Entriq COO answers questions about the evolving landscape of internet TV.
Scott Crowder is a veteran in the digital media space and chief operating officer at Entriq, a provider of enabling technology and services that allow companies to monetize their content. Entriq's MediaSphere platform offers an end-to-end solution for clients including state-of-the-art content management, security, commerce, and tracking to ensure effective distribution to millions of new and repeat customers.
iMedia: Everyone today is talking about "content." Why is content all the rage?
Scott Crowder: It drives emotion in people. When you think about some of the TV shows out there -- "The Apprentice," "Survivor," "Big Brother" -- it's something that brings families together. Plus, it makes for great conversation around the water cooler. New developments in content delivery are having a profound affect on the way people live. Who ever thought we'd be able to stay current with our favorite sports team via video delivery on a mobile phone or online? People can now enjoy content in a timeless, non-linear manner virtually anywhere.
iMedia: What is IPTV, and how is it revolutionizing the way content is reaching consumers?
Crowder: IPTV or internet protocol television uses a digital broadcast signal to deliver TV, movies, sports programming and other popular content to consumers' television sets. A set top box connected to the TV converts IP video into standard television signals. While IPTV greatly expands the control which consumers have over the content they see, people are still limited by the content their telco or cable providers offer. IPTV should not be confused with internet TV, which is defined by the thousands of TV channels that consumers can now access directly through their web browsers. With internet TV, people find desired content without using a middle man to convert the signal. The traditional model of standard linear programming is antiquated. Both IPTV and Internet TV give control to consumers so they can now watch what they want, when they want. The major networks and media companies understand the massive opportunity here which is why they're offering their most popular content online for purchase and through Video on Demand (VOD) services. Through these paid delivery channels, broadcasters are able to significantly grow their revenue streams beyond the standard ad supported models. Marketers will find increased opportunities to leverage this digital content as more dollars shift to the Internet.
iMedia: How long until IPTV or similar forms of content delivery are pervasive?
Crowder: IPTV is rolling out across the USA primarily through Telco trials and is already in several countries throughout Europe and Asia. Internet TV has been available for the last few years and has generated strong momentum in the last few months. Still, there continue to be two primary obstacles which stymie growth in this industry. 1) Companies that possess content aren't necessarily in the business of serving it, and the myriad challenges presented by new technologies can be daunting. These companies need to find a strong technology partner to usher them though the process of converting, placing, monetizing, and tracking content.
The second obstacle has to do with consumers not being able to access Internet TV using their existing OSs. Companies like Intel and Microsoft are working to make technology easier and more accessible to the average consumer with operating systems like Media Center Edition and devices that connect to standard and high definition televisions. With these efforts, we will see mass adoption in this space by both content providers and consumers in the next two years.
iMedia: What can large content companies do today to monetize their existing and back-logs of content? Who is already doing this effectively?
Crowder: Large content companies should focus on repurposing their existing content for online and mobile distribution, as consumers' consumption and behavior patterns are changing quickly.
The basic steps for monetizing existing content is to convert their libraries of content into a digital format -- typically Windows Media, -- and develop a relationship with an Application Service Provider that can manage the end to end components of enablement such as content management, security, business rules, payment processing and content delivery. Companies like MTV, Major League Baseball, World Wrestling Entertainment and Viacom have been providing online content for a while with great success, using both pay and ad supported business models.
iMedia: What can these companies do to build a back-end infrastructure for effectively delivering and monetizing content?
Crowder: Companies can build back-end infrastructure on their own… but I wouldn't recommend it. It can take up to a year to build a basic in-house system creating serious time-to-market issues. Delivering, monetizing, securing, and tracking content can be a complex process to the uninitiated as it requires constant maintenance and attention to technology growth.
Some of the largest media companies today realize that their core competency is content not technology, and therefore work with service providers who can help them get their content to market fast. I would recommend an ASP to do the heavy lifting; one that offers an end-to-end solution consisting of state-of-the-art content management, security, digital rights management, commerce, tracking and reporting capabilities to ensure effective distribution over all channels. Find a service provider that understands pay media who will work with the business owners to hash out business models, delivery options and make sure they have all the necessary components to get their digital stores up and running-fast.
Typically, these service providers cost a fraction of what it would be to build an in-house solution. ASPs typically make money through revenue share business models, so companies can have live content over the course of a month or two with very little upfront costs and ultimately pay the ASP when you make money.
iMedia: What are the greatest challenges or barriers to entry for these companies?
Crowder: Simply put the biggest challenge for content providers is time to market and performance once you get to market. Content owners want to make sure their system is up and running quickly and their content is safe and free from piracy online. Finding the right company to meet their objectives can be difficult. We understand this, and so these are the attributes we incorporate in the Entriq system.
iMedia: What kind of growth can we expect in this space in the coming year? How about five years from now?
Crowder: Early adopters have been testing the waters for the last few years. The companies who are on the sidelines are now coming around to realize this is a crucial part of their business. Over the last six to nine months we have seen tremendous growth in the amount of companies who want to bring their content online across broadband and mobile channels.
According to Yankee Group Research mobile entertainment alone is forecasted to be a $4 billion opportunity in 2008. Bottom line: If you don't have your broadband and mobile strategy now you are behind the eight ball.
iMedia: In addition to consumer entertainment, what other applications do you see for content delivery and its use moving forward?
Crowder: Because we can encrypt and control the consumption of content through the Entriq system, additional business and medical applications can now also be conducted in broadband. A business can also use on-demand content delivery for staff and customer training; a doctor or nurse can use the system to offer consultation; and pharmaceutical companies can use the system for training and product information.