Enterprise Streaming Where ROI Means Survival 14 Big Surprises

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Enterprise Streaming Where ROI Means
Survival14 Big Surprises

• Rich Seidner
• VP, Research Analysis
• Streaming Media, Inc.

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ROI Research

• Why ROI? Because its now about survival.
• Research participants from
• more than 200 companies
• from 50 industries
• in 10 countries
• 111 respondents provided in-depth data
• This is not about how our industry uses streaming

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Part I Investment

• Why do companies stream?
• What are their primary streaming applications?
• How much are companies spending?
• What are the main cost factors?
• How much do companies stream?
• What do streams cost?
• When did companies deploy streaming?

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Q1 Why Do Companies Stream?

• Cost savings, Revenue, Productivity (money)
• More customers,Web stickiness, Duration
  (frequency, reach, duration)
• More customers, Customer satisfaction, Web
  stickiness (customer)
• Revenue, Communication, Brand (mixed)
• Communication, Productivity Morale (employee)
• Communication, Productivity, Timeliness (quality)

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A1 Why Do Companies Stream?

• Cost savings, Revenue, Productivity (money)
• More customers,Web stickiness, Duration
  (frequency, reach, duration)
• More customers, Customer satisfaction, Web
  stickiness (customer)
• Revenue, Communication, Brand
• Communication, Productivity Morale (employee)
• Communication, Productivity, Timeliness (quality)

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A1 Why Do Companies Stream?
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A1 Why Do Companies Stream?

• Desired benefits vary by streaming application

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Q2 What Are the Primary Applications?

• Advertising Marketing
• Content
• Corporate Communication
• Entertainment
• Surveillance
• Training
• Web conferencing

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A2 What Are the Primary Applications?

• Advertising Marketing
• Content
• Corporate Communication
• Entertainment
• Surveillance
• Training
• Web conferencing

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A2 What Are the Primary Applications?
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A2 What Are the Primary Applications?
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A2 What Are the Primary Applications?

• WHAT WHY

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Q3 How Much Do Companies Spend Annually On
Streaming?

• 10,000
• 50,000
• 100,000
• 250,000
• 500,000
• 750,000
• 1,000,000

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A3 How Much Do Companies Spend Annually On
Streaming?

• 10,000
• 50,000
• 100,000
• 250,000
• 500,000
• 750,000
• 1,000,000

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A3 How Much Do Companies Spend Annually On
Streaming?

• Its a trick question, because it depends on
  company size. But
• The average spending of all respondents is
  1,000,000.
• And the median spending is 400,000 CHECK
• Their spending averages just 2 of 1 of annual
  revenue CHECK

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A3 How Much Do Companies Spend Annually On
Streaming?
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A3 How Much Do Companies Spend Annually On
Streaming?
GRAPH SPENDING OF REVENUE VERSUS REVENUE
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Q4 Whats the Biggest Cost Factor in Enterprise
Streaming?

• Equipment
• Network
• Outsource (encoding, streaming, storage )
• Production
• Staff

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A4 Whats the Biggest Cost Factor in Enterprise
Streaming?

• Equipment
• Network
• Outsource (encoding, streaming, storage )
• Production
• Staff

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A4 Whats the Biggest Cost Factor in Enterprise
Streaming?
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Table 5.2 Training Cost Factors
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A4 Whats the Biggest Cost Factor in Enterprise
Streaming?

• Network costs are usually underestimated
• Production costs do not include production that
  would be done in any case for other media
• Staff Equipment are 70 of spending, which
  means this is an opportunity for products
  services
• Outsourcing is a teensy percentage of spending
  which means that it is also an opportunity for
  service providers.

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Q5 How Much Do Companies Stream (on average)?

• 0.1 Hours / Person / Year for 10,000 People
• 0.2 Hours / Person /Year for 20,000 People
• 0.4 Hours / Person /Year for 25,000 People
• 0.6 Hours / Person /Year for 30,000 People
• 0.8 Hours / Person /Year for 35,000 People
• 1.0 Hours / Person /Year for 40,000 People

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A5 How Much Do Companies Stream (on average)?

• 0.1 Hours / Person / Year for 10,000 People
• 0.2 Hours / Person /Year for 20,000 People
• 0.4 Hours / Person /Year for 25,000 People
• 0.6 Hours / Person /Year for 30,000 People
• 0.8 Hours / Person /Year for 35,000 People
• 1.0 Hours / Person /Year for 40,000 People

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A5 How Much Do Companies Stream (on average)?
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Table 5.3 Streamed Training Per Person
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Q6 What Does a StreamHour Cost?

• 1 / Hour
• 2 / Hour
• 5 / Hour
• 10 / Hour
• 20/ Hour
• 50 / Hour
• 100 / Hour

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A6 What Does a StreamHour Cost?

• 1 / Hour
• 2 / Hour
• 5 / Hour
• 10 / Hour
• 20/ Hour
• 50 / Hour
• 100 / Hour

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A6 What Does a StreamHour Cost?
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A6 What Does a StreamHour Cost?

• Cost depends on the mix of audio and video
• Unit cost (per hour, per person) largely depends
  on use of capacity
• Sweet spot is
• 0-2 Hour for audio,
• 10-20 / Hour for video

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Q7 When Did Companies Deploy Streaming?

• 1997
• 1998
• 1999
• 2000
• 2001

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A7 When Did Companies Deploy Streaming?

• 1997
• 1998
• 1999
• 2000
• 2001

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A7 When Did Companies Deploy Streaming?

• 98 of respondents deployed their streaming
  Y2000-Y2001
• Streaming technology has been around for 8 years,
  but its just now becoming mainstream!
• 150 of the Fortune200 corporations stream at
  their public websites

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Part II Return (on investment)

• Whats the ROI for Training?
• Whats the ROI for Advertising Marketing?
• Whats the ROI for Corporate Communications
• Whats the ROI for Entertainment?
• What are the actual results so far?

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ROI is about all of the benefits

• ROI varies by streaming application
• Training
• Advertising
• Content
• Entertainment
• 97 of respondents dont measure their streaming
  ROI

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Q8 Whats the ROI for Training?

• 50
• 100
• 200
• 500
• 1,000
• 1,500

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A8 Whats the ROI for Training?

• 50
• 100
• 200
• 500
• 1,000
• 1,500
• It all depends The answer is really all of the
  above.

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A8 Whats the ROI for Training?

• Cost savings are a primary tangible benefit of
  stream-training, but cost savings depends on
  several variable factors
• How many people need to travel
• Cost of travel
• Cost per stream-hour

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A8 Whats the ROI for Training?

• Sales and Marketing executives love using
  streaming for new product launches
• It saves considerable travel time for the sales
  team
• It reaches more employees
• It can be shared with business partners and
  customers

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A8 Whats the ROI for Training?

• Case studies in the report
• Network equipment maker reduces costs by a factor
  of 7
• Semiconductor maker saves 400,000 annually
• Storage appliance maker keeps sales people happy
• Professional association profits from
  certification training
• Business school competes against it rivals
• Telecom network saves 5.5 Million annually

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Q9 Whats the ROI for Advertising and Marketing?

• 50
• 100
• 200
• 500
• 1,000
• 1,500

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A9 Whats the ROI for Advertising and Marketing?

• 50
• 100
• 200
• 500
• 1,000
• 1,500
• Companies generate significant revenue increases.

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A9 Whats the ROI for Advertising and Marketing?

• Increased revenue is the primary tangible benefit
  of streamed advertising. But many respondents
  told us streaming also delivers these benefits
• Streaming increases reach
• Streaming improves brand
• Streaming lowers sales costs
• And thereby lowers the cost of customer
  acquisition
• Streaming allows tracking of marketing collateral

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A9 Whats the ROI for Advertising and Marketing?

• Case studies in the report
• BYOBroadcast proves the ROI of streamed
  advertising
• Chalk Network reports sales conversion rate of 5
  8
• Major online music service profits from barter
• PepsiCo reaches 1.1M consumers with its Brittney
  Spears ads
• slp3D reduces cost of customer acquisition for
  its clients
• Research Stream adds real-time market
  intelligence
• Top online book-seller, increases sales and
  customer satisfaction

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Q10 Whats the ROI for Corporate Communications?

• 50
• 100
• 200
• 500
• 1,000
• 1,500

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A10 Whats the ROI for Corporate Communications?

• 50
• 100
• 200
• 500
• 1,000
• 1,500
• It all depends The answer is really all of the
  above.

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A10 Whats the ROI for Corporate Communications?

• Pretty much the same story as for
  streamed-training.
• Cost savings are a primary tangible benefit of
  stream-corporate communications, but cost savings
  depends on several variable factors
• How many people need to travel
• Cost of travel
• Cost per stream-hour

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A10 Whats the ROI for Corporate Communications?

• Senior executives love using streaming for
  reaching employees
• It gets the information there immediately
• It reaches more employees
• It can be shared with business partners and
  customers

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A10 Whats the ROI for Corporate Communications?

• Case studies in the report
• Big Five accounting firm drives client services
• Hewlett Packard deploys enterprise-wide streaming
• Streaming service provider gains significant
  competitive edge
• Chevron Oil Company runs corporate compliance for
  31,000 employees at 8,500 gas stations
• German production company streams PR
  communication for publicly traded companies

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Q11 Whats the ROI for Entertainment?

• 50
• 100
• 200
• 500
• 1,000
• 1,500

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A11 Whats the ROI for Entertainment?

• 50
• 100
• 200
• 500
• 1,000
• 1,500

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A11 Whats the ROI for Entertainment?
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A11 Whats the ROI for Entertainment?
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Q12 What Actual Results Are Companies Getting?

• Mostly positive
• Mostly negative
• Too soon to tell
• It depends

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A12 What Actual Results Are Companies Getting?

• Mostly positive
• Mostly negative
• Too soon to tell
• It depends on application

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Part III The Whole Enchilada

• How big is the market?
• Whats the market growth?

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Q13 How Big is the Enterprise Streaming Market?

• 0M - 100M
• 100M - 200M
• 200M - 400M
• 400M - 600M
• 600M - 800M

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A13 How Big is the Enterprise Streaming Market?

• Answer No-one knows
• 111 respondents spent 104M which does not
  include any company with streaming products and
  services so its at least double this size,
  most probably more.
• Were researching the facts.

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Q14 What Is the Streaming Market Growth?

• 0
• 25
• 50
• 100
• 200
• 400

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A14 What Is the Streaming Market Growth?

• These measures indicate significant market
  growth
• Spending is up 100 CHECK
• People served is up 200 CHECK
• Stream Hours is up 300 CHECK
• Bytes transferred are up 400 CHECK
• Companies using streaming is up xx CHECK

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What Will It Take for Your Business to Survive?

• Streaming Media offers resources that can help
  you
• Streaming Media events
• Streamingmedia.com
• Streaming Media Magazine
• Streaming Media Newsletter
• Streaming Media Research
• Newsgroups

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If you want a free copy of these slides,please
email rich_at_streamingmedia.com

• THANKS