Worldwide Business Models of Emerging Media A Comparative Study by yaofenji


									Do US Webcasters set the trends for
      the rest of the World?

              Louisa Ha
     Bowling Green State University
US Webcast Market Environment

 • Grew out of a highly commericialized,
   media-rich market: $690 billion in 2004
 • Leads in ICT, contributed 13% of real
   GDP growth in the U.S. in 2004
 • Advertising is the primary source of
   revenue for most media
       Internet and Broadband Usage
• 81% have Internet access (Arbitron/Edison Media 2005)
• Highest number of broadband lines in the world: 3.4
  million lines
• 25% of home users use broadband connection
• Cable broadband slightly led over DSL (60/40)
• Unequal broadband usage among cities: top markets up
  to 70% broadband use
• Webcast as killer application for the broadband service
  industry: webcast content requires high bandwidth for
  quality delivery
 Largest cable companies (Comcast, Time Warner, Cox)
  offer portal services with webcast
 Leading DSL providers (SBC, Verizon & Bellsouth)
  partner with online service providers
Setting Trends in Web Audience

  • Data from meter installed on a
    panel user’s computer e.g.,
    Nielsen’s Netratings
  • Data from the webcaster’s media
    server e.g., Accustream
    Leading US Video Webcasters
Webcaster                 Type   Streams Revenue (’04)Ownership Business
                                 (in ’000)                        Model
1. America Online         ISP    292,000 8.7 billion   Public CA
2. Yahoo Launch           PP     250.000 3.6 billion   Public CA
3. RealNetworks           PP     146,000 267 million   Public CA
4. MSN Video              PP     43,705 892 million    Public CA
5. ESPN                   CB     34,865 n.a.           Public BC
6. Stupidvideos           PP     25,600 n.a.           Private BC
7. MSNBC                  CB     24,309 n.a.           Public CA
8. Windows Media          PP     17,712 n.a.           Public CA
9. IFilm                  PP     17,619 n.a.           Private CA
10. AtomFilm              PP       3,000 n.a.          Private BC

Source: Accustream 2004
            Leading US Radio Webcasters
Webcaster              Type   AQH Revenue Ownership       Bus.
                         PP   18,481   n.a.    Private      BC
Digitally Imported –            PP   10,033   n.a.    Private      BC              PP    5,119   n.a.    Private      BC           PP    2,317   n.a.    Private      BC          PP    2,215   n.a.    Private      BC            PP    1,758   n.a.    Private      BC                  PP    1,295   n.a.    Private      BC                PP    1,224   n.a.    Private      BC               PP    1,196   n.a.    Private      BC                PP     894    n.a.    Private      BC
    Webcast Business Practices
• Most leading webcasters are pure-play native
  Internet media brands: highest proportion of
  pure-play brand leaders in the world
• - conflict between offline and offline media
  (fear of cannibalization)
• - deep pocket support from publicly traded
  portal sites (in video), copyright problem of
  offline radio stations (in radio)
    Webcast Business Practices
• Dominated by commercial webcasters who try
  to make a profit out of the webcasts
• Branded Content most commonly used model,
  despite the top webcasters are all content
Ha and Ganahl’s (2004) ACR Webcast
         Business Model
• Accessibility (technical standards and
  transmission methods)
• Content Strategies
• Revenue Sources
  ACR in US Leading Webcasters
• 65% only uses one transmission method
• Live streaming most popular, and used by all
  radio webcasters
• Interactive features commonly found on
  webcast (e.g., games, chat rooms, ratings)
    ACR in US Leading Webcasters
 Content Strategies
• Very few original content (25%)
• Mostly repurposed content (52%)
• All web radio simulcast their content
• Most choose specialized strategy, concentrate
  on one or two genres (75%)
• Low cost content and short video clips are the
    ACR in US Leading Webcasters
Revenue Sources
• 70% have more than one revenue source
• Advertising is the most popular revenue
  source (90%).
• E-commerce second most popular (60%)
• Direct payment by consumers only 40% of all
  leading webcasters.
• All direct payment services are tiered
           US Leading the Trend?
• Leadership of Pure-Plays is different from the rest of the world
• Commercial media leadership instead of public broadcast
  leadership in Webcasting
• Technology development set the trends for the world: Media
  players (Domination of Windows Media Player and Real
• Tiering of content services: High quality content is not free
• Pushing technology limits: High definition DVD quality video
  or CD quality radio content
• Diversification of revenue sources: setting the trends for other
• Continues the commercialized media tradition in the U.S.
• Partnership between broadband service providers and
  webcasters: a worldwide trend not set by the U.S.
              Globalization of US
              Leading Webcasters
• Only a few leading Webcasters establish local versions in
  other countries and become one of the leaders in host
  e.g., Yahoo (Canada, United Kingdom, Australia, Japan, and
  Taiwan), MSN (Germany, Japan, and Taiwan), AOL (UK,
  Canada), RealNetworks (Japan)
• Local versions, not the US versions are the leaders: showing
  preference of local contents.
• Local versions follow the format, but the content is locally
• US versions seldom have foreign language choice for users
  (little interest in foreign users)
               Outlook of the Webcast Industry
• Clear diversification of revenue sources. Non-direct payment still the
  dominant mode in the U.S. – abundance of media choices.
• Online advertising growth can fuel the development of webcast content for
  mass consumption
• Increasing broadband penetration will increase demand for webcast
• Future depends on traditional media’s embracement or resistance toward
  webcast of their content – Webcasting as alternative delivery medium or
  stand-alone media service
• Booming webcast industry in niche and professional markets such as
  Maritime TV, TV Worldwide, Internet TV for Assistive Technology
• Combination of Webcasts and Webconferencing
• Portable devices increases outlets for webcasts such as PDAs and cellular
• Integration of technologies increase utilization of Webcasts such as VOIP,
  IPTV, Interactive programming guides.
• Integration with games and toys increase the market of Webcast.

To top