Broadband Video is Blooming

It's hard to believe how much has happened in the broadband-delivered video space in the year and a half since I started this e-newsletter. In particular, things have really heated up in the past six months as broadband has been recognized as a legitimate platform for video distribution and a key ingredient in all media business plans. This has happened because people understand that broadband allows unparalleled targeting, sponsorship and engagement opportunities at a very low (relative) cost.

As a result, a host of new companies are being drawn into the broadband video market. Since it is difficult to keep track of all this activity, this month I'm providing a short summary of some recent and notable broadband video initiatives. To be fair, I wasn't even initially aware of all of these, but thanks to a wide circle of colleagues in the industry, I get a steady flow of announcements, news blips and "in case you missed it" emails. Note this list isn't comprehensive, so no offense is meant if your company's initiative isn't noted here!

I fully expect the pace of broadband video activity to accelerate. There is a mad scramble of experimentation underway, but once some benchmarks are established, activity will coalesce around a few key models. Until then, everything is up for grabs.

Following are some activities that I think are worth noting:

Google, Yahoo, MSN, AOL, Apple — Our firm calls these companies the "Group of Five" (see our most recent report), as these online behemoths are best-positioned to become next-generation, broadband-centric video distributors. Recent announcements have included: Google launched video ads for its AdSense network and a special promotion in Google Video Store for "The Break Up", Jennifer Aniston's new movie. Yahoo announced a deal with "60 Minutes" and launched a preview using Ed Bradley's interview with Tiger Woods. MSN announced its "MSN Originals" initiative and a deal with Reveille's Ben Silverman, producer of "The Office". AOL announced that it acquired Lightningcast to better monetize its broadband video streams. And of course Apple continued building its roster of programming partners, announcing deals with Fox Entertainment, Discovery Networks, MTV Networks, Showtime and CBS for March Madness highlights.

Cable Programmers — Cable programmers have ramped up their launches of "broadband channels" to create new video-rich destinations for their audiences. Cable programmers and their recently announced or launched broadband channels include: Scripps Networks (HGTVKitchenDesign, HGTVBathDesign and DIYWoodworking), USA (CharacterClique), Discovery Networks (the "Beyond" series for its major networks and the "Turbo" motor channel), Starz (Vongo), BET (BET On Blast), SciFi (Pulse), SOAPnet (SOAPNETIC), Bravo (BrilliantButCancelled and OutZoneTV with PlanetOut.com), E! (The Vine @ E!), CMT (Loaded), The N (The Click) and Cartoon Network (Toonami Jetstream).

Other cable programmer broadband video initiatives have included MTV (dual screen experience planned for the Video Music Awards on MTV Overdrive), Disney Channel (multi-lingual versions of certain programs only available on broadband), History Channel (HistoryOnline plus new broadband channels planned), Logo (LogoOnline launch), YouTube's and E!'s partnership for the Cybersmack contest and finally, CSPAN (upload to the Google Video Store of comedian Stephen Colbert roasting President Bush at the White House Correspondents Dinner).

Broadcasters — The major broadcast networks have been eager to position themselves as being multi-platform to exploit all new forms of digital distribution. At the recent upfronts CBS launched Innertube (a collection of new broadband-only programs) and NBC unveiled DotComedy (user generated video, classic comedy, prime-time and late-night clips) and its "First look" series for each of its channels (where premiere episodes will be shown). Meanwhile ABC recently debuted its free ad-supported trial at ABC.com (programs include "Lost", "Alias", "Desperate Housewives", "Commander in Chief"), while Fox, in addition to its iTunes deal, also began selling "24" downloads at MySpace.com.

Everyone else — Readers of this e- newsletter know that one of my strong beliefs is that broadband is opening up opportunities for early-stage, niche video programmers (much like cable TV once did) as well as established, non video-oriented media companies (e.g. print media, online publishers, etc.) who want to extend their brands into video. There's also an opportunity for consumer product companies to stake a new claim in video that goes well beyond standard ad units.

There's lots of energy going into the niches, including the irreverent Rocketboom with Amanda Congdon, JumpTV (foreign language programming), The Open Student Television Network (collaborative of college student-generated video), Green.tv (environmental issues, sponsored by the UN), a couple of Narrowstep-supported efforts, SailTV (sailing and water sports) and Usamass.tv (tourism channel for state of Massachusetts), and a passel of Brightcove-supported channels such as Farmers Almanac TV, Toga TV (from National Lampoon), Equitrekking, and MomMe TV.

It is also very encouraging to see broadband video distribution to the TV starting to take hold, as well as deals by broadband ISPs to promote video as a service differentiatior. Supporting this trend are DirecTV's announcement that it will augment its subscription TV service with thousands of broadband video titles, Brightcove's partnership with TiVo to distribute Brightcove's channels to TiVo boxes, and TotalVid's partnership announcements with both AT&T and Verizon.

Further, plenty of established media companies are now extending their brands into video. In this category are online publishers like About.com, web sites from large and small newspapers (e.g. NYTimes.com, USAToday.com, RockyMountainNews.com, MiamiHerald.com), a wide variety of magazines' web sites (e.g. SI.com, Forbes.com, BusinessWeek.com, MaximOnline.com, FHM.com and New Yorker.com, which recently offered a one-hour video interview between Ken Auletta and Terry Semel). Commerce sites like Buy.com, which recently launched BuyTV, have jumped in, with other large commerce sites sure to follow soon.

Finally, consumer product companies are exploring how to use broadband video in their own newly-created channels as well as on their sites. Land Rover launched "Go Beyond", a channel that is heavily branded. Nike and Maven Networks use only light branding on their new channel "JogaTV". And Coldwell Banker has recently added video (powered by The FeedRoom) to its web site from partners such as Fine Living, HGTV and Forbes as well as originally produced video, all intended to help users better understand the real estate process.

Stay tuned — there's plenty more broadband video soon to be launched. Perhaps even right here at broadbanddirections.com.