1. December 4, 2008
STREAMINGVIDEO
A look at today’s streaming media technologies
By: Madeleine Ehrnrooth
1

2. CONTENTS
December 4, 2008
STREAMING VIDEO Product Demos and Training
Customer Service and Support
Streaming Media and Applications 3
Technical 8
Facts about Streaming Media 4 Online Video Means of Distribution
Streaming Methods
Content 5 Streaming Formats
What Content Works Delivery Methods
How People are Consuming Content
Attracting Viewers Measurement: Tracking and Analysis 12
Trends 6 Cost Assumptions 13
Vertical Integration
Cost Effectiveness 15
Synchronized Content
Deployments in the Workplace Challenges and Opportunities 16
Viral Video
Recommendations: Now and Later 17
Applications for Business 7 Getting Started
Advertising/Branding/Marketing Looking Ahead
Campaigns
2

3. STREAMINGVIDEO
December 4, 2008
A look at some
of the trends and
benefits of using
Streaming Media
Solutions for
business
Streaming Media and Applications
An Effective Business Communication Tool
By Madeleine Ehrnrooth
Streaming Video is widely used on the and continues to receive data ahead of distributing video content as viewers can
web to play video clips and video time without storing the file permanently avoid waiting through long download
broadcasts. Unlike movie files, that on the clients computer. Delivering digital times.
require a file to be downloaded and video to viewers in real time, streaming
stored onto the destination computer, video has become a popular method of When deciding to stream video content
streaming video is received by a buffer there are three important preliminary
questions to ask:
Will the content be live or
prerecorded? Who is your target audience? How to measure ROI?
Depending on the nature of the content It is important to understand who your While the details of reports provided by a
of your webcast, you may be required to viewers will be, where they will be service provider vary, essentially
broadcast live. Live-streams are more accessing your broadcast from, and the information on how many people
expensive and are technically more times they will view your webcast. These watched your broadcast and the length of
complex than simply recording and factors are not only important when time they viewed will be measured. In
archiving content. creating your content but also may impact Addition, qualitative research is key to
the cost of the webcast. understanding user needs.
3

4. Facts about Streaming Media
STREAMINGVIDEO December 4, 2008
Online viewers watched an average of 158 In the same survey, web conferencing and web
minutes of streaming video per streamer. casting held 40.3% and 46.2% of
business usage [Figure 2].
Nearly three out of four (74.3 percent) U.S.
Internet users streamed video online. The average video stream duration was 2.5
minutes.
The average online video viewer consumed 63 video
streams, or more than two per day. More than one out of three (35
percent) U.S. Internet users streamed video on
According to a survey conducted by YouTube.com.
StreamingMedia.com and the Aberdeen Group,“74.1%
of business and personal users access streaming media at “Men aged 18 to 34 were over twice as
leasttwo or three times per week [see Figure likely to check out user-generated video sites as
women, with YouTube being their number one
1]. (Rayburn, 2004)”
Overall Online Video Usage: US Home & Work, July 2008
Reference:
Comscore Video
Metrix Report, Unique Viewers 119146000
May 2007.
Total Streams 8526733000
Streaming Media
Report,
Time Spent Viewing Per Viewer 170.5 minutes
4

5. STREAMINGVIDEO December 4, 2008
Content
“74.1% of business and
personal users access
streaming media at least
What Content Works?
The subject matter and production two or three times per
value are less important than the week.”
reliability and quality of the online video StreamingMedia.com
being offered. While there is no formula and Aberdeen Group
to predict which content works and what
doesn’t, certain types of online video
have been “sticking to the wall” so to
speak. Content that is tied to things
audiences already enjoy such as after
shows for popular television programs
have proven popular. Videos that feature
interesting and charismatic personalities
have also attracted viewers. Personality
has been a strong driver for podcasts as
well. According to Ceo of Revision3
online media company, Jim Louderback,
“whats really important is to find people
who have a proven ability to create
communities around their interests.”
Louderback goes on to describe some of How People are Consuming insight from their viewers. When setting
these personality traits which include up your online video environment you
Content
being an expert in the subject, and want to create a place that gives the
What separates traditional media from
having passion and enthusiasm for what viewers the ability to provide feedback
online media is the ability for audiences
their talking about. The most important and make them feel like their voices are
to interact and provide feedback. This
thing to keep in mind when producing being heard. When producers
notion gets back at the importance of
online video is to build your content communicate and connect personally
catering videos to your audience. Viewers
around your audience and where they with their audience, it has a tendency of
are seeking out what they want to watch
are. Online video tutorials and tips have driving up viewership. The lesson here is
and are enjoying engaging in a two-way
been successful at initially establishing an when producing for the web, one must
stream of communication the online
audience. The producer then after environment provides. On the other side, always keep in mind the elemental
capturing a loyal audience has been able difference between online and traditional
content producers are better able to
to broaden the scope of content to attract media, which is the ability to
appeal to their target because they are
new viewers. receiving direct and immediate input and communicate.
Attracting Viewers ability to attract new audiences
depending on its scope. Broaden the
Online content has gained viewers for scope and you will broaden the type of
various reasons. However, the actual audience, however when doing this you
content is the variable least responsible must be careful not to stray from what
for achieving reach. As stated by Geoff appealed to your original audience.
Daily in an article in Streaming Media, When trying to build an online audience,
“It is not so much content that drives the best way is to distribute through
success in online video as it is distribution multiple channels that bring viewers back
and syndication.” After identifying your to your site. Referring back to the idea of
audience, the first goal is to retain your feedback, serving broader audiences and
current viewers by simply providing them reading their comments can provide
with what they are interested in. useful information about who your
Depending on what your goals are, you audience is and what content works (or
Reference should strive to make your site the “go-to doesn’t work) for viewers. These broader
Streaming Media Magazine, destination” for that subject matter. mediums, to name a few, include:
October/November 2008 Adding new content while keeping the YouTube, Veoh, Viddler, Myspace and
interest of your current audience has the Metcafe.
5

6. STREAMINGVIDEO December 4, 2008 Viral Video
Veoh, Break.com, and MySpace Video are popular destinations
for posting and viewing user generated content. According to
Trends Nielson, these sites are popular due to the viral nature of user-
Streaming Content is less about premium content and being generated video. "With shorter clips and a viral nature,
used more as a cost-effective business tool. The most common [Consumer Generated Media] Web sites are much more about
video’s streamed online include: Product videos, allowing discovery, and consumers are likely to view content on more
potential customers to learn more about a product before than one," said Nielsen Online's Michael Pond.”
buying; Instructional videos (a.k.a distance learning) that teach
users about a topic; and entertainment including movies,
television shows, short clips, or home videos. The leading trend Case Study: Car Dealers Success with Viral Video
however, in the application of streaming video technology is to
educate, instruct, and inform both internal and external players In reference to an article in Advertising Age by Jean Halliday,
of enterprise corporations [Figure 2, p 2]. automotive dealers have been “embracing web video as a
marketing vehicle to entertain, inform, and sell.” According to
Vertical Integration Larry Pryg, national marketing and ad manager for General
Corporations are converging streaming media with other Motors Corp.’s certified-used-auto business, their websites with
standard communication technologies establishing it as an video are “twice as likely to generate calls or e-mails from
effective, vertically integrated, business communications tool. shoppers to dealers than without.” The types of videos featured
While web conferencing and webcasting have become the most have included customer testimonials, showcases of models,
popular uses, corporations are applying streaming media in a introductions from the dealers, and even a popular tell all that
variety of ways including: video emails, product has become viral called “The Seven Ways Dealers Screw You.”
announcements, distance learning, meetings and collaboration While vehicles sold have not been able to directly correlate with
sessions [Figure 2, p 2]. number of video views, they have increased “stickiness” of
automotive sites making visitors stay longer.
Synchronized Content : Interactivity, real time
feedback
Interactivity is currently popular in video streaming, providing
viewers the opportunity to be engaged in a two way stream of
communication. Customer assistance has been improved as
customers can access online operators with face to face Reference:
interaction through live web conferencing. Additionally, Halliday, Jean. Car dealers learning art of viral video; A
interactive video streaming has consisted of business meetings quarter now use the tactic for its low cost and fast,
or presentations to live events such as sporting events or rock easy measurability. Advertising Age 0001-8899 Sept
concerts. Afterwards providing a chat forum allows viewers to 29, 2008, v79 i36, p3 (2008). Retrieved by InfoTrac
exchange communications with one another and contribute
real time feedback about the content.
Deployments in the Workplace
Streaming media is being used in the workplace to supply
corporate training, provide distance learning and is even
serving as a marketing vehicle. Used for marketing and sales,
Reed Exhibitions, a marketing firm, records its conferences and
broadcasts them after the event. Streaming video has also been
effective at educating prospective customers about a firm. In
the UK, nearly 80% of quoted companies feature live webcasts
with their financial results for investors and analysts.
Deloitte has created a library of training sessions that are sent
to the desktop of the trainee and viewed at their leisure.
Similarly, pharmaceutical giant Novartis implements video
streaming technology to communicate with each of its
employees. Instead of having its own television station,
webcasts are affordable and effective as a PC with internet
access is all that is necessary to reach employees.
6

7. STREAMINGVIDEO December 4, 2008
“When producing for the web, one must
always keep in mind the elemental
difference between online and traditional
media, which is the ability to communicate.”
Reference: Larry Bouthillier & Tim Napoleon. “Streaming
Media’s Success Story”. Enterprise Streaming Solutions
2004. Retrieved December 3, 2008, from
http://www.streamingmedia.com
Streaming Media
Applications for Business
Advertising/Branding/Marketing
Campaigns demos and added functionality, streaming media is an effective
Streaming Media can effectively be used to acquire new tool used to improve websites.
customers and establish brand identity. DoubleClick* reported
that “ in Q1 2004, click-through rates for rich media web site Customer Service and Support
ads are four times those of traditional static-image (.gif, .jpg) The solutions streaming media provides for improving
ads.” Data also proves that “rich media delivers [as] conversion customer service and support serve both enterprises and
rates for rich media ads are 2.30%, fully half-again the 1.47% customers. By featuring tutorials and explanatory video clips
conversion rate for static ads” (Bouthillier & Napoleon). for frequently asked questions, call-center waiting times can be
significantly reduced. Not only is the customer phone support
Product Demos and Training experience enhanced, but costs can be cut by reducing the need
Effectiveness for a large call center staff. Web Chat can also provide
customers with face to face interaction making customer service
Online consumer shopping behavior has become more
more personable ad helpful.
“sophisticated” according to DoubleClick SiteAdvance Web
analytics data that shows “ they are spending more time on web
sites, looking at more pages, using search functions, more
frequently” (Bouthillier and Napoleon, 2004). The * DoubleClick is the leading provider of solutions for
opportunities are endless when it comes to creating interactive advertising agencies, marketers, and Web publishers to plan,
site features using streaming media and flash. Considering the execute, and analyze their online marketing programs.
positive response by end users to its application for product
7

8. Technical
STREAMINGVIDEO December 4, 2008
What Components are Involved
Online Video Means of Distribution
There are 4 standard methods of delivering video online: “You can either operate your own
CDN, peer to peer, streaming, and progressive download. server through purchase or lease, or
Other methods include TV Contribution and Multicast. sign up for a hosted streaming plan
As this literature is concerned with streaming video, let’s take with your Internet service provider.”
a look at the technical components of streaming. The
technical resources selected are the key influencers of cost and Content encoding - a process for converting video or audio
complexity. Essentially there are two main things to consider into small digitized packets for network transmission
when streaming, the streaming method and streaming format.
Before getting into a more technical realm, the following are a Delivery or distribution - Streaming methods
few things to bear in mind.
Website interface integration - Embedding streaming
Audio and/or video capture there are 4 formats to video to website
Streaming Video: Real Media/Quicktime, Windows Media
(WMV), Flash Media (FLV), and MPEG4/H.264. Streaming Methods
Storage - files are measured in megabytes, gigabytes,
terabytes etc. Storage size (in megabytes) is calculated by Streaming with a Web Server
multiplying the length (in seconds) by the bit rate (in kbit/s) After creation, the audio or video file is compressed into a
and dividing that number by the product of (8*1024). See single “media file” for delivery over a specific network
Appendix for a more detailed explanation and real world bandwidth. The media file is then uploaded onto a web server
examples. along with the web page containing the embedded media file.
When the web page is accessed the streaming player plays the
Caching - creating a temporary storage area where file while downloading. Using a buffer, or collecting the first
frequently accessed data can be stored for rapid access. part of the media file before playing, the media file plays
instantly and is not stored locally. Web server streaming does
Digital asset management- Business strategy to streamline not require new software infrastructure to be installed or
the acquisition, retrieval, and storage of digital media. managed as it uses an already existent infrastructure.
Reference:
Emigh,
Jacqueline.
“Streaming
Media Trickles
into the
Enterprise.”June
5, 2003
Retrieved
October, 31
2008 from http://
www.enterprisen
Technical Requirements
Support for content delivery
A controlled, but flexible publishing process allowing for preview and approval
Ability to Monitor what people watched and the quality of their experience
Integration with In place Internet technologies and communications
8

9. Production
STREAMINGVIDEO December 4, 2008
Rich Internet Applications
Streaming with a Media Server
“Using a separate server for video
Streaming Media with a media server is similar initially to web
server streaming but instead uploaded onto a specialized streams allows higher bandwidth and
streaming media server. A web page then with a reference to continuous, smooth streaming,
the media file is uploaded onto the web server. This improving the viewing experience by
differentiates the delivery process as the content is delivered at providing speed and quality.”
the exact data rate associated with the audio and video
streams. Using a separate server for video streams allows HTTP which could classify it as not “true” streaming, as video
higher bandwidth and continuous, smooth streaming, storage occurs however, video is stored on the web server
improving the viewing experience by providing speed and instead of locally.
quality. However, there are added training and staffing costs
Http Streaming Video
associated with installing and managing a media server.
Http streaming video is a cheaper alternative than using a
Self Hosting, Third Party- Hosting, or Split- Hosting streaming server to stream video. Typically used by small to
A streaming video server is a specialized application that runs medium-sized websites that don’t receive heavy site traffic, http
on an Internet server. Termed “true streaming,” a streaming streaming requires just a host server that can recognize
video server is capable of handling large traffic loads, detect common video files.
user’s connection speeds to automatically supply the
appropriate data, and has the ability to broadcast live events. Streaming Formats
Content can either come in the form of a pre-recorded
webcast, also called Video-on-Demand (VoD), or be streamed Flash vs. Silverlight
live. There are two methods to have access to a streaming Both Flash and Silverlight offer media players, development
server. You can either operate your own server through environments, and streaming servers. Flash is the most popular
purchase or lease, or sign up for a hosted streaming plan with format choice as it is widely supported by most browsers.
your Internet service provider. Because of the added technical
difficulty that comes with the need for smooth streaming, live Customizability
streams require split-hosting where the organization hosts the Both Flash Media Players and Silverlight Media Players are
launch site only and redirects requests for the streaming similar in their customizability. The sophistication of Flash
content to a third party server. VOD streaming is often the enables branding and extensive design capability while
preferred method as an organization can self host both the maintaining ease of use. Silverlight is better served for non-
launch site and streaming content not to mention the lower programmers and can be accessed by Expression Encoder 2
cost of production. This form of streaming is also more and XML. With Expression Encoder the player can be
popular among viewers than live-streaming, as they can access customized with metadata, chapter markers, trigger events
the content at their own convenience. (such as to run a browser for captioning) and offers different
templates. While Flash has these capacities, it takes
Encoding, Serving, and Playback programming skills to incorporate those features.
Streaming media involves three steps: encoding, serving and
playback. Videoservers are used to compress and encode
source files and in conjunction with web servers, store and
deliver the data to the launch site. Apple, RealNetworks, and
Microsoft have the most popular software video servers Flash Silverlight
available. Another option for more demanding content where
video quality is of highest concern is hardware encoders. In
comparison, software video servers are better suited for lower Platform Win/Mac/ Win/Mac/
Linux,Solaris Linux
speed or congested networks where the main consideration is
bandwidth consumption. Windows Media uses what is called
Real Time Streaming Protocol (RTSP). RTSP sends data to Penetration 98% overall 82% 1.5 million
the server as needed which makes it more bandwidth efficient can play H.264 downloads a
day
because there is no cache, or storing files. Flash uses Real
Time Messaging Protocol (RTMP) which is similar to RTSP
as it supports “cache-less” playing. Silverlight uses generic Download Windows 1.4MB Mac 4.3 MB
size Mac 4.9MB
9

10. STREAMINGVIDEO December 4, 2008
Delivery
Windows Media include .MP4, .M4V, .MOV, .F4V, .3GP, .MPG, and W4V.
Windows has been the popular choice amongst corporations When encoding content, it is important to know the target
as their Microsoft technologies occupy most desktops. WMV playback platform whether a device (iPod/iPhone) or
however, is undergoing radical changes if not abandonment as computer.
a result of Microsoft’s new Silverlight software.
Depending on the target platform, the profile chosen will
Quicktime determine the bitstream. There are 7 Profiles that rank in
quality from the lowest, Baseline, to highest, High 4:4:4
While the penetration in business and media is small,
Predictive. The highest profile supported by computer
Quicktime is an affordable and well featured server offering,
playback is Main, falling just below the median in quality. A
multi-cast, live, DRM to name a few features. Quicktime being
device would use the Baseline profile which is the lowest
the “first champion” of H.264 has iTunes, iPod, and iPhone
support lending to its great reputation. profile.
Low High
H.264/MPEG4
H.264 is one of the newer file formats and is gaining
acceptance due to its high quality footage. The drawback to
this format however, is the larger file sizes and consequently
slower upload speed. To lessen download times H.264 can be
compressed into MPEG 4, which is still better quality that
FLV. Baseline - Extended -
Main -
Producing H.264 Video for Computers and Devices High - High 10 p -
When producing, the most important considerations are High 4:2:2 -
format (FLV, WMV, Quicktime, etc.) and optimizing video for
computer playback. As a bonus, if playback on devices is High 4:4:4 Predictive
desired, optimization for devices would also be considered.
The max video bit rate for Baseline, Extended and Main
H.264 file format is the standard codec for streaming and profiles is 384 kbit/s. High profile’s max video bit rate streams
adopted by the top three streaming providers (Apple, Adobe, at 480 kbit/s.
and Microsoft). The different types of H.264 file formats
Silverlight
Expression
Encoder
Interface
10

11. STREAMINGVIDEO December 4, 2008
Top: Silverlight Video
Streamer
Bottom: Flash Video
Streamer
Flash Video Streamer
Delivery Methods design tools to complement. The Silverlight design application
is called Expression Studio and while lacking Mac platform
Generally there are two methods of delivery. Depending on the support and complementary design tools, Silverlight uses more
type of content and desired functionality of the streaming programming languages including, .Net (VB/C#), AJAX, Iron
video one would utilize codecs or a platform/design Python, Iron Ruby. Flash operates in the wider used
environment. programming languages, AS3 and AJAX. These features can
be considered either pros or cons depending on what you are
Codecs looking to develop. Silverlight is considered to have a minimal
Video designed in HTML, Flash or Silverlight that is plugged learning curve. However, most web design pros are already
into a webpage. Codecs include Flash, WMV, VC-1, and familiar with the programming languages in Flash.
Quicktime.
Platform/Design Environments
The development details make Flash the more appealing
development environment than Silverlight as Flash is supported
both on Windows and Mac Platforms and has Adobe CS3
11

12. STREAMINGVIDEO December 4, 2008
Measurement
Tracking and Analysis
In measuring effectiveness there are some variables to consider Quality of Experience
in order to judge how successful a Rich Media Application Quality of Experience (QoE) metrics relates to the user
was. Essentially, having a specific set of objectives before perceived performance. These measurements are an objective
implementing streaming technology will enable you to see measure of the subjective user experience and received
your ROI as you know how, when, and what to track. through customer feedback. Some questions QoE answers
Currently streaming media does not have a lot of analytics include: to what degree was the customer satisfied with
available. Service providers typically report how many people service; how many happy customers are there; did the content
watched the video and the length of viewing. However, the meet customer demands and expectations etc. Other things to
quality of the message, clarity, concise delivery and proper consider may include the customers satisfaction with frame
format are all important factors to consider in conjunction rate, and picture resolution.
with metrics. Another great way to measure effectiveness is to
provide a method for viewers to give feedback. This can be Quality of Service
achieved through a comment module or collecting contact Quality of Service (QoS) metrics were first introduced during
information to send a follow up questionnaire. To provide voice communication’s switch from fixed line networks to
further insights into performance, performance data should be Internet based networks. With the migration of video to new
joined with meta data of the video. Internet platforms, QoS is being used to measure the
performance of streaming video, for example the data rate
Flash has gained great foothold as the Rich Internet
and delay. By this standard, QoS differs from QoE as it does
Application of choice due to its extensive tracking capability.
Flash lets you track natively using Actionscript. With Flash you not consider user experience. Instead, QoS looks to for
problems such as dropped packets, delay, out-of-order delivery,
can track almost anything, as it doesn’t have to communicate
jitter, error, and overall buffering behavior.
with the browser through Javascript. However, you need a
Flash developer to implement analysis. An aspect that
highlights the importance of defining objectives and purpose Reference: Leonard Franken. Quality of Service
of applications pre-launch. Management: A Model-Based Approach. PhD
thesis, Centre for Telematics and Information
Technology, 1996
Chad Parizman.(Jan 10, 2007). “Measuring
Streaming Media and Flash Interview with Chad
Parizman”. Retrieved December 8, 2008 from
http://www.webanalyticsassociation.org
Some examples of measurements to determine ROI:
Adoption and performance
Percentage of users interacting with video -
Know not only who the people are coming to
areas, but what they are doing.
Meeting consumers needs - Does it satisfy
what they want? Videos consumed per usage - Identify
what percentage of users you are getting to
consume video
12

13. STREAMINGVIDEO December 4, 2008
“The obvious benefits of outsourcing is
the ability to shop around matching costs to
needed service. Additionally for businesses
lacking the technical expertise and
necessary tools, outsourcing can simplify
the entire process”
Cost Assumptions
A number of factors figure into costs
Production Costs enhance interface and ease of use for PC and TV users a
media control server can be added which costs around $5000.
In-House
This system would now allow employees to watch enterprise
To build a full streaming video system you would first need a video content such as training videos, meetings, product
streaming video appliance. Such a product would accept introductions, company broadcasts and would total about
standard NTSC video and audio from a recording device or $30,000. Other costs that must be factored in when considering
other source and connects to your standard ethernet network. setting up an in house system would be training or hiring a
Such an appliance would figuratively cost $5000. Upgrading Video System Developer and Content Producer, as well as
the system to stream both high quality video on the LAN and increased costs associated with quality.
lower quality streaming video to remote employees would
require a dual encoder. Additionally one may want to add set Outsource
top boxes that allow groups of people to watch video on There are plenty of companies that provide streaming video
television monitors totaling a cost under $10,000. Next, if on- solutions from basic production to full system support and
demand functionality is desired to make recorded video platform distribution. The obvious benefits of outsourcing is
available at any desired time, a video on demand server system the ability to shop around matching costs to needed service.
will be needed and starts at approximately $15,000. To Additionally for businesses lacking the technical expertise and
13

14. STREAMINGVIDEO December 4, 2008
necessary tools, outsourcing can simplify the entire process. When looking to implement a complete rich media publishing
Some of the major companies recommended by Streaming solution, the integration of technologies can become quite
Media that can provide a full IT enterprise solution include complex. There are a few requirements to consider when
IBM, CISCO, and MPI. deciding on a company to use. Outlined by PEREY Research
& Consulting Inc. the requirements that provide combined
“customer benefits” with a “solid return on investment”
include (Streaming Media, 2004):
Open Standards Based
Automated Distribution
Sophisticated search capabilities
Flexible recording and delivery options
Simple, flexible control over content
presentation and viewing Easy multimedia content creation
Asset Management Tools Small Footprint
Reporting Tools Flexibility
Security Ease of Use
Cost to create full streaming video system
Streaming Video Appliance $5,000
Dual Encoder Upgrade and Set Top Boxes $5,000
On- Demand Functionality $15,000
Media Control Server $5,000
$0 $7,500 $15,000 $22,500 $30,000
Additional un-factored in costs: Cost to Learn; Cost of Quality;
Software - sound and picture editing and encoding; Hardware -
AV Deck, AV Rated Hardrive, Backup Drive
Reference: “Simplifying Rich Media Communications” Enterprise Streaming Solutions. Streaming Media Inc. Retrieved
December 3, 2008 from http://www.streamingmedia.com
14

15. STREAMINGVIDEO December 4, 2008
Cost Effectiveness
Proven Benefits to Implementing
a Digital Media Delivery Solution
Cost- Effectiveness increased by 37 percent, brand awareness increased by 46
Today’s high-speed connections, advanced computer percent, and message association increased by 68 percent.
processing power, and Universal Standards have helped to
reduce costs and complexity of delivering rich media. As Digital Media Delivery Solution
reported by Macromedia, Macromedia’s Flash player has There are some benefits to using a Digital Media Delivery
incredibly broad distribution both at home and at work as Service. Most beneficial is the time and cost savings
the plug-in is installed on 98% of Internet enabled associated with the use of a pre-configured rich media
computers. Therefore, streaming video is gaining acceptance infrastructure. Most solutions are a package deal without the
as a cost-effective method to disseminate information and unanticipated cost that arrive when trying to develop the IT
direct traffic to a company’s site. According to studies infrastructure in house. With advanced monitoring and
conducted by the National Association of Broadcasters, analysis software, popularity and effectiveness is easier to
DoubleClick, and others have shown that streaming video as measure as well. Lastly, ease of use allows non-technical users
well as flash animation produce double the clickthrough rates to publish videos and deliver live broadcasts quickly and
of traditional banner ads. In a study of an Ameritrade efficiently.
campaign conducted by Dynamic Logic “Intent to buy
Reference
Return on Investment
Larry Bouthillier & Tim Napoleon.
According to VitalStream, a streaming media service
“Streaming Media’s Success Story”.
provider, through experience “streaming’s ROI potential is
Enterprise Streaming Solutions 2004.
as strong for organizations with 1,000 employees as it is for
Retrieved December 3, 2008, from http://
corporations with 100,000 on staff ” (Rayburn, 2004). Some
www.streamingmedia.com
savings to consider include:
Streaming Media Report, November 2008.
Tangible: Profits and Cost or Time-Saving Intangible: Effective Information Sharing
Travel Savings Advertising to Customers
Train employees and clients remotely Reach broader customers at a quicker speed to announce
new products and services.
Time to Market
Have a greater impact
Better advertising and product information distribution Through company meetings, online training and overall
increases product launch rate. corporate communications.
15

16. STREAMINGVIDEO December 4, 2008
“Concerns
arise when
trying to serve
users who may
have slow
connections or
limited
connectivity as
when using a
mobile
device.”
companies typically stream video at a bit are still trying to define what data and
Challenges and rate of about 400 kbps. On the upside, when to capture it along with how to
Opportunities high broadband penetration across analyze metrics. In reporting, there are
households and corporations (79% at- questions demanding more information
work) enable widespread rich media than page views such as the kind of
Network Capacity delivery and consumption.2 interaction with the web site.
The major challenge in delivering video Furthermore, video and Flash does not
is securing adequate network bandwidth Time Zones and Live Streamed show up in search engines.
and capacity. When streaming video, the Video
user experience is of highest concern. If For companies operating globally, Cost
the production delivery is of low quality, streaming live video isn’t effective due to The innovations by Macromedia’s Flash
no matter how well produced the time zone differences. On-demand and Windows Media have created
content, the video is unlikely to be viewership is therefore a better option. standards for encoding and delivering
viewed. While nearly 55% of broadband However, viewership rates are lower for online video that have encouraged
users have at-home access, concerns arise on demand than live streamed video. universal browser and computer platform
when trying to serve users who may have support. With the challenge of
slow connections or limited connectivity Measurability incompatible formats and versions, as
as when using a mobile device. Streaming Media users are struggling well as browser incompatibility virtually
Organizations that have high speed with standardization. Additionally eliminated, cost of delivery are
connections and adequate bandwidth still confusion arises when considering how decreasing while the production tools
face challenges when serving large much a page needs to refresh when continue to advance and become more
numbers of users. To compensate, showing an ad. Syndicated research efficient.
companies such as Nielson/Comscore
16

17. December 4, 2008
In implementing
new media
specific programs
it is important to
understand what
the challenges
are and what the
value of tracking
is.
Recommendations
Now and Later
The decision to use streaming Getting Started separate area for Tekla employees
video should reach beyond the Due to Tekla.com’s small size and to share, watch, and communicate
desire to increase web site traffic. low site traffic, Tekla can execute amongst each other. In essence
Instead, the main goal should be http streaming video using the creating a community and
to establish the Tekla experience current host server. For now, a collaborative work environment.
as a personal one. By creating a separate web page within
flowing stream of Tekla.com with embedded video To increase site traffic and
communication, Tekla can use files will suffice. attempt to make video viral,
streaming video to connect with As Tekla builds a library of videos should be uploaded to
potential and current customers. content a separate website should popular general video platforms
Eventually Tekla can implement a be developed, organizing video including:
streaming video solution that content by category such as, Break.com
connects the entire corporation Featured Videos, Testimonials, Blip.tv
and improves internal Tutorials, Product Demos, etc. Google Video
communications. When ready, this website can be Spiketv.com
further developed to include a Youtube.com
17

18. STREAMINGVIDEO December 4, 2008 sales are caused by an array of
variables.
Content
Instead, a better determinate of success
Tekla has the opportunity to provide a
would be: the increase of time spent on
wide array of content serving both
Tekla’s website; a higher rate of
customers and employees. The types of returning site visitors; overall increased “The main goal should be to
videos featured should include product
demonstrations and tutorials, customer
communications either through establish the Tekla
comments, calls, or email; and of
testimonials, introductions from the staff, experience as a personal one.”
course positive direct feedback about
and feature videos about various the content.
industry related topics.
When maintaining a library it is
important to continue to add new Cost Assumptions
content that is current, up-to-date and The initial cost to get started with
accurate. New content should be added streaming online videos are relatively
at minimum bimonthly. low. Cost considerations at this point
surround the production of content,
Streaming Method software needed, and the development
For now, the focus should be on VoD of a proper webpage/site to host the
Streaming. While Tekla may in the future videos and maintenance of that site.
consider streaming live webcasts, the
demand is not there yet. Live streaming is Streaming Video Platform and
also costly and at this beginning stage of
Delivery
implementation is unlikely to produce a
ROI. In regards to the streaming host, the
ability for viewers to comment, provide
feedback, and ask questions about what
Streaming Format
they saw is an important module to
With 98% penetration, Flash is the
include.
recommended format to use. However,
Quicktime should not be discounted as its
software is user friendly and a cost Looking Ahead
effective alternative. Depending on You should consider using streaming
production level, Quicktime can serve video as a business communication tool
smaller projects. Therefore format to train employees, stream meetings, and
selection should rather be based on conduct video conference calls. A library
preference, access, and software of training sessions can be created that
availability. are sent to the desktops of trainees.
Furthermore, distance learning can be
Measuring ROI expanded upon to conduct training
An ideal return on investment would be seminars for users of Tekla software. In converges all telecommunication
increased product usage, measured by the future, Tekla could have their own technologies providing a platform for
sales. However, this return cannot be full streaming video system that better more efficient communication.
expected to be so immediate. Also, higher
Suggested Streaming Video Uses
Executive Communications: Top Live Web Customer Assistance: With
Managers can send direct messages to a global client base you need to provide
their employees by filmed address. better methods of communication and
customer service
Product Demos and Training:
Multimedia and Video for training With a global workforce streaming
purposes can save costs associated with video should be Used in Addition to
travel and time. Email. Email is limited in it’s ability to
transport rich media content being used
Product Tutorials: Providing online today. Streaming Video can provide the
tutorials to customers can help answer platform to support business
frequently asked questions, reducing communications that email cannot
customer assistance call traffic volume. sustain.
18