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(ie in what order did the parts come together…advertising network, content, ad technology…syndication) Where do you get your people for the content? Is this the focus of the biz going forward? Syndication network? "brand and direct respone advs?" What kind of sites are in the ad network? Ad formats? Do you see an interest in format compatibility from the advertisers? What is holding back video advertising? -We are the largest bband network. Aggregate over 2k sites, 50M unqiue viewrs according to comscore… -sell online vid adv -syndicate content (lic and og) -og content -technology company "CDE"…contextual distro engine 10 yrs ago at CBS…fortunte of working at the same time as MB brought in Survivor. Adv looking us in the face and saying this will never work. What was great about being a part of that…oversaw digital sales and put casting tapes online, were essentially sending a video hub for program. That is what caught the fancy of the biggest adv…head of ford motor media…wanted to create a huge partnership around online video aspect. Talked about delivering 10s of M to do it. That was when I saw the vision. (novelty of seeing video online…but for Survivor, providing something we couldn't get on TV…extending program franchise. Noone was under the misconception that they would rather watch Surv on the computer…but bg was a really valuable extension.) We all knew it was coming. A bunch of CBS ppl defected and started the feedroom. BBE sought to bring scale to the market. Adv wanted to put the money online, they were looking for ways to do that, lacked scale, ease, efficiency. Video centric sites…break them down at the national and local level…within out network, CBS, Fox, Disney, Viacom…major media companies who have props online whose core component is video. At local elvel, we work with tv's, newspapers and radios…clear channel, cox, tribune, belo, net and fisher. Fox news, lycos, comcast…
(demo?) Steer away from the user gen component. Some reluctance with that programming. Premium content, in many cases repurosed content. Made for broadband content… sports, lifestyle…the type of categories we find ourselves watching and consuming on TV are driving the broadband industry. Most of the F500 advertisers have expressed concern over the viral marketplace. It's gonna continue to depress the UGC market as more of the major media companies get mature and savvy to online video, they're going to be presented to the marketplace…guy singing in the shower on YT v. professional content…I think the choice will be clear. -One of the things we've done to drive the ind forward is give the adv the opp to buy content and buy context. They provide us with the site they want the prog to run and the assoc to run…they cut through the clutter of not being aware…tell us on a site by site. If there's that threat of the association…(it's more about the site than the content itself). -2008…wealth of content moving online… '06: cubefabulous. Formatting well for the web, all about ppl in their offices, where they're watching the stuff. Sponsors including AOL, Honda, Monster, Staples…200 M streams, 25 M uniques. Case study to go into the market. Broadband upfront in May… two are running and sold third. Validates this evolution to online content. What the advertisers are looking for and what consumers are looking for. Noone's suggesting that YouTUbe is going away…YT is the de facto network and prob will be for a long time. They built their viewership on ugc…will evolve…not the only game in town. Our network, by virtue, has as much viewership as YT. They are 60 M uniques, we are 50 M uniques. Nobody knows where that next big hit is going to come from. (B) Something else the think abuot is the frustration that exists between the major brands and studios and YT…the piracy issues, the rights issues…all of the lawsuits in play right now are slowing down YT becoing an accredited outlet…as companies create new shows online and viewers become aware of videos elsewhere. Fragment market away from YT. (M) Approach to the market based on algorithms…programming is furthest from a science, rather an art. Agree with B, next big show prob not gonna be on YT. (bet on content ppl picking content)
B: Not gonna standardize anything too rigidly at this early stage in the game. Too much to experiment with and learn from. We see the issue being one the TV buyers wanting to play some key roll in all this and they're not making it easy for the dollars to flow freely into broadband video. (Standariztion) We have a CDN relationship with Limelight…assets on the CDN servers, then we distribute Rss 2.0 (xml), with instructions for the site video player as to where to fetch the preroll unit. Also contains pixels to track…and click through urls. All of that is exectued in a notepad document…they ingest that XML…player takes over and dynamically communicates with the server farm. Server and player agnostic. We're integrated with al the major video players out there…brightcove, roo, msn. -(syndication) Worked closely with some of the video egg sites, talked to metacafe, but haven't distribuetd our og content for reasons we spoke of earlier. There's a still some general reluctance in the marketplace for associated unsavory programming. Looking to get a deal with myspace. B: one of the early activists in the broadband upfront marketplace. Last year in may we had our first annual upfront, rented out the nokia theater…invited 300 distinguished ppl from the industry and presented our original programming line up, and intending on doing the same thing in '08. at the point where this has become a meaningful business, and we feel like we're in line with the major players in the space. The only indie level operating at that level.