careful what you wish for -- media companies already have significantly pulled back overall premium television offerings key to Hulu's future growth.

Brightcove Files for Its Inevitable IPO -- After All, What Else Is OVP's Grand-daddy to Do?

In the "Surprise, Surprise ... well not!" department, the online video platform (OVP) market's grand-daddy of them all, Brightcove, has finally filed to go public. The company's IPO filing indicates it plans to raise $50 million.

Here's the interesting part -- as part of its filing, Brightcove, of course, had to finally reveal to the world its true financial state. And, as expected to me -- but certainly likely a surprise to many in the digerati -- Brightcove generates lower revenues than most believe and operates at significant loss. What are these numbers? On the revenue side, Brightcove is on track to finish the year likely at about $60 million (based on first half of the year numbers), and the company is on track to lose about $20 million (based on first half of the year numbers). Here's the further thing -- the company does not expect to be profitable until the end of 2012 -- yes, 2012.

Listen, I like and respect Brightcove a great deal. They absolutely are leaders in the overall video eco-system. But, those are challenging numbers with which to file for an IPO (in my humble opinion), and the times right now aren't exactly great to go public. But, let's face it, an IPO likely is the only realistic liquidity option for Brightcove investors, since it would be challenging to find a buyer to pay the high price necessary to give a meaningful return for Brightcove investors. The company, after all, has raised nearly $100 million. And, of course, it continues to burn significant cash due to its extremely aggressive land grab for global dominance.

Having said that, the overall market for OVP-type services is still in its early early innings. We too play in that space -- and are strong believers. Our difference, however, is that we are not strictly an OVP. Our OVP offering -- Sorenson 360 -- is primarily one component of many that is part of our overall enterprise-focused video workflow solutions. We believe that an OVP offering alone is a tough sell in the long-run.

Industry Guru Dan Rayburn ID's Sorenson Media As a Company to "Check Out" at IBC

Sorenson Media soon will travel to Amsterdam to exhibit at Europe's largest media, digital media and technology conference, IBC. Highly-respected industry guru/analyst Dan Rayburn -- who works for both Streaming Media and Frost & Sullivan -- identifies Sorenson Media as a company to "Check Out" at the conference. Click here for the full pdf, which identifies our exhibit's location at the conference. And, reach out to me personally at bizdev@sorensonmedia.com to schedule a meeting. The team looks forward to meeting you there and expanding our international footprint.

Sorenson Media Nominated for a Record 3 Streaming Media Europe "Readers' Choice" Awards!

I am pleased, on behalf of the entire team here at Sorenson Media, that our overall solutions have been nominated for a record three (3) Streaming Media Europe "Readers' Choice" awards! We took the coveted prize last year for the best transcoding solution -- and that had followed 3 prior consecutive "Readers' Choice" awards (making it a 4-peat). For the first time, our industry-first full Squeeze Server enterprise-grade portfolio of solutions (ie., Squeeze Cloud, Squeeze On Premise, and Squeeze Hybrid) -- launched in the past year -- have been nominated.

Here are our nominations:

-- Best Transcoding Solution -- Sorenson Squeeze

-- Best Online Video Platform -- Sorenson 360

-- Best Streaming Services Provider -- Sorenson Squeeze Server

Together, let's make it a 5-peat! And, help us win in each of these three categories -- these are Readers' Choice awards after all, so it is up to you to vote and make this happen.

Click here for the link to vote.

Finally, Europe is increasingly strategic for us here at Sorenson Media. For those of you who follow us, you know that we just recently opened our first European office in London (manned by Mark Lawson). And, nearly 30% or our overall online revenues are generated in Europe (with London being our single most significant revenue driving city worldwide, outpacing even New York and LA).

Mainstream Media Continues to Ignore Climate Change

I recently wrote about my own climate change "wake up" call as a result of my discussion with venture capitalist Dan Miller of the Roda Group -- who also is an expert on the subject. Click on this link to review that post. Miller's perspectives -- which are based, in significant part, by this ongoing interaction with the world's foremost climate change scientist -- are worthy of real consideration. (FYI -- as a VC -- Dan & Roda have had a string of continuous major "wins", including Ask Jeeves, Solazyme (which recently successfully went public), and my very own former company, SightSpeed (which was acquired by Logitech).

A fundamental problem of utmost concern in relation to climate change, according to Miller, is the mainstream media's continuing turning of its back to the topic. Simply, the media, for the most part, has chosen to ignore the issue -- to the great peril of global consideration and internalization of the true scope of this human-induced climate change reality that virtually every scientist considers to be a reality. Case in point -- page 1 of today's USA Today (the online version of which can be clicked on here). Despite the headline -- "In 2011, record-tying nine $1B weather disasters" -- NOwhere does the article refer to climate change! And, this follows recognition by the writer that, in his words, "Nationwide, the number of natural disasters has tripled in the last two decades."

This example is simply a continuation of the world's collective "head in the sand" on, what many believe, is the most significant issue to have ever faced human civilization (and is happening in real time now). Why? As Dan pointed out before, for many, this issue is simply too difficult for many to even conceptually get their arms around. Bottom line -- instead, the world chooses to ignore it ... until we eventually get to the point where we can't ....

Dumb Pipes -- Maybe Not So Dumb After All?

The brave new world of television and movie distribution -- across the Internet and direct to your mobile device. Over-the-top (OTT) king-pin Netflix is the new reality's poster child. And, conventional wisdom is that Netflix and others of that ilk (Hulu anyone?) will ultimately push aside the traditional business models and video distribution systems of the cable and satellite giants. That big cable's role in the overall video eco-system will be marginalized. That the cable companies will become nothing more than the broadband "dumb pipes" through which the video content of others will flow.

Sounds pretty scary if you are a major cable company or satellite provider, right?

Well, maybe not so scary after all.

In a fairly remarkable interview with The Wall Street Journal, Time Warner Cable's CEO, Glenn Britt, faced these threats head on and -- surprise, surprise -- calmly focused on the growing strategic importance of its broadband business over its video business. And, get this, he doesn't sound scared at all! He accepts the transformational forces and threats Time Warner faces and sounds almost like he is actually embracing them! "How can this be," you ask? Well, here's the thing -- although Time Warner continues to shed pay TV subscribers (as are essentially all cable companies), it offsets those losses with significant gains in broadband subscribers. After all, you need broadband to enjoy the rich premium video content of others. And, get this -- margins for the broadband biz are BETTER than margins for its pay TV biz ... significantly better! (Ryan Lawler of Gigaom points this out as well -- click here to read.)

So, despite all the understandable sturm and drang voiced by many cable and satellite execs -- and despite ongoing cable-sponsored "TV Everywhere" distribution initiatives to counteract the Netflix-ian threats -- maybe content enablement will ultimately be cable's saving grace.

Maybe ... just maybe ... those "dumb" pipes aren't so dumb after all ...

Meet Sorenson Media at IBC in September

23 days and counting to one of the most important media and digital media conferences in the world -- IBC in Amsterdam, which begins on September 8. Underscoring Sorenson Media's global brand reach, as well as our overall commitment to international customers and partners, we will officially exhibit for the first time at IBC this year.

I too will attend and am currently scheduling meetings with both existing and prospective enterprise customers and partners.

To schedule a meeting, please reach out to me directly at bizdev@sorensonmedia.com

Outside Lands Recap -- Score Big for Decemberists ... Weather

San Francisco's 3-day Outside Lands music festival wrapped up yesterday -- closed by Arcade Fire. This was my first Outside Lands which -- although no Coachella -- is a great event (particularly when the weather was as glorious as it was on Saturday and Sunday). Score big for the weather!

THE highlight set for me was The Decemberists -- lead singer is a character and drew the crowd into his theatrics despite the niche/quirky tunes and lyrics. I have been a long-time fan -- now others certainly are. The Black Keys also wowed the crowd (a bit surprisingly, I think they attracted the biggest crowd all weekend). And, finally, I saw Arcade Fire -- which did not disappoint. They too held the crowd. One more highlight worth mentioning -- MGMT singing "Flash Delerium."

The biggest disappointment was Muse. I have seen them 2X before and they have always been epic. But, on Saturday night -- and for no discernible reason -- they fell flat (and not for lack of effort). Had the crowd, but then lost them. The energy was completely lacking. Must have been the sun that sapped the crowd that day.

Outside Lands Starts Today! Arcade Fire, Muse, Decemberists, Shins +++

Like Scott McKenzie (and me), "If you're going to San Francisco ..." today for the beginning of the mega Outside Lands music festival, what a weekend of music it will be. My wife, Luisa, will join me for the first time to one of these festivals. Not a huge fan of massive crowds -- and not nearly as music-obsessed as I. But, she is ready ... she thinks!

My highlights for today are MGMT first and then The Shins to close the night. On day 2, Arctic Monkeys, SIA, The Black Keys and Muse to end the night with a flourish. I saw Muse 2X before -- once at Coachella and later in LA -- and it was the Coachella concert that convinced me they are the best live band in the world in terms of sheer spectacle. Finally, day 3, for me, will be highlighted by Junip, The Decemberists and Arcade Fire to bring the festival to a final close. I missed Arcade Fire this year at Coachella, so this will be a big deal for me. I hear they are great live. But, will they take the crown from Muse?

Stay tuned, I will write my review first thing next week.

What is the Digital Media connection here? Well, social media of course. You likely will be getting some Tweeted reviews at certain points over the weekend.

Online Video Monetization -- Continued Experimentation as Disney Joins Fox

I recently wrote a post about business model innovation in the online video world -- and, in particular, CBS and Netflix's experimentation in that regard (to impressive effect by CBS, which had just finished a highly profitable Q2). Click here to read that post.

That experimentation continues, as media content giant ABC just announced that it would follow Fox's recent lead and substantially restrict the free online distribution of ABC television programming. Like Fox, Disney plans to work with the largest cable and satellite companies to restrict "free" online viewing of its content only to paid subscribers of those services who use authenticated access (note I put the word "free" above in quotes, because, of course, that access isn't really free precisely because they are paid subs). In other words, the MSOs' much bally-hood IPTV-based "TV Everywhere" initiatives are picking up steam at the expense of OTT initiatives like Hulu that previously made much of that content available for "free" without the need for authentication (not I put the word "free" here in quotes, because Hulu and the content companies tried to monetize this viewing via an ad supported model).

This is a big deal -- and definitely represents another blow to Hulu, Netflix and other OTT services. I am definitely not that worried for Netflix, as that company is not monetizing now by offering the latest and greatest (and its customers understand that). But, this certainly does not help Hulu's cause. Hulu, which has been in "play" for acquisition by several major players (including Yahoo!), has seen its free content offerings disintegrate over time due to competing forces of the Old Guard. And, the current stock market swoon -- and shocking drop in value of Yahoo! and other players -- may put Hulu's sale on ice for now (and perhaps a long time) unless it substantially lowers its expectations.

But, does this represent a body blow to OTT approaches at the expense of IPTV initiatives? In the long-term, I continue to think not. Rather, I view this as being continuing innovation by all relevant players to lock down biz models that "work."

The World's Biggest Enterprise (the US Government) Has a "Cloud First" Strategy -- So Should You

I was recently interviewed by media industry stalwart Broadcast Engineering about Sorenson Media's and my participation in a tech industry cloud commission tasked with making recommendations to President Obama and his Administration. Here is the full article text, in which I discuss all the benefits to enterprises of working with a cloud-based solutions provider. Bottom line -- if the world's biggest enterprise, the US Government, has a "Cloud First" strategy (which it does), then so should you ... or, at least you should consider one ...

TechAmerica Foundation, a non-profit lobbying group representing the U.S. technology industry, has put together a commission of company executives and other industry representatives to make recommendations to the Obama administration on the correct deployment and use of cloud computing. It is also recommending the development of public policies that will help drive U.S. innovation in the cloud.

The TechAmerica Foundation commission has also put together a “Cloud First Buyer’s Guide for Government” that makes it easy for any business to intelligently consider the benefits of cloud-based services.

On its website, under the heading “The Cloud is Unstoppable,” the group says that “the U.S. Government is on the brink of a major shift to cloud computing. Like the private sector, the Government has realized that cloud computing can dramatically reduce IT costs while significantly improving performance and accelerating innovation.”

In the past three months, a collection of 71 executives, called the “Commission on the Leadership Opportunity in U.S. Deployment of the Cloud (CLOUD2),” has developed a “cloud computing roadmap” that provides detailed recommendations regarding the optimal deployment of cloud-based solutions across a broad array of government programs and agencies.

The group — led by execs like Marc Benioff, co-chairman and CEO of Salesforce.com; Michael Capellas, chairman and CEO of VCE; and John Mallery, of the Computer Science and Artificial Intelligence Laboratory at MIT — said the roadmap will help guide the federal government’s efforts to adopt cloud computing technologies, and institute policies and practices that “will keep the United States on the forefront of computing innovation.”

Among the 45 companies involved in the TechAmerica Foundation commission are some of the biggest names in technology, such as Adobe Systems, Cisco Systems, EMC, Google, Microsoft, Northrop Grumman and Verizon.

Last week, some members of the group presented its report in person to Vivek Kundra, Federal Chief Information Officer. Commercial-facing recommendations were also shared with Commerce Secretary Gary Locke and Commerce Under Secretary Pat Gallagher.

One of those members was Peter Csathy, CEO of Sorensen Media, a compression technology provider in San Diego, CA. Sorenson Media was the only video workflow solutions company invited to participate on the CLOUD2 commission, with Csathy serving as commissioner and David Dudas, the company’s vice president of Video Solutions, as deputy commissioner for the project.

Since the company’s formation in 1995, Sorenson Media has been at the forefront of video innovation, creating foundational video technologies that established video within Apple Quicktime, Macromedia (now Adobe) Flash and YouTube. Now the company is playing a similar role in the development of video cloud computing by bringing its Sorenson Squeeze encoding engine and related technologies to the cloud with Sorenson Squeeze Server and Squeeze Solution Pack, both enterprise-level cloud-based video encoding and delivery solutions.

“We need to be practical and pragmatic,” Csathy said. “We cannot be ‘pie in the sky.’ A memorialized roadmap moves the government beyond mere pronouncements and into the realm of reality.”

The CLOUD2 Commission has detailed a number of issues surrounding cloud computing, including the thorny issues of system security and fault tolerance. Csathy said they have addressed these issues “head-on” in their recommendations, reports and the “Buyer’s Guide.”

“The bottom line is that cloud-based solutions can be highly secure and stable,” he said. “Much depends on the relevant service provider. As one example, my company, Sorenson Media, already provides cloud-bases solutions for Technicolor and other media and entertainment companies. As you can imagine, extremely high levels of security and stability are necessary when the relevant content is motion picture and television content that costs millions of dollars to produce and must be kept under wraps until release date. We developed innovative new security measures specifically tailored for these needs. Suffice it to say, these levels of security are analogous to the levels of security needed for government cloud-bases solutions.”

Another cause for debate regarding cloud computing is the capacity threshold of the nation’s public or private Internet pipelines to make it practical and support this growing trend. The potentially huge demand has given rise to a host of tech companies that are supporting the “infrastructure as a service” business, including Akamai’s EdgeCast, Limelight and Highwinds, to name a few. According to TechAmerica Foundation, many tech companies have designed infrastructures that can accommodate the required scalability on a massive scale, and they continue to invest to meet the needs of business.

There’s also a need for standards to facilitate interoperability between different systems and networks.

“Widespread standards ultimately will be necessary to maximize the overall realization of cloud-based benefits,” Csathy said. “This will not happen overnight. Right now, the most critical standards to the video production industry should be selection of a long-term video solutions partner with proven technology, as well as proven and long-standing expertise and innovation. [Media companies] have to make a commitment to partner for the long-term, and assess the long-term viability of the relevant chosen partner, so that the specific business is not left in a lurch in the future.”

So, what does all of this talk about the cloud mean to a chief engineer at a local TV station?

Csathy provided three reasons why terrestrial broadcasters should research the technology and explore what it can do for them:

· Cloud-based services will be overseen and driven by an outside expert service provider, thereby freeing you up to focus on your job (and not having to learn an increasingly complex new one)

· Cloud-based services will not require you to pay for and set up expensive servers and infrastructure. In other words, you will only need to pay for what you need. This also saves you tremendous time in establishing the capabilities you need.

· Cloud-based services are far more flexible. The local TV station will be able to benefit from real-time upgrades to the service that mirror new realities in the marketplace, such as video formats.

“Our goal here, in part, was to give businesses a blueprint to follow so that too much pressure was not placed on already stretched IT departments to be experts in everything,” Csathy said. “Cloud-based services should make it easier and more cost effective for the enterprise, not harder.”

Patents -- The New A-Bomb -- Deployed to Crush, Not Foster, Tech Innovation

How many times have you heard someone -- perhaps a venture capitalist -- say that intellectual property (IP) is not a real barrier to entry? Well, that certainly may be true if a patent holder is simply an innovator who naively takes pride in his or her work and assumes the world will respect the exclusivity of that work without the need to tie up the courts. After all, patents are to foster innovation and reward innovators, right?

Well, gone are those days my friends ... long gone ...

Patents -- the very purpose of which was to foster innovation -- are now used to absolutely crush innovation. Somehow, somewhere, the IP world became twisted and patents became THE new weapon of choice deployed by technology companies to destroy their competitors ... not by innovation ... but by sheer brute force. And, in the wake of such destruction billows up a mushroom cloud of waste and IP aggression instead of constructive creativity.

I witnessed this first-hand when I was President & COO of Musicmatch several years ago and we were sued by because a well-known company, from whom we licensed technology, didn't like the fact that we chose to develop our own solution -- independently and from scratch -- when they offered us a deal we COULD refuse (because, quite frankly, their final terms were wholly unreasonable). This firm, which essentially held a monopoly position for the particular kind of service at the time, didn't like our answer so they tried to force the answer they wanted -- they sued us for patent infringement. Of course we didn't infringe, but we had to prove that in court -- which we ultimately did, but only after millions and millions of dollars and years of litigation (where not only were we completely vindicated, but we also established serious questions about the legitimacy of their own IP). Just think of the waste! Musicmatch wasn't THAT big! Those millions upon millions could have been spent instead to create jobs and foster innovation that benefited our customers. Instead, those millions were paid to lawyers ... and for what? The "bad guys" in this scenario got nothing out of it in the end! We kept using our own independently created alternative solution, and they ended up being bruised and battered.

The stories go on and on ... patent trolls are hiding everywhere. Tech companies beware. At a certain point -- if you cross the threshold of deep pocket "interest" to patent trolls -- you WILL be sued. Not a question of if, but rather when. Legitimacy is not the goal here. Pure vacuuming of cash.

And, this brings us back to today. THE tech titans -- Apple, Google, Microsoft -- all kings of innovation in the minds of many of us. But, like the company in the classic Dr. Seuss tale "The Lorax," each of these companies seeks to get biggerer because biggerer it must -- that is all it knows. That itself is not the real problem. Rather, many believe that each of these companies will stop at nothing to achieve that goal. So, when all else fails in their knock-down drag-out battles, what's next? Yes, that's right -- the patent. The patent started with such humble beginnings, but certainly it ain't humble no more. Apple and Microsoft -- odd bedfellows to be sure -- just recently acquired the Nortel patent portfolio because of what many believe is their mutual disdain of Google. Conventional wisdom says that this was done to blast back the ongoing march of Android. Patents are Apple's new "A-bomb" if you will -- especially in an out-dated enabling IP law world that cannot keep up with technology. It's one thing to innovate and establish bona-fide patents. It's quite another thing to simply buy patents to stockpile weapons.

What's next? More and more patents ... hence the clamor for the acquisition of new massive patent portfolios. This is, plain and simple, an arms race -- those companies with the most cash will stockpile more weapons. But, the primary difference here from the days of the US/Soviet cold war is that these patent weapons WILL be used. So, if Apple successfully acquires new patent portfolios -- which many believe it will (at a price tag of billions upon billions) -- Apple's A-bombs WILL be deployed to block competitive innovation. This is how Apple seeks to "Think Different" in its fight against Google.

Just think if those billions, instead, would be used to fund new jobs instead? Ahh, what would the Swomee Swans, Barbaloots and Lorax say?

(For more perspective in this regard, click here to read a great post from TechCrunch that was published just this past weekend -- what's fascinating is that I had already written much of my post, a similar perspective, when I first read the TechCrunch post. I am not alone here in bemoaning the current state of affairs ...)

Media Giants, Yes We Can! -- See, You CAN Monetize Content Online

Calling all doubters out there -- yes, media companies can actually effectively monetize content in the brave new world of online distribution! 'Tis true that old biz models are crumbling. And, yes, that is downright frightening if you are a producer of premium content. But, as a result of continuation biz model experimentation and optimization, monetary rays of light are beginning to shine through and give hope to the old guard media giants.

Case in point -- CBS just announced Q2 2011 results. And, guess what -- online licensing deals were a significant reason for a significant JUMP in profits -- a 2X jump to be exact according to the Wall Street Journal (nearly $400 million of net income for the quarter). CBS's licensing deal with online distribution giant Netflix was a primary driver of these significantly juiced online revenues. But since CBS's deal with Netflix is not exclusive, there's significantly more money in them thar online hills (Amazon, Google, Apple, Vudu anyone?).

The conclusion? Well, I am an optimist. I have always believed that "If You Produce Desired Video Content, Effective Monetization Will Come!" CBS is seeing that happen now in real time.

These are early data points to be sure, but via continuous biz model and pricing experimentation (I recently praised Netflix for its own pricing experimentation), the monetization light will burn ever brighter. In a world where consumers conceptually should be able to access their desired video content on demand -- anywhere and on any device -- producers of desirous content now have so many more ways to find their audience and be seen.

Check Out VC The Roda Group -- Exclusively Focused Now on Climate Change -- My Interview

Yesterday, I wrote about Berkeley-based venture fund The Roda Group led by Roger Strauch and Dan Miller. The fund has a phenomenal record of success -- and I am proud to have led one of those successful companies (video chat leader SightSpeed, which was acquired by Logitech). My post was written just prior to my meeting yesterday at Roda and with Dan.

In a wide-ranging meeting in Berkeley, Dan and I caught up, reminisced and I gave him an update on developments in the video world and my time at Sorenson Media. Dan is an extremely successful and talented man -- who has many interests. But, his top priority is climate change -- and he is a leading, internationally respected activist in that realm. And, suffice it to say, what Dan sees -- based on interacting regularly with the foremost global experts on climate change -- ain't pretty. It's beyond sobering. And, we are seeing those very real disturbing impacts of climate change as we speak -- look at the record heat wave in the U.S. right now. We are in the dust bowl days in Texas again. At the same time, look at the concurrent record flooding. And, of course, the worst tornadoes on record earlier this year in the U.S. And, that's just the U.S.! Yet, we all -- as a society -- continue to essentially place our collective heads in the sand about this indisputable truth which is beyond "inconvenient." It is essentially incomprehensible. Yet, we must do what we can to comprehend it. And act on it.

So, what do Dan and Roger -- and all of The Roda Group -- do to act on it? Apart from being respected experts on climate change who use their time to educate and motivate, Dan and Roger have shifted the entire emphasis of their fund to act on it. Previously, The Roda Group's portfolio was eclectic -- simply investing in great revolutionary technologies ahead of others. And, they succeeded beautifully. But, it ain't all about money to Roger and Dan -- it is about passion -- it is about giving (they are major philanthropists as well) -- it is about what matters most. And, that is life itself. And -- here's the added bonus -- there are tremendous investment opportunities to spur solutions to the cataclysmic forces in our amidst. So, The Roda Group's focus is now as follows (this comes directly from the firm's website):

"We look forward to investing in, and supporting, extraordinary people and businesses that address the issues associated with climate change, the increasing demand for low carbon energy, and the stress on the Earth's natural resources. We believe innovative solutions to these global challenges will benefit society and offer outstanding investment opportunities."

Here's the thing -- as I discussed in yesterday's post -- The Roda Group already has scored a massive success on both goals by having led the investment in renewable oil company Solazyme (which just recently went public and now has a near $1.4 billion market cap). You should check out this revolutionary company that offers so much promise to us all -- click here.

I am also proud to say that Dan considers my former company SightSpeed to have been The Roda Group's first climate change-related investment. How? Because video conferencing can minimize the need for business travel -- fewer planes, trains and automobiles. I know this is true because I lived this both at SightSpeed, and also at Sorenson Media (the company I now lead). We use video conferencing to great effect to reduce our need to travel as regularly as we otherwise would. This is real stuff. It works.

I plan to write more about The Roda Group on an ongoing basis -- as well as my further personal journey learning more about climate change. I have a wife. I have two kids. I need to know much more than I do today. I need to have perspective -- real perspective -- because we certainly ain't getting it in our day-to-day lives from Washington, D.C. -- or from the traditional media.

And, I believe that holds true for society in general.

Bravo to The Roda Group for being on the forefront for both advocacy, but also for solutions-focused entrepreneurialism. Massive opportunities exist addressing needed change. And, we all ultimately will benefit for generations to come ... assuming we, societies, get on board and follow that kind of leadership.

The Roda Group is worth following. It is worth checking out. They are good people on a mission. And, if their past track record is any indication, they -- and their investors -- will have future massive successes that can also make them feel good that they have made a real difference with the most significant issue that has ever faced human civilization. Sounds incredibly dramatic, I know. But, that ain't over-stating things a bit.

Even that is an understatement. But, we simply haven't been able to wrap our heads around it precisely because it is THAT dramatic ...

The Long & Winding Roda (Group) in Berkeley -- A Trip Back to Memory Lane

I am writing this from the San Diego airport -- ready to take the Southwest bus to Oakland -- a jaunt I took for several years when I was CEO of IP video chat leader SightSpeed. SightSpeed -- which was acquired by Logitech in late 2008 -- was backed by Berkeley-based venture capital firm The Roda Group. Roda is essentially Roger Strauch (hence the "Ro" in Roda) and Dan Miller (hence the "da"). And, the bonded name represents a personal and professional bond the two have had for years -- many many years -- back to college.

Never heard of Roda? Well, you should get to know them. Their track record and overall slugging percentage as VCs is second to none. They have had massive wins with companies like Ask Jeeves -- and they have had many other significant wins with companies like SightSpeed. And, their latest victory is with bio-based/algae/renewable oil pioneer Solazyme, which just recently went public at a healthy premium to all Roda investors (the company is currently trading at about a $1.4 billion market cap). Roger and Dan also are great guys -- smart, very smart. Successful, very successful. Great mentors, great entrepreneurs, and great and generous philanthropists who give both their time and their money.

I will meet with Dan and the entire Roda team later this morning -- including Saralynn Nusbaum and Janine DeHart who help make it all possible. I will return to the offices on Parker street in Berkeley. And, I will visit the place that I called my professional home for about 3 years -- which I have not visited for about that same period of time that I have been running Sorenson Media.

A trip back to Parker Street (memory lane) in Berkeley ... will be fun.