Video Sharing websites roundup

Fingerprint Tech Waits for a Grand Entrance

Video sites such as Microsoft’s (MSFT) Soapbox and MySpace already employ fingerprinting technology from provider Audible Magic, and Veoh has said it will implement fingerprinting this month. A Dailymotion spokesperson clarified that the site will continue to use Audible Magic for audio fingerprinting, but is adding in Ina for video fingerprinting. He emphasized that the initial Ina rollout on Dailymotion is only in France, though the company expects it to be implemented across all versions of its sites by 2008.

Facebook Finance Chief Yu Becomes a Director at Vobile

Facebook Inc. Chief Financial Officer Gideon Yu has joined the board of Vobile Inc., a closely held provider of so-called fingerprinting technology for identifying video content.
Mr. Yu, 36 years old, joined the online social-networking firm in July from YouTube, the video-sharing site owned by Google Inc.

One Anti-Piracy System to Rule Them All

Hollywood appears to have a preliminary winner in its bake-off of anti-piracy technologies.
For the last year, the film industry, through its Palo Alto-based R&D joint venture MovieLabs, has been testing a dozen so-called “digital fingerprinting” technologies. The technology purports to scan file sharing sites, Internet providers and peer-to-peer networks to identify copyrighted material.

“Fingerprinting Performance” (Leonard Kleinrock, 2007)

Yesterday in Los Angeles, people affiliated with the Motion Picture Association of America talked about the ongoing tests at a day-long anti-piracy workshop that the MPAA co-hosted with the University of California. In his introductory keynote at the event, UCLA professor and Internet pioneer Leonard Kleinrock showed a single slide that suggested that one of the anti-piracy filtering companies had outperformed the other 11, with the highest number of matches of infringing content and lowest number of false-positives. But professor Kleinrock and MPAA execs declined to name the participating companies or who had scored best on the test, saying that secrecy was a precondition for their participation in the tests.

Nevertheless, afterwards, executives from Santa Clara, Calif-based Vobile were crowing in the hallways of the Universal Hilton Hotel.
The two-year old company’s technology, called Video DNA, has apparently bested others from the Royal Philips Electronics, Thomson Software & Technology, and the highest profile digital fingerprinting company, the Los Gatos, Calif.-based Audible Magic, which has deals to filter video sharing sites like YouTube and Microsoft’s Soapbox.

Movie Labs stress-tested the anti-piracy systems by loading hundreds of hours of copyrighted video content into the databases of the various filters, and then by flooding them with thousands of video files, some distorted, darkened and cropped, to try to scuttle their ability to find matches.
In the next phase of the ongoing tests, MovieLabs will see if the systems can handle ever larger quantities of copyrighted works. Theoretically, adding more songs, TV shows and movies in their databases could slow down these systems—and the Internet video sites that use them— since it could take longer to find possible matches.
MovieLabs has been sharing tests results with its member movie studios since the summer. MovieLabs chief executive Steve Weinstein says the technology is ready for prime time. “In a year you’re going to see many Internet companies using it. This technology has shown its viability.”

Full story at The New York Times

Another article in LATIMES

Battling Piracy, BayTSP-Style

“On an average day, there are 16 million violations that we’re finding,” said BayTSP spokesman Jim Graham. Of that, one million violations a month receive takedown notices. “Not all clients want to send takedown notices,” said Graham. “A lot just want to see the data on what’s available out there.”

Here’s how BayTSP works. A client gives it a list of titles (movies, TV shows, etc.) to monitor. BayTSP’s automated hardware then sniffs around major P2P sites, IRC, Usenet groups, public FTP sites and web sites and reports back its findings.

For P2P sites, if a title is found and the client wants to have it removed, BayTSP automatically generates a takedown notice that records the individual’s IP address, date and time identified, and sends it off to the ISP. The ISP then forwards the notice to the individual. Some ISPs and universities are adopting the open source Automated Copyright Notice System to automate the process of notifying infringers.

But what does all this cost? Between $25,000 and $500,000 a month, depending on how many titles you are searching and what services you want performed.

Full story here

The Wall Street Journal did a profile a couple months back:
- BayTSP employs more than 20 video analysts
- Analyst salaries start at around $11 an hour
- Viacom pays more than $100,000 a month to BayTSP
- BayTSP error rate on Web videos is only around 0.1%

Branded and Video Advertising Key to Future

Online ad spending will expand 28.6% this year, according to eMarketer CEO Geoff Ramsey. Next year, digital ad spending will increase 32%--amounting to nearly $28.8 billion.

Web videos are watched by 72% of Web users--or 135 million people--every month.
Ad spending around them is set to hit $775 million this year, and $1.3 billion by next year.

Asterpix Says Forget Hypertext, Think Hypervideo

One of the great things about the Web is the ability to link to a Web page, or a part of a Web page, from anywhere. Asterpix, a San Jose, Calif.-based startup, wants to bring that same ease of use to the world of video. The company’s technology -– which it calls hypervideo — gives authors the ability to link directly to objects displayed inside video clips.

These so called hotspots track the “objects” linked throughout the entire video clip. So for instance, when explaining the Coverflow features of the iPhone, one can link directly to the relevant point in the video right from the blog post. Hotspots are designated with blinking circles; click on them in the video to access the author’s notes, tags and target links.

The service doesn’t require you to download separate software on the desktop. Simply sign up and embed the videos as you would from any video source such as YouTube, MetaCafe, or Blip. Asterpix adds a separate invisible layer on top of the video that contains all the metadata (aka relevant linking information). Then just go ahead and drop it in your blog or on your MySpace page.

Asterpix is less than a year old and is backed by New Enterprise Associates; so far it’s raised $4 million in one round of financing. CEO Nat Kausik, who in his past life created a handful of successful networking-related startups, told us that in order to gain traction, the company will initially adopt a widget strategy. He feels that MySpace and other social networks are going to be fertile ground for his service. He was also candid enough to say that the business model of this company is evolving.

Asterpix’s technology could have big implications for online video-related advertising as it would allow advertisers to embed hotspots around products of high commercial value. For instance, Le Bron James videos could link his shoes to Nike (NKE) stores, or Tiger Woods clips could help push golf clubs or even apparel.

“Every object is now clickable and searchable,” says Kausik. Google AdWords, for instance can drive traffic right to the relevant spot in a video clip, giving people a sense of what they are buying. “We hope this will help unlock the monetization of video.”

Among the existing players in this space, Eline Technologies of Vancouver, B.C., is doing brisk business with its VideoClix software. We also recently covered Delivery Agent. Others, such as Tandberg and Microsoft (MSFT), are working on their own hypervideo technologies — all in hope of unlocking the ad potential of online video.

$15 Million For VideoEgg

San Francisco-based VideoEgg has raised $15 million in additional funding in a Series D round from existing investors WPP, Maveron, and August Capital, and led by Focus Ventures.
The video distribution and advertising company in April said it had raised an undisclosed amount from WPP. That was on top of a $12 million round raised last September from Maveron, August Capital, and First Round Partners, and nearly $5 million from the latter two firms nine months before that — which means that VideoEgg, since it was founded in 2005, has raised more than $32 million.

P2P responsible for as much as 90 percent of all 'Net traffic

P2P traffic is dominating the Internet these days, according to a new survey from ipoque, a German traffic management and analysis firm. ipoque's "preliminary results" show that P2P applications account from anywhere between 50 percent and 90 percent of all Internet traffic. The final survey results are not yet available and will presented at the Emerging Technology Conference at MIT later this month.
Leading the way is BitTorrent, which has surpassed eDonkey as the P2P protocol of choice. During the last year, BitTorrent accounted for between 50 percent to 75 percent of all P2P traffic, with eDonkey coming in second at between 5 percent and 50 percent. The wide variance in the figures is due to local preference, according to ipoque: in some parts of the world, eDonkey still reigns supreme when it comes to P2P traffic.
ipoque's data appears at odds with that of Ellacoya Networks, a company that makes deep packet inspection gear. The company said in June (see below in this post) that P2P traffic accounts for just 37 percent of North American traffic, compared with 46 percent for HTTP traffic. Of that 46 percent, over a third consisted of streaming video, à la YouTube.
Despite the differences in how the traffic is broken out, ipoque and Ellacoya's data both illustrate the degree to which users' desire for video is affecting the Internet. It seems safe to assume that much of the P2P traffic reported by both firms is video. Combine that with the surge in traffic to YouTube and other video sites, as well as the official upcoming launch of Joost, and it paints a picture that some ISPs will find disturbing: demand for high-bandwidth applications like video is increasing. That's why ISPs are so interested in deep packet inspection and other traffic-shaping tools.

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Ellacoya Networks, makers of deep packet inspection gear for carriers, has pulled together some statistics on one million broadband users in North America, and its findings show that HTTP traffic accounts for 46 percent of all broadband traffic. P2P applications now account for only 37 percent.

Chalk it up to YouTube and other Internet video sharing sites. The surge in HTTP traffic is largely a surge in the use of streaming media, mostly video.
Breaking down the HTTP traffic, Ellacoya says that only 45 percent is used to pull down traditional web pages with text and images. The rest is mostly made up of streaming video (36 percent) and streaming audio (five percent). YouTube alone has grown so big that it now accounts for 20 percent of all HTTP traffic, or more than half of all HTTP streaming video.
Looking over all the numbers, one of the most surprising result is the continued success of NNTP (newsgroups) traffic, which still accounts for nine percent of the total. Clearly, newsgroup discussions (and, ahem, binaries) are still big business.
The data may provide some ammunition for companies that favor traffic shaping on their networks. Between P2P, newsgroups, and streaming HTTP video traffic, the vast majority of Internet traffic is non-critical (i.e., no one's going to die or lose $20 million if they don't download a YouTube clip or a new song in under a minute). Networks that want to ensure priority transmission of VoIP calls, traditional HTTP web browsing, medical imaging, etc., have a strong incentive to throttle back that flood of non-critical traffic when the network is experiencing heavy loads. That could bring them into conflict with proponents of strict network neutrality, though, who don't want to see any sort of packet prioritization.

Thomson Acquires Distributor

Thomson SA has acquired SyncCast Corp., a wholesale distributor of online movies, music and other entertainment, as part of an effort to boost its own digital-services businesses. The price wasn't disclosed.
Through its Technicolor services division, Thomson is trying to win more business from studios and distribution companies as they increasingly move toward digitization of key processes such as creating masters and delivery.
Thomson, of France, has been building an end-to-end system to cut the time and steps required to prepare movies, television shows and other content for distribution. Using the company's new arrangement, preparing a movie for TV, for example -- including changing proportions to fit a TV screen, adjusting the resolution, and making the appropriate number of copies -- might take 25 hours, compared with 100 hours without the integrated digital processes it has put in place.
The new system, which officially begins today, "allows studios to distribute their content faster," says Chris Carey, chief technology officer at Technicolor. Acquiring SyncCast, Anaheim, Calif., which delivers content on behalf of online retailers such as Microsoft Corp.'s Xbox Live Video Marketplace, will help Technicolor bolster its offerings in consumer-targeted businesses.

Ad-Supported Music Service SpiralFrog’s Financials: Losses; Financing Needed; Plans

Ad-supported online music service SpiralFrog, one of 2006’s candidate’s for most-hyped new product, and still half-vaporware (it has launched a closed beta), has filed its detailed financial with SEC.

On the financial side, the company has already shelled millions to license materials from Universal Music Group, according insider reports. In the filing, the company warned that buy-in from other majors is hardly guaranteed. "In the event that we are unable to enter into agreements with most of the other major and independent record labels, it is unlikely that we will be able to attract and keep users to our site," the company stated. SpiralFrog did not mention heavy, upfront licensing costs frequently demanded by majors, though financial aspects remain daunting.

In the filing, the company disclosed losses of near $12 million over the two and one-half years, as well as significant costs ahead. "We anticipate that we will require up to approximately $18 million to fund our continued operations for the next twelve months," the group disclosed.

SEC Filing

ProSiebenSat Buys Remaining Stake In German Video Sharing Site MyVideo For $26 Million

ProSiebenSat.1 Media, Germany’s largest commercial TV broadcaster, has bought 70 percent of MyVideo.de, a German video sharing site that it already had a 30 percent stake in, thereby buying out the site completely. The 70 percent stake cost the company about $26 million...this follows the initial investment it did last year.

Video Funding: Dailymotion Gets $34M

PARIS -- Dailymotion SA has secured $34 million in venture-capital funding that will allow the French start-up to expand its video-sharing Web site as it competes against larger rival YouTube, owned by Google Inc.
The company's new funds come from venture-capital firms Advent Venture Partners LLP of London and AGF Private Equity of Paris, a division of Allianz AG. Dailymotion already had raised about $9.5 million in October from venture firms Atlas Venture and Paris-based Partech International.

In April, Dailymotion had 4.7 million unique video streamers in the U.S., while Metacafe had 3.7 million. By contrast, Google sites (including YouTube) had 131.9 million unique video streamers in May.

News Corp. and NBC Universal name joint venture

News Corp. and NBC Universal have revealed the name of their new online video venture — the so-called YouTube killer, which Google had already dubbed Clown Co., will officially be called “Hulu“.
“Hulu” will launch as a private beta in October 2007, however, interested users are able to sign-up for invitation from today.

Bi-Weekly wrap up, 16-31 August

This summary is not available. Please click here to view the post.

Online Video is Still Too Expensive

There are a number of ways to deliver digital video content, and delivering that content online is the most expensive of them all. How expensive? Dan Rayburn recently took a look at CDN pricing, and while it is on the downswing, it’s still pretty expensive. For example, a customer who buys 100 terabytes at $0.15 a gigabyte would have to pay around five dollars in bandwidth to serve 1000 views of a three minute video. That means they’d have to get at least five dollars in CPM (cost per thousand) advertising just to break even, and that doesn’t include storage costs.

Top 10 Video Search Engines

Here is a top 10 Video Search engines:

blinkx
clipblast!
dabble
everyzing
exalead
Fooooo
metacafe
pixsy
PureVideo
VidSea

Analyzing YouTube's Revenue Potential

Full article

So, Google's YouTube will finally sell video ads. How much revenue will they generate?

Let's run the numbers.

- YouTube is testing overlay ads that run along the bottom of videos. If viewers click on these ads, the videos they are watching will pause, and the ad will launch.
- YouTube will only run ads on videos from signed content partners (for now).
- In tests, approximately 75% of viewers presented with an ad chose to watch the whole ad.
- Google plans to begin by charging a $20 CPM.
Combining this information with Comscore's finding that YouTube streamed 1.7 billion videos in May, we can construct a basic range of revenue estimates.

ASSUMPTIONS
For our initial scenarios, we make the following assumptions:
- Google streams 2 billion videos a month (up modestly from the May numbers)
- A sub-set of this group are from content partners and will eventually have ads (we'll run a range of 10%-50%)
- A sub-set of this group will have ads that are actually watched (we'll run a range of 33%-75%.
- In tests, 75% of videos were watched, but this was likely heavily influenced by the curiosity factor. In the early banner ad days, banner click-through percentages were high, too).
- The ads will be highly targeted, full-motion video, and should therefore command a high CPM (we'll run a range of $10-$50).

RESULTS
We ran five scenarios, from Conservative to Aggressive (please see this page for details). In the Conservative scenario, YouTube generates about $8 million in revenue, less than 1/10th of one percent of Google's overall revenue ($16 billion). In the Aggressive scenario, the company generates about $450 million of revenue--enough to make a meaningful contribution, but barely.

FIVE YEARS FROM NOW
We also ran scenarios using a far higher number of monthly streams (range: 10 billion to 50 billion), a greater percentage of ad penetration within videos (range: 50% to 70%), and a similar percentage of ads watched as in the above scenarios (range: 33% to 60%). Here, the revenue is far more meaningful. In the Conservative scenario, YouTube generates $200 million of revenue: nice, but nothing to write home about. In the Aggressive scenario, however, the company generates $13 billion of revenue--closing in on Google's current revenue today.

BOTTOM LINE
In short, YouTube's revenue won't likely be material to Google for at least a year or two and possibly more. The impact on the bottom line, moreover, will probably be even less pronounced: Serving a video ad, even for Google, is far more expensive than serving a text link. At a $20 CPM, the gross margin on such ads will likely be well below Google's current margins.

Deezer: free and legal music on demand

Deezer (formerly BlogMusik) is a service born in France that lets you search for mp3 files on the web and listen to them in streaming mode for free. Dezeer announced that they came to an agreement with the SACEM, clearing the service of copyright infrigement accusations. The details of this agreement are not are not being disclosed, but other deals suggest it is based on a revenue sharing mode. Deezer’s business model is relying on advertising and affiliate revenue coming from the sales of songs on iTunes and Amazon.

RadioBlogClub, another popular french service was forced a few months ago to change hosting provider following a complaint sent by the same SACEM. The service was interupted a few days and opened again as fresh as new.

Activated Content Licenses Microsoft Technology to Enhance Audio Watermarking Efforts

REDMOND, Wash., and SEATTLE — Aug. 15, 2007 — Microsoft Corp. today announced that it is licensing the audio watermarking technology developed by its Redmond, Wash., research lab to Activated Content Corp., a leading digital technology and application services company in the audio watermarking market, based in Seattle.
Microsoft® audio watermarking technology consists of digital audio software tools that will allow Activated Content to insert nonsecure data into and extract it from audio files, tools that the company can use to offer additional services to the users of the audio file.
Activated Content is a leader in digital audio watermarking with its patented technology it has developed over the years. It launched the industry’s first comprehensive and practical watermarking solution for encoding identifiable, robust, inaudible and unique codes into digital audio.
Activated Content’s technology has already been deployed by major and independent record labels, recording studios, mastering studios, duplication houses, cable television channels and online content distribution services worldwide.
The agreement enables Activated Content to increase its value proposition to customers by offering interoperability. It will also now be available to both traditional content owners and those creating UGC.