The New Digital Supply Chain

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Media & Entertainment Services Alliance AND MJOURNALE Media & Entertainment Strategies. Solutions. The New Digital Supply Chain

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published by POWERFUL & SECURE | AGILE & FLEXIBLE | ENTERPRISE-READY | TRUSTED www.marklogic.com . +1 877 992 8885 . [email protected] Special Issue • Winter 2014 CONTENTS AND MJOURNALE Media & Entertainment Strategies. Solutions.

Columns Features Editor’s Note CLOUDSOLUTIONS P.37 By Devendra Mishra P. 6 Post-Production Steps Out of the House Smart Content By Jason Kassin, FilmTrack P. 38 By Guy Finley P. 8 One Cloud, Many Uses Next-Gen Blu-ray By Andy Hurt, Front Porch Digital P.42 42 By Jim Bottoms P. 10 Meeting Today’s Workflow Demands in a Private Cloud MESA Update P.12 By Alex Grossman, Quantum P. 46 Connected Future The Next Evolution in Cloud Services: Managed DAM P.14 By Bhanu Srikanth, Jargon Technologies By John Libby, MediaMax Online P. 52 Enhancing Creativity Cloud Trek: The Next Generation By Ginny Davis and Tim Sarnoff, By Jay Yogeshwar, Shane Archiquette and Ron Quartararo, Hitachi Data Systems P. 58 Technicolor P. 16 Supply Chain Solutions Creating the Intelligent Media Business By Douglas Reinart, ContentBridge By Robert Ambrose, Oracle P. 64 Systems P. 20 Transforming IT to Put People Ahead of Technology Ultra HD Vision By Whitney Bouck, Box P. 70 By Ken Goeller, Deluxe Digital Distribution P. 24 CONSUMER CONNECTIONS P. 75 Advancing Analytics Using the Consumer Halo in M&E P. 76 By Davinder Luthra, V2Solutions P. 28 By Alex Akers, Jacob Carlson and J.P. Benedict, Cognizant Business Consulting Social Media Insights It All Starts with Mobile By Kameswara Rao Bh and J. David Garland, 80 By Cindy McKenzie, PwC P. 80 IGATE P. 32 Data Driven Media is Happening Now P. 84 M&E Journal Ad Index P.158 By Steven L. Canepa and Richard Maraschi, IBM Deepening Engagement with the Target Audience The Media & Entertainment Services Alliance was founded By Rahul Sabharwal, Neha Lamba and Subhankar Bhattacharya, HCL America P. 88 in 2008 to create efficiencies in the creation, production and distribution of physical and digital media & entertainment. Personalizing the Global Entertainment Experience Representing over 100 member companies worldwide, the P. 94 organization produces events, newsletters, research, as well By Dan Peters, Saffron Digital as this journal publication. Its industry initiatives include workgroups in digital and physical supply chain, 2nd screen, Data Collected from Connected IT, content protection and anti-piracy. MESA is the man- Consumers Can Lead to M&E Growth agement company responsible for the efforts of the Content P. 96 Delivery & Security Association (CDSA), the Hollywood IT By Colleen Quinn, Teradata Corporation Society (HITS), Women in Technology:Hollywood and the 2nd Screen Society. Adopting Predictive Analytics in the Age of the Connected Consumer 100 P. 100 published by By Suzanne Clayton, SAS Bringing Real World Relevance to Entertainment Metadata M E S A By David Yon, Rovi Corporation P. 104 Media & Entertainment Services Alliance M&EJOURNAL 3 CONTENTS TABLEOF

Building the Next-Generation Media Analytics Platform By Steve Poehlein and Jeff Caldwell, HP Enterprise ServicesP. 107 That’s a Wrap By Tyler Wiebe, Scanavo P. 110 The Renaissance of Linear TV is Coming By Ian Wheal, Adstream P. 112 CONTENTINNOVATION P. 115 Streaming Video Requires Strong, Invisible Security By Andy Nobbs, Civolution P. 116 Know Your Attack Surface – Be Resilient By Chris Morales and Kari Grubin, NSS Labs P. 118 Reimagining Participations Accounting By J. Kent Bracken, Capgemini P. 120 Third Party Q.C. Needed Now More Than Ever By Ramón Bretón, 3rdi QC P. 124

Evolution Not Extinction: How to Successfully 120 Navigate Digital Distribution By Harris Morris, T3 Media P. 127 Mining New Metadata Gold with Semantics By Matt Turner, MarkLogic Corporation P. 130 Driving Digital Profits and Reducing Risk By Mike Sid, Mediamorph P. 133 Broadening the Entertainment Experience in a Connected World By Johann Schreurs, EVS P. 135 Content is King By Von Johnson, MCF Media Solutions P. 138 127 How to Boost Digital Media Revenues By Charles Tigges, hybris Software / SAPP. 141 The New Entertainment Bundle—A Victory for Consumers By Steven Herrera, Zaszou, LLC P. 143 Unleash the Power of Privacy to Protect Your Content By David Melnick, Weblife Balance P. 146 Bringing Order to Digital Identifiers By Richard Kroon, Entertainment Identifier Registry (EIDR) P. 148 Content-as-a-Service Enables Entertainment Everywhere By Steven Chester, Akamai P. 162 Using MDM for Mastering Title Data in the New Digital World By Ninad Raikar, Riversand Technologies P. 153 A New Age of Innovation for the Entertainment Industry By Charles Matheson, OpenText P. 155 The Personalization of Business Management Systems By Greg Dolan, Xytech P. 157 146 M&EJOURNAL 4 Building the Next-Generation Media Analytics Platform By Steve Poehlein and Jeff Caldwell, HP Enterprise ServicesP. 107 That’s a Wrap By Tyler Wiebe, Scanavo P. 110 The Renaissance of Linear TV is Coming By Ian Wheal, Adstream P. 112

Streaming Video Requires Strong, Invisible Security By Andy Nobbs, Civolution P. 116 Know Your Attack Surface – Be Resilient By Chris Morales and Kari Grubin, NSS Labs P. 118 Reimagining Participations Accounting By J. Kent Bracken, Capgemini P. 120 Third Party Q.C. Needed Now More Than Ever By Ramón Bretón, 3rdi QC P. 124 Evolution Not Extinction: How to Successfully Navigate Digital Distribution By Harris Morris, T3 Media P. 127 Mining New Metadata Gold with Semantics By Matt Turner, MarkLogic Corporation P. 130 Driving Digital Profits and Reducing Risk By Mike Sid, Mediamorph P. 133 Broadening the Entertainment Experience in a Connected World By Johann Schreurs, EVS P. 135 Content is King By Von Johnson, MCF Media Solutions P. 138 How to Boost Digital Media Revenues By Charles Tigges, hybris Software / SAPP. 141 The New Entertainment Bundle—A Victory for Consumers By Steven Herrera, Zaszou, LLC P. 143 Unleash the Power of Privacy to Protect Your Content By David Melnick, Weblife Balance P. 146 Bringing Order to Digital Identifiers By Richard Kroon, Entertainment Identifier Registry (EIDR) P. 148 Content-as-a-Service Enables Entertainment Everywhere By Steven Chester, Akamai P. 162 Using MDM for Mastering Title Data in the New Digital World By Ninad Raikar, Riversand Technologies P. 153 A New Age of Innovation for the Entertainment Industry By Charles Matheson, OpenText P. 155 The Personalization of Business Management Systems By Greg Dolan, Xytech P. 157 EDITOR’SNOTE

Personalizing and Globalizing the Entertainment Experience: Hollywood’s Work In Progress By Devendra Mishra, Chief Strategist, MESA, Founder & Executive Director, HITS

Furthermore, numerous technology spans. In addition, the window between film companies, mainly small and mid-sized, have release and availability of digital content may begun to provide hardware and software experience a significant compression. links and layers to help build Hollywood’s Hollywood is aggressively confronting digital supply chain, which is consumer-cen- the digital revolution, where personalization tric. Others are emerging to provide unique of content is truly empowering. The first services for data analytics, digital marketing, step in embracing disruptive technologies apps for smartphones and cloud comput- is to structurally change the organization ing, to name a few. “Old order changeth, and slough off outdated legacy systems. yielding place for new” is beginning to ring Alignment of film and home entertainment Hollywood is confronting the true as monolithic systems for enterprise businesses of the studios is ongoing while management are replaced by SAS and nimble TV networks are expanding their global busi- digital revolution, where solutions. As a matter of fact, the technology ness. Management information systems and personalization of content is choices are so varied that the emergence of a technology platforms are being integrated to purchasing officer for technology is becom- support the new structure and to exploit the truly empowering. ing prevalent in a few studios. value of content over its life cycle as well over The traditional world of entertainment, the life cycle of the customer in all channels born out of Hollywood more than a cen- available. The domestic operations are being he pace of Hollywood’s transforma- tury ago, has grown domestically to include consolidated with international, allowing tion to exploit the potential riches direct to consumer company behemoths greater monetization of intellectual property. Tof the digital world has gained like Google, Apple, Amazon, Netflix and In order to maximize realization of riches in significant momentum in the last three Facebook. The M&E industry is riding the content, executives from international mar- years. As the Internet has become the mode coattails of the new information economy in kets are running domestic home entertain- of universal distribution of content and terms of distribution. Leichtman Research ment divisions of some studios as well. the smartphone the lightning rod for the Group notes that “47 percent of U.S. house- Finally, innovation in the entertain- consumer, studios are extending the user holds currently subscribe to Netflix, Hulu ment industry is being spurred by one of the experience like never before. The promise of Plus, Amazon Prime or a combination of findings of Larry Downes and Paul Nunes overcoming the digital pennies with dollars these services, while 49 percent have at least presented in their book, “Big Bang Disrup- appears to be less elusive with the growing one Internet-connected TV (up from 24 tion—Strategy in the Age of Devastating service offerings in the smartphone-driven percent four years ago).” Innovation.” The declining cost of innova- marketplace globally. Today, Hollywood benefits from the new tion, the declining cost of information, and Considerable help is coming from un- customer having instant access to “near com- the declining cost of experimentation, have precedented sources as well. For example, plete market information” at his or her finger- shortened and skewed the life cycle of indus- Alibaba could give Hollywood studios a new tips, anytime, anywhere. Social media compa- try change and Hollywood is taking advan- pipeline into China. Alibaba, whose IPO nies, like Facebook and Twitter, have tapped tage of it. n raised $25 billion, is a jack-of-all-trades in into a deeply rooted instinct for humans to China. In addition to its enormous e-com- collaborate with and improve on the work of Editorial Director of the M&E Journal and Chief merce businesses, the company has interests others. The multiplicative networking effect, Strategist for MESA, Devendra Mishra is recognized in banking, maps, cloud computing, online first enunciated by Bob Metcalf, has produced as an eminent thinker and practitioner of supply payments, music streaming, and TV and a peer-to-peer sharing reality that is being chain management. An adjunct Professor of Decision film production. The growth of smartphones harnessed by producers of entertainment. Sciences at Pepperdine University, he has previously in China and India, where craving for Hol- The content may get parsed out for served as President/COO of such companies as lywood is insatiable, augurs well with an consumption on small screens with multi- LIVE Entertainment, VCL-Carolco, Lieberman expanding connected world. tasking consumers having shorter attentions Entertainment, and Technicolor Worldwide Media. M&EJOURNAL 6

AND FUTUREPROOF MJOURNALE Media & Entertainment Strategies. Solutions.

Publisher What is Smart Content? Martin Porter [email protected] (And why should you care?) Editorial Director By Guy Finley, Executive Director, MESA Devendra Mishra [email protected]

Editor (M&E Journal) Guy Finley [email protected] hat is Smart Con- storage and archives are using new tent? (And why tools to become auto-recognized, Managing Editor (M&E Journal) should you care?) logged and classified...and how our Marcy Magiera WThis was the open- industry will utilize and store the [email protected] ing comment I posed to a recent tremendous amount of user feed- Online Editors (M&E Daily) assembly of studio executives in back, once our media & entertain- Paul Sweeting Hollywood who, quite honestly, ment products have been delivered [email protected] stared at me blankly in response. The conversa- into the consumer’s devices/living rooms/ tion started to pick up momentum, however, ecosystems. Jeff Hyatt when I talked about how we (MESA and its In essence, Smart Content is enabling a [email protected] membership) have been involved in the en- brave new era for companies that are now Senior Writer tertainment/data conversation for quite some able to leverage new content intelligence tools Chris Tribbey time and how: to streamline their productions and supply [email protected] chains, while gaining unprecedented market- 1) Discussions have taken place in a variety of ing data and analytics about how their con- Creative Director business units within the studios and hand-off tent is being consumed. Heidi Antman points to vendors in the evolving entertain- The cultivation of Smart Content needs faboographics@gmail.com

ment supply chain. to span the content lifecycle from beginning Director Of Sales to end or, as I prefer to say it, from “inception Garrett Randall 2) The advancement of metadata is a slow to infinity” because we don’t know what’s [email protected] but steady process that seems to have gotten coming next down the distribution pipeline. its biggest boost at the distribution end of the (Movies for iWatch anyone?) Production Manager supply chain but needs to move further up- Though we can no longer identify the end Don Hurley stream to production, or even idea inception. of the supply chain (infinity), we at least know [email protected]

where it begins (inception). Smart Content Technical Director 3) Other parties beyond IT, supply chain and workflows need to begin at the earliest phase. Stanley Felix security need to get involved in the conversa- Silos are eroding in today’s advanced digital [email protected] tion. Production software/tools, marketing, workflows – and increased collaboration and change management and business process access is breaking down traditional barriers SIG LEADERS leaders all need to get involved. between business units. Nowhere is this more MESA Europe evident than in distribution. In the ‘good Jim Bottoms 4) Once you’ve got everyone’s attention, old days’ we only had to (physically) get the [email protected]

there is the statement that appeals to every films into movie theaters and through home Smart Content Council corporate CFO, “We can use metadata to entertainment distribution…and now we have Mary Yurkovic eliminate waste, inefficiencies and run a online video, which is growing the complexity [email protected] smarter, more profitable business.” of the process in scope and breadth: n Where and when is the content being 2nd Screen Society This dialog was the catalyst and we arrived at made available? Alan Wolk a name for it all: Smart Content. n Where and when is it being watched? [email protected] n Smart Content is a new term that applies to How are we are going to generate the most CDSA what we used to call the “digital” supply chain money on these assets? Bryan Ellenburg n and how machines/data/artificial intelligence How are we going to grow consumer reach [email protected] will impact business processes moving for- on all platforms? ward....how data, metadata and identifiers are published by M E S A being embedded…how tracking and recogni- Guy Finley is Executive Director of MESA and the Media & Entertainment tion software are being written and coded…how 2nd Screen Society. Services Alliance For more information visit: MESAlliance.org

M&EJOURNAL 8 @MESAlliance FUTUREPROOF

n When do you start archiving the data? that may not generate immediate ROI. They Most importantly, what do you keep? And will demand a singular strategy throughout what information do you need to collect the organization – especially as the creative around that archive so you can search across and business processes become increasingly and access? dispersed geographically – and throughout We are on this precipice of change and our circles of business partnerships. Smart Content can help lead the way. Smart Smart Content will demand a smarter busi- Content will not only enable efficiencies ness organization, which will recognize its long- throughout the creation process but will also term benefits and instill the responsibility for give marketers the instant feedback loop they generating both user- and machine-generated need to make critical (and costly) marketing metadata every step of the way. At a time of decisions. If consumer feedback is a sidecar streamlining systems and downsizing organiza- that will ride along with the Smart Content tions this becomes an even bigger task—one on a continual basis, just think of the way we that may take many years to accomplish, but can continue to monetize that content, on The “smarter” your content is, the one that is well worth the effort and wait. a global scale, over decades of changing con- more likely you are to be future-proof in Let’s all get smarter about creating Smart sumer preferences and buying patterns. your content strategies. Content. Let’s celebrate even the smallest Smart Content makes our assets future- achievements and developments. We’re not proof. from the top. The C-suite execs will need to going to get there overnight (especially not in It all sounds easy, right? Not quite. For see Smart Content as integral to their overall this turbulent business climate) but we can’t Smart Content to transform our businesses, business and content strategies and also be give up. The future of our entertainment in- it will take clear direction and investment willing to invest in technologies and systems dustry depends on it. n

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Next-Generation Blu-ray: Let’s Get it Right The road to a standard is long and winding – but is worth the effort By Jim Bottoms, Executive Director, MESA Europe

The investment cost for the new equip- 2014. As we approach the holiday season, I ment was high and initial yields were low. think we should be saying that if we do not With very few exceptions, it was virtually have something in the shops by Christmas impossible to justify the cost and with rep- 2015, maybe we should pull the plug now. lication prices falling almost before the first We need a genuine all-party buy-in Anyone with a vested interest disc rolled off the line it didn’t get easier. I to telling the consumer what UHD is. lost count of the number of times I had con- So broadcasters, TV manufactures, content in making UHD happen has versations with even established pressers who distributors and anyone else involved needs said that the numbers simply didn’t work. to make it clear that next-generation-quality a role to play. We didn’t bring along the independent content is accessible across every single de- content companies. Particularly in Europe, livery platform. But let’s also broaden the the small guys helped create the business. But net. Anyone with a vested interest in mak- hen Gerry Rafferty sang “If you for a number of reasons (lack of investment ing UHD happen, whether you make packs, get it wrong, you’ll get it right from the independent replicators, minimum discs, raw materials or movies, has a role to Wnext time,” could he have been re- order quantities, AACS not being in Europe play. ferring to the home entertainment industry? or small company friendly) they mainly sat We need a commitment to making it Let’s start with the premise that we got out the early days of BD, and many are still work for everybody. That means sharing it wrong on Blu-ray, at least so far. (I for one not fully engaged. the risk of the investment in equipment and still believe it is not too late and more can be The consumer education point is one that sharing the output from those investment done to drive demand, but let’s come back to is increasingly being heard when it comes to dollars or euros across the content com- that another time.) new technologies, and quite right too. The munity. Whether those manufacturing lines What exactly did we get wrong? Where days of studios having big enough budgets are in Mexico, Indiana or Alabama does not do I start? to create generic TV campaigns are largely matter. What is important is that there is a We didn’t educate the consumer. In the a thing of the past. Meanwhile, the studios manufacturing investment. No single repli- main, they still do not know what cable to use blame the retailers, the retailers blame the cator will be in a position to drive this alone to get the full benefit. They are still confused content community and the hardware manu- and investment from multiple manufactur- over whether it plays DVDs. Some don’t even facturers, and while this is going on, little is ers is just not going to happen. know that it is a high definition disc. really being done to talk to the consumer. In short, the industry wants and needs We didn’t fully support the format. OK, enough of analyzing the problems. this, and the only way that UHD BD is go- Why, once prices started to come down did This only really helps if we commit to the ing to happen is if we start collaborating now hardware manufacturers continue to make Gerry Rafferty ethos and determine that we and have a clear and concerted cross-industry and sell DVD players? As BD players can also are going to get it right this time. commitment to making it work. play DVD, why not expand the ownership by So, if Ultra HD BD is to be a success, If not, let’s abandon plans for a new disc just offering the backwards compatible de- what can we do to right the mistakes above? now, promote upscaling players and get be- vice? It tends to be what other sectors do. We need a format (and very soon). hind making more of the existing BD format. We made the investment in BD repli- This time last year we all thought that we I think this is a very real alternative. cating almost impossible to justify. This is might even see something for Christmas I would love to get your views. n perhaps a more controversial point but is highly relevant if we, as an industry, are serious about Jim Bottoms has been closely involved in the home entertainment sector for more than three decades, trying to establish an Ultra HD disc. (The fault helping companies around the globe to develop strategies aimed at creating a successful product launch and here lies with no one group or organization, but driving consumer adoption. As Executive Director of MESA Europe he is an industry advocate working it is important that we look at the issues.) with member organizations whose range of business activities span the entertainment supply chain. M&EJOURNAL 10 The Global Standard Contract and Rights Management So ware

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One MESA What’s going on with our many special interest groups?

ince you are reading this M&E smart We recently launched Journal, undoubtedly you know content the Smart Content who we are. The Media & En- M E S A council Council under the direc- Stertainment Services Alliance tion of Mary Yurkovic. The council will (MESA) reaches you either electronically be opening up work exchanges between (email, social) or in person (at nearly 34 annual the various industry segments to facilitate events) year-round in the U.S. and Europe. But Media & Entertainment a broader, more open dialog about the you might not realize that MESA is really an Services Alliance integration of data, metadata and content alliance of several well-known special interest as it moves throughout the entertainment groups (SIGs) and professional communities about how entertainment is going to trans- media supply chain. that activate their own series of targeted inform itself and its business model in a digital Ultimately it is your support and active dustry events and information initiatives that world. participation in MESA that has made all include: of this possible. We welcome your input as n Hollywood IT Society (HITS), What’s going on with the MESA and its membership continue to drive including HITS Broadcast many faces of MESA? the transformation of the entertainment n Women in Technology: Hollywood Here’s a quick rundown: industry. Please stay in touch with any one of (WiTH) Hollywood IT is making its our segment leaders. HITS: Devendra Mishra, n 2nd Screen Society (S3) mark worldwide. Our HITS [email protected] S3: Alan Wolk, n Content Delivery & Security Europe launch in London was [email protected] CDSA: Bryan El- Association (CDSA) (dare we say?) a hit. HITS lenburg, [email protected] SCC: n Entertainment Supply Chain Broadcast is in the process of building its Mary Yurkovic, [email protected] Academy (ESCA) first board of Content Advisors and recently n Smart Content Council (SCC) launched its inaugural NYC summit at CCW Our sister organization, Over the past year, as the industry continued in cooperation with NAB. MESA Europe (based in to transform and our association expanded, London), drives SIGs in we noticed something happening. There was WıTH A group of women execu- line with the above, focus- increasing overlap between the participants in women in technology | hollywood tives in IT have formed the ing primarily on European issues, initia- our various SIGs/communities. We first saw it nucleus of an expanding assembly of female tives and local events. If you’re interested develop between the IT execs in HITS and their technology and entertainment executives in in learning more, please contact Jim Bot- interest in content protection, which led them Hollywood. Two luncheon meetings have toms, [email protected]. to CDSA. Meanwhile, WiTH was a direct out- each drawn 100+ women (and men, too) talk- And, if you’ve got news that you want growth of HITS, which itself was an outgrowth ing openly about professional development to share with the MESA community, stay of our work with IT executives in the early and career issues. in touch with our writers and editors for period of ESCA and the digital supply chain. the M&E Daily, 2nd Screen 2 Day, CDSA This year we created the Smart Content Council A new board of Content Security News, Smart Content News and which has increasing interaction with the IT and Advisors is being formed by HITS List: supply chain groups, while there is a growing our new Society chairman, Chris Tribbey, [email protected] conversation between them and the 2nd Screen Alan Wolk. In between three core industry Jeff Hyatt, [email protected] Society as social and multiscreen strategies are events (CES, NAB, IBC) S3 will be concen- Paul Sweeting, [email protected] integrating into the production workflow. In trating on smaller, executive focus groups that Don’t hesitate to stay in touch with the short, we’ve really become one association with are each targeted at a key segment of the value MESA team who runs it all: several distinct constituencies—all of whom chain. Don Hurley, our director of operations, benefit from an increasingly diverse but equally [email protected] open and interactive membership. The Board of Directors Garrett Randall, our director of member For this reason, we have made a significant for this non-profit security services, [email protected] change in our membership policy moving for- group is reevaluating its structure with the Guy Finley, our executive director, ward: If you are an Advisory Board member of intent to expand membership throughout the [email protected] MESA, you’re part of them all. entire M&E business—movies, television, games We look forward to working with you in This will provide an ever-broadening dialog and software. Stay tuned for details in 2015. 2015 and beyond! n

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The Role of IoT in the Future of M&E IoT has been most visible in common household appliances, but it has the ability to bring together content publishers and consumers in an unprecedented way By Bhanu Srikanth, CEO & Co-Founder, Jargon Technologies

Abstract: IoT is going to he Internet of Things (IoT) is the network of real-world objects be a transformative experience (“Things”) accessed through the Internet. A Thing in IoT has a unique for consumers as well as identifier and contains embedded technology, which is able to transmit businesses. For us in media Tdata over the Internet without any human intervention. A Thing can be any natural or man-made object. A typical IoT device would have sensors for its and entertainment, it will create specific purpose. Some examples of IoT devices are pacemakers that transmit data new ecosystems, markets to the hospital, animals injected with biosensors to track migratory patterns, street and business models. The cameras that send emergency alerts upon detecting accidents, aircraft transponders shrinking gap between content- that transmit GPS location at all times, and energy/water monitors for a smarter, creators and consumers will more-efficient city. An IoT device can not only sense but can actually “do” things. lead to an enhancement of For instance, a smoke-alarm that detects smoke in an area can automatically activate consumer satisfaction. This, a sprinkler system in that area; security monitors, when detecting a breach, could in turn, will lead to more automatically secure exit areas without any manual operation. Experts agree that the consumption. impact of IoT is going to be much wider than the impact of the Internet itself across all aspects of our life. At the heart of this concept lies the fact that any and every object can be uniquely identified. Although this may sound implausible, it has already been achieved thanks to Internet Protocol version 6 (IPv6). An address or identifier in the Inter- net is referred to as an “IP address.” Every device on the Internet is assigned an IP address for identification and location definition. With IPv6, there is no risk of exhaustion of IP addresses. Yet, the adoption of IPv6 has been slow. According to Google, only 4 percent of

M&EJOURNAL 14 IoT could simplify digital rights management due to the uniquely identifiable IoT devices and make it easier to trace any rights violation to the root. the users accessing their services have IPv6 the-scenes footage for purchasing a ticket. be on targeted marketing. IoT-enabled de- addresses as of June 2014. It is imperative Similarly, consumers purchasing a Blu-ray vices are going to transmit copious amounts that IPv6 gets adopted globally for IoT to disc could be rewarded with an instant digi- of data, tons of useful information on con- evolve. The transition from IPv4 to IPv6 is tal copy on their IoT devices or a streaming sumer spending and preferences. No longer expected to be gradual as all hardware and subscription for similar content without will content publishers need to rely on tra- software get updated. needing to register devices and enter codes. ditional methods of surveys and gathering In specific reference to the Media & En- ratings. They will have real data at hand. If tertainment industry, IoT could solve the Adding layers to social these data are mined properly, it could lead many challenges our industry faces today. media and interactivity to streamlining of distribution and market- IoT will change how content is distributed, We can also expect IoT to lend a new dimen- ing content, as well as the evolution of new marketed and consumed. Content providers sion to social media and social experiences. A business models. want to provide flexibility to the consumers virtual movie-hall where people from across IoT is going to be a transformative expe- to view their content across various channels the world are watching the same movie and rience for consumers as well as businesses. such as theaters, Blu-ray, digital streaming interacting with one another is no longer For us in media and entertainment, it will and download. And yet, they want to protect limited due to technical barriers and lack of create new ecosystems, markets and business the rights to their content. Standards such as inter-operable technologies. Although such models. The shrinking gap between content UltraViolet have emerged to meet these two, experiences are possible today, it requires creators and consumers will lead to an en- often conflicting, requirements. But to keep costly planning and execution. Imagine stu- hancement of consumer satisfaction. This, up with the constantly-changing ecosystem is dios creating ad-hoc virtual movie theaters in turn, will lead to more consumption. going to be an expensive proposition for such and inviting fans or the press to catch an ex- standards. From a consumer perspective, the clusive look at an upcoming blockbuster. Privacy and security current digital rights management practices IoT could take interactivity to new The biggest hurdle for IoT adoption is go- do not provide a user-friendly experience. heights. Consumers could rate the movie, ing to be concerns over privacy and secu- Multiple user actions such as registrations request information on location or participate rity. The American Civil Liberties Union and validations are mandated to exercise the in a lottery to win movie-related gear during (ACLU) has already expressed concerns right to one’s content, which makes it cum- or after the theatrical experience. Second- over the intrusive nature of IoT. In a recent bersome. IoT could simplify digital rights screen could evolve into a web of meaningful survey of 2,000 consumers published online management due to the uniquely identifiable interactions with consumers’ IoT devices. by Acquity Group, 80 percent of the respon- IoT devices and make it easier to trace any Content can have metadata to trigger a web of dents expressed that they were concerned rights violation to the root. contextual experience on other IoT devices. about security, but half of them said they are IoT could bring together content pub- For example, imagine you are watch- willing to share certain personal informa- lishers and consumers in an unprecedented ing a movie when your favorite actor ap- tion with third-party retailers if provided way. Content publishers could define the ac- pears on screen. Knowing your preference, compensation. Even if consumers willingly cess rights for a consumer right at the Point your phone could ask to pose for a picture share certain information, securing the big of Sale/Service (POS) without depending on with him/her, then send the picture to data is going to be a daunting task. There is third-party human interaction. your smart-frame in your living room or/ also concern of security at the national and Imagine going to watch a movie in the and across the world to your friends’ living international levels, where criminals could theater, where a POS IoT device, say the rooms. When you are watching a soda com- gain control to a network of IoT devices to ticket scanner, could register your purchase mercial, your IoT TV could alert you to the cause harm. and after some time, push the content for fact that your refrigerator is about to run out Can the current IT security systems you to watch again on your IoT-enabled of soda and offer to place orders for you at evolve to meet the demands of IoT? Or is device, which could be your television or your nearest or favorite store. there a silver bullet waiting to be discov- tablet or phone or desktop. Publishers could The enormous impact of IoT is going to ered? Only time will tell. n instantly reward consumers for going to the theater in a number of ways, like giving them As CEO of Jargon, Bhanu Srikanth is responsible for overall corporate and a discount to purchase a digital or a physi- technology strategy, account management and business development. Before starting cal copy, or allowing them stream similar Jargon, she was part of the core R&D team that developed and evolved the Blu-ray content on their IoT device. Consumers format and was involved in various aspects of Blu-ray technology. She spearheaded could be rewarded with exclusive behind- PHL’s Blu-ray authoring group during the startup phase of Blu-ray production.

M&EJOURNAL 15 ENHANCINGCREATIVITY

The Potential of the Cloud to Disrupt and Improve Content Creation Digital film and TV productions demand new business processes that support multi-disciplinary collaboration in real time By Ginny Davis, CIO, and Tim Sarnoff, President, Production Services, Technicolor

Abstract: In this article, we explore the role that cloud technology- Time, tradition and barriers to enabled business strategies can play in: transformation n Fundamentally altering the nature of collaboration in creating content Technology has always had an immense impact on n Moving away from a delivery model that has traditionally depended on the culture and business practices of every industry. serial (step-by-step) processes toward new strategies that embrace What is interesting to observe, however, is how parallel collaboration (in which multiple steps can be executed at once) entrenched culture can become, even when the n Transforming the economics of media and entertainment experiences technological realities around us change. Tradi- tion, after all, offers a seal of approval on “tried and true” behaviors that are difficult to displace. It is he media and entertainment sector has why people and institutions can be so reluctant to made tremendous strides in harnessing change. new digital technologies to transform the In the media and entertainment sector, the na- T way people consume film, television and ture of chemical and magnetic tape-based technol- music – to name but a few artistic forms of expres- ogy led to serial, step-by-step processes for content sion. creation that defined – and even enshrined – the But of these three art forms, it could be argued relationships that make up the media and entertain- that only music has also used new technological ment value-chain. As one step in the process was capabilities to reinvent the eco-system that makes completed, the next link in the chain took over in up that industry’s value chain. The rise – and ac- a linear trajectory that ended with the screening, ceptance – of online music venues (such as iTunes) debut and release of a production to a consumer has not only left an indelible mark on how music is audience. produced; it has altered how music is developed, dis- Every year the technology associated with this tributed, delivered and consumed. traditional process got better, further codifying the Television and film have been more deliberative underlying principles and value-chain relationships. in figuring out how new cloud technologies can But making things better often meant introducing alter the chain of activities that connect the content nuances and complexities that necessarily extended development process to the delivery of increasingly the number of links – and hence the length of the immersive augmented experiences demanded by to- value chain. day’s customers. Some of the most interesting areas However, the digitization of film has introduced of activity in the distribution of moving pictures in- dramatic disruption to both the creative process volve over-the-top (OTT) players like Netfilx, Vudu, and consumer expectations. Scenes, for instance, and more recently, MGO. These players are harness- need to be more realistic even as the stunts are ing cloud computing principles to fundamentally more fantastic. In just a few years, we can see how alter the relationship that consumers have with the rapidly digital image enhancement technologies content in which they are interested. have altered the visual experience by comparing Where we see an immense opportunity to have Peter Jackson’s The Lord of the Rings: The Fellow- cloud computing creatively disrupt – and improve ship of the Ring, in 2001 to his 2013 installment of – the entertainment industry is in “up-stream” early The Hobbit: The Desolation of Smaug. stages of the content creation process. The visual difference is palpable. But even more

M&EJOURNAL 16 impressive is what has had to occur behind agement capabilities that are associated with together to produce a motion picture. the scenes to create these new immersive closed proprietary, private systems. What augmented entertainment experiences. cloud computing has introduced is a new Why is this important? way to think of the underlying infrastruc- When multiple copies of files are flying Parallel processes, tures that must be interconnected and inte- around in different systems that are not inte- collaboration and the cloud grated to produce and distribute cinematic grated, it creates a version control challenge The entertainment industry is rapidly – even and television programing. that can paralyze the production process. if reluctantly – coming to the conclusion An integrated approach to infrastructure The abstraction of applications from the that the complexities associated with today’s virtualization, application program interfac- underlying infrastructure makes it possible digital productions cannot be supported by es (APIs), data management, as well as strong to create logical segregation of activities traditional (linear/serial) business processes. identity management (IM) and role-based based on policies that can be automated, The number of interdependent variables as- access control (RBAC), are just a few of the monitored and enforced on the same com- sociated with telling compelling stories has central tenets and organizing principles for puting resources. exploded beyond the ability to place all pro- cloud computing. Along the same lines, APIs are important cesses on a single critical track. These principles abstract the applications because they allow different systems to be The digital revolution in content cre- – the functional purpose of a piece of software adapted and integrated to support multiple ation has created demand for new business – from the underlying infrastructure. Virtu- functions – such as sound editing, visual processes that support multi-organizational, alization, for instance, allows organizations special effects or colorization – on a com- multi-disciplinary collaboration in “real to optimize the utilization of processors. But mon platform. time.” The industry has evolved to a point the same technology also makes it possible From a security, compliance and man- where multiple activities must move forward to place several virtual machines on a single agement perspective, IM and RBAC allow in a simultaneous and parallel fashion. server so that multiple activities – and user executives to validate and authenticate who And this where the principles of cloud disciplines – can share the same resource. is using cloud resources while also restricting computing come into play. The sharing concept is critical if we are to user behaviors and access to files and pro- For years, industry has struggled with engage in parallel collaborative processes and cesses based on defined and prescribed roles how to create common platforms and shared minimize the number of file copies (scenes and responsibilities. resources that facilitate collaboration, but for instance) that exist across the multiple This cloud architecture can (and should) which also provide the security and risk man- systems used by the community that comes be analyzed and audited by third parties to

M&EJOURNAL 17 ENHANCINGCREATIVITY

Members Only

associated with digital productions, so that more time, money and human talent can be focused on the story-telling function. Rather than spending time on administrative and technical efforts to ensure that everyone is working off of the same set of master files – an almost impossible task for a traditional serial process – in a collaborative cloud environment, the entire community of interest can focus on delivering the intended artistic vision of the content creators. Instead of being managers of a cumbersome set of disjointed processes that are loosely connected (and in which the entire operation is only as strong as the weakest Technicolor’s cloud-based network supports content creation. link), we can let automated workflows on shared computing resources manage these ensure that the performance, controls and “real time” – by a team of colorists in Los An- complexities so that more talent can be fo- security characteristics meet the highest geles, who may be working on the same scene. cused on movie making. standards of compliance with the shared It is not enough to simply share files and Effective cloud environments allows us priorities and policies of the community that keep track of evolving versions on shared to invest more in collaborating creatively uses the cloud to streamline the production computing resources; we have embedded – rather than spend operational dollars coor- process. logic into the digital exchanges, transactions dinating administratively. This is important and updates so that all key dependencies are if you believe that the quality of talent and A “Members Only” cloud automatically updated when additions, dele- artistic collaboration are the greatest con- These are the technological principles that are tions or alterations are made in this parallel tributing factors to artistic and commercial at the center of the “Members Only” produc- production process. success. tion network that Technicolor has put in So while there are gains in productivity place to support studios, producers, editors, Economic implications and operational efficiency to be leveraged directors, colorists, visual and sound effects Shifting to cloud-based processes can reduce from cloud-based processes, these benefits professionals along with the rest of the com- capital expenditures, but still requires well represent improvements that can best be munity that must work together to produce managed production planning to control the described as “defensive” in nature. major motion picture productions or televi- variable costs. The more difficult outcomes to mea- sion programing. But it is important to rec- We might be tempted to conclude that sure and quantify – but by far the more ognize that the cloud architecture only serves new cloud-enabled parallel production pro- impactful implications delivered by cloud- as a platform for designing business processes cesses generate their primary value by reduc- based business strategies – stem from the that support today’s production realities. ing costs and accelerating “time-to-market.” improved ability to tell the best and most The architecture is what allows a movie But the fact is that while both outcomes are compelling stories without yielding or director in Hollywood to make changes possible, the true benefits of a parallel col- compromising to the growing day-to-day based on discussions with VFX professionals laboration workflow come from the ability complexities of today’s digital production in London in a way that can be tracked – in to better manage the rising complexities environment. n

Ginny Davis leads key strategic partnerships and manages the applications, networks, data centers and IT services used by Technicolor employees, customers, and suppliers across more than 30 countries and 200-plus sites. She is responsible for defining and implementing new technologies to continuously improve our productivity for both internal and external customers. Tim Sarnoff oversees the company’s key activities including visual effects, post-production, digital cinema, and animation & games. Prior to joining Technicolor Mr. Sarnoff was President of Sony Pictures Imageworks for 12 years, and previously created Warner Digital Studios as a division of Warner Bros., and shepherded the start-up and growth of Warner Bros. Animation. M&EJOURNAL 18 Are you unlocking new growth through the power of digital?

As the power of digital has exploded, so have customers’ expectations. Companies that can effectively engage digital customers while reinventing their business models will be the ones that find a competitive advantage. PwC understands the complex issues facing top advertisers, as well as leading media and entertainment companies, and is ready to work with you to harness the power of digital media. That’s why PwC is hosting a panel discussion on the progress and future of TV everywhere, to help you gain critical insight into the forces unlocking new growth in media and advertising. Visit www.pwc.com/us/em

© 2014 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the United States member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

MW-15-0775-MESA Ad.indd 1 10/17/2014 9:39:17 AM SUPPLYCHAINSOLUTIONS

Transforming the Digital Supply Chain for Efficiency The best possible path is through automation and cloud IaaS By Douglas Reinart, Chief Operating Officer, ContentBridge Systems

Abstract: A discussion directed at any of us are attracted to supply n product configurations for one output those involved in the digital content chain work not so much for the (e.g., Blu-ray) not available, or overlooked, for supply chain, covering the effects an daily grind, but for the poten- other windows; inefficient supply chain is having on Mtial to refine and improve. It is n sales teams committing titles and delivery the industry, some of the common the engineer or the architect in us that can’t time frames that are simply not supportable proposals to improve, and one vision for help but think of better ways to connect sup- by operations due to missing or unavailable how transformation may be shaped. ply with demand. We aren’t satisfied with the elements; status quo. n numerous retailer-specific delivery require- If you are a participant in the digital con- ments; tent supply chain, you must be acutely aware n and sales associates having to become closet of the brimming inefficiencies that exist. We experts in digital media technologies. are talking about wrangling media assets of all formats, directing the movements of very large Regardless of whether the retailer or the files, and executing complex transformations content owner covers digital supply chain to increasingly stringent retailer requirements. processing costs, inefficiencies make content Very unlike most supply chains. more expensive to acquire. Other problems also arise. A less agile and responsive supply What we are experiencing is the following: chain leads to poor fulfillment performance n video, audio, and data elements scattered and missed sales opportunities. Technical across disconnected repositories; complexity impairs connections between sales n assets unnecessarily re-generated; and operations, further limiting a content n masters handled and transformed over and owner’s ability to capitalize on opportunities. over again; Retailers find it more difficult to discover and n derivative assets proliferating; transact content. n re-work and redundant QC steps; Because today’s supply chain limits vis-

M&EJOURNAL 20 SUPPLYCHAINSOLUTIONS

ibility and discovery, retailers are driven to a replication, packaging, pick/pack, and deliv- vestments have already been made on internal greater reliance on aggregators, middlemen, ery – all controlled by major content owners, processes, systems, and partners to help deal and other “filtering mechanisms” to weed out right down to the retail shelves where they are with the complexity. Slow movers chained to content and squeeze their funnels. The added displayed. sunk investments will start to lose out. cost of an inefficient digital supply chain also Studios kept their eyes on the packaged means that retailers have less to spend on the media prize. Meanwhile, in DVD’s shadow, Standards content itself. the digital supply chain germinated without Leading entertainment industry groups like studio coordination or standards. DEG, EMA, MESA, and SMPTE have spon- Getting to this point Today’s digital supply chain quickly sored efforts to define digital supply chain Not too long ago, we lived in an analog enter- diverges from the content owner’s control, standards. Much of the focus has been on tainment world. Back then, we went to the- roughly where compression and authoring metadata, but work has encompassed mezza- aters to watch the projection of 35mm film begins in the DVD and Blu-ray world. Digital nine files formats, image artwork, closed cap- and tuned in to any of four or five broadcast retailers now control the path that intersects tioning, subtitling, and avails. Some retailers television channels (counting UHF) in our the consumer, and they define what flavors have expressed their desire to receive mezza- homes. Film and broadcast TV maintained and variants get created after the mastering nine-level packages from content owners that entirely self-contained distribution infrastruc- step. The largest and most influential of them adhere to Interoperable Master Format (IMF) tures rigidly defined by standards. Content used this control to push upstream, aggres- specifications. owners had well-defined deliverables and in sively dictating the format of deliverables to Clearly, standards are an important piece many cases owned the distribution chain. suit their consumer delivery infrastructures. in the digital distribution puzzle. However, Things didn’t change much with cable The studios left a vacuum and the digital experience suggests that we can’t solely rely television, although various tape formats did retailers filled it. Compounding the issue for on this path. We see how quickly standards begin to multiply. Even VHS and the advent everyone is a multitude of device form fac- efforts can devolve into yet another metadata of home entertainment represented just an- tors and technology “ecosystems” adopted by schema or file type proposal. Some retailers other self-contained, consistent, and entirely consumers. believe they can push through a de facto stan- standards-driven distribution. dard. It wasn’t long before digital technology Proposed improvement paths No content provider wants a digital retailer crept into distribution, but the major stu- If you have attended a digital media-themed to dictate supply chain terms more than they dios managed to keep the genie bottled for conference within the past eighteen months, already do. And how likely is it that digital a while longer. Digital Cinema Initiatives, you can attest that we are not exactly lacking retailers – committed to differentiating experi- LLC (DCI) paved the way for digital cinema, for proposals to improve the digital content ences for their consumers – will be comfort- while collaborations between studios and the supply chain. Let’s take a closer look at some able settling for a “one size fits all” package consumer electronics industry yielded DVD of the proposed paths. from content owners? Still, there may be time and Blu-ray specifications that drove lucrative to forge some standards, building off the good businesses. Do Nothing work done to date. It might help matters if a Once all title assets are available, the The digital supply chain has evolved, warts DCI-like entity was empowered to implement physical media supply chain for DVD and and all, to where at least it is functional. May- digital distribution standards, but that too BD progresses down a consistent path from be we are too far down the path for significant would require broad consensus. A role may authoring to emulation/QC, disc mastering, changes to be worthwhile. Perhaps major in- exist for a coordinating group focused not

Example Digital Distribution Workflow

M&EJOURNAL 21 SUPPLYCHAINSOLUTIONS

The added cost of an inefficient digital supply chainmeans that retailers have less to spend on the content itself. on specific standards, but on something a bit may be able to push through standards con- subtitles, and even scene replacements or dub broader (more on that below). vergence. They also introduce another inter- card inserts). Automation in the ‘front-end’ mediary into an already crowded supply chain asset conform stage (specifically, the master- Retail savior full of middlemen. ing and QC steps) will take a bit longer to Lately, there has been talk that a major digital address. Still, much of the effort to create retailer may be willing to step forward and take Technology to rationalize distribution diverse retail deliverables can be (and is) auto- over the entire digital supply chain on behalf We are witnessing the rapid evolution of mated today. of the industry. After all, a retailer of sufficient distributed processing and storage solutions Standards can help accelerate this vision size and scale already receives content from the across nearly every industry. It is not hard by limiting the variations in deliverables for vast majority of owners and aggregators. They to envision the realization of entire sup- which automation would have to solve. In- could process deliveries to other destinations ply chains in the cloud – particularly those teroperability of solutions presents its own just as third party services providers do today. charged with processing and moving digital challenge. Standards can help the technical The largest have seemingly limitless resources goods. component, while joint industry initiatives at their disposal to step into the breach. In fact, Automation capable of processing video, can help address the business challenge by it might all be offered free to content owners. audio, artwork, and associated metadata encouraging studios, service providers, and Except that it won’t be free. In my studio into packages accepted by any digital retailer retailers to work toward a common vision. home entertainment days, we evaluated and would transform the supply chain without Automating the fulfillment process then rejected offers from retailers to “offload” some requiring adoption of monolithic standards opens up possibilities to rethink content of our supply chain burden. Those proposals or establishing new middlemen. search, discovery, and transacting between didn’t go anywhere because they would have Taken further, an interoperable “ecosys- content owners and retailers. Think for a mo- put us in awkward positions with our other tem” of digital supply chain services could ment about a “common virtual VOD engine” customers. What is being proposed now for leverage the ever-improving economies of the powered by competing but interoperable the digital supply chain would be the equiva- cloud. In this model, content owners would cloud services. Content owners decide what lent of awarding the studio’s entire DVD and be free to choose how and where their asset to make available to whom, under what terms Blu-ray fulfillment to a single big box retailer. libraries exist (although Total Cost of Infra- and where they keep their assets stored and structure (TCOI) advantages will likely drive protected. Retailers decide what they wish Central servicing entity content owners to maintain a ‘service-ready’ to transact and specify how they want to If trusting a single retailer to assume control of library with one or more Infrastructure as receive the content. Cloud services take care the digital supply chain is not the way, perhaps a Service (IaaS) providers). Content own- of the rest. Such an approach could allow for a large media service provider could act as a ers would only need to provide the path to fine grain control of access rights and greatly consolidated intermediary. This is a fantasy uniquely identified assets. The supply chain, reduce the need for aggregation. Selling and to which post houses and other media service in the form of cloud services, would be deliv- distribution frictions would be eliminated. providers are still clinging. Understandably, ered to the content. More content, including independent works, content companies are unlikely to put all their would find their way to retailers looking to eggs in one third-party service provider basket. The Crystal Ball differentiate their platforms. The whole pie Other variants include a dedicated servicing I believe that the true and inevitable path to grows. entity that is jointly owned by multiple studios, transforming today’s digital content supply Who owns such an engine (or if it needs or an industry consortium. Both the Digital chain is through automation and cloud IaaS. an owner at all) and how it all operates will Cinema Distribution Coalition (DCDC) and The technologies already exist to bring an have to wait for another installment. The the Digital Entertainment Content Ecosystem interoperable ecosystem of supply chain ser- good news is that there are real opportuni- (DECE) are good examples of entertainment vices to reality. Automation can take over the ties—and now the technologies—to trans- distribution consortia. DCDC addresses the supply chain process from the point where a form the digital content supply chain in satellite delivery of digital cinema packages to content owner has high quality conformed dramatic and meaningful ways. After all, isn’t theaters, while DECE, of course, begat its digi- assets. This includes dynamic localization that why we chose to be supply chain profes- tal locker service familiar to us as UltraViolet. (swapping alternate language audio tracks, sionals in the first place? n Whether a third-party provider, joint studio entity, or industry consortium, a cen- Douglas Reinart prior to ContentBridge was VP Global Studios at Technicolor. tralized servicing group doesn’t automatically He also served as EVP Worldwide Operations for Paramount Pictures Home eliminate inefficiency from the supply chain. Entertainment and Partner at PRTM Management Consultants, now part of Individually, they concentrate the effort and PriceWaterhouseCoopers.

M&EJOURNAL 22 Agile Responsive Flexible So You Can Be Too

Change is an integral part of both the technology and M&E industries. Today’s enterprises must be ready to respond to new opportunities, new challenges, and new technologies with increasing speed and agility, often with IT resources already stretched beyond capacity. That’s where we come in.

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Zaszou IT Consulting zaszou.com ULTRAVISION 4K UHD: Delivering on the QoE Promise Files will need to undergo rigorous testing and quality analysis to realize the format’s potential By Ken Goeller, Vice President, Solutions Engineering, Deluxe Digital Distribution (D3)

Abstract: “Good enough” will no ndustry consensus is that 4K will be tion, or in the conversion, restoration, and longer be accepted as “good enough” the next generation television technol- re-mastering from film or HD. Furthermore, given that the critical differentiator ogy that will capture the consumers’ to ensure that the playback experience is opti- imagination. With this consensus, pro- mized on target devices, 4K files will need to and fundamental driver behind 4K is I duction, processing, workflow, and delivery undergo rigorous testing and quality analysis unprecedented and superior quality mechanisms must be re-defined for mass scale of resolution, color gamut, bit depth, frame over today’s HD content. The goal as subscribers embrace the potential of this rate, compression, and decoding algorithms. here is to discuss the broad range of exciting new viewing experience. Now is the considerations that must be addressed time for service providers to investigate the All 4K is not created equal to ensure 4K content and services are necessary steps to prepare and ramp commen- For content that is not 4K-native shot and surate with the pace of the market and posi- produced, various modes of conversions from delivered at a Quality of Experience tion themselves as leading providers of very HD and film to 4K will impact the quality of (QoE) commensurate with market high-quality content. content. These include: expectations. Fundamentally, it should be understood n Upscaling: In its most basic form, up- that there will be variations in the quality of scaling does little more than quadruple the 4K formatted titles. This is based on nuances number of pixels. However, there are some having to do with parameters used in the versions of the upscaling process that attempt preparation of content from sources that are to augment the quality through algorithmic either 4K native shot and mastered produc- processes and add information by “guessing”

M&EJOURNAL 24 ULTRAVISION

New Workflows, Evolving Standards

Some of the technologies and standards used in 4K UHD workflows.

what a rendering with deeper color depth and Resolution and more around properties specific to two major areas contrast would look like. While upscaling may The current iterations of 4K UHD TVs relied of development: the 4K platform itself and offer a fast track to library building, operators on rec. 709 (ITU’s recommended founda- the new encoding standard, HEVC or H.265, will have to decide whether upscaling meth- tion color depth standard for digital TV since likely to deliver ~35% to 50% reduction in ods will meet the higher quality expectations 1992), which prescribes a bitrate of 8-bits per data sizes. This is required to reduce the band- that subscribers expect and demand. color with 256 gradations per primary color, width constraints imposed by distribution of n Restoration scanning: One approach for a total of approximately 16.8 million pos- programming in the 4K format. involves scanning each frame individually to sible colors. 10-bit is also supported for a total While some have cited 15 Mbps as a target create a sequence of uncompressed discreet of approximately 1.07 billion possible colors. rate for their 4K rollout, transmission rates image files processed with various restoration With the introduction of rec. 2020 (a new will more likely be 25 Mbps or above for rec. imaging applications, including applications standard for next generation TVs, including 2020-compatible 4K from stored content that bring the 4K color palette into play. An 4K UHD) there is a discernable improve- delivered at 60 fps. Live feeds will require alternative approach involves continuous ment of 4K compared to HD. With a coding even higher rates, especially in sports pro- scanning, basically an enhancement of the old scheme of 10-bits or 12-bits per color, rec. gramming. Bandwidth and storage consump- Telecine restoration process, which scans the 2020 generates about 1.07 billion colors with tion will explode. This is a significant bitrate frames as the film runs through the scanner. 10-bit coding and a whopping 68.7 billion increase over 5.625 and 7 Mbps H.264 used Either way, the processing procedure also colors with 12-bit coding. by many MSOs today. repairs defects in old films such as scratches Dolby Vision is another contender for HEVC is only the first step. In the run-up and removes dust and other materials, leaving the de facto 4K capture and display standard. to introduce true 4K and HEVC, cable opera- a pristine, very large master file which must Dolby Vision uses the 12-bit version of the tors will need to look at new approaches to then be compressed for storage. rec. 2020 color palette and introduces far quadrature amplitude modulations (QAM) n CGI: A more expensive and comprehensive greater contrast capabilities in line with High allocations to leverage their existing capital conversion method in which computer gener- Dynamic Range (HDR) imaging. While expenditures and infrastructure. By dedicat- ated imaging is used to recreate the film digi- there’s been much focus on Dolby’s prototype ing more QAM bandwidth to transmitting tally in 4K. This process involves re-rendering display generating eight times the bright- higher bitrate 1080p content, operators once 2K images in 4K. ness of conventional displays, the real goal of will be able to provide content amenable to While film converted and encoded digi- HDR is not so much to increase luminance as upscaling on UHD TV sets to quality levels tally for display on today’s HDTV sets has it is to generate greater contrast across what- approaching 4K while providing non-4K not posed much of a problem, use of High ever the range of luminance might be for a households HDTV quality that offers a 10 Efficiency Video Coding (HEVC) and the given display. percent to 20 percent or better improvement higher resolution 4K UHD TVs will capture over customary lower bitrate 1080i content. graininess with greater clarity and make it far Bandwidth and storage issues There is also an opportunity to consider more apparent to viewers. To what extent The crux of the technology discussion revolves cloud-based workflow alternatives to over- this intensification of graininess needs to be remedied through filtering or other additional Ken Goeller oversees Engineering Solutions for D3’s Cloud-based processing in the conversion process is an- multiscreen content processing solutions, which encode and package any other issue that content owners will have to title, in any format and deliver high quality device-optimized video assets to address prior to releasing content. any OTT and MVPD back-office platform. He has 20 years of technology development experience in film, video, audio and file-based systems.

M&EJOURNAL 25 ULTRAVISION

With 4 times more pixels than HD, higher color depth and simply the ability to display much more detail, 4K workflows require significantly more storage and higher bandwidth networks necessary to support higher quality source materials in the 4K HEVC compression workflow.

come cost-related and business issues to more used in compression and multiplexing are today’s on-demand service into the multi- effectively address an emerging 4K market becoming obsolete overnight, as significant screen domain. and scale commensurate with the demand, improvements are being made both to com- Integrating cloud-based solutions into the rather than taxing existing video on demand pression run times and to output quality. existing workflow can facilitate the migra- (VOD) infrastructures. Further complicating the situation is 4K’s tion to 4K and provide the flexibility to scale evolving standard. New, better consumer content and services offerings at the pace Workflow impact to electronics with new features are being in- commensurate with the market. Roll-out of support 4k troduced. The biggest feature improvement, 4K services will depend on a number of fac- On the surface it may appear that 4K has the HDR, is on the horizon. HDR, seen in dem- tors that will span content availability, televi- same back office compression workflow as an onstration televisions at 2014 trade shows, is sion distribution technologies, and workflow operators’ existing MPEG-2/H.264 work- likely to become the single most important and infrastructure-related investments and flows, and that all a cable operator has to do feature for 4K quality. While it may be a few advancements. As such, service providers to get going with 4K is to add new encoders years off, it will likely arrive before any cur- need the ability to scale capacity to meet to an existing workflow. If only it were that rent 4K workflow can be fully amortized; short-term needs and incorporate business simple. Compressing 4K requires another presenting operators with the problem of continuity over the longer term. level of infrastructure beyond traditional when to invest in a 4K workflow. Outsourcing to the cloud mitigates the HD workflows currently deployed. All of the above leads to a conundrum for risk of investing in nascent technologies that With 4 times more pixels than HD, service providers: Do you lay-out the capital are likely to be obsolete when the market higher color depth and simply the ability now for new 4K workflows and run the risk reaches mass scale and maturation. Beyond to display much more detail, 4K workflows of infrastructure obsolescence? Or should cutting costs, the opportunity to rely on best require significantly more storage and higher you wait for standards to converge and tools practices developed by experts in content bandwidth networks necessary to support to stabilize and run the risk of losing market management, processing and storing 4K con- higher quality source materials in the 4K share to other competitors? It also raises the tent for access in the cloud will help service HEVC compression workflow. natural question of whether service providers providers sort through the complex issues As previously discussed, quality in and should apply traditional approaches to amass- that go into establishing benchmarks for quality out (QIQO) is very applicable to this ing 4K content in the same manner in which delivering a superior 4K experience to their new format. Taking advantage of UHD’s they built in-house VOD libraries. customers. visual quality potential means higher bit rate Cloud-based companies addressing is- [>180 Mbps 4:2:2] source materials in a new Leveraging the cloud sues to create, store, and distribute 4K files 4K workflow process. Post production labs It’s not if but when the volume of 4K con- include Deluxe Digital Distribution (D3). like Deluxe Entertainment are using enor- tent for on-demand access will grow, even- Through decades of managing master source mous 2 Gbps masters to achieve the highest tually reaching the quantities common to files for Hollywood studios, Deluxe has de- quality HEVC encodes. And when the title today’s HDTV-based VOD systems. Most veloped the critical knowhow to create de- is required to be more affordable, 180 Mbps 4K content will initially be delivered from vice-ready 4K files based on the latest proven ProRes mezzanines are used as source. Typical storage in an on-demand mode. It will take specifications and investments in advanced legacy 15 Mbps and 30 Mbps HD back office a considerable amount of time for an end- technology. workflows are simply inadequate. to-end HEVC/4K ecosystem capable of As a cloud service, D3 can operate as an Adding to the infrastructure cost prob- supporting live 4K programming to emerge extension of the service providers’ back office lem, the standards, workflow tools and (beyond sporting events). As such, the infra- workflow operation and function in what is consumer electronics are still evolving and structure and storage burden alone will be essentially a shared cost model across many maturing; and this is expected to occur for immense, adding to the already significant operators—reducing risk and maximizing several years. New equipment and software costs being incurred with the expansion of growth opportunity. n

M&EJOURNAL 26 MESA_2014_10_final.pdf 1 10/15/14 12:45 PM

CMY

WEST10 ENTERTAINMENT ADVANCINGANALYTICS

Analyzing Digital Sales can Bring Hidden Insights to Light Study shows were EST is now and hints at what the future may hold By Dr. Davinder Luthra, VP Business Development, New Media Industries, V2Solutions

Abstract: Electronic Sell-Through is about more than just delivering a product for sale—with the right information service in place, it’s an instant data-harvester capable of providing deeper consumer insights, enriching business partner interactions and spurring sales across entire catalogs. At the most basic level, titles are released on time, across every region with proper local configuration. Beyond that, the true difference-maker is an ability to track reporting by various metrics and to gain near real-time insight into trends across diverse geographies and consumer groups, giving business groups, partners, and retailers the ability to respond instantly. V2Solutions reveals the data hidden within EST performance and suggests what it means for the industry.

lectronic-Sell-Through (EST) has crossed the wider slew of data now available in a systematic manner billion-dollar sales threshold, a watershed that given that priorities to date have largely been focused on signals the pronounced importance of EST as operational aspects. Ea model for digital commerce and bodes well Given also that some aspects of EST purchasing are for its continued expansion. With this, however, intel- similar to impulse buying, it is crucial that titles available lectual property creators, owners and distributors face for purchase have all supporting metadata in place for ongoing pressure to ensure global digital products are discoverability and selection from day-one. Said another released on time, in the correct format/version, and with way, no one can afford to miss initial early windows for all necessary platform/country-specific requirements ac- monetization. A service such as V2’s Digital Store Check curately in place. Specific marketplace dynamics related service can act as a funnel in which wide ranging opera- to day-and-date releases, platform specific releases, and tional inputs (avails, metadata, schedules) and an assess- exclusive releases only add to these challenges. ment of actual levels of asset availability are combined to Additionally, EST sales are now occurring at a rate provide meaningful verification, reporting & analytics that gives us a window into the digital consumer’s hab- across countries / platforms / assets. its and overall industry trends across a wide variety of criteria and geographies. Although there is valuable data Seeing the trends in EST to be culled, M&E organizations have been slow to put To inform our perspective as this paper was assembled, platforms in place to accurately monitor and collect the V2Solutions conducted a detailed study of more than

M&EJOURNAL 28 ADVANCINGANALYTICS

Platform and Studio Distribution By Country

Fig.1 (left): Although the US remains the world’s primary distribution market, international positioning is increasingly significant to the industry. All signs point to increasing democratization of title selection amongst competing platforms— this means a level playing field will soon be the norm. Fig. 2 (right): Internationally, the majority of titles still see distribution through independent entities with a particular studio sometimes being noted as one of the distribution parties – variation from an international breadth of the footprint and also in territory preference is seen.

1,200 digital releases across numerous plat- solidify leads for early entrants and revenue n Pricing variations between countries, platforms, including Amazon, Google Play, growth for late adopters (Figure 2). forms, and studios are pronounced. From a Apple iTunes, Sony PlayStation, and Xbox. n Of the major studios that played a princi- platform perspective, the widest variation in The study gathered information from various pally recognized role in distribution of titles pricing is seen within iTunes, with a median geographies as well, including the U.S., U.K., for EST, the majority of titles were distrib- price of $13.65, and corresponding upper France, Italy, Germany, and Spain. uted to the U.S. (40 percent), followed by and lower quartile price tiers of $18.60 and The results of this study are represented the U.K. (19 percent), France and Germany $8.88, respectively. Google Play represents visually in a series of graphics that each dem- (both at 12 percent), and Spain and Italy (a the platform with the narrowest overall onstrates key data points. combined total of 19 percent). spread of prices, where only $2.05 separates n Release slates for Lionsgate and Warner upper and lower quartiles. Insight: U.S. and iTunes are important, but Bros appeared to be the most skewed towards n Spain and Italy show the greatest pricing their dominance is shrinking (Figure 1). U.S. distribution, with those from Disney consistency across all countries and digital n Among digital platforms, iTunes captures and Sony Pictures the least. platforms. In those two countries, only a the overall lion’s share of 36 percent of all re- n A disproportionately higher amount of $4.80 difference in median prices was seen leases. The next three platforms each had an Disney titles were available in France (vs. across all platforms. approximately even share, ranging from 16 to other territories it directly distributed to). Of n Among major studios, Disney commands 19 percent for Google, Sony PlayStation, and all the major studios, 20th Century Fox and the highest median price ($20.46) across all Xbox, with 12 percent left for Amazon. Universal appeared to have the most evenly titles it has distributed. Lionsgate, mean- n Within France and Germany, iTunes balanced and proportioned distribution slate while, commanded the lowest median price uniquely captures more than half (53 percent relative to the markets surveyed. across their titles, at $13.99. and 52 percent, respectively) of total selection. Insight: Two equilibriums can be seen for Perspectives on the Future n Overall, the US appears to be the most normalized HD pricing around $12 and These insights tell us where EST is now, democratized territory—no platform con- $19.50, creating unique opportunities for revealing trends and attitudes among contributes lower than 16 percent of overall se- “value pricing” below those points or “pre- sumers and the distributors and studios that lection. At the opposite end of that spectrum mium pricing” above those points (Figure 3). serve them. But they also suggest strongly is France, showing the highest dominance of iTunes. Dr. Davinder Luthra is a senior executive in M&E outsourcing, shared services and large scale process transformation. He previously held executive positions with Insight: Differences in the international a leading strategy consulting firm, a global IT and business process service provider land-grab reach amongst studios and dis- specializing in transformation for high tech and media organizations and as CTO tribution partners creates opportunities to for the largest eCommerce fulfillment platform in South East Asia. M&EJOURNAL 29 ADVANCINGANALYTICS

Distribution of Titles by Normalized HD Price and Platform

Fig 3: From a pure price perspective, variation and fluidity can be seen across the entire product spectrum. (Pricing was normalized to USD and adjusted for cost-of-living factors between international countries.)

what we can expect in the future. Though take attention away from the kind of rich A layer of competitive intelligence and still in its growth stage, EST will eventually intelligence gathering that serves a broader verification feeds back to create actionable become a dominant revenue model for the strategic set of needs. insights for knowledge workers and opera- industry—and one that consumers will be Is it important to know that almost no tional teams handling drive set-up and asset extremely receptive to across various geog- titles available in Germany are priced below delivery. raphies. With success in US and European $6? Or that certain digital platform/studio A verification and intelligence gathering markets, we can expect this trend to continue titles account for nearly half of all global system, such as Digital Store Check, is an throughout the world, with platforms, dis- titles priced above $24? The obvious an- essential tactical tool to handle challenges tributors and studios racing to reach far-flung swer is yes. This is insight into competitor inherent to Digital EST-based commerce, markets and capitalize on their catalogs’ ap- and consumer behavior that can give you including release day readiness, business peal. an advantage as you plan and execute your partner interactions, sales performance and We know that to effectively do this, business strategy. Collecting these kinds promotion, competitive positioning and localization efforts must be accurate and of actionable insights can help you craft direct promotion of assets. comprehensive. The more foreign the locale, release schedules and coordinate marketing There is no denying that EST will be a however, the more of a challenge this can be. efforts. But those plans are useless without part of the industry for many years to come. Russian rating systems and cultural mores in a way to bring them to fruition. Using a Many studio and distribution profession- terms of movies are much different than those Digital Store Check type of platform allows als are anticipating EST to be the leading in China or Indonesia. Solving these types of you to execute those plans accurately, across revenue stream for home viewing of titles problems, more prevalent in today’s delivery any markets on the planet, and then follow across the globe. Yet globally, we are still in models for Global EST-based commerce, can their progress and adjust instantly. the early stages of growth for this delivery medium, and opportunities exist to leverage today’s data to enable major impacts moving forward. The information V2Solutions has shared here represents just a sampling of what can be achieved by careful usage of a strong service platform such as Digital Store Check. This kind of platform is fast becoming an essential ingredient in the race to penetrate new markets quickly and A verification and intelligence gathering system, such as Digital Store Check, gain a competitive advantage. Present and is an essential tactical tool to handle challenges inherent to Digital EST-based future EST strategy is certain to rely on commerce, including release day readiness, business partner interactions, the capabilities offered by this type of plat- sales performance and promotion, competitive positioning and direct form—the capabilities of which are only promotion of assets. going to grow as the market does. n M&EJOURNAL 30 Manage Your Media with OpenText

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In Social Media, Context Counts New metrics demonstrate how accurately social media conversations reflect viewer sentiment By Kameswara Rao Bh, Principal Architect, Digital Group, and J. David Garland, Associate VP of Consulting, Media & Entertainment, IGATE

Abstract: With the advent of social media, the experience of watching television has become much more interactive. Social data analytics can provide useful insights about the ways of enhancing viewer interaction, by identifying the right mechanisms and right channels to engage viewers. As the use of both second screens and social media continues to grow, the field of Social Media Analytics can be expected to become more and more important. Analyzing and acting on these insights can lead to more profitable projects.

(Left and above) These graphs depict contestants on a vocal competition show and the network of viewers commenting about them in social media, over four consecutive weeks.

nderstanding consumer sentiment has long been ness. The explosion in popularity of smartphones, tablets and the Holy Grail for both advertisers and content social media has created a new phenomenon called the “second providers. As the business shifts from being screen” in the context of TV viewing. A second screen is a sec- Ucontent-centric to consumer-centric, this need be- ond electronic device used by television viewers before, during, comes even more critical. The ability to quickly adapt content or after they are actively watching programming. (The term also to conform to consumer tastes, change ads for greater effective- applies to screens other than television sets for viewing content, ness, and optimize expensive promo campaigns is now required but that’s not the context we are using here.) to be competitive. Second screen applications are making television more In the past, information was limited to what could be in- interactive, and increasing engagement, viral influence, and ferred from polls and surveys. While helpful, small sample sizes ultimately, viewership. They also provide an ideal platform for and long turnaround times limited their accuracy and useful- presenting targeted advertising as well as creating advertising

M&EJOURNAL 32 SOCIALSIGHTS

tie-ins with the content. As we saw with vote- conducted using an in-house developed plat- the episode, up to one hour before the voting fortheworst.com, social media applications can form called Social Insight, which aggregates started for that episode. Sentiment metrics cut two ways and must be carefully managed. public social data from various social media obtained from this data for each artist were Votefortheworst.com was an attempt at sites like Facebook, Twitter, and LinkedIn, used to predict the elimination or selection “making sure that America stops taking Amer- and analyzes traffic using various statistical of the artist. We were able to predict the ican Idol and other singing reality shows seri- and Natural Language Processing (NLP) results with an overall accuracy of about 90% ously,” according to creator Dave Della Terza. techniques from the growing field of Social through this analysis. This was attempted through encouraging view- Media Analytics (SMA). The graphs (Figs. 1 and 2) depict the re- ers to vote for a contestant they deemed the For the study, we chose a popular Ameri- sults for one of the weeks, against social den- least talented, and was a source of controversy can reality show that features vocalists com- sity (total volume of feeds) and social senti- for nine years. peting to be the last person standing at the ment (calculated using logistic regression) for During August 2013, Nielsen conducted end of the season. The artists are eliminated each artist. The points marked red denote the a study on the relationship between Twitter in weekly rounds based on the viewer voting. artists who were eliminated in that week. activity and TV viewership that found that We collected social feeds from the Facebook As can be observed from the graphs, the a two-way causal relationship exists between and Twitter pages of this show, classified volume of conversations does not correlate well Twitter activity and TV viewership. In ana- them by artist, and measured the social with the results. Competitor 7 received a higher lyzing over 200 primetime program episodes media sentiment for each artist. Several volume of posts (Fig. 1), but was eliminated. using time series analysis, Nielsen found a sta- NLP techniques such as synonym matching, Probabilities from logistic regression (calcu- tistically significant causal influence between fuzzy matching, and Part of Speech (POS) lated using positive and negative sentiment) tweets and tune-ins. That the relationship was tagging were used to classify the feeds, thus correlate well with the results. The artists with two-way means that increased ratings also re- increasing the accuracy of the analysis. These lowest probabilities end up being the eliminated sulted in more tweets. techniques allow words to be interpreted in candidates. Interestingly, the long-odds ratios Nielsen’s study substantiates the impact context. For example, the word will can be a of social media, specifically Twitter in this name, a verb or a noun depending on the case, on TV viewing from a quantitative per- context. spective—the volume of social conversations The sentiment data for each and TV viewership. A causal relationship artist (number of positive and between tweets and tune-ins is certainly in- negative posts) was calculat- teresting, and knowing the volume of social ed for the first four weeks media interactions can provide a useful tool of episodes and compared for marketing. But to get actionable informa- against the actual results tion from social media, a deeper analysis is (the elimination or necessary. What we really need is a qualitative selection of each art- view to expose the consumer thinking and ist). This data was used sentiment behind the posts. IGATE recently to develop a statistical conducted a study to explore whether signifi- model to predict the cant indications of consumer sentiment can performance of an be gleaned from social media traffic. artist based on the sentiment from the social Measuring consumer feeds. Logistic regression sentiment was used for creating the The objective of the IGATE study was to un- model. We applied this derstand how accurately social media conver- model for the subsequent sations reflect viewer sentiment, and whether weeks to predict the results. For they could be used to derive insights about each episode, social media data was the programs being discussed. The study was taken in a time window of four days before

Kameswara Rao Bh has worked in the development and assessment of architectures for large scale applications. He is currently working in the Digital Intelligence team where his focus areas are social analytics and content analytics. His area of expertise includes analyzing unstructured text using different statistical and natural language processing techniques to extract useful information and insights. At IGATE, J. David Garland focuses on thought leadership, leading consulting engagements, and business development. He has a broad range of experience in M&E from systems architecture to senior management in music, television and radio.

M&EJOURNAL 33 SOCIALSIGHTS

Social Density vs. Results (Fig. 1)

In Figures 1 and 2, the red points denote the artists eliminated in that week. The volume of conversations (Fig. 1) does not correlate well with the results, but the sentiment of social media conversations (Fig. 2) does.

from the logistic regression model indicated that rapidly tailor advertising to consumer senti- social conversations. negative sentiment had approximately four times ment. As the IGATE study indicates, social more impact than positive sentiment in deter- media conversations can be mined to derive mining the end results. Conclusion useful business information. Insights into Another interesting observation was that, This study substantiates two important points consumer sentiment concerning the content as the show progressed, more viewers became with respect to the Second Screen phenom- of programming, casting decisions, charac- segregated into distinct groups around artists, enon. ters, and plot twists can be gleaned from the and clear winners emerged. 1. Social conversations about a TV show (es- conversations. Social data can provide in- pecially while the show is being aired) not only sights on consumer concerns about the tim- Analytics for competitive edge reflect the volume of actual viewership, but ing of the shows, as well as for comparative The applications of consumer sentiment also, to a measurable extent, reflect the con- analysis of shows on the same or competitor analysis using social media data are virtually sumer sentiment about the show. channels. Network analysis of social data endless. In advertising, it can be used to gauge 2. Social Media Analytics techniques can be provides information on social influencers the effectiveness of individual spots or entire used to extract actionable information from who can be potential advocates. n campaigns. In addition, it can be used to measure the efficiency of different distribution channels (TV, mobile, web, etc.), day parts, Social Sentiment vs. Results (Fig. 2) and programming. For television and film, knowing consumer sentiment around content is of enormous value. The idea of being able to measure consumer sentiment before committing to expensive projects is greatly appealing. Additionally, the near-real time nature of the results can lead to viewer-driven plot programming. As with advertising applications, television and film both spend heavily on promotional campaigns and trailers, often without having a solid idea of their effectiveness. Social Media Analytics can be used to measure the impact of both campaigns and individual trailers, provided the study is set up properly, by using the near real time nature of the information to

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Adstream_Campaign_Mesa V7.indd 1 14/10/2014 10:31 CLOUDSOLUTIONS

“For M&E companies, it’s no longer a question of why, or even when, they would migrate to cloud platforms. They are already there.” – Hitachi Data Systems, Page 58

Post-Production...... 38 The potential of “the cloud” touches every

Beyond Disaster Recovery.... 42 segment of M&E: IT, finance, analytics, media services, digital asset management, Improving Workflows...... 46 production, post-production, manufacturing, Managed DAM...... 52 distribution, marketing, and more. It prom- Enabling Mobility...... 58 ises more agile and streamlined workflows, Creating Business Agility...... 64 increased collaboration, cost efficiency, and

Transforming IT...... 70 less time, resources and effort required to do business. The seven articles in this section shed light on how far M&E organizations are

–or could be—pushing the cloud. ▼

M&EJOURNAL 37 M&EJOURNAL 37 SOLUTIONS

CLOUD Post-Production Steps Out of the House In the era of cloud computing, the role of post houses is evolving– ‘Finishing house,’ anyone? By Jason Kassin, Co-founder & CEO, FilmTrack

This past year, the Academy of Motion Picture Arts and Sciences offered the ultimate posthumous tribute to the film-processing business when it presented an honorary Oscar to the men and women who operated the labs, with Chris Nolan giving a stirring eulogy for their “more than a century of service to the motion picture business.”

The changing value of bricks and mortar These lab closings have helped spark an intense debate over the direction of post- production in the digital age. One of the key questions is whether a centralized bricks-and- mortar post facility still makes sense at a time when so many film companies are turning to a cloud-based post-production model, in which work is globally dispersed and subcontracted to a wider range of companies. On the one hand, you have giants of the business like Technicolor, Deluxe and Mod- ernVideoFilm, which have made significant investments in physical infrastructure. All of these major players are transforming themselves and adding new digital services and cloud-based offerings to meet the changing Abstract: As the Media and t is a widely accepted fact that the media needs of their clients. On the other hand, you Entertainment industry continues its rapid management and quality control (QC) have companies like Hulu Post and platforms digital transformation, even the word roles of the post-house, along with key like Amazon Web Services and the Google post-house, which implies a physical Istaff positions such as the digital imaging Cloud Platform, which allow for a virtual structure, has become something of a technician (DIT), remain exceptionally im- workflow and don’t necessarily require a phys- misnomer. A new generation of SaaS- portant in the modern film industry. Current ical infrastructure. Both sides are searching for trends in the industry have reduced the need a business model adaptable to an industry that based companies are entering the post- for a traditional post house as it was once un- requires ever more streamlined and connected production space offering cloud-based, derstood, however. solutions to manage the digital production end-to-end platforms for production, One of the most outwardly visible signs of and post-production value chain. post-production, distribution and delivery Hollywood’s conversion from film to digital I’ve worked on the creative, production and with very limited physical infrastructures. is the successive closure of the town’s once technology sides of the film industry for more The challenges and opportunities facing great film processing labs. In May, the Deluxe than two decades and have seen countless busi- post houses are significant as studios and Hollywood Lab, which was built on the Fox ness models come and go. When we stared Film- filmmakers seek out more collaborative, Hollywood film lot in 1919, finally closed Track more than 14 years ago, the relationship connected, cost effective and scalable its doors. Technicolor has shuttered both its between content creators and post-houses had platforms to manage their content. Glendale lab and its iconic boxy black building been largely unchanged for decades. Film com- on the Universal lot (now a cutting-edge NBC panies would simply hand over their materials to Universal media center). a single post-house with instructions for distri-

M&EJOURNAL 38

SOLUTIONS

CLOUD bution and delivery, and the post-house would cording to Bob Pfannkuch, an industry pio- cloud. That will bring cost savings and reduce handle the entire back-end servicing. neer who founded Rank Video Services, now concerns about asynchronicity since everyone Today FilmTrack manages the content a division of Deluxe: “The post house of the will be working on the same thing. and data for close to 200 companies and future may be called a ‘finishing house’ not a These changes cut across the whole works with some of the leading post-houses to ‘post house.’ It will be known for taking con- production, post-production and distribu- define what the next-generation post-house tent that is 90 percent done and finishing it.” tion cycle. Dailies captured on set are now will look like. I’ve seen the complexities of Such changes have fueled consolidation routinely managed through virtual platforms this process through our employees’ involve- among the industry’s bigger players, with that can be run for directors and producers in ment in organizations like the Hollywood traditional rivals like Technicolor and Deluxe far-flung locations and allow for transcoding Post Alliance, EIDR and SMPTE. The forces working together to offer complementary and color correction on premise. The dailies driving these changes to the post-production services. This evolution has also created oppor- business has quickly morphed into another landscape are manifold: vast improvements tunities for new SaaS-based companies that role managed by the DIT and others. in technology and processing power; huge provide a whole new level of flexibility and Furthermore, the management and delivery increases in digital and file-based content that collaboration to meet evolving industry needs. of global marketing assets has been radically is cheap to produce; and the vast amounts of These changes are also fundamentally transformed by the advent of cloud-based data and metadata that must now be cataloged transforming the way in which studios do DAM services. In other words, a lot of things and stored for every film and television series. business with post-houses. As James Staten, that used to be done with hardware processing The growing sophistication of the digital a VP at Forrester Research who blogs about are now being done with software updates and camera has probably been one of the major cloud computing and next-generation busi- SaaS solutions. However, creative services for game changers. Many of the processes and ness intelligence, points out: “Disney’s Fro- quality films with extensive digital effects will tools that production and post-production zen required 50,000 CPU cores crunching still be performed by the post house. technicians required are now managed by the simultaneously to process its 3D effects and Pfannkuch points out that “regardless of camera itself. Just a cursory look at the latest meet its opening date. The nextFrozen , shot whether you have a big centralized lab or a re- developments in camera technology showcase in 4K, will up the effects complexity 10-12x, mote worker utilizing the cloud, the common how, in the not too distant future, all the cap- according to visual effects experts.” Staten also and necessary thing for a post-production ture, transcodes, sync, watermarking, version- observes that, “on-premise workflow systems house is to tie information together—the ne- ing, color space conversions can, and will, be are hitting the limits both in ability to on- cessity to keep track of who’s doing what and managed by the camera itself. board and manage a federation of identities where everything is.” In other words, whether The evidence is right before our eyes: and support the collective editing of the grow- you have a big lab or a small facility leveraging Studios and filmmakers are now thinking in ing video files. As such, nearly all the major cloud storage, you need a data infrastructure terms of end-to-end solutions for their artistic workflow tools makers now offer SaaS-based to enable collaboration. and business workflow – from ingestion to workflow systems that are either used purely That’s been a core mission for FilmTrack, vault/storage, transformation, QC, delivery in the cloud or in a hybrid mode with some as we team with partners across the industry and commerce. More and more they’re rely- workflows on premise and others delivered to help them collaborate and connect the ing on cloud-based platforms that have the from the cloud.” dots across the entire life cycle of their IP. At potential to provide content owners, distribu- FilmTrack, we understand there is no one- tors and their customers with a safe, secure Access is everything size fits all solution. That’s why we’ve made and sophisticated model for the long-term This is forcing industry professionals and all metadata fields user-definable and configu- life-cycle management of their content. In technologists to start thinking in terms of file rable allowing clients to develop standards conjunction, the rate card for services found access rather than file transfers. Right now the that fit with their unique business needs. within the traditional post house are changing major emphasis is on how fast you can you As we consider the future of post-produc- as functions like encoding and transcoding transfer files, speed and bandwidth. But we tion, one thing is clear: the business of con- can be done with out-of-the-box software. want to get to a place where we’re giving ac- tent is expanding not shrinking. Emerging cess to files, not transferring files around. On a distribution platforms like Netflix, Hulu and Effects complexity to grow consumer level, we’re already doing this with Amazon are fueling this transformation, as is However, when you look at final color cor- music, pictures and email that are stored in the rapid proliferation of devices on which rection, visual effects and sound mixing, these the cloud and accessed with different devices. content is being viewed—from iPhones to processes are more complex than ever, and no We’re going to get there on the B2B level too: Androids, smart TVs, HD sets, 4K sets—all less time consuming than 10 years ago. Ac- eventually the file will exist in one place in the of which have different constraints. Simulta- neously, the consumer is becoming more and As CEO of FilmTrack, Jason Kassin oversees the company’s day-to-day more demanding – expecting more person- operations, strategic direction and delivery of business solutions to some of the alization and interactive options. The critical world’s leading media and entertainment companies. He is a leading expert in question is whether cities like Los Angeles, or the development of rights and content management solutions for the global IP even the U.S. itself, will continue to serve as supply chain. the hub for post-production. n M&EJOURNAL 40 Good ideas need to be shared securely. Securely send, share and sync your work from anywhere, anytime.

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By Andy Hurt, Senior VP, Global Product Management and Marketing, Front Porch Digital Abstract: While public cloud solutions continue to gain traction, leveraging purpose-built private cloud services focused on Service Level Agreement (SLA) criteria is often a more practical, cost-effective plan of attack for M&E organizations. When these organizations look beyond disaster recovery workflows and specifically address the overall media lifecycle, the full potential of a private cloud is revealed. Indeed, purpose-built, private cloud solutions have helped content owners and media organizations around the world benefit from the cloud while ensuring protection, accessibility, and unmatched security for their most valuable assets.

rivate-cloud solutions offer more than disaster recovery, else it might be needed. CSM systems were invented for media com- which is what people often think of when they consider panies. Unlike IT-based storage systems, which are designed to handle cloud implementations. Disaster recovery is certainly an documents, numerical data, and the like, CSM systems are primed for Pimportant use case, but a private cloud can do so much the big-data requirements of video files, with built-in “video-aware” more. Once the content is in the cloud, a private cloud can be config- characteristics such as file-based quality assurance, timecode-based ured to accommodate a variety of workflows, in many cases automat- partial restore, and in-path content transcoding. CSM systems are also ing repetitive processes while scaling massively. designed to automatically handle difficulties arising from file compat- ibilities, essence types, wrappers, etc., in a highly active media-storage CSM as a foundation environment. These and other advanced features allow media organi- The ideal private-cloud for any M&E organization starts with a zations not only to store limitless amounts of high-resolution video content storage management (CSM) system, which automatically assets, but to share those assets seamlessly throughout their organiza- retrieves broadcast-quality content from any storage infrastructure tions. — disk, datatape library (with the aid of a robot), optical archive, In short, CSM systems help content owners cope with what would etc. — and delivers it to an edit station, a playout device, or wherever otherwise be an overwhelming volume of content, to address the

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A private cloud can implement disaster recovery workflow on a massive scale.

Split storage In countries where laws require that a subset of the data cannot leave the country, companies can split the data as appropriate, storing some in a private cloud within the country, while sending content intended for more long-term storage and archiving to a private cloud within a datacenter in another country.

Publishing In another scenario, a sports team built a private cloud to connect directly to its on- video-specific complexity of that content, and Business continuity premises archive. It also created an iPad app to facilitate smooth integration with video Unlike a DR implementation, where the restore to be used internally, so that coaches can operations. function happens reactively, this private cloud share video clips with players. Selected clips Deploying CSM in the cloud yields a fea- is configured to be an active archive, where are sent from the local archive to the cloud, ture-rich system built for media, without the content is simultaneously and continuously be- and from there, a cloud-based distribution infrastructure investment and overhead costs ing ingested and restored every day. The same workflow publishes the video to the app. This that can be a barrier for many organizations, conglomerate that uses a private cloud for DR example illustrates how, once content reaches but with all the advantages of the cloud’s un- also built 14 separate private clouds for some of the cloud, it can be repurposed and published limited storage space and computing power. its distribution networks. This implementation to any platform. Active-archive cloud solutions exist as a takes a proactive approach to disaster by ingest- counterpoint to the public-cloud scenario. They ing a continuous 14-day playout scheduling, with Economic benefits offer cost-effective big-data storage and media- elements of the programming coming from two No matter how it is used, a purpose-built centric features in a pay-per-use, “CSM as a separate locations on the West Coast into one private cloud using CSM as a service has its Service” package. They are also built to meet all datacenter in a third location. From there, the economic benefits. As discussed, cloud-based SLAs, however stringent, that an organization private cloud continuously restores that content CSM solutions were created with video in defines. Creating a purpose-built private cloud to a redundant playout center on the East Coast. mind, so they provide video-centric service with these cloud-based CSM services lets media If ever there is an event that affects the primary for a fraction of the cost of a traditional cloud organizations overcome financial barriers and playout center on the West Coast, the East service. Building cloud-based workflows that address the challenges associated with cloud- Coast center can — with virtually the flip of a take advantage of the video-aware features of based video management. With CSM in place switch — ensure that playout on the 14 channels CSM can not only alleviate budget-intensive in a private cloud, that cloud can become far continues uninterrupted. local equipment and processes, but automate more than a storage center. parts of the workflow to make them more Editing efficient. In addition to DR and business Disaster recovery A private cloud can also be configured for ac- continuity, the cloud can also handle other Disaster recovery (DR) is perhaps the most tive use, such as in editing and postproduction mission-critical but expensive services such as obvious use for a private cloud. In one imple- workflows. In this way, the cloud becomes a technology refresh and migration to new tape mentation, a well-known global entertainment universal, collaborative workspace that is espe- technologies, thus eliminating significant capi- conglomerate uses a massive CSM-based pri- cially useful for multisite organizations. tal expenditures. n vate cloud as the backup and DR archive for its entire organization. As depicted in Figure Andy Hurt has more than 13 years of experience leading product development, 1, the private cloud, located in another part of management, strategy, and operations in multiple global technology the country, is configured to ingest archived organizations. He previously worked at Level (3) Communications, First Data content from the company’s West Coast op- and DISH Network. He is certified as a New Product Development Professional erations to an off-site datacenter. from the Product Development and Management Association. M&EJOURNAL 44 Everything you need in one place

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Meeting Today’s Workflow Demands in a Private Cloud Solutions address issues, including security and unreliable access, to improve on public clouds By Alex Grossman, VP, Media and Entertainment, Quantum

Abstract: When employed to provide seamless access to shared content and to support the way people are accustomed to working, the cloud can enable broadcasters and post houses to realize more agile and streamlined workflows and, in turn, to reduce the time, resources, and effort required to meet their deadlines. By moving to a private cloud, businesses can offload pressures associated with moving content across the organization, implementing effective replication, managing collaborative access to content, assuring version control, and maintaining security.

s broadcast and post-production businesses content is always ready and available for production. embrace higher resolutions such as 4K, adopt Workflow today really is a roundtrip process rather than new camera formats, address a growing range a linear workflow. Delivery lies at the center of this circular Aof delivery outlets, and manage increasingly flow. How can a business address this new reality? distributed collaborative production and approval models, Whether through gradual growth or a series of acquisi- their workflows become ever more complex. Though the tions, many businesses have wound up with multiple inde- process of completing projects requires an ever greater num- pendent production centers that are not easily connected. ber of steps, deadlines have remained the same or grown Without the benefit of shared content, such businesses tighter. To continue to meet these deadlines and remain must instead ship content from one place to another and competitive, businesses must both improve their efficiency maintain different copies of that content. In this scenario, and lower their costs. To this end, they must ensure that version control becomes difficult. Some businesses thus

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CLOUD A new approach to building workflow in the cloud offers broadcasters and post facilities a better solution: the best of the cloud along with the benefits of familiar and proven media applications and workflows.

choose to constrain hiring and continued surrender the efficiencies they have gained damental to the media workflow. employment to local talent, who can work on within their existing workflows and spend Fortunately, a new approach to building the same local store of content. In a highly their resources on stringing storage and com- workflow in the cloud offers broadcasters and competitive marketplace, this is not an ideal pute resources together, coordinating the post facilities a better solution: the best of the approach. movement of content from cloud to cloud, cloud along with the benefits of familiar and The cloud offers a much better solution. and establishing the necessary quality assur- proven media applications and workflows. Cloud storage enables a location-independent ance checks across these transfers. With these Rather than simply move storage and storage methodology that gives multiple peo- concerns come serious issues of content access compute resources to the cloud, private-cloud ple or facilities easy and secure remote access and security. solutions tailored to media applications are to content and other digital assets. Control over security often ends once taking existing workflow and applications and content has moved to cloud infrastructure moving them to the cloud. With the benefit Considering the cloud for managed by an independent third party. of a quality API development structure and media workflow Shared environments typical of public cloud a rich technology partner ecosystem, both of The cloud did not come into being to support infrastructures place one company’s content which are key enablers of true cloud-based media workflow. Though various vendors have next to that of another company, rather than media workflow, a solution can ensure that if built pieces of workflow solutions in the cloud, on separate hardware, even separate spinning the media workflow is effective locally, then it most of these solutions deal only with the two disks, and thus raise questions of who has will be effective in the cloud. This reliance on fundamental components of the cloud: storage access to content. In this scenario, the reliabil- well-established applications, linked by proven and compute power. ity and consistency of content access are also coding, is critical to reliable and efficient op- The storage component is what most dependent on the decisions of the third party erations now, and it will become even more people think of when they think about the managing the cloud. important as workflows become increasingly cloud. It is Google Drive, iCloud, or any num- Hardware, software, and even system automated. ber of cloud-based backup and shared storage design can make a difference in service level Freeing users from compromise, this model devices intended for personal use. And indeed, uptime. In some cases, the infrastructure not only allows businesses to retain the way applications such as static data backup or pho- initially deployed cannot keep up with they work and the applications they use, but to sharing are ideal uses of the “public cloud,” bandwidth and capacity demands of a grow- also makes this work location-independent which provides convenient and inexpensive ing number of users. All of these issues can without the need for external gateways, trans- storage but lacks the service level agreements undermine the promise of public-cloud-based lations, or other quality control procedures. (SLAs) or guaranteed access demanded by media workflow. The most common model for leveraging a professional media applications. private-cloud solution typically includes one The compute component often is associ- Tailoring the private cloud primary production facility and one or more ated with software as a service (SaaS), such Private-cloud solutions address many of secondary production facilities, all with work- as CRM or accounting programs that offer the issues, such as security and unreliable flow storage collaboration. These facilities all software functionality via the cloud, but more access, that make public-cloud solutions a are connected to one another via the Internet media-centric processes such as transcoding poor choice for professional media storage (by WAN-accelerated transfer or a similar fall into this category as well. In some cases, and processing. However, most of today’s mechanism), as well as to a data center hosted public cloud offerings give customers individ- private cloud offerings are designed to pro- workflow that provides much more than just ual clouds for compute and storage, and even vide global access to media in simple storage storage or compute resources. different clouds for different types of storage, repositories. The major shortcoming of Through this model, users can ingest con- such as nearline and long-term. However, this these repositories, whether situated locally tent locally in any facility and push that con- does not equate to true end-to-end workflow. or in remote datacenters, is that they don’t tent up to the cloud-based data center, where Thus, businesses seeking to realize the provide integrated storage and compute it becomes available to all other independent benefits of working in the cloud instead must resources, along with the applications fun- facilities. Once the content is in the cloud, it

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never need be moved again. The data center enable users from one facility to the next to supports production automation in the cloud, view, edit, and finish content across the In- supplying remote users with the ability to ternet and do it without making proxy copies. transcode, edit, and deliver content. All of the In this instance, a rendering engine sends functionality required for product is there in content across as it is acquired, effectively the cloud, and the data center provides much making for a smooth user experience. more affordable access to higher connectivity Advanced transcoding and streaming than could be realized by any individual facility. engines ensure that content is moved with While the central value proposition of this the speed necessary for real-time produc- model is that it allows users to lower their costs, system or on tape. A strong model for disas- tion workflows, and automation of ingest it also offers a number of other key benefits. ter recovery and business continuance, this and delivery processes serves to keep the Because it is private, each business can maintain approach uses replication to ensure content workflow just as simple as in a local produc- control over access while outsourcing hosting will be available to the users under virtually tion model. Underpinning this complete and maintenance, as well as the expense of de- any circumstance. production automation system is the engine ploying large primary storage, secondary nearline Other businesses have adopted a model that manages the full inventory of assets and storage, and archive storage systems across all in which they use a private cloud hosted content. Going well beyond the role of a me- sites. If the solution boasts interoperability with locally within their own data centers or ma- dia asset management (MAM) system, a true leading production technologies and applica- chine rooms, with the substantial bandwidth workflow automation system automates the tions, and a few now do, then users can continue required to support production operations. workflow from end to end, keeping content working with the tools they know in the way This approach is popular with those business- and assets in sync no matter where they are they’re most comfortable. Businesses thus can es that are growing but not sure if they want stored. Thus, as soon as content is ingested eliminate not only capex equipment in each to outsource the cloud-based workflow or to cloud, it becomes visible and accessible to facility, but also the migration time and security maintain their own. While this in-house ap- users across all connected facilities, which concerns associated with those systems. proach may address security concerns, it does effectively become a single collaborative pro- require a significant amount of bandwidth to duction environment. Alternative deployment models support access by all users, local and remote. Content creation and delivery have In some cases, the broadcaster or post business evolved into a complicated process for a host will employ a private-cloud-based remote data Building the cloud-based of different reasons, ranging from technical center to support a more efficient, flexible, workflow advances to new media consumption trends. and cost-effective workflow but still maintain Because new private-cloud-based workflows What hasn’t changed is the need to provide a primary production facility with a large are compatible with leading production ap- quality content on deadline while keeping store of online content. This affords users the plications, businesses often can migrate their costs low. Cloud-based media workflow of- opportunity to replicate and spread content existing workflows to the cloud seamlessly. fers broadcasters and post houses a way to across the primary production facility and the Popular and widely deployed software suites achieve all of these objectives. n cloud-based data center, with versioning typically managed by an asset manager controlling Alex Grossman is responsible for driving Quantum’s go-to-market strategy and where the content resides and keeping it in a activities in this key vertical. He joined the company in January 2013, following single repository. Because content and assets senior positions at Active Storage, Apple and MicroNet Technology. He has should be maintained in multiple locations for contributed to several patents associated with media management and storage security, content may be backed up on “forever” technology, and he led the team that developed the first FireWire®-based storage area storage in the form of an object-based storage network. M&EJOURNAL 50

SOLUTIONS CLOUD

The Next Evolution in Cloud Services: Managed

Outsourcing provides a cost-effective means for companies to focus on their core competencies By John Libby, President, MediaMax Online

Abstract: The trend in off-premise, or oes this sound familiar? A time tion services with cost-effective precision. “cloud,” solutions for effective business critical digital asset like an im- Companies benefit from reducing headcount technology and personnel improvements age, ad or video needs to be and avoiding the pitfalls of constant technol- quickly created and delivered. ogy refreshes. is showing up in many areas within D The process requires many steps for review, A 2013 study by Gartner demonstrates organizations. Entertainment and media approval, edits, final approval, mastering, acceleration in cloud adoption, predicting companies are leading the way in many distribution, reporting and inventory manage- that global spending on public cloud services aspects of technology, outsourcing ment. Marketing, sales, executives and even will grow at a compounded annual growth and media services. A developing trend finance are awaiting the success of the asset. In rate (CAGR) of 17.7 percent from 2011 to leverages off-premise digital asset media the case of most companies, this process gets 2016. The Infrastructure-as-a-Service segment solutions that include cloud components repeated frequently in many time zones, ter- leads with the fastest predicted growth of 41.3 for media services, DAM software, ritories, languages and variations along with percent through 2016. storage, infrastructure and now of late, timing and security requirements. Technol- Outsourcing and staffing have evolved DAM managers and librarians. ogy and personnel are clearly the linchpins into a cloud delivery system as well by leverag- to the successful workflow that can and will ing the Internet and software tools residing occur at any time. “on-premises” or “off-premises” to effectively Enter, the “cloud.” Cloud is a marvelous manage a wide range of company functions, marketing term to rebrand “off-premise” such as finance, accounting, information tech- business functions enabled by Internet con- nology, procurement, legal, human resources nectivity. Thankfully, the cloud is much more and marketing operations. Just like cloud than hype as evidenced by the considerable computing, the trend is increasing in adop- business improvements, cost efficiencies and tion and acceleration, with the entertainment, seemingly endless entrepreneurial creativity media and publishing industries expecting to exploding from the Internet. This realized de- increase outsourcing by 80 percent, according livery on the cloud promise fuels the contin- to HfS Research. Furthermore, cloud staffing ued adoption and expansion of cloud-based is becoming an established staffing model as technology, services and staffing. entrepreneurial staffing firms are rebranding Traditional cloud hosted data center themselves for business functions provided by services have provided reliable and scalable virtual staff located off premise. computing platforms for storage, servers, Digital Asset Management (DAM), like bandwidth, hosting, streaming and applica- every other software category, has clearly

M&EJOURNAL 52 know thy enemy

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adopted cloud offerings with traditional “on- premises” software vendors offering hosted options. In addition, new DAM cloud offerings continue to provide media solutions for enterprise DAM, encoding, media services, workflow, project collaboration and file sharing. DAM related cloud service segments are predicted to grow, according to Gartner, at an annual rate of 25.9 percent for enterprise content management and 36.4 percent for storage through 2016. With the continued adoption and acceleration of cloud computing, cloud staffing, cloud media services and cloud DAM, it seems logical that enterprise media management would benefit from the have created specialized business units to managers as part of your IT team for the convergence of these trends. manage client media workflow and DAM on-going administration of your asset library. Outsourcing provides a means for compa- management, such as DVS InteleStream for nies to focus on their core competencies and the distribution of marketing and public- 4. Adding an experienced digital asset man- business competitiveness. Leveraging their ity materials for film, television and music. ager to compliment your in-house employees assets and content is a core competency but LAC Group uniquely provides Library as a for the digitization and/or permanent admin- the technical workflow can be left to cloud Service (LAAS). There are an array of DAM, istration of your library. sourcing options. More and more companies archiving, research, preservation, curation, are accepting the practice of trusting asset library outsourcing services and experts in Cloud hosted and managed DAM reliably management and librarian functions to cost- DAM platforms such as North Plains, Open- handles the technology burdens of support, effective experts. Text, Xytech, etc. training, performance, storage, business conti- Per Robert Corrao of LAC Group, op- nuity, capacity planning, technology refreshes Expanding managed DAM in tions for the digitization and management of and application development. Business unit the cloud your assets include: leaders prefer to focus on their core business As a developing area, cloud sourcing options 1. Outsourcing the recovery of archives, assets practices and not engage IT in continuing for managing an enterprise or departmental lost in a crisis, including storage repository projects to upgrade on-premises software DAM can be found in relatively limited recovery and expansion. The digitization and systems and related infrastructure. Technical vendor offerings such as post-production or organization of specific assets for a specific and end-user training concerns are mini- library service companies. Post-production project. mized as the managed DAM vendor typically companies have long coupled together end- runs the system and facilitates training for to-end media services to accommodate media 2. Outsourcing the cataloging, meta-tagging, only client oversight, as needed. A managed workflow and now include options for DAM and organization of your digital and physical DAM adoption clearly alleviates many tech- with its management and maintenance. Post- assets, followed by training of your internal nology burdens but clients also benefit from production companies have facilitated the information management staff for the on- continued software enhancements released monetization of content libraries with the going administration of your library from into a platform. As managed DAM clients creation, on-going management and support in-house. essentially partner with their provider, their of DAM driven sites for the likes of Johnny collective ideas materialize into software fea- Carson’s television episodes and Paul Mc- 3. Outsourcing the digitization of your as- tures and even industry improvements. Cartney’s music library. Post companies sets and retaining a contracted digital asset Cost savings John Libby, President of MediaMax Online and MESA Board Member, is The New York Times in 2009 reported a a 25 year veteran of entertainment technology and marketing. MediaMax predicted tripling in the need for DAM pro- Online specializes in hosted media management, monitoring solutions, media fessionals this decade. Companies that imple- analysis and software development such as EPK.TV, MMD.TV, PSAmedia. ment DAM certainly know the cost dynamics org and Daily Buzz. of staffing the operation, which often comes as M&EJOURNAL 54 Film & TV SERVING THE PEOPLE OF QA

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a surprise. Experts like Jeff Lawrence at Celer- with 5,000 global consumers. Three-year opera- ents. A managed DAM avoids the direct and ity and industry implementation guides like tions costs with startup were approximately 71 indirect costs of traditional staffing, such as North Plain’s “The 13 Cost Areas for a Digital percent lower for an outsourced DAM ($1.57 turnover, hiring, training, management and Asset Management System” routinely cite million versus an internal deployment DAM budgetary headcount. Most importantly, a the overlooked cost areas of DAM manager, ($5.34 million). The cost reductions come from professional service resource, like a managed business support and technical support. Most typical areas like avoiding hardware purchases DAM, provides the accountability and per- traditional DAM or cloud DAM implemen- and internal implementation staffing. (How- formance demanded by leading companies. tations will require the hiring of additional ever, an outsourced DAM three-year imple- …and what happened to the time critical staff to support and maintain the new DAM mentation cost still includes 52 percent internal digital asset? With the managed DAM solu- system. According to the DAM Foundation’s staffing for library services and end-user train- tion, the finished time critical asset example salary survey, the mean reported salary for ing for a monthly cost of nearly $23,000.) is handed off to a managed DAM vendor’s Digital Asset Managers is $82,198. The Gistics’ study, although obviously just client representative, who shepherds the asset, DAM software makers have used Total Cost a hypothetical case, does certainly highlight variations, communications, ingestion, tag- of Ownership (TCO) models to demonstrate the internal staffing costs that cannot be ging, delivery, archiving and reporting while organizational value in software solutions. Re- overlooked with a company DAM opera- the client focuses on the ultimate promotion cent studies performed by Gistics with Open- tion. A managed DAM cost improvement and success of their business. The managed Text on outsourced or cloud-based DAM ser- would be expected given the nature of the DAM provides the end-to-end service that’s vices solutions show a remarkable improvement pay-as-you-go model and leveraged resources reliable, timely and works in partnership with on TCO for an enterprise size implementation of a cloud based provider across many cli- a client’s common goals. n

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Cloud Trek: The Next Generation

Tomorrow’s cloud will provide for integration and “stacking” of workflows and processes, enabling greater mobility of content and workforce By Dr. Jay Yogeshwar, Director, Media, Broadcast and Entertainment, Dr. Shane Archiquette, CTO, and Ron Quartararo, Director, Business Development, Communications, Media and Entertainment, Hitachi Data Systems

Abstract: For media and entertainment companies, it’s no longer a question of why, or even when, they should migrate to cloud platforms; they are already there. The question now is how to move from an a la carte menu of individual functions [archive, transcode, render, media asset management (MAM), and so forth] to an integrated workflow-orchestration model. In an increasingly mobile, global environment, how far can media and entertainment organizations push the cloud? Besides the known challenges of security, latency and workflow integration, how will the cloud address the growing need for mobility? Where will we draw (or redraw) the lines between private and public environments? This article explores the next-generation media cloud and how it uses virtualization and mobility to transform the landscape for M&E workflow and analytics.

hile media and entertainment companies have the more daunting challenge given the need for those systems been considered slow to adopt the cloud, they to be media aware, frame accurate, low latency and secure. At are now beginning to embrace the cloud for a the same time, they must support more than five nines of reli- Wvariety of business and media workflow appli- ability and integrate with disparate systems. cations. We must differentiate, however, the use of the cloud As M&E organizations move toward cloud adoption for for media workflow versus business processes. The former is media workflows, they must look at how to stack sometimes-

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disparate (multivendor) processes to achieve to create compelling content, a benefit to integrated dynamic media workflows in the CLOUD seamless integration from one application consumers and industry, alike. future. to the next, and the ability to orchestrate Ensuring integration of diverse function- these workflows remotely. More sophisti- Automated and integrated ality is but the first half of the challenge. The cated hybrid on-site and cloud workflow workflow orchestration second half is the need to automate the order- systems will be required to automate the As media engineering professionals no ing and initiation of those functions from a flow of content, metadata and instructions longer want to be saddled to one vendor, unified control application, that is, workflow from an application on-premise to another the next-generation cloud must support orchestration. Service oriented architecture in private cloud A to yet another in public the easy integration of disparate workflow (SOA) and service orchestration are key to cloud B. Such systems are needed to take applications (and vendors). And, it must creating new applications, accomplished sim- advantage of particular technical infrastruc- automate the process for initiating and con- ply by invoking new orchestrations. This ap- ture advantages or cost differentiators. trolling those workflows. proach is very different from the old ways of Yet, in the trek to the next-generation Integration will be achieved by one developing new code and by new API integra- cloud, it may not be necessary to move of several means. The work being done tions. With service orchestration, messages content at all. Envision an environment in through European Broadcasting Union are exchanged in the enterprise application which content enters a private or hybrid (EBU) and Advanced Media Workflow As- domain. The central message engine used in cloud – and never has to leave. Even distri- sociation (AMWA) around Framework for connection with service orchestration is the bution can be handled via a pretranscoded Interoperability of Media Solutions (FIMS) ESB, while the enterprise application inte- (or master) copy of the file sent via a WAN will likely provide one answer. FIMS will gration (EAI) layer enables data integration accelerator or content distribution network enable an enterprise service bus (ESB) to via ESB. Several commercial products have (CDN). And so the highest resolution dis- communicate between disparate applica- successfully taken these concepts to market, tribution content copy ever required could tions, linking different applications through including the Sony Media Backbone and be stored in the cloud, and only accessed a custom adapter that each vendor would the Dalet Galaxy. Such architectures are not and repurposed when needed, then distrib- develop, and then linking them to the bus. limited to on-premises workflows and may be uted outside the cloud in whatever format is Any two vendor applications that have logically extended to the cloud. requested. written adapters will then be able to com- So what will it take to achieve the next- municate, and thus pass instructions from Cloud mobility generation of cloud for M&E? We believe it one to another. While the cloud uses virtualization within its will consist of three advances: Entertainment Technology Center’s domain, we will also need mobility between n Integrated and automated workflow (ETC) Production in the Cloud effort cloud providers to truly reap both the tech- orchestration – combining business process seeks to identify the technology barriers nological and economic benefits. For example, and media workflows in the cloud. and enablers to create a multidimensional one might select Amazon S3 for archiving, n Cloud mobility – seamless cloud-to- framework via six different work streams but decide for economic reasons Microsoft cloud migration and cloud virtualization. to create the capability of a cloud-based Azure would be more cost-effective for trans- n Workforce mobility – for both consum- workflow for media production and post- coding. From the M&E end-user perspective, ers and media engineering professionals. production. Most of the inhibitors to media the next-gen cloud will need to treat these as The integration of these three advances cloud adoption by companies are latency seamless interactions through an abstraction into a next-gen media cloud will power the and integrated workflow with cloud-based layer that enables content to move unencum- future of content creation, management, resources. ETC seeks to identify how far bered from one location to the other and distribution and monetization. The geo- these areas can be utilized with an industry- back. graphic, technological and financial barriers standardized workflow set of models. Some of this migration may not be nec- will be significantly lowered to allow media A second method of enabling integration, essary, as more cloud providers will adopt professionals to focus on their core compe- short of hard-coded APIs, is via Open Stack. “cloud virtualization.” Cloud virtualization tency: storytelling. Content will continue Now highly regarded in the IT world, Open will utilize all the elements of a software- to reign supreme. The new, less-imposing Stack has several key enabling technologies, defined network (SDN) and hardware (server, environment will attract even more talent such as Swift and Cinder, that can provide storage, networking) virtualization in a

Dr. Jay Yogeshwar is a leading technology expert and the CME industries for 17 years and actively participates in business executive with more than 20 years’ experience technology advancement solutions for Telecom and Media. as a research scientist, entrepreneur and as a Fortune Ron Quartararo has spent more than 20 years in 500 global business leader in the field of Media and the M&E industry in senior level Entertainment. He has created advanced media management roles in strategic planning, solutions that leverage the best of technology, software, operations, sales, marketing, and business systems and services packaged for the Communications development. Quartararo has been and Media markets. published in The New York Times, Broadcasting & Dr. Shane Archiquette has been with HDS for six years. He has been in Cable, Broadcast Engineering and other publications. M&EJOURNAL 60

SOLUTIONS CLOUD Workforce mobility is this transformative trend that has created new opportunities for media professionals. A key challenge to its successful implementation is the tightly integrated control and management of content wherever it is accessed.

cloud-based infrastructure. Such cloud virtual- share collaboration solution that enables easy as HCP, for example) would then enable ization would ease workflow orchestration by access to stored media files from any mobile any tenant (given the appropriate rights) to letting the user simply select the application device. In addition, the platform is object- search on any asset. And it would do so at any and predefine the infrastructure requirements based, enabling access to valuable metadata at time, at any location, and on any device. A as if this were an on-premises implementation. the same time. MAM-independent object store can greatly Further, cloud virtualization would allow users Workforce mobility is this transformative help with metadata standardization across to not be locked to a particular cloud imple- trend that has created new opportunities for multiple parts of a media organization it can mentation and provide greater cloud choice to media professionals. A key challenge to its also help with conforming to industry stan- balance both capital expenditure (capex) and successful implementation is the tightly inte- dards such as Entertainment Identity Regis- operating expenses (opex). grated control and management of content try (EIDR) that is for standardizing metadata An object store at the cloud core, with resi- wherever it is accessed. The ubiquitous infor- across the heterogeneous media workflow. dent metadata and policies, can help maintain mation access and sharing of content when The second is the ability of object storage full control of data management. The addi- and where they are needed considerably speed to unlock the value of the metadata for ap- tional ability to encrypt and replicate content the business process. An optimal implementa- plications other than asset management. For moving out of the object store and migrating tion will help mobilize media across devices, example, let’s consider a “big data” analytics to an external cloud will ensure data privacy locations and cloud services, while helping project in which we want to “marry” media and data availability. This is the essence of the content owner maintain full visibility and asset metadata with in-house audience met- cloud mobility: the tightly integrated control control over the data and associated business rics. In this project, we also want to correlate and management of content wherever it is processes. these metrics to third-party psychographic accessed. Cloud mobility allows for access data to develop behavioral profiles associ- of content across multiple devices, locations, Object storage and the value ated with media asset preferences. Achieving applications and storage resources, while proof metadata this would require access to certain pieces of viding flexibility with data center governance, Cloud-based object storage enables access metadata, which may otherwise only exist protection and efficiency. to metadata independent of the application. with the MAM database. In most instances, metadata about a specific Such behavioral profiles would impact Workforce mobility piece of content is trapped within a propri- marketing and promotional campaigns, social Consumers are not the only ones who demand etary DAM, MAM or policies and measures media engagement, programming decisions, mobile access to content. Producers, motion (PAM) database. Object storage (using appro- investments in new films, and so forth. It may picture and television executives, editors, news priate means of metadata extraction) can en- even impact new business models as new dis- directors, writers and broadcast executives are able the metadata to be stored with the media tribution channels continue to emerge. also demanding mobile access. Whether for file in as a virtual object. collaboration, review and approval, editing or This approach solves multiple problems. Conclusion monitoring, M&E engineering and business The first is its potential to enable centralized Today’s media cloud has progressed consid- executives need access to content and meta- asset management within a multi-silo-orient- erably over the past five years, both from a data anytime, anywhere. ed organization without the need for a whole- workflow perspective (from simple trans- Assets need to be accessible from any loca- sale “rip and replace” and without the need coding to more complex broadcast and post tion at any time. Cloud-based drop-box ser- to standardize on one MAM system. Since production processes), and from a business vices are one way to handle content migration media management professionals look upon process perspective (leveraging the cloud to without clogging IT networks. One example is MAM/DAM/PAM systems with somewhat optimize the monetization of content). To- Hitachi Content Platform (HCP), a multiten- of a religious fervor, this solution would bode morrow’s cloud will build on today’s success- ant cloud-based repository designed for private well for those who might consider trampling es, and provide for integration and “stacking” cloud implementation. Hitachi Content Plat- on one broadcast or production unit’s prefer- of workflows and processes. It will enable form Anywhere (HCP Anywhere), a software ence. A search engine embedded within some greater mobility of content and workforce, layer above HCP, is a secure, smart, sync-and- of these object storage repositories (such and extend virtualization to new levels. n

M&EJOURNAL 62 AEMarketing_AD_MESA_FullPage_ForPrint.indd 1 10/10/14 3:02 PM SOLUTIONS CLOUD

Creating the Intelligent Media Business An increasing number of media and entertainment businesses are anchoring financial and analytics platforms in the cloud By Robert Ambrose, Media and Entertainment Industry Director, Oracle

Abstract: The old divisions between he digital economy is fun- and entertainment businesses. Our industry ‘back office’ and ‘front office’ are fast damentally changing the has its own ‘Ubers’ like Netflix, Spotify and expectations of consumers and BuzzFeed, and more will spring up without disappearing, along with the divisions Tshaking up the way many long- warning. The success of incumbent players between ‘the business’ and ‘technology’. established organizations do business. That depends on their ability to meet the needs CFOs are building finance operations was brought home to me on June 11 when of audiences with compelling consumer- I came close to missing a flight home from a centered experiences, while ensuring that that enable agility and business model business trip to Madrid, Spain, thanks to a they can update their business models and innovation to support new types of 24-hour strike by taxi drivers, who were pro- respond instantly when a disruptive new transactions with customers, and fend testing against Uber, the car service app. service appears. The speed with which Uber arrived on off the threat of new digital competitors. the scene and unsettled the centuries-old Creating business agility And by enabling the entire business to transport industry acts as a warning to media No media business can be agile, flexible and understand each consumer as an individual, Robert Ambrose is the Media and Entertainment Industry Director at Oracle. analytics are moving from operational He works with global broadcasting, publishing, advertising and online gaming and financial reporting to become the companies, creating technology and business solutions that underpin successful and fundamental bedrock for an intelligent sustainable digital business models. He has extensive international experience, working directly with media companies in Europe, the Middle East, Africa, Asia media business. and North America. M&EJOURNAL 64 COGNIZANT_CODE_CIO_A4_Ad.pdf 1 9/17/14 1:44 PM

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CLOUD A 360º Consumer View

penses submitted via a simple smartphone app, or the ability to handle tax for complex digital product bundles in international markets – can be added in a snap. The cloud approach is vital for the new generation of digital media start-ups. Curse Inc. provides online video gaming news and content, targeting a specific audience of video gamers. For Finance VP Brandon Byrne, a benefit of a cloud-based finance solution is the ability to support rapid expansion in new markets: “We have tremendous growth, not just financially but also with our digital media properties. We’re running in a bunch of different countries, a bunch of different states – we have a lot of compliance issues, regulatory issues in other areas. “The other thing that makes it great is that the upgrades are really someone else’s problem and not mine. In the past when you would do these types of things it would break all of your customization. Now we just hand this off to people who are much better at it than we are and we can go about our daily business.” Finance leaders are increasingly focused on ensuring that the finance function can proactively support the growth of digital business. Current cloud-based finance platforms provide modern user interfaces, social collab- Big data technology is evolving from being the domain of data scientists to tools oration and simple reporting tools that make that enable business users to understand each consumer as individual, and it much easier to unlock the value of data to drive personalized advertising, marketing and content. drive business strategy. Finance and operational staff have long ready to innovate without the right founda- physical media world. With more ‘Ubers’ just worked with business intelligence, reporting tion. Media CFOs are charged with delivering around the corner, there is a real risk that a and enterprise planning tools – providing a finance function that underpins the launch “new” finance system is out of date before it management insights into the business across of new charging models and digital revenue is fully implemented – and an even greater different brands, content products and deliv- streams, while also improving the efficiency likelihood that an existing platform is long ery channels. Cloud-based finance platforms of business operations. This may include a overdue for an update. make this type of reporting much simpler – single, streamlined order-to-cash process cov- enabling any user to work with management ering all parts of the business: traditional and Financial management in dashboards and instantly drill down into the digital, B2B and direct-to-consumer, sales and the cloud underlying data. subscriptions, products and bundles. It must The answer for an increasing number of me- also unite multiple lines of business, operating dia and entertainment companies is found Unlocking value with units and international divisions to provide a in the cloud. Moving to a software-as-a- customer analytics single, efficient view of the enterprise, while service (SaaS) finance system such as Oracle Finance leaders are also supporting a revolu- crossing numerous legacy systems. Financials Cloud accelerates the deployment tion in reporting and analytics. Such tools Traditional enterprise resource planning of new finance and revenue management have previously been used exclusively to track (ERP) projects are major investments in time capabilities, and greatly simplifies the man- the historical performance of the business, and resources – with a lifespan of more than agement of the platform – for example, looking backwards to see ‘what happened.’ a decade. Many ERP systems claiming me- eliminating the need to manage complex Now an analytics capability underpins future dia credentials are rooted in the traditional upgrades. New business enablers – like ex- growth as all parts of the business, particularly

M&EJOURNAL 66

SOLUTIONS

CLOUD How Data Drives Operations

This approach is already delivering results for European media house De Persgroep, based in Belgium. The company is at the cutting edge of using Oracle’s big data technology and customer analytics to understand and engage customers across its fast-growing digital platforms, as well as traditional print, TV and radio. De Persgroep’s CIO Luc Ver- By taking a customer-centered view, valuable data from across the business is bist leads the project, working with the CEO captured and automatically builds a highly detailed individual profile of each and heads of each line of business. individual consumer. This core data then drives marketing, advertising, content, “We want to create a superb user interac- customer service and business operations. tion. In order to so, we need to have a lot of information about our customers, in detail. Which channels they are using, what devic- marketing and advertising, demand the ability users to be targeted with marketing messages es, what time of the day they’re using them, to understand and target individual consum- and recommendations. what are they reading. In order to do all of ers – their interests, value, and demographic that we need to collect data – a lot of data – segments. Analytics now become forward From business intelligence to about our customers,” Verbist explains. looking, predicting behavior and uncovering media intelligence De Persgroep is now able to run con- ‘why it happens.’ The good news is that building highly-detailed sistent marketing campaigns and customer Many media companies are now hiring customer insights has become much easier service interactions built around the needs heads of customer analytics and building and is now readily available to all media and of each customer – across print, digital and teams of data scientists. They are unlocking entertainment businesses, no longer requiring broadcast. Before, each line of business was the value in the data collected from every in- a huge investment in expensive technology or operating in individual silos, sometimes teraction with a consumer: content clicks, ad specialist people. Dedicated big data hardware leading to confused and contradictory mes- consumption, subscription transactions, social appliances like Oracle Big Data Appliance sages presented to customers – and missing media comments to name just a few. make for simpler, quicker and lower-cost opportunities to acquire and retain print With digital advertising rapidly shifting to deployment. New software platforms, like and digital subscribers. The same data is an automated programmatic model with in- Oracle Media Intelligence, automate the pro- also creating new advertising opportunities ventory traded by real-time bidding, the data cess of turning millions of raw customer in- – such as location-based ads to users of De that media companies have about their users teractions into usable data that can drive real Persgroep’s mobile apps. becomes immensely valuable. That same data marketing and advertising campaigns. Finance leaders are also spearheading the can also drive increased customer acquisition Media businesses can unlock even greater adoption of analytics to support the entire and retention through more relevant, person- value by merging their proprietary, granular business, building on their traditional ex- alized content-based marketing. And it can ‘first-party’ data, gathered from their audience pertise in operational reporting, BI and data help make consumers’ experiences far more interactions, with a vast amount of additional warehousing. Curse’s Byrne has analytics as engaging by building personalized content consumer data held in a cloud data manage- a high priority on the ‘to do’ list. “We have products. ment platform (DMP). This combination of some big plans to ultimately look at a data When Netflix famously spent more than in-house big data and cloud DMP provides the warehousing solution that will help us to $100 million on two seasons of House of richest possible view of each consumer – in- manage our traffic and non-financial data in Cards without so much as a pilot episode, cluding those who are anonymous or unregis- the future,” he says. the power of data analysis became clear. Net- tered – while maximizing the CPMs that can Media and entertainment industry CFOs flix is able to understand its consumers in a be realized for digital advertising inventory. see the full picture and potential of their way far more sophisticated than ‘traditional’ This is a field where CFOs, CMOs, CIOs business across current silos and operating media companies have been able to do. De- and heads of content and advertising can all divisions. They are therefore particularly spite the big investment in content, Netflix gain huge advantage from a common platform well placed to help drive their businesses to barely had to spend a cent on marketing the delivering a single, highly detailed view of each become adaptive, intelligent, and customer- series. Data analysis allows precisely the right audience member. focused organizations. n

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©2014 Verizon Digital Media Services Let’s turn your content into an experience! [email protected] | 1-877-334-3236 | verizondigitalmedia.com SOLUTIONS CLOUD Transforming IT to Put People Ahead of Technology The benefits of a user-centric IT environment and how to create one By Whitney Bouck, SVP Global Marketing & GM Enterprise, Box

Every business is on the front lines of these changes, but nobody is closer to this than IT. Most IT departments and cultures originated in a world where technology was a scarce resource, provisioned and controlled by the business from the inside out. Yet today, cloud computing and mobile devices are moving essential computing workloads and data outside the enterprise data center. IT isn’t the only one buying technology –IT leaders are recognizing and adapting to this reality. The time has come for IT to enable users with the tools that work the way they prefer…and yet still meet a company’s standards for security and oversight.

Current IT models aren’t sustainable There is a real challenge for IT organizations that have built architectures on the premise that technology is a scarce, expensive resource centrally purchased and managed for a select few. This challenge is compounded by the complexities from having many different on- premise systems and applications that are ag- ing and are therefore expensive, many of them Abstract: The concept of oday’s business world is character- underused by employees. Most of those legacy user-centric IT has emerged as the way ized by disruption. Rapid technol- applications were built before the era of mo- IT professionals should be thinking about ogy changes have gone beyond bile computing and were designed to be used technology purchases and priorities,T simply changing the pace of business only within the company’s network. and resulted from ongoing discussions and are disrupting entire business models and As user expectations changed, mobile be- between industry and technology leaders industries. Look at what the Internet did to came a regular work tool, and as business pro- including author Geoffrey Moore; CEOs retail bookstores, or connectivity to the home cesses naturally became more cross-company, from Box, GoodData, Jive, Marketo, Okta, thermostat. Social media has created radical employees began exploring new business tools Skyhigh Networks, Zendesk and others; transparency into business operations and that they could easily procure themselves, and customer experiences. that work more like the tools and apps they and CIOS who are ahead on the curve of Businesses are also changing from within use in their personal lives. This has created a cloud adoption and IT transformation. as the behaviors and habits of the workforce wide gap between the old systems governed This article summarizes what it means shift. A new generation of workers chooses by IT for corporate protection and the new to approach IT planning from a user- not to have a landline telephone at home, own systems adopted by employees to which IT centric perspective, and provides some desktop computers or read printed magazines, has no visibility. Understandably, IT orga- guidelines for how to get there. preferring instead to use tablets and laptops. nizations want and need visibility into and Increasingly, they bring these expectations for control over enterprise data. Data privacy and social collaboration and connectivity to work security regulations often require it. Yet cloud with them. adoption is growing rapidly, and evidence

M&EJOURNAL 70 Improving IT in Media & Entertainment

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tells us that people are using cloud services and personal devices for work, with or without the blessing of corporate IT.

The guiding principles behind user-centric IT The time has come for IT to take a different approach to planning and procurement. Great IT organizations will become enablers of user productivity, seeking out those tools that enable employees to work the way they want while maintaining the security, visibility and control that companies require to protect business information. And those that find and adopt those kinds of technology will also reap This map for prioritizing technologies in a user-centric environment places the the benefits of cost savings, better adoption user at the center of all activity. of purchased technology, greater agility to change as business needs evolve, and reduced visibility and security are more important nologies to enable user-centric computing. In dependency on hardware. IT needs to put the than ever. Just as security models and applica- an environment with many interlocking sys- user at the center of IT decision-making with tion selection need to evolve to accommodate tems, open standards and interoperability will employee productivity and access to informa- emerging technology, IT skills and meth- be critical parts of the overall architecture. tion as the key objective…not technology for odologies also need to evolve. Some of these n A new way to evaluate technology priori- technology’s sake. User-centric IT must be- strategies and needs include: ties: There is now a map for thinking about come the way IT selects and procures software. n Stronger business relationships: User- how to think about and prioritize technolo- Better yet, IT organizations have the per- centric IT starts with an understanding of the gies in a user-centric environment. This map fect heat map of where to start. User adoption business users and their needs. IT should be begins with those technologies users touch of cloud and mobile technologies is a great a key player in every new business initiative first, and how those interact with other com- indicator of what those employees need in or- from its inception. ponents within the larger IT landscape. Dif- der to be most productive. Using that insight n New skills and knowledge: IT teams also ferent from a traditional ‘IT stack’, this guide to prioritize where to begin adopting tools and need a deep understanding of business data looks differently at the interaction points of applications that users love and IT trusts is a structures and how data flows between apps various systems and applications, all with the solid start. and users. IT practitioners need to be lifelong user as the ultimate center. The group that first defined user-centric IT learners, ready to evaluate a constant flow of came up with 5 guiding principles to help oth- new technology possibilities and opportuni- Next steps ers on their journey to IT transformation and ties. The forces of the information economy –social, user-centric IT. Those principles are: n Refocused objectives: Old-school IT or- mobile, analytics and cloud – are pointing busi- 1. User-centric IT serves the business by ganizations focus on managing servers and nesses towards a user-centric approach to IT. empowering people. infrastructure with the intent of driving cost Depending on the current IT organization, put- 2. User-centric IT adapts to the way peo- efficiency and minimizing downtime. User- ting the business users at the center may seem ple work, not the other way around. centric IT teams focus on enabling the busi- almost radical. There’s no way to do a ‘forklift 3. People, information and knowledge ness, measuring their effectiveness in terms of upgrade’ to user-centric IT infrastructure, and must connect in real time. user productivity, time-to-market and busi- no single technology blueprint to deploy. That’s 4. Mobility is a work-style preference, not ness agility in addition to cost. exactly the point—the actual solutions vary with a device. n Flexible tools and technologies: In a cloud- business user needs. IT leaders have a key deci- 5. Security should be inherent and trans- enabled world, IT identifies, curates, provi- sion to make: either embrace a new model of IT parent to the user experience. sions and integrates the right tools and tech- or risk becoming irrelevant. n

IT’s evolving role Whitney Bouck drives all marketing, branding, and customer acquisition The IT organization is as critical to this user- for the business worldwide, and founded the enterprise business for Box, centric model of IT as it is to the legacy model. establishing the strategy engaging with and servicing the largest businesses in In fact, with increasing adoption of mobile the world. Prior to joining Box, Bouck spent 15 years with Documentum and technology and cross-company collaboration, then EMC (via acquisition). M&EJOURNAL 72 Can you send today’s shots over to my assistant editor?

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With the right technology partner, the next steps don’t have to be daunting. We can help you make sense of all the hot buzzwords like in-memory processing, data visualization, cloud computing, machine learning and the Internet of Things; modernize your infrastructure; and create an analytics culture that will set you apart from your competitors.

Visit us sas.com/businessanalytics

SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. © 2014 SAS Institute Inc. All rights reserved. S133021US.1014 CONSUMERCONNECTIONS “Today, consumers are savvier than ever and demand content that is not only far from ‘one-size-fits-all,’ but personalized. These customers are known as the ‘connected consumer,’ and they are now Analytics the ones shaping your brand.” —Teradata, Page 96 The power of prediction. Nearly 90% of the world’s data didn’t even exist two years ago. If you’re still using the same technology from back then In the era of digital entertainment, M&E com- to analyze it, your systems can’t keep up. panies are developing direct relationships with With the right technology partner, the next steps don’t have to be daunting. We can help you make sense of all the hot consumers that simply were not possible be- buzzwords like in-memory processing, data visualization, fore. These connections create unprecedented cloud computing, machine learning and the Internet of Things; modernize your infrastructure; and create an analytics opportunities for M&E companies to create culture that will set you apart from your competitors. tailored entertainment experiences and deliver Visit us customized marketing messages. Consumers, sas.com/businessanalytics in turn, have more power than ever to demand the entertainment they want, delivered conveniently and flexibly to a range of devices. It’s a new era of registered viewers, second screen, social listening, Big Data, and analytics. The 14 articles in this section focus on how to make

the most of these new consumer connections. ▼

Using Consumer Halos...... 76 Predicting Content Performance.... 100

Mobile Personalization...... 80 Tailored Navigation...... 104

Data Driven Media...... 84 Content-Analytics Convergence...... 107

Knowing Your Audience...... 88 Improving Digital Gifting...... 110

Delivering Targeted Content...... 94 Soliciting Instant Feedback...... 112

Understanding Behavioral Analytics.... 96

M&EJOURNAL 75 SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. © 2014 SAS Institute Inc. All rights reserved. S133021US.1014 M&EJOURNAL 75 CONNECTIONS

CONSUMER Using the Consumer Halo in Media and Entertainment As people increase their use of digital media, they create complex trails of information that smart marketers can mine to refine messaging and increase profits By Alex Akers, Senior Associate, Jacob Carlson, Consulting Manager, and J.P. Benedict, Managing Consultant, Cognizant Business Consulting

ig Data. That’s the term we hear so much in today’s consumer economy, describing the sheer volume of data accessible to compa- Bnies. Social media, mobile devices, and cloud- based storage have propelled big data from an idealistic concept into what we know today. Year after year, human consumption of data grows at an ever accelerating rate. An IDC white paper published in 2010 estimated that in 2009, 800,000 petabytes (0.8 zetabytes) of data were generated. By 2020, the amount of data in the digital universe will grow to 35,000 zetabytes, IDC estimated, a figure that was inconceivable to most people a decade ago. While information has been accumulating for a long time, the rate of growth has exploded as computers and digital devices—especially connected devices—have become ubiquitous. Where in the late 1990s or early 2000s a household might have had one family computer, now individual Abstract: Today’s consumers are increasingly interweaving their family members have a personal computer, a smartphone, physical worlds with their virtual lives (and vice versa). The websites tablet, smart watch, and are even wearing smart glasses. they visit, devices they use, and social networks they build online Today’s consumer is über-connected. News, business, and all create ‘Code Halos,’ or digital profiles about their interests, social communication are constant, so the portability and persona and tendencies. This creates massive opportunities for “always on” notion of our devices are deemed a necessity to entertainment companies not only to create tailored entertainment those consumers. Everything we touch now has the ability experiences, but also to deliver them more precisely and efficiently to collect data about us. As the consumer has been busy trying to keep up with than ever before. In this article, Cognizant will share how one studio the rapid pace of media by using more devices, granting is starting to realize the benefits of the consumer halo, by combining access to online profiles, and linking everything together, data sets and generating new insights in their CRM program through he is leaving behind a trail of digital breadcrumbs. We call a pilot analytics project. this trail a “Code Halo”. The Code Halo has the potential to reveal significant amounts of useful information about a particular consumer’s preferences, habits, and inclinations. Code Halos help avoid misdirected messaging and poorly focused channels, while optimizing marketing programs and creating highly specific, highly granular messaging that hits the target market with precision. Better yet, when properly implemented, a Code Halos program will continue to sift through data, find correlations, gather insights, and strengthen continuously over time. As assumptions

M&EJOURNAL 76 CONNECTIONS CONSUMER

Capturing Data About Dan are confirmed or re-evaluated, the results will become ever smarter and more valuable to the company.

Impact on the marketplace Code Halos utilizes a concept called The Cross- roads—a point in time where growth of traditional industry leaders is challenged, outpaced even, by growth among competitors leveraging data-driven analytics to their advantage. This concept is particularly evident in the media and entertainment industry, where companies like Netflix, Google, Amazon and Hulu are already differentiating themselves in the theatrical, broadcast, publishing, and information services segments. Netflix initially gained popularity by bringing movies to the consumer in a more convenient fashion. However, it has blossomed into an entertainment juggernaut by being meticulous about metadata, and combining that data with Value is derived from combining data from different sources, including customers’ viewing habits. It invests significantly Web traffic, e-commerce and video. in continuing to hone an algorithm that delivers more relevant and personalized programming to spite a smaller (but growing) user base when Case study: consumer insights its customers. compared to the major television networks, at a major studio Amazon’s early selling points were similar Hulu’s ability to collect data about viewer activ- A significant advance in the big data revolution to Netflix in that its customers could purchase ity and preferences allows it to target precisely is just how rapidly companies are beginning to books and other consumer goods conveniently which viewers will receive which message adopt aspects of the Code Halos concept. Over and inexpensively. However, for years it has The compelling commonality between all the past 18 months, Cognizant has been actively also been tracking and collecting data on its of these examples is that these companies are shaping how its clients manage the influx of customers, mining it to drive consumer pur- relatively young when compared to their indus- consumer information—including a wide array chases through compelling recommendations. try rivals. Amazon (1994), Netflix (1997) and of new vendors and tools—as well the challenges Furthermore, it used this competency as leverage Google (1998) seem like industry veterans be- of aligning new and existing business models in driving contract and pricing negotiations with ing founded in the 1990s while Hulu was only with “consumerized” data. A recent project at a publishers and content providers. founded in 2007. If a startup can demonstrate major Hollywood studio tasked Cognizant with Google has a well-documented history of this type of success with data, one can be opti- providing an in-depth segmentation study of data collection. While this has, from time to mistic about the opportunities an established, the studio’s digital customer, including strategic time, attracted controversy among competitors historically successful company has to do the recommendations on segment utilization, visu- (remember Microsoft’s ‘Scroogled’ campaign?), same—and to win at The Crossroads. It just alizations of the psychographic breakout, and Google has successfully grown its email product doesn’t happen without thought and planning. profitable audience engagement tactics. Some to hundreds of millions of active users by creat- In order to be successful, a Code Halos initiative key business questions included: ing a personalized experience for its customers. must be deliberate and methodical, and receive n How are customers consuming content? Hulu uses data as a differentiator to deliver full support from the highest level within the n How can we measure engagement across personalized advertising to its customers. De- organization. brands, devices, countries, etc.?

Alex Akers has led and executed engagements at two before obtaining his MBA at USC’s Marshall School of Business, of the six major motion picture studios in Southern where he also graduated with a Business of Entertainment California. A self-proclaimed wearer of many certificate from the School of Cinematic Arts. hats, he primarily focuses in the areas of digital J.P. Benedict has worked in technology business media and technology, marketing analytics, process process consulting since 2009 and specializes in Agile analysis, and customer experience. software development, analytics, and digital security. He has an Jacob Carlson was a producer in the animation industry for five years MBA from the University of Arizona. M&EJOURNAL 77 CONNECTIONS

Building a Better Customer Profile CONSUMER

ping data points, activities and patterns into a predictive model that projects future value more realistically. For example, a new customer that clicks through on emails at a high rate, sub- scribes to one of the studio’s digital products, and attends a convention featuring a studio franchise may have a small actual dollar value in isolation. With our predictive model however, we are able to contextualize these characteristics and provide a better look at how much this person will actually be worth to the studio in the long run. Here, a series of discrete data points, otherwise compartmentalized in unre- lated line-of-business silos, have been smartly Analyzing data from multiple sources can enable the creation of more targeted aligned to identify high potential consumers for marketing messages. further targeting. The result is greater than the arithmetic sum of the parts. Code Halos is the magic glue. n What are the most profitable consumer its customers. The resulting shift in marketing behaviors? spend should also increase the revenue associated Summary n How do we drive our audiences in high with more relevant targeted products and smarter The best part about a Code Halos initiative is ROI directions? up-selling to the customer. The studio will also be that both sides win. The customer receives a n Who are our customers and what do they able to improve the customer experience by send- better, more personalized experience with more care about? ing more targeted communication on a cadence relevant and interesting marketing communica- that fits each customer profile. For highly engaged tions. The studio benefits from more efficient, This studio is in the early stages of develop- customers, they may get more emails with detailed targeted marketing campaigns that drive oppor- ing a comprehensive digital fingerprint for messaging for specific campaigns. For less-engaged tunities for additional revenue. its customers, mining its data warehouse for customers, they may only get occasional sale mes- The bottom line is that Big Data is here insights into behaviors and patterns. Various saging for mass campaigns to entice action. to stay. The pipeline of information flowing customer data points are captured through from all of our devices isn’t going to slow many different sources, including web traffic, Assigning customer value down any time soon – it’s only going to con- video playback, e-commerce, CRM response In addition to marketing, Code Halos is giving tinue to grow. Companies are best advised data, sweepstakes and newsletter signups this studio insight into how much its customers to get in early and claim the competitive ad- (to name a few). Individually, each of these are worth. We are currently working to create a vantage while industry peers are still trying to sources can tell a story about the studio’s segmentation model based on predefined business hone their strategy around data and analytics. customers. However, the real value is derived rules around the data the studio currently holds. The timing is right. Code Halo programs from combining this data together and map- This segmentation process will value different are still in their infancy at most of the major ping as much as possible to individual users. activities and data touchpoints as a way to align brands in entertainment. They aren’t simple This mapping process is where Code Halos customers into relevant groups. These groups to implement. In fact, they require significant becomes a reality. When the studio is able to will give the business an idea of who its custom- thought and coordination to truly succeed. take a step back and analyze a multitude of ers are, how many are associated with different However, when implemented properly, Code reports generated from this layering of data characteristics, and what their average value to the Halos can be used to optimize marketing sources, executives and business units are able studio looks like. These values will help the studio campaigns, increase profitability (through to make strategic decisions with increasingly make decisions for marketing and even content better revenue and cost savings), and create sophisticated information. creation. better entertainment experiences for custom- This customer profiling allows the studio The overall (total) value of each customer can ers. In turn, these new consumer experiences to be more targeted with marketing, more be estimated using statistical and predictive analy- will create important new revenue streams focused with recommendations, and truly sis with all of their known data points. Rather for those companies able to harness the understand the interests and preferences of than a simplistic linear extrapolation, we are map- power of Code Halos. n

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CONSUMER By Cindy McKenzie, Managing Director, Entertainment, Media and Communications, PwC

Abstract: At work, at home, and on istorically, consumers watched game on the large-screen TV, for example, the go, today’s consumers can access feature films in a movie theater complemented by player stats, or other scores, information and entertainment on their and television at home. Then, or social-media interaction on a tablet or device of choice. But they are no longer HDVDs became available for smartphone. In fact, research from PwC’s interested in the mere replication of home viewing. Over the last few decades, the Consumer Intelligence Series has found that business model for media and entertainment more than 50 percent of viewers interact with content and services in their various companies was fairly consistent: Build it and a second screen while watching TV. contexts and environments. Now they they will come. Each time consumers access content in want even more: enhanced, personalized Not anymore. the way that best suits them, companies have entertainment experiences across every Entertainment choices for consumers the opportunity to uncover a rich trove of environment and context relevant to are now ubiquitous as Internet penetration data on customer habits, preferences, and them. This provides a wealth of new converges with the exponential growth of selections: a two-way feedback loop with opportunities for entertainment and mobile devices. As the number of connected the potential to engender lifelong loyalty. By media companies. Companies that mobile devices on the planet edges past the analyzing this data, they can tailor content offer tailored content, delivery, and number of human beings, entertainment and creation and distribution for our contempo- multi-view experiences to meet these media companies are well positioned to gain rary multi-view environment, one with an expectations can extend their relevance an even larger share of the consumer’s time insatiable appetite for original content. with consumers and increase their share by providing enhanced viewing experiences. It’s what consumers have come to expect: Key drivers of change of the consumer’s lifetime value. a multi-view experience with content tailored According to the Consumer Electronics As- to each device, enhanced by value-added sociation’s Video Content Discovery and content and experiences. They can see the big Purchasing Trends, the primary devices

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for watching streaming or downloaded video digital products and platforms now in place, old ways of doing business by creating wildly content are: laptops — 52 percent; desktop companies can innovate on data insights and successful original content based on con- PCs — 44 percent;, and HDTVs — 40 per- analytics to drive personalization and deeper sumer preferences. Over the long term, this CONSUMER cent. A third of consumers view video content two-way relationships. intensifying battle for the consumer will see on smartphones (32 percent) and tablets (31 Delivering a holistic entertainment experi- formerly separate value chains coalesce into percent). ence to consumers requires getting to know a fluid, multi-directional matrix around the This sea change in the way consumers view them as individuals — while they simultane- customer, triggering large-scale cross-industry content has resulted from the interplay of sev- ously get to know you. This type of two-way reshaping and collaboration. eral factors: engagement requires not just the right tech- n Increased high-speed broadband penetration. nology but also the right mindset and talent The role of technology n Increased mobile-device penetration with a for relationship innovation. When all these Today’s digital environment calls for creating vast array of choices. elements unite around the consumer, the re- and embedding a technology-enabled business n Increased online viewing. sult is relevance — which brings the company mindset enterprisewide to nurture relation- n The rise of the “Internet of Things,” with that delivers it a disproportionate share of ship innovation. Here’s how to get started: almost seven times as many connected devices as that individual’s lifetime value. n Implement systems to capture data and people on the planet projected by 2020, accord- perform analytics to experiment with innova- ing to research from Cisco. Highest value: superfans tion, measure effectiveness, uncover consumer n Wearables such as networked fitness moni- High individual lifetime value is turbo- preferences, and test monetization models tors. charged and best represented by “superfans” — such as micro-transactions. When one com- n Explosive global growth in app downloads. those consumers that love particular content pany noticed an uptick in online streaming n Cloud technology. or brands and share their enthusiasm with versus DVDs, the analytics it implemented n Continuous connection between brand and others. Superfans are arbiters of taste, provid- helped determine what percentage of stream- consumer as more and more content creators ing a test market and advertising your content ing revenues represented a new audience ver- engage customers in a direct two-way relation- for you among their peers. These “inspired sus those making the transition from physical ship rather than communicate via distributors. evangelists” — as one company refers to to digital. them — represent the ultimate achievement n Consolidate to enterprise-wide content A new business mindset in relevance. management solutions with human-centric The rapid pace of sweeping digital change Offer them a premium — or so-called collaboration workflows to improve coor- industrywide demands a new business mind- “inside-the-ropes” — experience, such as access dination across brands and channels while set that goes far beyond technology, not just to pre-release or exclusive content, or partici- speeding up content and delivery across mul- quicker, but also more targeted, experimental, pation in product development, and they will tiple formats, devices, and locations. experiential, inclusive, and collaborative. reward you with their loyalty. Time and again, n Engender loyalty by opening a two-way The abundance of mobile-device choices they also share their enthusiasm with others. channel of communication with your cus- for consumers compounds the complexity of With their voracious appetites for ever-more tomers to engage them with personalized content creation and delivery for entertain- entertainment, superfans are the perfect audi- multi-view experiences that extend the main ment and media companies. Gone are the days ence for multi-view experiences that offer con- viewing experience. Superfans responded in when content could be device-agnostic; today, tinual value-added content and experiences. droves, for example, when a studio invited consumers want a personalized entertainment them to exclusive early screenings of a new experience specific to each device they own. Partnering is critical movie at more than 600 theaters nationwide. To satisfy their preferences, the narrative of Operational and infrastructure implications n Streamline distribution with a consolidat- a program should extend beyond the original are inevitable in the ever-widening quest for ed end-to-end digital distribution system that platform to provide richer, multi-dimensional relevance. In this new world, partnering is monitors and disseminates the various formats, viewing experiences for the audience — online, critical to growth and agility. Large media devices, and locations required in every situa- in social media, and via mobile devices. This companies are buying niche players to com- tion. The key to success in this new multi-view opportunity to customize the entertainment plement their offerings by entering new mar- reality is nurturing an innovative two-way experience adds additional value to consumers kets, gaining consumer data, and adding new relationship with customers, acting on the through multi-view experiences while making products. Pure technology plays are partner- knowledge gleaned from that relationship, and advertising and promotional opportunities ing with entertainment behemoths to create building the right competencies to listen, ana- more relevant and interesting. new content. And distributors are upending lyze and act with precision and speed. n

Customer engagement Cindy McKenzie’s area of focus is technology strategies and solutions that improve through personalization companies’ customer engagement, business intelligence, information management, rights The new business mindset also compels the management, third-party payments, and operational effectiveness. Prior to joining PwC, transition from digital innovation to relation- Cindy worked for Fox Entertainment Group and Sony Pictures Entertainment. She was ship innovation as the differentiator. With honored in 2012 as one of Computerworld’s Premier 100 IT Leaders.

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© Hitachi Data Systems Corporation 2014. All rights reserved. HITACHI is a trademark or registered trademark of Hitachi, Ltd. Innovate With Information is a trademark or registered trademark of Hitachi Data Systems Corporation. All other trademarks, service marks, and company names are properties of their respective owners. PROTECTION CONNECTIONS CONSUMER

Data Driven Media is Happening Now Companies are moving beyond basic By Steven L. Canepa, General Manager, demographics to begin to understand and Richard Maraschi, Solutions Leader, audience interests and preferences Big Data & Advanced Analytics, IBM Global Media & Entertainment Industry

Abstract: In the past two years, pioneering studios, distributors and platform providers across the industry started successfully using data and analytics to create and market shows and films. This is part of the fundamental shift within the media and entertainment industry to a consumer-centric approach that values the individual. Analytics is at the heart of this change. Big data combines structured and unstructured information – both static and real-time data -- that can be accessed, aggregated, integrated and interrogated.

he transition from audience demographics to is growing at a 40 percent compound annual rate. The new consumer microsegments is underway. For years, challenge is how to turn all that data into insights and value. technology promised that soon -- very soon -- we’d Advances in analytics are propelling media companies Tbe able to use data about what people watch and forward, and evolving the focus from the idea of serving audi- discuss to determine not just what types of media to suggest ences to the notion of shaping offers that engage individuals. to viewers, but also what to create for them. It seemed like Analytics enable the discovery of actionable insights regard- tech nirvana, always just out of reach. Until now, that is. ing consumers and the ability to create audience profiles. New enablers such as cloud, social media, mobile and digi- They create a greater understanding and optimization of how tal distribution platforms are providing access to more data distribution windows impact content and advertising values. than we’ve ever had before. Driven in part by people tapping They dish up real insights regarding customer content pref- out 98,000 tweets, 700,000 Google searches, and 168 million erences, and they allow us to instantly tailor offers, services emails every 60 seconds, the amount of data being created and ads. And, they’re giving us predicative ability to forecast

M&EJOURNAL 84 PROTECTION CONNECTIONS CONSUMER

The Way Forward demand as well as adding new attributes and putting them in context. Now we can discern the influencers in an audience, adjacent micro segments and key determinant attributes.

Creating a complete portrait Consider a project a leading telco is doing to leverage its “connection” points. The company is using advanced analytics tools to develop a 360 degree portrait of its subscribers, pair- ing socio-metric attributes with movement and location information and then matching viewers to advertising programming. To accomplish this, the telco collects, with ap- The focus of analytics is evolving from serving audiences to shaping offers that propriate permissions, set-top box data about engage individuals. the shows its viewers like and the ads they’re watching. Since it’s also a wireless provider, it The potential of social media with predictive analytics, cable and content has the ability to track mobile data including Social media provides a powerful new data companies can anticipate when and how to the sites and apps its customer use, where they source for the entertainment industry. Com- best reach out to specific customers -- before go, and how long they spend in certain places. panies can distill the interests of different peo- they’re on the way out the door. It can pair this information with social media ple on social media. For example, it’s possible data to create nuanced profiles. to analyze hundreds of millions of tweets to The opportunity for one-on- A profile might highlight that a specific identify tens of millions of folks who mention one relationships customer watches soccer on VOD, likes to a show or movie and then link to other sub- For content creators, this capability is par- tweet when Barcelona plays a match, attends jects or attributes. Each of these insights helps ticularly promising. With the proliferation five soccer games a year, doesn’t miss an epi- to create fields of interests for individuals that of digital applications that let content com- sode of the TV show “Muscle Car,” researches can be pieced together to build social profiles. panies reach out to viewers on second screens, specialty auto cars online, and goes to a local We can link and de-duplicate entity content companies have a new opportunity Dick’s Sporting Goods store three times a matching to third-party data from data service to have one-on-one relationships with con- month. companies and the CRM applications under- sumers. By crafting programs that collect This begins to address the historic issue lying a media company’s content or ecom- data and measure engagement they can un- media companies have faced regarding a lack merce site or streaming video apps. Using derstand who is watching their shows, who of information about their audiences. In the advanced analytics modeling techniques, mi- the passionate fans are, and who is starting to past, media firms had to rely on general prox- crosegments can be built that power targeted lose interest. Then media companies can offer ies for discrete data: focus groups, box office promotion of shows and movies through mar- promotions or suggest other shows that the exit polling, and other panel based market keting and special offers, ads and services, and viewer might like, keeping them engaged on research. By combining a broad variety of improve customer retention and service. the network. And, importantly, determine sources — including social media, CRM, With engagement and churn analytics, consumers’ likelihood to buy, like, or watch. third-party consumer data, and direct digital media and entertainment companies are Here’s an example of how this can work. interactions — companies are moving beyond beginning to apply predictive knowledge to IBM consultants and researchers analyzed basic demographics to begin to understand their relationships with customers. By being social media data about upcoming theatri- psychographics including audience interests able to measure viewers’ engagement levels as cal releases using our big data platform. Our and preferences. they ebb and flow, benchmark that data based goal was to monitor unreleased movies being on past behavior, and pair the information marketed during the Super Bowl season and

Steven L. Canepa is responsible for the P&L of a market-leading global organization serving the entertainment, online, games, advertising, broadcast, cable, publishing, satellite, sports, music, search and social marketplace. Under his leadership, the division has grown into one of the largest providers of solutions, services and technology to the M&E industry. Richard Maraschi leads IBM’s global strategy and solution development efforts for big data and advanced analytics in the M & E industry, advising clients and internal IBM teams on how to apply IBM’s big data and advanced analytics portfolio. He has also held executive management roles at Ascent Media Group (A Liberty Media Company), Yahoo, Hewlett- Packard Digital Entertainment and Sony Corp. M&EJOURNAL 85 PROTECTION CONNECTIONS

to track the real time activity on Twitter as keting or promotional efforts. Using these how to leverage their content assets. the movie ads were aired leading up to the approaches, we are working on use-cases that This new world will require business do- game. The platform pulled together more predict box office demand eight or 10 weeks main experts who know the important ques- CONSUMER than a billion tweets and more than five mil- before a movie comes out – so that the studio tions to be asked of data. In addition, data sci- lion blog and forum posts, which we whittled can appropriately adjust marketing spend, entists will be required to identify and extract down to 3.5 million relevant messages. Then, allocate spending on different channels, and insights from different data sources. Finally, during the Super Bowl, we tracked the senti- determine which segments within those application developers will build the tools that ment and the intent to see the film while channels to spend more marketing dollars on. can be integrated into various business process- the trailers aired and compared the results Another powerful opportunity is the es. It is these interdisciplinary teams that will to other movies in real time. This allowed us selling of archive, or long tail, content. It’s need to work together to build insights around to evaluate the interest and reactions across a truism that there’s an audience for almost a media company’s audience. different segments, including gender, affinity every bit of content that entertainment The bottom line is that a consumer-centric groups, and geography. These insights high- companies produce. The real task lies in approach in media and entertainment is lighted which specific messages prompted identifying and defining these audiences on the rise. The approach will be cognitive, interest (and which didn’t) and pinpointed as well as the financial costs of catering to focused on consumers as individuals, and influential segments that the studio could them. Upcoming movies or cultural events dedicated to better predicting results. Agile further target. could create markets for leveraging the huge workflows and analytics that inform the abil- With forecasting and optimization ana- vaults of content the entertainment indus- ity to sense and respond will create seamless lytics, media players can use historic data in try creates. But first, media players need to multichannel experiences. Ultimately, it is combination with real-time market signals to understand whether clearing the rights and inevitable that those who embrace this “next- predict how an app, movie, TV pilot, or an- digitizing titles makes sense financially. By generation data architecture” will secure bet- other offering will likely perform. With this deploying lookalike content modeling, com- ter margins and gain enhanced profitability knowledge they can pro-actively adjust mar- panies gain the intelligence they need about by better knowing their audience. n

CONNECTIONS CONSUMER

Deepening Engagement With the Target Audience How TV networks can turn digital browsers into registered users and reap ad rewards By Rahul Sabharwal, Solutions Lead, Neha Lamba, Sales Director, and Subhankar Bhattacharya, Practice Head, HCL America (Media & Entertainment)

Abstract: Over the years, TV he next great challenge for media companies is to transition away networks have enhanced their digital from “creative hunches” and “promotional excess” and to transform content and experience significantly. into truly data-driven businesses. This will require a significant Yet, it is barely enough to drive a Tinvestment of time and resources in order to create a new core- customer to register, interact and competency around data. Then, having nurtured this new expertise, firms must socialize on a network’s digital develop a relentless focus on audience intimacy – that is, understanding individuals’ interest, behavior, motivation and influence. channel. As a result, TV networks Television Networks are facing two large problems today. On one hand, rely on broad geographic and the television advertising market is facing increasing competition for ad dol- demographic data points. This paper lars from the digital video market as evident from the widely reported poten- will discuss some of the strategies tial decline in the TV upfront market in 2014. On the other hand, its own that a TV network can adopt to let digital business is plagued with the problem of having scanty customer data customers identify themselves in that can be effectively packaged and sold to advertisers to either compensate or their digital platforms, which can complement the TV advertising model. significantly enhance the digital ad From the perspective of an advertiser, all that matters is an effective target- value proposition of the networks. ed advertisement strategy which can be measured and monetized; the medium is only a means to carry the message. “Follow the consumer” is the real mantra. Nearly 40 percent annualized growth, according to eMarketer, in the digital video ad market is making it increasingly clear that a higher level of account-

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Key Incentives for Registration CONSUMER

ability and consistency of digital data is going to drive the advertisers to digital video at a very rapid rate. If we look at the competitive landscape for digital, players such as Google and Yahoo have deep consumer behavior data; Facebook and Twitter have deep individual customer data; and carriers such as AT&T and Comcast have petabytes of set-top box data. In contrast, a TV network’s revenue model still in most part is based on third party data. Readers of this article might recall the recent strategy of BBC to make BBC3 a digital- only channel. The young demographic of the BBC3 network, coupled with low TV ratings, prompted BBC to make that move. By allowing higher social interaction through small but More than one of seven key incentives could apply to one or more demographics. significant features like tagging and commenting on this digital-only channel, BBC is engag- offering unique opportunities to know and Making the journey happen ing this audience for a longer duration and act. “In-flight” the audience makes multiple Broadly, seven key incentives could persuade in the process is generating deeper customer interactions with a network’s digital prop- a customer to register on a network’s digital data that can potentially be leveraged not only erty – browsing through a variety of content, property. for other digital channels, but also for the TV watching free video content, etc. IP-based Some of these, such as access to exclusive audience. It is conceivable that certain con- tracking coupled with in-session optimization information, may apply to a specific genre tent genres, which are better served through offers opportunities to identify and know of content such as news; some others such as digital channels, could be served up through some traits about your digital audience. With- social interaction may apply to genres such digital only and at that point customers could in limits of persistence, some of it can also as reality shows. Potentially more than one be persuaded to register themselves to interact be used cross-sessions and to varying degrees incentive could apply to one or more demo- with the content. cross-brand. While some of this ‘knowledge’ graphics. The important consideration would While a digital-only channel could be a about your customer can be monetized, un- be to identify what kind of incentive could potential strategy by networks for specific locking full monetization potential warrants be applicable to a specific demography at a content and audience group, a bigger and making the customer undertake that journey certain time. wider strategy is needed to acquire and iden- from “in-flight” to registration on a network’s These drivers by themselves only go so far tify audiences across content genres. digital property. A registered user’s first-party in persuading a customer to register. The real activity owned by the network, together with effectiveness of this strategy is realized by de- Knowing your audience several mechanisms to mix-and-match this livering content tapping into one or more of We would like to look at the lifecycle of with third-party customer data offers net- these drivers at select opportunities of height- identifying a digital audience in terms of their works the opportunity to command ad dollars ened demand, related to events. journey from “in-flight” to “registration”, each once again. Each event will have its own impact-po-

Rahul Sabharwal leads HCL’s digital marketing and in management consulting at Booz & Co. Lamba solutions team for HCL’s Consumer Services Business has a Master’s degree in Business Administration from (Media & Entertainment, Retail, CPG, and New York University’s Stern School of Telecom). He has more than ten years of consulting, Business. design, development and pre-sales experience. He has Subhankar Bhattacharya has more than consulted with clients in the areas of mobility, digital 19 years of experience in the Media & Entertainment marketing, Web, digital solutions and emerging technologies. sector across filmed entertainment, television Neha Lamba manages key client relationships within HCL’s Media & networks, music, publishing, advertising and sports. Entertainment Practice. Prior to joining HCL, she worked in traffic Prior to joining HCL, he worked as a Principal scheduling and ad sales within News Corp.’s STAR TV Network Consultant to the Media Practice for Infosys Technologies Ltd M&EJOURNAL 90 MORE THAN 700 GLOBAL INSTALLATIONS

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Platform Integration

tential timeframe within which it needs to be utilized. Outside it – nobody knows, or nobody cares! For example, access to exclusive information about a celebrity could be extremely valuable while some event, either positive or negative has happened related to the celebrity. Similarly, participation as a strategy could be adopted by a news network during a heated election campaign where the voters could potentially interact with candidates in a live forum.

Need for a broad approach Networks know the value customer identification brings to bargaining power during ad sales. Despite this, customer identification as an integrated strategy has not been adopted by TV networks. While many prime planned events, such as the Christmas and New Year holidays, are sought after and tapped to varying degrees, an integrated approach at holistically being prepared for numerous event opportunities which unfold throughout the year has not been factored into a network’s strategy. Events need not necessarily be wide-scaled, There will be many matches between content and key customer drivers. publicly anticipated, planned external oc- currences. Both external (ex: global sporting, ensuring the ‘impact-potential timeframe’ of A common solution framework, sitting elections) and network specific (ex: new show events is utilized to its fullest. The solution on top of an integrated digital backbone, season) events open up massive opportuni- framework will potentially have a many-ma- could help multiple networks optimize their ties to tap into the consumer psyche. Events ny mapping between solutions and drivers; technology investments and help rollout solu- could also very well be unplanned, spontane- the key is to optimize investments against tions tapping into event opportunities with a ous. Readiness to deliver the right content right-drivers, and bring in re-usability as shorter time-to-market. For example, a single aligned to consumer drivers at these moments much as possible. companion app rolled-out and managed of opportunity is essential to guide a customer To make the most use of the suggested within a common solution framework could through their journey to ‘registration’. solution framework, it is essential to have a be used by three networks for delivering coordinated effort between networks. Just ‘participative’ content across news, sports and The answer: an integrated like linear channels, digital channels today food networks. platform across networks also work in isolation with regard to their A unified digital strategy that works in Readiness to roll-out this event-driven customer acquisition and identification strat- conjunction with the business units could customer acquisition strategy warrants an egies. The result is high cost and effort; repeat significantly amplify “know your customer” integrated platform with a suite of solutions investments in similar solutions and deploy- efforts, with significant downstream dollar enabling content rollout mapping to key cus- ments; and repeat effort in acquisition and impact. What are needed are political will tomer drivers. Solution readiness is the key to re-acquisition. and a new way to do business. n

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Personalizing the Global CONSUMER Entertainment Experience Key developments within OTT will come from providing unique, personalized content mixes for users around the world By Dan Peters, SVP Product Management, Saffron Digital

Fincher and the type of cinematography he creates, its subscribers’ reaction to the original (British) House of Cards released in 1990, and whether the online audience tends to enjoy political drama. Additionally, locally produced content such as Nordic-noir thrillers and dramas like The Killing and Borgen have opened up new international audiences through word-of- mouth shared by fans across the world. Consumers are also changing their viewing habits in favour of “TV Everywhere.” They are no longer tied to viewing content on a broadcaster’s schedule, and limited by access to the TV. They want content whenever and wherever they are. They want the ability to “binge” watch, and access their favourite content even while traveling overseas. In November 2013, Saffron Digital worked with ITV - the UK’s largest commercial television network – to launch ITV Essentials, an international subscription VOD Abstract: As consumers share their he barriers and borders around service which gives ex-pats and holidaymakers passions for entertainment they create content consumption are dropping. the opportunity to watch a selection of ITV’s an immediate, global demand for With users being increasingly able to most popular programmes while abroad. content. This has led to the opening Tshare the viewing experience within In an evolving and highly competitive up of new markets and new audiences social networks there is now a great demand for digital market, ITV Essentials is a way for that help content owners and providers TV programming to be made available across ITV to respond to the challenges of new con- generate diversified revenue streams. borders much sooner. nected technologies, changing patterns of As the next generation of TV evolves we are user behaviour and new market entrants. The However, consumers are also seeing greater links between major social media, overall intention of ITV Essentials is to take demanding TV services that not only recommendation services and analytical en- a cost-effective approach to creating a new provide instant access to the best gines; all of which combine to enable consum- subscription focused (non-advertising based) global content, but also which deliver ers to give and receive recommendations from revenue stream. locally relevant and personalized their network wherever they are in the world. Online video platforms like Saffron Digi- content based on their specific OTT services like Netflix are already re- tal’s MainStage are enabling studios, content passions and interests as well. sponding to this. Its original series House of owners and broadcasters like ITV to generate Cards is a perfect example. Netflix famously revenue from fans and audiences across the chose to commission two seasons of House of globe. It enables them to quickly and cost-ef- Cards for $100 million without ever seeing fectively launch or add premium channels that a pilot. It based the decision on a meticulous can deploy and evolve new business models analysis of the viewing habits of its 44 million and markets for their content. subscribers worldwide by running the data on These end-to-end platforms also give pro- a number of factors: the actors, director David viders the tools to support multiple languages, M&EJOURNAL 94 CONNECTIONS CONSUMER

subtitles, currencies and territory rights and launch to new markets as and when the content rights are signed and audiences demand it.

Localizing the experience However, content creators need to be careful about striking the right balance of keeping cultural preferences in mind while ensuring programming that can cross international and cultural boundaries. The Paula Deen Network is an example of a multi-platform service for superfans. Historically companies have approached new markets on a country by country basis, which to offer users a personalised experience. to their fan bases with direct to consumer TV localizing content per territory. The real gain We have been working with Japanese telco channels. Is this the ultimate personalization? comes in doing this once and keeping the KDDI to personalise its Video Pass subscrip- Individual consumers choosing to subscribe content in a central place for use across many tion service for the past two years, focusing our to services that have exclusive access to the outlets and countries. By taking content, apply- data tracking and analytics on time-sensitive exact programming they demand? We re- ing multiple languages, audio or subtitles, then content recommendations. One example is cently launched the Paula Deen Network, a choosing the optimum combination from a delivering users personalized content during multi-platform service which features a mix central repository saves repeating the process the unique peak travel time scenarios in To- of cooking and lifestyle shows, with exclusive many times. Service Providers can additionally kyo. We found episodic TV content to be a value-added content and community engage- manage and restrict how content is accessed perfect short-form fit to consume during their ment across smartphones, tablets and web. Its geographically, whilst cloud deployment en- commute, and so surfaced and promoted this appeal has been very evident. sures high availability, performance and the type of TV content when we saw users choos- Superfan TV disintermediates the tradi- ability to scale effortlessly and cost-effectively ing and downloading content prior to their tional TV networks and enables talent and with the peaks and troughs of global demand. daily travel times. content owners to generate significant reve- However, one of the risks of any in-market nues by engaging their fans directly. Superfans It’s getting personal personalization or recommendation service typically represent up to 25 percent of a star’s Personal relevance is also proving to be an is that users end up in a ‘filter bubble’. They fan base and by going direct to consumer with important part of a successful multi-screen are only suggested content based on previous a premium subscription service there is po- strategy. One of the challenges of having hun- viewing habits, which are skewed due to the tential to generate a monthly fee from each of dreds of items of content available on demand availability and type of content they consum- these fans, whilst providing them with content at any time is finding content that is relevant ing digitally via a single service. This can mean they care about. for you at the time you wish to watch it. For users are only recommended content they Is this the future? With the advent of example, people tend to watch different types probably already aware of, rather than led to direct to consumer OTT services powered of programming in the morning or during their discover new content which may be less obvi- by specific celebrities or brands like the Paula commute than they do when at home in the ous but which they will like. Deen Network does this herald a shift in new evening. When choosing an OTT platform pro- content packaging and consumption models? When consumers are not bound to a linear vider it is important to ensure that it can blend Are consumers willing to pay a-la-carte for TV schedule the world of content and viewing both algorithmic and human-based curation specific access to content they are passionate options they have is a lot larger. They need new in order to deliver a content mix that is both about or will the cost advantages of the bun- mechanisms for content discovery that make it personally relevant but also highlights new and dling provided by Pay-TV operators re-assert easier to find the content they want to watch. interesting content as it emerges. itself within the OTT space? Ultimately, key This makes personalisation key in helping us- developments within OTT are likely to come ers discover content that is of interest to them. Taking it a step further from providing more unique, personalized Service providers need to utilize search, recom- We are also seeing the emergence of “Superfan” content mixes for each individual user – no mendations and social features that track what OTT channels that are connecting celebrities matter where they are in the world. n consumers have watched and suggest similar content. Dan Peters joined Saffron Digital following a successful career in product One of the biggest advantages of OTT over management for some of the biggest names in the digital space, including Yahoo! traditional TV broadcasting is that you have ac- and Monster.co.uk. At Saffron, Dan is tasked with driving the company’s cess to so much more data and insight on which product strategy and roadmap to ensure its platform and services continue to to base these discovery mechanisms and there- lead the market and serve its customer needs in the secure delivery of premium fore you have much more information with multi-platform content. M&EJOURNAL 95 CONNECTIONS CONSUMER

Data Collected from Connected Consumers Can Lead to M&E Growth How one packaged goods company used behavioral analytics to deepen its consumer relationships By Colleen Quinn, Director of Marketing, Media & Entertainment, Teradata Corporation

Abstract: The traditional M&E ass marketing is slowly taking second stage for enter- consumption model has gone the way of the tainment marketers, as consumers move away from VHS—going… going… gone. Today, consumers single screen entertainment into the second screen or are savvier than ever and demand content that Mmulti-screen experience. The average customer doesn’t is not only far from “one-size-fits-all,” but just consume a piece of content, but they interact with the brand on personalized. These customers are known as social media, watch reviews on their tablet, and make recommendations of their own. This highly engaged customer represents a large the “connected consumer,” and they are now the portion of the U.S. market, with 37 percent of U.S. consumers own- ones shaping your brand. ing a trio of tablets, smartphones, and laptops, according to Deloitte’s 2014 Digital Democracy Survey. This number, which is up 42% from last year, will represent a majority by 2015.

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The company needed to elevate its digital strategy. The key CONSUMER was the ability to bring together integrated data, analytics and big data discovery tools to create individual marketing strategies for specific customer personas.

tertainment experiences – and drive fan loyalty. marketing campaigns. Thus, this led to a real- Knowing the connected This is now the most effective way to influence ization that the company needed to elevate its consumer engagement and purchase behavior. digital strategy. Brand meaning and value is no longer dictated The key was the ability to bring together by the marketer. Rather, the connected con- Lessons learned in data-driven integrated data, analytics and big data discovery sumer defines the meaning and value of the marketing tools to create individual marketing strategies brand and content. Therefore, the smartest In times of industry flux, it’s helpful to take a for specific customer personas. The result was content creators are those that really tap into lesson from different industries that have navi- an integrated consumer insight platform that these connections, establishing and reinforcing gated similar shifts. M&E finds a counterpart in enables a 360-degree view of the consumer as these relationships with consumers. It’s a new Consumer Packaged Goods (CPG). they interact with each brand over many chan- model for entertainment – going direct-to- Using the familiar mass marketing channels nels. With this data driven marketing strategy, consumer – but one that is fueling industry also traditionally embraced by M&E, marketing the company was able to gather data and in- growth, and meeting audience demands. used to be easy for large CPG companies. With sights on how customers interact with brands, In order to create these meaningful and a captive audience, it was simple to build “one- rate products, interact with other consumers, personalized connections, businesses in Media size-fits-all” advertising campaigns that were and track purchase behaviors. By then utilizing & Entertainment and beyond need to leverage consumed wholly without the input of custom- this information, it could craft specific messag- the information they should already be collect- ers. This one-sided communication model only ing to consumers that would bring them great- ing: customer data. This data is the customer’s benefitted the company, leaving the customer er value. By leveraging behavioral analytics, the digital footprint, leaving behind key informa- fairly voiceless in the process and generally dis- CPG company could use that insight to hone tion for the company: audience viewing and connected from the brand. personalized marketing techniques to trigger a purchase history, browsing patterns, product Now, consumers are empowered. Mobile sale, suggest new products, and build stronger and service preferences, and more. This data device usage continues to grow, making this loyalty across other company brands. can create the foundation for this customer’s the largest marketing opportunity in the indus- The results were impressive—driving sig- relationship with the company, and, when try. In fact, Gartner projects that worldwide nificant improvements across a number of key managed properly, will shape all future inter- combined shipments of devices (PCs, tablets, marketing KPIS: increases in email marketing actions. Incredibly, few M&E companies are ultramobiles, and mobile phones) will reach effectiveness, reduced operating and capital utilizing this trove of data in ways that can opti- 2.5 billion units in 2014, a 7.6 percent increase costs achieved through a single CRM platform, mize audience experience. from 2013. and reduction of redundant creative develop- Gathered from multiple sources including Armed with this information, one CPG ment spending. However, it is the brand trust player logs, Web logs, browsing and purchase company began to analyze its customers and that has been cemented through this new data history, and social media interactions, this data made some key discoveries. It found that its driven marketing strategy that has brought is used to gain insight into the preferences of target audience was more engaged than ever the most value. This evolution gives the CPG each member of the audience. The term for the with their favorite brands. However, the com- company the ability to deeply interact with and insights gleaned from this data is behavioral pany also realized that it was missing individual influence its customer in a way that has never analytics, and they can help a company to shape consumer data, like transactional information been experienced in the consumer product its brand messaging to better serve its audience. and web logs, for these customer interactions. industry. By catering the message and recommendations Without this data, it would be unable to offer This is not unlike the M&E industry, where for each member of your audience, M&E com- a personalized customer experience through its companies are seeing unprecedented interac- panies can personalize experiences across every channel. Colleen Quinn has more than 10 years of expertise in digital media management and With a commitment to engaging in relevant technology and more than 15 years in M& E, having transitioned to digital media from individual interactions, content creators and a successful career writing and producing award-winning television programs for TLC, distributors can increase audience response and Fox and Sony. She also worked at Ascent Media and served as principal and partner receptiveness to content, marketing, and en- with SoftArt Management Consulting. M&EJOURNAL 98 CONNECTIONS CONSUMER

tion and engagement with consumers. At this consumer engages with content from anywhere iors, and having knowledge of their preferred CPG company, the digital strategy went from at any time. Commercials are often skipped channels will not only give you better infor- mass marketing on a large, anonymous scale or muted, and cable subscriptions and movie mation on those individual customers, but on to establishing strong, well-nurtured customer purchases are being swapped for on-demand other people like them. As more data begins relationships. As consumers move away from services and free online content. In fact, it to accumulate, the insights flow back through the single-screen experience, it is important to was concluded that U.S. consumer interest the entire content supply chain, from creation move right along with them. in streaming content nearly doubled, soaring through consumption. from 17 percent in 2012 to 32 percent in 2013, As illustrated by the real-world CPG What do diapers and DVDs according to Deloitte’s Digital Democracy Company example, the process for engaging have in common? Survey. this new breed of customer is not a quick If you think about the experience of this CPG Like CPG, the M&E industry is the throes fix. The process requires a dedicated team company, it shifted its approach to focus on of transition. Though the avenues for con- to commit to a new data driven marketing its consumer—from one model where retail- necting may have changed, they are still open strategy with a fresh perspective. Letting go ers owned the consumer relationships, to a for traffic, and it is important to leverage those of old, commonplace marketing adages can new model that allowed the CPG company to opportunities. Using the digital fingerprints of be a challenge, but by allowing your data to directly engage in the lives of the its consumers. your customers, behavioral analytics, in combi- speak for itself and dictate marketing deci- And, that shift to direct-to-consumer market- nation with integrated marketing, enables you sions, you can change your brand identity ing unleashed huge financial and emotional to understand and act on audience preferences. and gain greater accessibility to your target results. audience. Diapers and DVDs need to share that Data-driven dollars With the integration of behavioral analyt- same cultural shift. M&E consumers are no Imagine having the ability to know every mem- ics and detailed audience data into your mar- longer confined by the television programming ber of your audience on a personal level, on keting strategy, you get to know your audi- schedule. They aren’t even confined to their their terms. Gaining insight into their content ences in ways the box office or retail channel television screen anymore. Today’s connected preferences, being able to predict future behav- never allowed. n

M&EJOURNAL 99 CONNECTIONS CONSUMER

Adopting Predictive Analytics in the Age of the Connected Consumer M&E companies can use big data to market to consumers, predict content performance and refine the supply chain. By Suzanne Clayton, Senior Product Marketing Manager for Communications, Media and Entertainment, SAS

Abstract: Content consumption has changed n the mere five years since the first iPad appeared, con- drastically with wide adoption of smartphones nected devices have transformed the entertainment world. With the number of mobile, connected devices today and tablets. To thrive in this new digital era, media Isurpassing the number of humans on Earth, the time is companies must collect and combine consumer data now for media and entertainment companies to capitalize on the from the Web, email, social media and other digital consumer data pouring in from the Web, email, social media and other digital sources. But where to begin? sources to understand who is consuming what, when, Media and entertainment companies curious about technol- where and how — and then apply predictive analytics to ogy buzzwords are naturally wondering: What resources do we gain insights about their business need for predictive analytics? How much data is “big data”? Should Hadoop be part of our information strategy? Where not previously possible. should we focus first? How do we bridge organizational data But how? The path forward starts with assessing silos? How can we be more data-driven? And can data make our where you are today, establishing where you want to supply chain more efficient? We are talking about information modernization. It begins go, and determining how much of your data is big data, with assessing your business information and analytics matu- then focusing on the low-hanging fruit that is ripe for rity – your people, processes, data, technology and culture. The analytics. This includes data-driven marketing, social process of conducting this assessment is called business analytics modernization assessment. It typically takes a few days to com- media to predict and assess content performance, and plete. supply chain demand planning and optimization. Media and entertainment companies run the gamut on in-

M&EJOURNAL 100 CONNECTIONS CONSUMER

Gain Insights from All Your Data

formation and analytical maturity. They range The benefits? You can miss important from using Excel for analysis to pockets of insights when limited to analyzing samples or predictive analytics, typically in marketing, to a information aggregated in data warehouses. centralized BI and analytics team and strategy. These deeper insights will improve the con- Even the least analytics-savvy business analyst nected consumer experience, which in turn can become a data scientist. By using in-mem- increases content consumption. ory data visualization tools and Excel-based To take full advantage of big data, some analytic add-ins available via a Web browser, companies are moving to a Hadoop-based anyone can access analytics in an easy-to-use platform such as Cloudera or Hortonworks. environment. distribution formats, including DVDs, Blu- Apache Hadoop, per Wikipedia, “is an open- After you have assessed your readiness, ray Discs, electronic sell-through, video-on- source software framework for storage and you’ll want to determine what area(s) of your demand and over the top. large-scale processing of data sets on clusters of business you want to tackle. What will drive Data visualization and predictive analytics community hardware.” the greatest bang for your investment buck? can support the above and more. Understand- The best way I can explain Hadoop is the Depending on what you’re looking at – pre- ing content consumption patterns helps M&M analogy. Say you have quadrillions of dicting and improving content performance, uncover previously unknown insights about M&Ms stored in trillions of jars with all the widening content distribution, enabling more the connected consumer. We have gone from colors mixed together. If someone asked you personalized packaging or beefing up analysis broad audiences on linear TV and big movie how many blue M&Ms you had in all your on pipeline capital expenditures – your analyt- screens to individual content consumption jars or how many blue and red M&Ms would ics focus will vary. on smartphones and tablets. This leaves me likely be consumed together, and why, it could Media conglomerates covering the broad wondering if the iWatch or Google Glass take days or months to solve. You’d have to spectrum of entertainment lines of business will become the next consumption device of pour out all the M&Ms, separate the colors, may want to consider an industry best practice choice. Or is it something we haven’t even and count. With Hadoop, you can count the we are seeing across multiple industries: the thought of? blue M&Ms in seconds without removing analytics center of excellence (ACOE). An them from their respective jars. And by com- ACOE creates economies of scale and helps Harnessing big data bining predictive analytics with Hadoop, you organizations apply knowledge across multiple analytics could answer the blue-and-red M&M ques- business units. It also seeks to connect dispa- Big data analytics makes it possible to com- tions very quickly as well. rate pockets of analytics, improving overall bine cross-platform data about consumers Hadoop can co-exist with any type of exist- results. If the ACOE is too broad to begin from many sources. For example, we can ing data warehouse or legacy system, so this is with, then zero in on one area and grow your integrate audience measurement systems like not a rip-out-and-replace prospect. This big analytics footprint over time. Nielsen and Rentrak with social media data data analytics environment exists primarily Whichever approach you choose, it is criti- and digital consumer data from the Web. Big so companies can quickly perform forecasting cal to clearly define your objectives and strate- data analytics lets you dig down to base/trans- and find correlations on very large data sets, gies. These can include measuring where, when action-level data – structured and unstruc- for example. One can only imagine the hidden and how consumers are engaging with content; tured – and analyze it all with no sampling. gems that could emerge from, say, combining using social media as a leading indicator of content performance or to boost box office Since Suzanne Clayton’s start at SAS in 1997, she has been bringing emerging revenue; accurately forecasting box office sales and innovative solutions to the Communications, Media, Entertainment, Travel and subsequent distribution for new releases; and Hospitality industries. Suzanne’s achievements at SAS include bringing increasing audience insights to support pro- the SAS® Patron Value Optimization to the gaming, sports and hospitality gramming decisions and ad sales negotiations; industries. Additionally, she was a key driver in bringing to market SAS Revenue and more effectively pricing content in various Management Price Optimization Analytics. M&EJOURNAL 101 CONNECTIONS

Understanding content consumption patterns helps uncover previously CONSUMER unknown insights about the connected consumer.

Fandango ticket purchasing data with social er by gathering data from all sources including physical production of Blu-ray Discs and media data to uncover correlations between loyalty programs, social media, Web interac- DVDs and optimizing the digital distribu- purchasing behavior and box office perfor- tions and POS data. tion network. Many manufacturing and mance. n Performing intelligent customer segmenta- consumer packaged goods (CPG) companies Let’s look at some specific examples of tions, so when interacting with these custom- are modernizing in this area today. Even how media and entertainment companies ers in the venue or on their website, they can those with existing supply chain manage- can apply predictive analytics to solve specific engage in relevant, real-time communications. ment systems are upgrading to a more problems. n Improving campaign management by more predictive, demand-driven planning and effectively measuring campaign performance optimization platform. Data-driven marketing to the and attribution. One of the keys to a more efficient connected consumer While the first two points will tell you how content supply chain is more accurate The connected consumer is generating pet- to attract and keep the consumer, the last is forecasts on new releases. These need to abytes of data that are growing every day. Like- not one to miss. It will tell you what is working incorporate as much relevant data as pos- wise, media and entertainment companies are to attract the consumer and what marketing sible, including social media data. “Looka- discovering new ways to engage with the con- activities and channels have the most impact. like” modeling using a data mining tool is nected consumer. In order to maximize your an effective way to determine which previ- company’s marketing impact, the best way Using social media to ously released movies are most similar to a forward is to synchronize marketing processes predict performance new release, in order to better forecast box based on a comprehensive understanding of Social media data is by nature big data, and office performance. the connected consumer. as such touches on everything previously Equally important is a collaborative Remember, connected consumers are a discussed in terms of managing and collect- environment or workbench where all areas diverse group in terms of culture, race, age and ing data. However, there are a few additional affecting content performance and distri- sex. Analytics can increase your understand- points to consider here. Since social media bution – e.g., sales, marketing, finance and ing of how connected consumer diversity data is coming straight from the connected distribution – work together to produce a affects consumption behavior. You can use consumer’s brain, this information is not only more precise, consensus statistical forecast. this knowledge to create more personalized a leading indicator of overall content perfor- Another analytical tool, operations marketing communications. mance, it provides an inexpensive basis for research (OR), can enable companies to The casino industry is an interesting and broad marketing. optimize resources in the digital and physi- informative example. Like media and enter- Text analytics tools can help you assess cal supply chain based on demand forecasts tainment, it focuses on providing a superior content sentiment and analyze what is being and various business constraints. OR au- entertainment experience. said. It is also possible to go a step further, tomates this process, so business analysts About 10 years ago, casinos started mod- analyzing social media data to determine how aren’t spending countless hours manipulat- ernizing their marketing. Why? consumers actually “feel” about content. Such ing data. The time savings alone make this Over time, casinos had grown too much to information can be invaluable when decid- a fruitful endeavor. be able to personally greet every patron who ing how to proceed with TV content before walked through the door, as they had in early ratings are aggregated, or to evaluate how What’s it all mean? years. But mass marketing campaigns, such audiences are receiving your ad campaign in The world has changed. We are now in the as parking a flashy new car at the front door advance of a new movie release. But social midst of the digital age. We are no longer to draw guests in, weren’t working anymore. media content is enormous and needs be ana- dealing with uniform audiences or distri- They had to do something to counter the lyzed as quickly as possible. So when choosing bution channels. Data about your con- fierce competition and proliferation of gam- a tool, you need to consider the horsepower sumers, about your films and TV shows, ing establishments. behind it. about your physical and digital content Some marketing analytics best practices consumption, about your distribution that casinos developed could transfer seam- Supply chain demand channels, is growing every day. Adopting lessly to media and entertainment: planning and optimization predictive analytics in the new age of the n Building a 360-degree view of the consum- Predictive analytics can be a player both in the connected consumer is the way forward. n

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CONSUMER Bringing Real World Relevance to Entertainment Metadata Five ways a knowledge graph can help build out a more personalized entertainment experience By David Yon, VP, Data Solutions, Rovi Corporation

content. Metadata includes things such as title, actors, box art, running time, rating, and even tags such as “mood” of the content. To date, metadata has enabled the digital supply chain to uniquely identify any piece of content as well as the multiple assets associated with it, such as box office data, release and air dates, credits, images and descriptors like genre or themes. Digital technology, new formats and player devices have caused the number of unique products for a movie or TV production to grow exponentially, making metadata even more critical. Content creators, producers and distributors are integrating third-party, standardized metadata into work flows from production analysis to rights and window management, increasing efficiencies and streamlining processes. As the industry looks to meet consumer demand for a more engaging entertainment experience and find new ways to monetize its offerings, there exists a need for a highly sophis- he last decade has seen some of ticated data model to help advance personaliza- Abstract: Entertainment fans enjoy, the most profound changes in tion — a graph or “knowledge graph” that is yet also struggle with, the explosion home entertainment since the able to bring real-world relevance to entertain- of entertainment content now advent of the television itself: The ment. Rovi’s knowledge graph is designed to available to them. To help them find T shift from linear to on-demand content, the take metadata another step forward and into the content they’re most interested launch of “TV Everywhere” on mobile devices, the dynamic realm. Because the world is con- in more quickly, the entertainment and the birth of UltraViolet, to name a few. stantly changing, our graph indexes movies, TV navigation experience moving forward While it is hard to know exactly how entertain- shows, celebrities, brands, concepts, popularity will be tailored to the needs and tastes ment will be consumed as we head into the and locations against more than 100,000 differ- of the individual viewer. next ten years and beyond, what is as crystal ent data sources, and it knows which ones are clear as the hi-def flat screen TV in the family trending in the news or on social media at any room is that the future will be personalized given time. This move to personalization has a strong The knowledge graph model can substan- ally in standardized metadata, the descriptive, tially enhance the consumer entertainment image-rich entertainment programming in- experience while also providing new opportu- formation that is used to describe and identify nities for members of the ecosystem to differ-

M&EJOURNAL 104 CONNECTIONS CONSUMER

entiate their services, add value to the supply 554 respondents in the U.S., 22.6 percent Our own platform allows consumers to chain and create competitive advantages. Im- said that they spent 30 minutes or more a ask questions and have a back-and-forth dia- portantly, this model can be used to provide day looking for TV content. The endless log to find the content that interests them, real-time relevance, helping content creators amount of content that has become available switching topics and using pronouns during and distributors identify what’s trending in from multiple sources across various screens follow-up requests, in much the same way entertainment and its relationship with real- and platforms has made the process of find- they would interact with another individual. world concepts and interests. ing and discovering entertainment content Not only does this mimic our everyday con- But how can a knowledge graph contrib- very cumbersome and tedious. Consumers versation styles, but is how users typically ute to a more personalized way for consumers are looking for fast ways to connect with the browse for programming, often not knowing to enjoy their entertainment? entertainment that they love. exactly what they want to watch, or mean- 1. A knowledge graph can take into account In order to streamline the process, search dering through options. For example, it is context and deliver based on relevance. and recommendations need to provide not possible to search for the following via Rovi’s We believe in bringing together recom- only relevant results but also accurate ones service, “What’s the film where Tom Hanks mended entertainment that exists at the based on standardized, quality data and pro- works for FedEx?” (Cast Away). intersection of content, context and the vide them quickly. 4. A knowledge graph can integrate social consumer. Context is incredibly important When combined with robust user pro- media interactions and serve as a foun- because it means having an understanding of files, the knowledge graph can ensure that dation to foster meaningful interactions what’s relevant in terms of time, location and consumers get personalized recommenda- between consumers and the content they popularity. For example, consumer TV view- tions based on their behavior, habits and care most about. ing habits in the morning are probably very interests as well as preferences. By taking Metadata has moved into new use cases, different than those during prime time. into account these elements, the system can serving as a foundation to foster meaningful Our own knowledge graph has the ability provide optimal suggestions and highly ac- interactions between consumers and the con- to understand what is happening in the world curate results, helping drive a seamless user tent and brands that they care most about. at any moment and incorporate this into experience. Metadata is also the key to making the con- predictive results to anticipate what the user 3. A knowledge graph can help power nections between people, the conversations is likely to want to find. The model is able state-of-the-art conversational interfaces that are taking place on a movie or TV show to identify the importance and popularity of to enable the user to discover entertain- or celebrity, and can help organize the social people and entertainment, the relationships ment content more easily. conversations and surface the information between them and how that changes over According to an online survey conducted that people really want. time. by Veveo (a Rovi subsidiary) in 2013, 60 per- Using a knowledge graph, companies in A majority of recommendation systems cent of participants felt that voice command the ecosystem can create real-time oppor- are not able to pick up on trends quickly just and conversational interface systems would tunities for conversation and community by looking at their own usage data. Take for significantly improve the way they search for amongst their followers and loyal viewers. A instance, the World Cup. Systems that relied TV content. However, we believe that the knowledge graph can identify what’s trending just on collaborative filtering were unlikely to technology must be smart enough to follow in entertainment and what consumers are discern in real-time that the World Cup was natural conversations and perceive differ- talking about, helping members of the eco- trending in countries where typically soccer ences in meaning. system identify the latest social buzz and use might not be popular. The end result is that Language can be ambiguous but by pro- that information for various applications to by not integrating real-world trends into the viding contextual intelligence such as entity benefit their businesses and brands. model, a significant sporting event such as recognition, user intent recognition and Social networks can synch consumers the World Cup might not impact search and context recognition, this can make it possible with their friends’ and family’s favorite TV recommendations results when it should be for consumers to have a free-flowing conver- shows, movies and programs. Rovi’s service front and center for consideration. sation that is designed to drive voice-enabled can enable a user to receive recommendations By applying a range of contextual rel- search and recommendations that go beyond for content based on the celebrity, actor or evance filters that take into consideration the basic voice-command features used by artist he or she follows on Twitter. By inte- the time of day, day of week and location, the some entertainment services today. grating the people a user follows on Twitter entertainment experience can become more personal. David Yon and his team focus on developing comprehensive programs that provide core 2. A knowledge graph can not only help technologies and solutions to power enhanced discovery and personalized experiences improve search and recommendations rele- around digital entertainment content (TV, movie, music, books and games). Prior to vance but also increase speed and accuracy. joining Rovi, David was focused on building innovative digital content products including In a recent survey conducted by Rovi of mobile music platforms and premium services for the wireless and music industries. M&EJOURNAL 105 PROTECTION CONNECTIONS

into his or her profile, the user will get rec- graph to showcase the connections between promotions and publicity of a given movie ommendations for content in which his or entertainment and real-world concepts, can or program. By providing insight, market- CONSUMER her Twitter favorites appear. help drive an optimal entertainment discov- ers can research and use this information 5. A knowledge graph combined with ery experience with increasingly intelligent to develop advertising and other campaigns predictive analytics can bring more tai- search and recommendations capabilities. informed by what’s trending in entertain- lored and addressable advertising as well ment as well as establish connections as refine the personalization experience. Trending metadata and between shows, programs and people. In Predictive analytics can provide strategic the digital supply chain addition, using this trending information, intelligence about what people watch, when For content creators and distributors, the companies can create real-time opportunities and where that can help companies target spe- dynamic popularity and trending metadata for conversation and community amongst cific audiences for advertising, media buying provided by a knowledge graph can provide their followers and loyal viewers especially as and other content provider promotions. Pre- the basis for tracking in real-time the very it pertains to social media interaction. dictive analytics harnesses advanced data col- latest entertainment buzz and determin- As personalization continues to offer the lection – from smartphone and tablet viewing ing which films, actors and even movie promise of entertainment that is tailored to data to market segmentation, socioeconomic soundtracks are most popular as well as how the needs and wants of the user, a dynamic statistics and online usage patterns – to il- all these entities relate to each other. This metadata layer such as a knowledge graph lustrate a more comprehensive user profile. can be helpful to studio creative and distri- will be critical in powering advanced dis- These enhanced viewer snapshots can help bution teams as well as marketers in their covery. By using a sophisticated model that discern the likelihood of where a highly spe- quest to remain ahead of the competition. provides an understanding of entertainment cialized demographic of viewers will be amidst With insight into what is trending, the stu- as it relates to time, location and popularity, the ever-expanding broadcast landscape. dio can inform retailers what to feature on the digital supply chain can use this technol- Predictive analytics will play a key role digital storefronts. ogy to drive the industry forward while also in the future of ad targeting, and when For entertainment marketers, this dy- advancing the consumer experience. It’s a combined with elements of a knowledge namic metadata can help, for example, with win-win for all. n

M&EJOURNAL 106 CONNECTIONS CONSUMER

Building the Next-Generation Media Analytics Platform How the worlds of analytics and content converge to bring about advanced consumer media experiences By Steve Poehlein, Director, Media and Entertainment Solutions, Communications, Media & Entertainment, and Jeff Caldwell, Managing Director, EMCIE Industry Consulting, HP Enterprise Services

Abstract: In today’s rapidly evolving content landscape, hat the traditional business model of the TV industry is being M&E companies are working hard to understand how changed due to a disruptive intermediation by digital media is not new information. In the past decade we have seen a end-user consumption of content is changing. Media rapid proliferation of smart screens among consumers and organizations have adopted new techniques such as social T research shows that mobile phones and tablets are fast replacing desktops listening to discover the likes, dislikes, and the overall and PCs at home as the secondary device for content consumption. By 2015 the global shipment of tablets is expected to take over that of desk- conversational themes of their consumers and industry tops and portable PCs with the inflection point arriving even sooner in competitors. But they’ve just begun to scratch the surface some markets like the U.S. and UK. in using advanced Big Data capabilities to provide insights The key to coupling rich analytics into content production is in facili- tating the integration of these insights into production and operational and near real-time analytics to help accelerate decision processes. This approach will allow media organizations to optimize their processes and outcomes. production lifecycles, better direct franchise management activities, provide improved value to their various partners (such as sponsors, advertisers, and licensees) and, ultimately, to their end users or consumers. The results will be competitive advantages that allow media organizations to better align with changing market demands and more accurately “hit the mark” with entertainment experiences that drive repeat revenues and an increase in brand-loyal fans. This gives many M&E companies a level of direct consumer engagement that they’ve never experienced before.

MM&&EEJOURNALJOURNAL 107 107 CONNECTIONS

We’ve seen our clients increase customer gramming delivered through a fixed set of Monetization agility acquisition and retention by leveraging cus- venues. Rather, online video sharing, one-click Media analytics platforms provide new op- CONSUMER tomer interaction data captured from CRM download offerings, and social media have cre- portunities for driving revenue from both across digital, social, and mobile, along with ated demand for personalized content. new and legacy content to optimize media third-party data. This has enabled campaign By coupling analytics with content pro- assets and improve monetization. You can optimization, customer and marketing en- duction, content providers can deliver a more also leverage ancillary content, such as be- gagement, and personalized delivery of dy- real-time and personalized interaction to hind-the-scenes or cut footage, that you may namically generated content as well as person- consumers. Personalized delivery ensures that not be monetizing today. Remember that alized advertisements and promotions. consumers will start getting the content they every member of your audience is on their Approaches that focus on transforming the want when they want it and how they want it. own unique journey. So you have to place the landscape of media companies through analyt- For the enterprise, a stronger customer right content in front of the right consumer ics, rather than just adding another audience engagement leads to a stronger affinity align- at the right moment to ensure that you’re research tool, help implement an underlying ment. In addition, M&E companies can en- getting the full payback from your content intelligent platform that integrates media gage new markets by enabling the distribution development. analytics with content production. From the of content that will best align to their respec- These intelligent platforms also have the ingest of traditional forms of media, including tive market segmentation. capability to optimize premium pricing dynam- broadcast, as well as other unstructured data And engagement doesn’t stop after the ically rather than relying on a fixed and out-of- through its storage, classification, routing, for- content is delivered. A media analytics platform date pricing structure. By better understanding matting, and final consumption, the platform provides the capability to enrich engagement what consumers are willing to pay for content, enables and optimizes content production. with consumers through the analysis of the full you can generate new revenues faster. HP calls this a media analytics platform. lifecycle. It helps keep the conversation going. Only the marriage of rich digital media Personalization is a critical brand attribute content and Big Data analytics provides you Media analytics platforms to attract and retain new audiences who ex- with the capabilities you need to fully mone- bring it all together pect to receive a better experience. A strong tize content along the consumer’s journey and Over the coming years, media analytics plat- integration between analytics and production achieve business revenue goals in M&E orga- forms will bring together the media “content” enables seamless, interactive, multichannel nizations. Further, media analytics platforms worlds and the consumer “context” worlds engagement with audiences. This supports the help complete the transformation of M&E to change the definition of what a media en- broader concept of franchise management, companies from B2B property producers to terprise is and how it relates to its audiences. which provides new opportunities for moneti- B2C experience companies that maximize Consumers will increasingly play the role of zation across many channels. direct consumer engagement. innovator/designer/producer/advertiser with the enterprise playing the role of aggregator/ Analytics-informed content Fitting new analytics into an enabler/content provider/distributor. M&E content is not static. It lives and existing portfolio These intelligent platforms leverage analyt- breathes. Advanced analytics enable you to The new capabilities provided by analytics- ics, especially social media analytics, to enable both forecast market demand and—working enabled content systems are groundbreaking market intelligence to optimize and automate with better understandings of consumption in how they can enrich M&E content to strategic content distribution and accelerate patterns and advances in machine-to-machine provide an exciting audience experience. And the creative/editorial process. This provides (M2M) communications—automate content rather than requiring you to discard what you important benefits for both consumers and management. This supports the franchise already have and start over, a media analytics M&E enterprises: more relevant, personalized across many channels and ongoing customer platform integrates with your existing work- content and monetization agility. engagements. flow and applications to leverage and extend So rather than launching another broad- your current investment. Personalized delivery brush campaign to push a new media proper- The key is to take a holistic view of your People’s expectations for the entertainment ty, you can now access consumer profiles and content processes and the real-time desires experience they should receive have changed more effectively customize the entertainment of your audience and then think strategically enormously in just a few years. They are no offering on the fly. And you can do this across about how analytics-driven transformation longer passive consumers of packaged pro- multiple channels to maximize revenue. can bring them together. n

As the Media and Entertainment Solutions practice lead for HP Enterprise Services, Steve Poehlein leads the Center of Excellence to provide strategy and solutions, as well as the development of service offerings to support the creation, management, and distribution of content for the media and entertainment industry. Jeff Caldwell has more than 25 years of experience in business and technology leadership positions and has held Partner and CIO level executive positions for worldwide consulting firms, IT advisory organizations, and Global Fortune 100 companies. He is a frequent speaker on technology innovation and improvement. M&EJOURNAL 108 Everyone expects a high level of quality in their user experience.

Over 25 years’ experience ensuring the consumer enjoyment of your creative content, regardless of delivery format... regardless of the end user.

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310.258.9444 5711 W Slauson Ave. Suite 226 Culver City CA 90230 www.3rdiqc.com CONNECTIONS CONSUMER

That’s a Wrap Digital “packaging” can enhance the online gifting experience By Tyson Wiebe, International Marketing Manager—North America, Scanavo

Abstract: The trend of online shopping shows no signs of slowing down as consumers continue to buy digital media and eGift cards at a rapid pace. As more and more digital media retailers add eGifting to their services, the need to differentiate themselves from competitors grows. One way retailers can stand out is to deliver digital content in an interactive way and provide virtual packaging for unique gift delivery experiences.

he growth in digital media sales is well docu- that eBooks will reach $8.2 billion in sales by 2017, surpass- mented. In video games, DFC Intelligence ing printed book sales. forecasts that by 2018 over 75 percent of Overall, U.S. online retail sales are expected to rise Tgame software revenue is expected to be deliv- at a strong compound annual growth rate of 9.5 percent ered via online models such as digital distribution, subscrip- between 2013 and 2018, yielding about $414 billion and tions and virtual item sales. In home entertainment, digital representing 11 percent of all U.S. retail sales by 2018, ac- purchases surged 47 percent in 2013 to top $1 billion, and cording to Forrester Research. another 37 percent in the first half of 2014, according to While demand remains greater for physical gift cards DEG: The Digital Entertainment Group. And with the than digital gift cards, digital card purchases continue to increase of eReaders hitting the market, PwC has predicted rise year over year. According to Gift Tango, digital gift

M&EJOURNAL 110 CONNECTIONS CONSUMER

Virtual packaging provides the consumer with an opportunity to creatively enhance delivery of digital media and provide a unique experience to the recipient. cards are ordered as a last minute gift option, online shopping experience is provided, a Cashstar has created a system called Tactile while physical cards are ordered in advance. consumer is incentivized to pay more for digi- Unwrapping. These new capabilities make digi- During the 2011 holiday season, 34 percent of tal media or those enhancements that create a tal gifting even more personalized and engag- gift card sales were digital and 66 percent were good recipient experience. ing by replicating the gift unwrapping experi- physical. ence in the digital medium. The module can be As online shopping and digital media each Virtual paper and ribbon configured to allow consumers to select wrap- continue to grow in popularity, it’s inevitable Companies can differentiate themselves ping paper, add a hand-written message, and that consumers will seek out new ways to gift through the relatively new, but growing, con- virtually wrap the gift. Tactile Unwrapping has digital media and to replicate the physical gift cept of virtual packaging. Virtual packaging been used in conjunction with Cashstar eGift- giving experience with digital goods. provides the consumer with an opportunity ing systems. Sony, meanwhile, has developed The opportunity to deliver a digital game to creatively enhance delivery of digital media eWrap, which also provides the recipient with with recipient experience is not currently avail- and provide a unique experience to the recipi- a digital gift opening experience. able on present game platforms such as Xbox ent. The recipient opens the digital gift and Virtual Packaging is a company owned by One and PlayStation. ITunes does allow its has the same reveal experience as though the Scanavo, the world leader in media packaging. customers to gift digital content to a recipient, gift was physical. The content is unknown Scanavo’s Virtual Packaging Digital Delivery however there is no experience other than the to the recipient until the digital gift is un- System can be added on to an ecommerce sys- recipient receiving a simple notification of the wrapped and opened virtually. tem and can deliver most digital content forms. media gifted. This experience is similar to re- If a consumer is considering purchasing The consumer is provided with the option of ceiving a CD or movie without a card, wrapped an album and choosing a retailer, the buyer using the system to digitally wrap the digital gift. box or experience. Nevertheless, the fact that may be more inclined to shop at the online The recipient has the experience of unwrapping Apple has created a gifting system suggests it store that provides opportunities to creatively the digital gift. Small, medium, and large enter- sees an opportunity for digital gifting. Amazon gift the album to the recipient. The packaging prise without an online store can use the system has created something similar to Apple. The experience then creates an opportunity for to send digital content to staff or contacts. The company uses the emails in the database to send a digital gift with the click of a mouse. This creates a more efficient and streamlined employee gift delivering system. As with any technology, continual enhancements are needed in order to provide a more innovative experience. Simulating physical unwrapping is only part of a much greater future experience. Adding other layers for the user to experience such as puzzles, personal images, and voice are only part of what makes virtual packaging so exciting. Online sales of digital media will continue to grow and more users will shop online and buyer of digital content can gift this content to the retailer to acquire a long time customer. companies will need to creatively distribute a desired recipient, however the digital gift is Companies entering the virtual packaging digital products in order to remain competi- visible when received and the experience gener- space include Cashstar, Sony and Scanavo. tive. Companies such as Cashstar, Sony, and ated is from the digital gift itself and not the These companies provide creative shopping Scanavo are delivering innovative systems experience of revealing the gift. experiences to consumers or sell software to for companies to enhance delivery of digital Retailers will have to establish creative online retailers. content. n ways to enhance the online shopping experience while enhancing delivery of digital me- Tyson Wiebe is an award-winning producer of commercials and films and has dia, music, digital movies and downloadable spent most of his career working with media companies in various forums. He eGift cards. Otherwise, price becomes the only is currently involved with business development to explore new markets and differentiating factor for the consumer. If an opportunities for the packaging leader Scanavo. M&EJOURNAL 111 CONNECTIONS

The Renaissance of Linear TV CONSUMER is Coming The addition of second screen apps and social listening can provide almost instant feedback for advertisers By Ian Wheal, Global Strategy Director, Adstream

Abstract: The digital revolution is driving a or more than a decade, linear TV has largely been left renaissance in the medium it once threatened to behind by its digital counterparts. Today’s digital toolkit destroy, linear TV. Factors driving this resurgence allows CMOs to measure engagement with their content in real-time and then react to that feedback again include global cross-media delivery of content; F in real-time. Both of these elements — measurement and the ability second screen platforms and social listing metrics; to react rapidly— are critical. But so far, only half of this puzzle has real-time analytics and effectiveness measures; started to be solved for linear TV: the data side. and creative platforms to enable TV changes and There is a very narrow window of time for reacting to feedback. If data from your audience tells you something, you only have a very clearance. Just knowing how a TV ad performed is no brief moment in time to change something before your chance to longer enough. Brands now want to make changes in re-engage and increase effectiveness is lost. To do this in a linear TV real-time with the aim to drive greater engagement at world requires a platform that not only pulls in data but delivers the next ad break. This is fast becoming a reality, and actionable insight and then makes it easy to rapidly execute on that insight and get it back out to your audience before they’ve moved on. not just in the U.S. market but on global platforms. Right now, that exists in digital but not for linear TV. That moment is coming, the renaissance of linear TV is nearly upon us.

M&EJOURNAL 112 CONNECTIONS CONSUMER

Super Bowl XLVIII: Nielsen Twitter TV Ratings Post-Game Report

Leveraging the enemy to become more powerful The “death of linear TV” has been cried since YouTube launched back in 2005. This cry has since been revived in more recent times as online video streaming services such as Netflix and Hulu have started to gain traction with people keen to indulge in on-demand “binge” sessions of the latest TV series. While the emergence of digital on-demand viewing is real, important and here to stay, linear TV is definitely not dead or dying. Linear TV not only continues to attract huge metric generated directly from the linear TV maybe it’s too sad, or maybe it’s just plain numbers of eyeballs, but also huge amounts of channel itself. However, this metric is still confusing? Combine this with second screen social engagement in real-time. In February of trapped in the past. In the United Kingdom, activation and running a digital campaign this year, at least 56 million Americans decided audience viewer numbers are generated from in conjunction with broadcast cannot only not to scroll through thousands of queued up collecting television data from just over 5,000 boost the engagement of the digital but start movies in their Netflix account or watch some- households. Specialist research companies to give brands direct feedback. thing they’d recorded earlier on their DVR. In- commissioned by the British Audience Re- This combination of second screen, social stead, they tuned into at least one of three live search Board (BARB) then scale that sample’s listening and many other digital data sources programs on ad-supported US television — the data to estimate Britain’s viewership across a is now providing useful engagement data back return of The Walking Dead on AMC, the population of more than 26 million people. to marketers as it is happening. That is a huge, Olympics on NBC and a Beatles special on It also takes a week to compile before it is huge step for linear TV but it begs the next CBS. Those eyeballs are ripe to engage with released. By that time, live audiences have big question… now what? brands through compelling content. An in- moved on and CMOs are still left wondering teresting data point from Super Bowl XLVIII whether their campaigns were effective or not. Reacting in real-time in a wasn’t just about the record breaking 108.4 The emergence of second screen apps and linear world million people who tuned into the live televi- social listening over the past 5 years has begun Now it is time to close the loop: It is possible sion event, it was that the top tweeted hashtag to change the game for advertising campaigns for brands to change and resubmit creative was from an advertisement. The hashtag #ES- on linear TV. Suddenly, a brand manager can in real, or close to real, time. By connecting URANCESAVE30 was tweeted 1.8 million log into Hootsuite or one of tens of other so- the data feedback to a global creative asset times by 1.2 million unique authors, exceeding cial engagement platforms and “listen” in real- management system that can also assist with even the #SUPERBOWL hashtag by 400,000, time to conversations about their campaigns. clearance and delivery of TV spots across according to Nielsen Social. When an ad is shown on a television station the globe, adjusting linear TV creative is no in Los Angeles the marketer can immediately longer a pipe dream. There is no doubt that Data only solves part of the gather feedback from its audience about what the first creative adjustment based on a data puzzle they think, feel and if they are taking action. feedback loop will be small changes such as Data is key, but it’s still not everything. Linear Maybe the audience thinks the ad is funny, pack, end tags (price points), and calls to ac- TV itself has not traditionally been known for its ability to generate accurate and timely data Ian Wheal leads the product strategy, marketing, and corporate partnerships that agencies and brands can act on quickly. at Adstream, where he works with some of the world’s leading brands, agencies To do that, adjacent technologies, such as sec- and studios in developing innovative solutions for the marketing ecosystem. He ond screens and social listening, have had to be started his career at the global management consulting firm AT Kearney, and developed. founded West Point Media, a UK and German outdoor advertising company. Audience viewing figures are still the key

M&EJOURNAL 113 CONNECTIONS

tion; however this alone is a big step forward 4. Get this copy approved by multiple stake- seamless and easy. in a increasingly competitive world. holders; First, you need a global digital platform Let us imagine that you’ve just found out 5. Have your production guys update the Aus- for creative collaboration and asset manage- through social listening that your latest TV tralian ad; ment. CONSUMER ad for your new product is causing confusion 6. Get the updated ad approved again by mul- Second, you need to digitally connect this amongst your key audience… but mainly in tiple stakeholders; global platform to all the linear television sta- Australia. They’re saying things like “I don’t 7. Send the updated ad to your delivery partner tions and other destination points around the get what this product actually does” or their for quality control checking and standard ver- world that you need. next hashtag is #dontknowwhyanyonewould- sioning; Third, you need to track the play out wantthis. Luckily it’s 2014 and you are gath- 8. Have your delivery partner securely send of TV ads against media plans, and then ering this feedback as your audience is view- your 1GB file back to local Australian TV sta- link this to digital campaigns, search data, ing your ads, not four weeks later via a lack of tions in the right format so they can seamlessly social listening, point of sale and other data sales or a customer focus group that just took queue it up for your next slot. points. you a week to organize. Fourth, you need to measure real-time Okay, now let’s assume that you’ve pin- That’s a lot of things that need to happen feedback from your audience about your pointed the problem down to something within a very short period of time for you to linear TV campaigns and deliver clear, action- relatively simple to adjust: the end tag. But to be able to increase the effectiveness of your able insight to decision makers within your change this is not as simple as quickly updat- live TV campaign. teams so they know how to react. ing some text. How long does that process take you Fifth, you need to rapidly speed up and today? Imagine it taking minutes, not weeks. loop this process so that you can continually You’ve now got to: That is the future of linear TV and it’s almost drive greater effectiveness for your campaigns 1. Coordinate multiple teams that may be sit- here. in real-time. ting across different regions of the world; Finally, one company will not solve this 2. Find the right master files, but just the ones The future delivered now entirely; it will require global platforms and that were used in Australia; In order to solve this huge challenge, we collaboration as well as true integration that 3. Work with your copywriter to write new need to bring together a number of criti- results in the sum of the parts is much greater copy; cal elements to into a loop that is rapid, than the parts themselves. n

Your metadata-driven supply chain needs assets. Avalon delivers. ENABLING TECHNOLOGIESYour search is over. NoSQL, Semantics, and Big Data technologies make it possible to connect users to assets in new and innovative ways. By serving up more relevant and interesting content, you’ll drive greater engagement. TRANSFORM YOUR DIGITAL SUPPLY CHAIN Multichannel distribution is driven by metadata. With the right systems to manage the assets and metadata, you’ll deliver higher-quality content in less time. BIG DATA, METADATA, ADVANCED ANALYTICS Avalon has technological expertise and strategic vision. We deliver solutions to harvest, analyze and visualize data that tells you what people are watching,Visit uson towhat learn devices, more times, or to exploreregions, demographics and social mediacareer channels. opportunities. That’s powerful. www.avalonconsult.com

Learn more at avalonconsult.com/DigitalAssetManagementM&EJOURNAL 114 CONTENTINNOVATION

“M&E workflows are increasingly complex and revenue is derived from increasing numbers of lower-value transactions. Anything that can reduce costs, increase supply chain velocity, or put organizations in a position to respond quickly to new threats and opportunities is worthy of consideration.” —Entertainment Identifier Registry (EIDR), Page 148

Innovation in content creation, production and distribution is growing apace with the new digital outlets for that content. This creativity touches every point along the digital supply chain, seeking to improve workflows, content protection, security, resilience and user experience, while reducing costs, boosting revenue, deepening consumer engagement and ensuring the highest quality playback of content on any device. This section holds 17 takes on innovation in the M&E ecosystem. ▼

Invisible Security...... 116 Monetization Model: Games...... 141

Know Your Vulnerabilities...... 118 Impact of Unbundling...... 143

Participations Management...... 120 Privacy Protection...... 146

The Case for QC...... 124 Digital Identifiers...... 148

Supply Chain Enhancement...... 127 Advanced Data Infrastructure.... 152

New Metadata Models...... 130 Integrating Digital Workflows..... 154

Supply Chain Efficiency...... 133 Holistic Business Systems...... 156

Building Connected Experiences.... 135 Entertainment Everywhere...... 162

TV Programming Trends...... 138

MM&&EEJOURNALJOURNAL 115 115 INNOVATION CONTENT Streaming Video Requires Strong, Invisible Security Post-consumption technologies like watermarking can do the job By Andy Nobbs, Chief Marketing Officer, Civolution

Abstract: Consumer demand echnology futurists claim the best kind of tech is the type that seems to for digital video content is accelerating disappear completely from the user experience, leaving only the content faster than distributors can in view. Jack Dorsey, in describing to Charlie Rose his aspirations for the figure out how to most effectively user experiences of both Twitter and Square, in 2011 stated that his fore- get that content to them. In T most goal was to have the technology simply fade away. He pointed to Apple’s game- this competitive marketplace, changing tablet as an example: “When you’re using the iPad, the iPad disappears—it differentiation between legitimate goes away,” explained Dorsey. “You’re reading a book. You’re viewing a website, you’re online video distributors will come touching a website. The technology goes away.” down to not only content offering, Two years later, following the rollout of Apple’s completely reimagined iOS 7, the but also ease-of-access in the user Apple head of design himself, Jony Ive, explained his vision for security on the new iPhone 5S: “[The new Touch ID feature makes] something as important as security so experience. Video security must strive effortless, so simple. We believe that technology is at its very best—at its most empow- to disappear completely from the user ering—when it simply disappears.” experience, while still providing the This so-called “disappearing” technology is especially critical in the consumer mar- protection that copyright holders and ket, where masses of non-technical users are armed with personal computing devices distributors require. that allow for the consumption of infinite digital goods, services, and entertainment. Powered by now-ubiquitous touchscreen devices, consumer app experiences are increasingly evolving into those in which the user can simply manipulate on-screen content

M&EJOURNAL 116 INNOVATION CONTENT

by way of natural, physical gestures, with little 100 megabits per second are widely available That brings us back to streaming video thought as to the powerful hardware and (not to mention a certain Fortune 100 compa- security, currently one of the most friction- software that hums along in the background— ny, also affiliated with a streaming video portal, inducing factors in the legitimate streaming where it should be—making it all possible. is now rolling out gigabit internet in select U.S. video experience. If we are to follow the afore- Many categories of consumer technology have cities). This high-speed video delivery pipeline is mentioned advice of tech pioneers such as made great strides toward adapting this style of open to all—legitimate or illegal—and its reach Dorsey and Ive, we as an industry must work user experience, from payment services and e- is moving beyond what even fixed-line carriers toward less obtrusive video security solutions. commerce to social media and daily to-do lists. offer, as public Wi-Fi and cellular LTE begin One way to achieve this end is to intro- Digital video distribution can benefit to provide bandwidth capable of HD-quality duce “post-consumption” streaming video greatly from this “disappearing technology” speeds to mobile devices. The same democ- security—a technique that can be achieved approach as it strives to grow customer sat- ratization of technology holds true for video through content watermarking and active isfaction and loyalty. With piracy becoming compression specifically: whereas a decade ago monitoring. This type of security does its easier every day, it is this loyalty that will be MPEG-2 could offer standard definition video job in the background, rather than the fore- a key asset in protecting a subscriber base. requiring six-megabit-per-second connections, ground, and gets out of the way of consumers Streaming video has much to innovate in this MPEG-4 now enables the distribution of high doing what they—and we—want them to do regard as today’s streaming video security is definition video at comparable speeds—and in the first place: consume. The music indus- not yet seamless—not yet “invisible.” the next generation of compression technology, try learned this lesson with significant grow- Streaming video consumption and distri- High Efficiency Video Coding H.265, will cut ing pains, having debuted digital downloads bution has tossed coders, technologists, pirates, this in half. with DRM protection before realizing that content owners and distributors into the same With skyrocketing bandwidth and more level of front-and-center security caused more ring. The disruptive nature of the Internet powerful compression flooding the space, harm to legitimate consumption than it saved has always been due to the level playing field consumers are quickly taking these innovations in deterring piracy. it creates—one that equips companies large for granted, and the immediate gratification Post-consumption video security can iden- and small, located around the block or around of longstanding video hosting sites like You- tify illegal broadcasts and drop the security the globe, with the same potential for service Tube have trained them to expect HD-quality roadblocks only where they should be: direct- and innovation. The case for streaming video streams on demand and on any device they ly in front of those few bad players that, up is no different, with technological break- happen to have in hand at the time. This means to this point, have created the need for such throughs driving the mass adoption of stream- that consumers expect the experience around intrusive pre-consumption security across the ing video—be that video UGC, premium, “premium” video content—once segregated to board. Not only is this type of security less legal or pirated. Namely, these technological the television set and cable box exclusively—to invasive to legitimate users, but it enables a advancements include near universal access be as equality intuitive, immediate, and fric- number of additional benefits for distributors to broadband at speeds that can support high- tionless as the other applications on their con- by way of consumption analytics. Even the definition streaming video; advances in video nected personal devices. tracking of illegal consumption can offer up compression technology; and, ironically, le- new opportunities, as demand for pirated ver- gitimate content distributors wading into the Reducing security friction sions of content can validate entry into new online distribution space themselves, which Further, whereby premium distributors often territories—a tactic mainstream heavyweights provides illegal content distributors with HD- compete by way of exclusive content, illegal such as Netflix have already integrated into quality digital copies of content straight to video distributors aggregate the best content their international licensing strategies. their hard drives. offerings regardless of copyright and provide Enabled by rapid innovation in broadband versions often digitally equivalent to the legal and cellular data speeds, and more efficient Delivery speeds skyrocket distributor. In fact, all things being equal, when video compression technologies, consumer The pace of this disruptive innovation has been both legitimate and illegal online video dis- demand for digital video content—be it pay- staggering. In the early 2000s, the U.S. Federal tributors have access to the same distribution TV content, feature films, or live sports—is Communications Commission defined “broad- technology, speed, and consumer reach, differ- accelerating. The differentiation between band” as 200 kilobits per second. Today, that entiation on delivery quality all but evaporates, legitimate online video distributors will come definition has changed to include the range up and the differentiating factor between them down to not only content offering, but also to 30 megabits per second, and speeds up to becomes one, quite simply, of user experience. ease-of-access in the user experience. To be successful in this new paradigm, video security Nobbs leads Civolution’s marketing and communication activities, after having must take a page from the tech pioneers, and dedicated most of his time for over the past four years to sales. Prior to Civolution, strive to disappear completely from the user he was President at Teletrax, the world’s first global broadcast intelligence service. experience, while still providing the protec- Nobbs was formerly Content Director at IPC Media, and also worked in executive tion that copyright holders and distributors positions for ITV and EMAP. require. n M&EJOURNAL 117 INNOVATION

CONTENT Know Your Attack Surface: Be Resilient Cyber resilience looks to reduce the impact of attacks and provide the ability to keep operating By Chris Morales, Practice Manager, Architecture and Infrastructure, and Kari Grubin, Sales Director Western Region, NSS Labs

crime, easy-to-access malware tools, and social engineering – and these methods of attack are on the rise. For better or for worse, the industry response to cyber attacks is technology-driven. Information security best practices dictate a defense-in-depth strategy with the core focus on network perimeter detection and prevention. In the M&E space, securing physical content from piracy has always been a priority. This model followed the premise of controlling and centralizing content within the entertainment supply chain, and digital content has been secured in the same way. Today, however, content creation has Abstract: The entertainment supply hen it comes to storytelling, become decentralized, and information chain is under continuous attack. Not Hollywood loves hackers. security professionals must respond to this only are the resources associated with The hacking subculture is change. Now, studios have 24/7 access to content creation and distribution being Wcloaked in a mystique that tools, partners, and distributors, and this insinuates a dark underworld of evildoers mandates the need for closed networks to targeted by those looking to exfiltrate fighting against the better good. With a few connect to exposed networks. The entertain- intellectual property, we should assume keystrokes, the übersmart hackers crack the ment supply chain attack surface, which is a breach has already occurred. That’s most daunting of encryption algorithms; the potential entrance point for any attack, right – the enemy is already inside. with a few more, they transfer the digital has evolved from a single computer terminal At this point, organizations must contents of a bank somewhere in Eastern inside a secure facility to thousands of points identify where attacks can occur, how Europe; and then with a few final clicks, they of entry. Any laptop, smartphone, tablet, or shut down the energy grid for a daring escape. outside vendor connection can be exploited. information can leave the entertainment It makes for great movies. If a large enterprise such as Target can suffer supply chain, and how the impact of Back in the real world, the media and a breach that occurs as a result of the com- these attacks can be reduced. This is entertainment industry is protecting its assets promise of its HVAC network, M&E com- cyber resilience. against far less glamorous enemies: organized panies must recognize that breaches could M&EJOURNAL 118 INNOVATION CONTENT

The entertainment supply chain attack surface has evolved from a single computer terminal inside a secure facility to thousands of points of entry.

come from any source, not only those most exposure created by poor user practices helps ate in the face of persistent attacks. Resil- commonly associated with breaches. to eliminate these practices. ience enables the government to continue to Enterprise architecture and systems engi- Systems and applications can affect the at- provide services to the public, and industry neering must be based on the assumption that tack surface of the entertainment supply chain. to continue to serve employees and custom- systems or components have been compromised The standard method for achieving awareness ers while repelling cyberattacks. (or contain undiscovered vulnerabilities that of exposure to attacks is through penetration could lead to undetected compromises), and testing. But while penetration testing is valu- The key goals of this approach are: that missions and business functions must con- able, it provides only a snapshot of the attack n Anticipate. Assume the breach has oc- tinue to operate in the presence of compromise. surface at a given moment in time – it will curred and focus on preparedness. Ask not show a system’s risk as it relates to new yourself key questions such as: What are the Defining the attack surface and emerging threats in real time. The attack attacks that are being used by threat actors The challenge facing information security is to surface is dynamic. The success of a penetra- today? Which of these are effective against understand the size of the entertainment sup- tion test is also limited to a tester’s ability the business applications deployed in my ply chain attack surface. This surface comprises to perform testing within the allotted time. network? And which of these are capable of the systems, applications, and users with access Real-time attack anticipation occurs when the bypassing my defenses? that are exposed to outward-facing attacks. known attack surface is correlated with current n Withstand. How can I function in an Information security teams must be aware threats to reveal the gaps in a security stack, i.e., infected environment without the business of where attacks may occur across the entire where there is no protection. failing? How does my organization continue surface. The security health of content creation to function without having to suspend criti- The attack surface starts with the user. tools can affect the attack surface of the en- cal services to remediate the problem? Pre- Social engineering is the most common means tertainment supply chain. The more a vendor pare to operate at 60% capacity, which will of attack. Information security teams must understands how its security health affects an reduce – but not eliminate – services. cooperate with business units to understand organization’s security posture, the more the n Recover. Reconstitute and rearchitect the user needs. For devices on which users spend organization can reduce its known attack sur- network for a restoration or continuation lengthy periods of time, methods for restricting face. Secure software may utilize compensating of critical services. Remove the infected por- use of enterprise data should be transparent to controls to reduce the attack surface. However, tion of the network and assign new resources the user. Approaches such as mandating com- the size of the vendor must be a consideration; to replace it. plex passwords for the entire device are giving if the vendor is small and has a limited budget, n Evolve and adapt. Learn why the attack way to more user-friendly approaches such as it is not reasonable to require security measures was successful while it is underway, and then transparently encrypting enterprise data, add- more appropriate for a Fortune 500 company. redesign the architecture to withstand simi- ing authentication for enterprise access only, lar attacks. and single sign-on. By understanding how busi- Operating under attack A cyber resilience program still consid- ness units use new technology, the information Cyber resilience provides the framework for ers detection and prevention techniques, security team learns how these changes impact a new architecture that is appropriate for the but it also assumes that a breach is likely. the attack surface. As information security entertainment supply chain. Where the goal of This stance emphasizes anticipation, agil- approaches the business, they must provide cyberprevention has been to reduce the prob- ity, and adaptation. Not every attack can be tools that appeal to all levels of risk tolerance ability of an attack against the organization, prevented. But with a successful cyber resil- while keeping in mind the needs of users. Ad- cyber resilience looks to reduce the impact of ience program, damage can be mitigated or ditionally, ensuring that users are aware of the these attacks and provides the ability to oper- avoided altogether. n

Kari Grubin is Chair of Women in Post for the Hollywood Post Alliance. Prior to joining NSS Labs, the world’s leading information security research and advisory company, she was VP of Post and Restoration for Deluxe Digital Media, a subsidiary of Deluxe Entertainment Services Group. Chris Morales, has more than 17 years of IT and information security experience. His areas of research include mobile security, data security, vulnerability management, malware detection and host protection. Previously, Chris was Senior Analyst, Enterprise Security at 451 Research, and Technical Partner Manager at Accuvant. M&EJOURNAL 119 INNOVATION

Reimagining CONTENT Participations Management How content companies can address constrained profitability, increasing complexity, and litigation in the participations space By J. Kent Bracken, Director-BPO, Media & Entertainment, Capgemini

Abstract: Changing he pace of change in today’s digital and the competitive landscape show that in- market dynamics are guiding business world means one thing: novation in participations management is M&E companies to optimize nothing is sacred. In all things needed and can yield improvements in com- their global participations Tyou must be forward-thinking, petitive posture, lower cost, reduce risk and processes in order to boost innovative, and open to change. In the digital improve the dialog with talent. revenue, reduce cost, and universe, we see innovation everywhere. From “Participations is one of the last analogue improve the dialog with talent 3D printers to bio-fabrication, innovation and process areas in a global media and entertain- change rule. If you’re not convinced, talk to ment industry that has otherwise adopted in an increasingly competitive the management of companies left behind like digital-based processes,” Charles Sutherland, creative marketplace. M&E Eastman Kodak, Blockbuster, and Motorola. EVP Research for HfS Research recently com- companies can and should Until recently, many media and entertain- mented. “Simplifying and digitizing the pro- expect more from their ment companies have been slow to embrace cessing of participations will not only reduce participations function. innovation in the participations space. Ex- costs significantly for M&E companies but isting manual processes, tribal knowledge, will create new opportunities to capture ana- home-grown tools, and limited reporting have lytic insights on the commercial possibilities reigned. Now, broad changes in the industry of content, products and services.” Industry trends suggest there are three

MM&&EEJOURNALJOURNAL 120 120 INNOVATION CONTENT

The Average Cost of Marketing a Studio Movie in the U.S.

In 1980, the average cost of marketing a studio movie was $4.3 million, according to MPAA, which translates to $12.4 million in today’s dollars. The average cost to market a medium-size film in 2014 has been estimated at more than $40 million, a 225 percent increase.

major drivers impacting participations: head- the international market is expanding and are defined. This litigation touches popular winds in revenue and cost; increasing com- content creators face growing costs in inter- titles like Smallville, Walking Dead, Dora the plexity; and litigation. national overhead, marketing costs, and new Explorer, and Butterfly Effect, along with doz- systems and processes, all of which must be ens of others. The costs go beyond lawyers 1. Revenue and cost challenges rationalized. As part of a larger plan to stream- and settlements. Support staff, research and At the Hollywood HITS Digital Marketing line and improve the overall finance and ac- analysis, accounting and other costs must also and Analytics Summit last year, Professor Jon- counting function, the participations function be factored in. Litigation can also damage the athan Taplin noted in his keynote address that can harvest substantial savings and increased reputation of content companies, impact- as electronic downloads continue to replace capability. ing their ability to attract top talent. And to hard media sales, many companies are suffer- remind us of materiality, Charles G Harder ing from lower incremental revenue and profit 2. Complexity wrote in his book “Entertainment Litigation” in home entertainment. Taplin also noted the The digital shift has enabled content com- that the estate of J.R.R. Tolkien had recently increase in general production and market- panies to take advantage of new delivery settled for “over $100 million with New Line ing costs. His broad thesis was that sweeping channels, new international markets, and new Cinema over 7.5 percent of gross receipts changes in the industry must be addressed acquisitions and partnerships. However, as from The Lord of the Rings Trilogy.” That’s by content companies in order to prevail in a sources of revenue react to changing demand real money. disrupted ecosystem. and expanding markets, the resulting volume No business strategist likes to see increas- The Motion Picture Association of Amer- and complexity are taxing existing capabili- ing competition, downward pressure on rev- ica reported in the 2013 release of Theatrical ties in systems, reporting and integration for enue and rising costs, without an innovative Market Statistics that U.S. box office revenue participations. Studios are also acquiring new plan to maximize the use of technology and rose less than 1 percent from 2012 to 2013. content companies with unique capabilities people to counter those expanding threats. Meanwhile, marketing costs are surging, creat- in the over-the-top (OTT) space, accelerating Tom Torlone, US Leader of Shared Ser- ing a drag on profitability. the need to integrate systems and tools in or- vices and Outsourcing at Price Waterhouse As content providers shift their business der to rationalize operating costs. Production Coopers, notes: “The pain is real. Administer- models to meet consumer demands for qual- and financing partners are increasingly present ing entertainment payment structures is labor- ity content with flexible viewing alternatives, on deals and they expect greater transparency. intensive, expensive and fraught with legal traditional studio revenue has taken on a new In general, deal complexity has increased for liabilities. Our clients are eager to find an end- form. New technologies and new channels all parties, including participants. to-end solution that relieves the administrative are redirecting revenue in the industry as con- burden of these processes, from contract ad- sumers spend more to access content online 3. Litigation ministration to payment processing, allowing through companies like Netflix or Amazon, The discussion of profit participations often them to focus on higher-value activities. The which in turn both push for better pricing invokes stories of disagreements with talent challenge is that providers are hesitant to in- from content owners and invest in their own and resulting litigation, sometimes focused vest in these capabilities when there is limited content creation. We also expect these new on the lack of transparency in how profits market potential (i.e. established and emerging content creators to consume a visible piece of the new market pie as their capacity emerges. J. Kent Bracken is the vertical markets development lead for the Media and Revenue can also be impacted by a shrink- Entertainment team under Capgemini’s BPO practice. His experience includes top ing theatrical release window and related new corporations Accenture, HP, Thomson Reuters, and Computer Sciences Corp and more pricing models. than eight years of international consulting work in Milan, Geneva, Buenos Aires and While US revenue growth is slowing, Johannesburg.

M&EJOURNAL 121 INNOVATION

Driving transformation in a secure, measured way is not an easy task,

CONTENT which is why a number of the leading studios have partnered with business process outsourcing (BPO) providers who have operating models based on industry best practices.

studios). If a provider can figure out a cost- adopters are already seeing the impact on top- M&E companies have come to rely on and effective alternative, they can corner a market line growth and improved working capital. expect more from BPO providers, who have that’s desperate for a quality solution.” noted that streamlining processes, optimiz- In order to be more competitive, maximize 2. Reporting and analytics ing labor and improving the availability of revenue and control cost, content creators can In today’s world of digital solutions we have statement support documentation will reduce tune their participations and participations grown cavalier about the availability of data. cost. Automating audits and audit documen- audit strategies by embracing innovation. It’s everywhere. Big data, micro-transaction tation will reduce liability and better support data, unstructured data, summarized data. But the dialog with talent. Leveraging enhanced Re-engineering participations what about useful and actionable data? predictive analytics will place valuable data By embracing best-practice process improve- In the participations space, reporting and at the hands of executives who can guide the ment, implementing new reporting and ana- analytics have been difficult to master because company to increased profitability. lytics, and leveraging new platforms and sys- the results come from multiple systems, tools, tems integration, content companies can low- people and processes, and entertainment Follow these steps er total cost, identify and target new revenue, companies have not always made the invest- 1. Identify best practice processes across zero in on profitable deal metrics, and ensure ment necessary to place critical decision sup- the enterprise in order to harvest savings by systems and infrastructure are optimized. port data at their fingertips. Now, focused streamlining work, winnowing out inefficient reporting and predictive analytics are needed work steps, and optimizing the labor model. 1. Process improvement to guide companies to improved results. 2. Implement actionable analytics and In the participations space, in-house processes Examples include analytics that identify the reporting with the goal of synthesizing infor- have rarely come under external scrutiny until most profitable deal structures for winning mation that will highlight opportunities that recently. Internal processes evolved, but the pictures, predictive reporting forecasting guide the enterprise to success, through im- will to upgrade, optimize and integrate was participations liability in any given quarter or proved revenue realization and reduced costs. limited. Now we are well into the digital revo- year, or updated and automated ‘ultimates’ 3. Establish workflow automation in the lution, and it’s clear the ground has shifted. based on current sales data. Reporting and statement and audit functions to improve Internal processes must be upgraded to indus- analytics need to move beyond the basics and tracking and analyzing human productivity, try best practice, then mapped, and rolled out establish the new objective of providing useful while improving predictive analytics for bet- to all users to standardize and harmonize the and actionable data which executives can use ter forecast participation liability and audit function, end-to-end. Consistency in process to increase revenue and control cost. exposure. delivery leads to reduced errors, improved 4. Build automated audit processes that cycle time, improved collaboration and re- 3. Systems integration improve leadership access to the completion duced overhead through efficiency. Rollout Content companies today often operate on status and possible exposure on any audit. of best-practice process in participations will a host of unique systems and infrastructures. 5. Improve the talent experience in partici- also highlight inconsistencies in approach As disruption becomes the norm and the pations by improving the timeliness of state- and understanding previously not on the industry re-aligns, forward-thinking comments and access to statement data. radar. Poorly framed work-steps, skill-to-job panies with rationalized and well-integrated Following this roadmap, content compa- mismatches, misunderstandings in account- systems will have a competitive advantage as nies can address the constrained profitability, ing treatment, incorrect use of the chart of others trail in committing the effort, capital increasing complexity, and litigation in the accounts and incorrect application of tools all and thought leadership to fully integrate their participations space by embracing innovation surface during the best-practice process evalu- legacy participations, accounting systems and to address each challenge. The dialog with ation and rollout. processes. Excel models, Visual Basic, and talent will improve as support data for calcula- For many companies, this requires a full tribal lore will give way to integrated systems, tions is improved, and details on audit status transformation of their finance operations. optimized processes and labor efficiency. move online. Driving transformation in a secure, measured More importantly, modernizing participa- way is not an easy task, which is why a number The road map to success tions will help companies position themselves of the leading studios have partnered with Market dynamics are guiding content com- for success with flexible and optimized solu- business process outsourcing (BPO) providers panies to rethink strategies to enhance profit tions that can respond quickly to market who have operating models based on industry to include the participations management shifts, moving disruption from a negative to a best practices which can easily be applied. Early function. To tackle the task more effectively, positive force for profit and growth. n

M&EJOURNAL 122 THE SEARCH IS OVER.

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The Intelligence Behind Rights Management & Audience Analytics INNOVATION

CONTENT Third Party Quality Control Needed Now More Than Ever The proliferation of home entertainment formats and platforms increases the need for objective examination by human eyes By Ramón Bretón, Chief Technology Officer, 3rdi QC

Abstract: As the home entertainment landscape evolves and increases in complexity, one area of a project’s budget that is often reduced is third party QC. As more analysis shifts to the facilities tasked with content production, the content’s value and content owner’s reputation can be jeopardized when the same party helping create the work reviews it. In contrast, by not having a stake in content production, third party QC companies are free to focus on the consumer experience, which amplifies the end user’s enjoyment and ultimately contributes to more consumption.

e all remember the good old days: the 2000s eo, misspellings on menu pages, out of sync audio and incorrect when DVD sales were skyrocketing. Consum- subtitles all caused discs to be re-pressed with replacement discs ers weren’t just upgrading their home video issued to consumers. These gaffes, which were frequently and Wcollections from VHS to DVD, they also embarrassingly detailed in online home entertainment forums, were amassing an even greater collections of discs, spurred on not only ate into the studios’ profits, but threatened the reputa- by the vastly improved quality and bonus features previously tion of the format as a whole. unavailable on VHS. The novelty and convenience of DVD (no DVDs released internationally increased the risk of consumer rewinding!) also contributed to the public’s rapid embrace of the complaints with translated menus, audios, and subtitles, all of format. Unlike LaserDisc, DVD resonated with film buffs and which could – and unfortunately, sometimes did – contain the average consumer alike. errors. Each year from 1998 to 2004 saw a remarkable increase in In order to ensure that the viewer’s experience would live up U.S. consumer spending on DVD rental and sell-through, while to the “perfect quality” promise of the DVD format, as well as to the peak years of 2004 through 2009 saw total spending on DVD protect the reputation of the content owners, during those days and Blu-ray reach between $15 billion and $20 billion each year, of tremendous profits, using a third party quality control (QC) according to Rentrak and DEG: The Digital Entertainment company for every major studio release was the norm. Group data. Employing the services of third party QC companies is attractive for several reasons. Firstly, a company whose sole focus is QC Ensuring the promise of perfect quality seeks out and hires specialists who demonstrate an aptitude for A large part of the allure and sales pitch of DVD was its “perfect” proofreading, problem solving and attention to detail, while also quality and special features. Errors such as digital hits in the vid- having the imagination needed to identify potential problems

M&EJOURNAL 124 INNOVATION CONTENT

To address the demands of today’s varied home entertainment landscape, many studios look to automated QC as a cost-effective way to fill the gap. that are not defined in any specification docu- for numerous clients. They are commissioned tion against those errors that may lead to ment. To serve the international needs of their not only to create content for home enter- consumer frustration. clients, third party QC companies assemble tainment distribution, but also to prepare It is precisely the proliferation of home a team of language experts who also possess material for theatrical and broadcast release entertainment choices available to today’s these skills. Secondly, a company positioned as well. Quality control is only one of many consumer that makes third party QC even outside of the process of content creation components in the vast toolbox of large more crucial, however. Instead of one or two encourages a truly focused evaluation. Finally, post houses. By contrast, third party QC formats, each film or television show must independent operators are less likely to work companies specialize in one thing only: the now be readied for a variety of distribution under the assumption that the tasks of pro- evaluation of home entertainment products, outlets. In addition to coming to grips with gramming the assets or translating the material without the distraction of any other post- this increased output per project, post- was done correctly. production work. They are hired by the con- production facilities must also contend with In the days of skyrocketing physical disc tent owners with the singular expectation of compressed timelines, to meet the strict win- sales, the typical workflow consisted of the identifying issues that may lead to consumer dowing deadlines required in today’s short- content production partners completing their frustration. attention-span market. own internal QC before third party evaluation Another potential pitfall for in-house To address the demands of today’s varied occurred. Their motivation, in addition to de- QC is that of assumption. It is natural for an home entertainment landscape, many studios livering a quality product for their clients, was employee of the same company creating the look to automated QC as a cost-effective way to find and correct any errors internally rather work to assume that the work completed by to fill the gap. With all that these software- than allow them to be revealed on the sub- their comrades is sound. This assumption, based systems can accomplish, they are a sequent third party QC report, which could no matter how subconscious, may play a role welcome tool when preparing content for reflect poorly on those creating the content. in the amount of focus applied to the task market. However, human interaction is still The resulting DVD, in going through testing of evaluating the product. A third party QC needed, not only to verify the issues flagged by two separate entities, had a much greater technician, on the other hand, has no alle- by the application, but also to uncover the chance of being error-free once in the hands of giance to the content creators and is free to myriad errors currently beyond the scope of the consumer. focus solely on the end user experience. discovery by automated systems. Creative intent may be confused with unwanted Declining revenue The shifting landscape glitches, for example. Or, the software can As physical disc sales began to decline at the A contributing factor to the monumental report if closed captions are present, but has beginning of this decade, naturally content sales of DVDs was the lack of other avenues a hard time verifying the lip sync of each owners looked for ways to maximize profits. for the consumption of home entertainment. caption and authenticating the accuracy of One of the first areas often deemed redundant Today’s consumer has many more choices the captions themselves. A perfect scenario was the double evaluation by the content pro- for spending their time and their money, involves automated QC as a complement to, duction facilities as well as by third party QC given the rise of over-the-top streaming not as a replacement for, human QC. companies. As a result, in recent years many services such as Netflix, Hulu, and Amazon Something altogether new to today’s catalog and lower profile releases have been Instant Video; the proliferation of tablets home entertainment landscape is the extent evaluated strictly by the post-production fa- and media-capable smartphones; and the to which the digital supply chain depends cilities creating the discs, reserving the skills of explosion of Internet video sharing sites such on metadata. When it comes to today’s file- third party QC companies primarily for new as YouTube. based delivery systems, accurate metadata releases and important re-releases. As studios move into new avenues of can be as important as the content itself. To be clear, the intent of the content pro- home entertainment distribution, the profit Cataloging, searchability, contract compli- duction facilities is the same as that of third margins are unknown. The prudent course of ance, revenue protection, release windows, party QC companies: to deliver a quality action is to keep budgets as low as possible. new business opportunities, and consumer product that is error-free and will not generate To this end, third party QC often falls by the discovery are a mere handful of the areas negative consumer feedback. Both understand wayside, while the company responsible for impacted by metadata. Third party QC the value of their clients’ reputations while creating the content is tasked with protec- companies, whose expertise lies in proofread- striving to uphold their own reputation for quality work. Nonetheless, third party QC Ramón Bretón has been with 3rdi QC, a pioneering company in the field companies have some distinct advantages over of quality assurance for the home entertainment industry, for 12 years. in-house evaluation. Previously, he spent 10 years in the music business as an audio mastering At any given time, most large post-produc- engineer, giving him over 20 years’ experience contributing to quality tion facilities undertake multiple assignments entertainment for the consumer.

M&EJOURNAL 125 INNOVATION

Human interaction is still needed to uncover the myriad errors CONTENT currently beyond the scope of discovery by automated systems.

ing, verification, and paying attention to the are well suited to the task of protecting the evaluation can also help audiences connect smallest detail, are befitting the task of ensur- content owners’ investment, regardless of the with the material. When potentially distracting that a project’s metadata is accurate and delivery medium. ing issues such as video and audio glitches are robust. Consumer spending on digital formats flagged in QC reports early in the production is on the rise. DEG’s Mid-Year 2014 Home process, they can be removed in a cost-effec- Important then and now Entertainment Report indicates 37 percent tive or even cost-neutral manner, ensuring a Regardless of how complicated or unique new growth in EST and 26 percent growth in smooth, error-free viewing experience. home entertainment offerings may be, they SVOD in the first half of 2014 compared Current home entertainment offerings have one thing in common: the user experi- to the same period in 2013. As new home may be more varied, but the promise to the ence must be frustration-free. Whether DVD entertainment profit avenues prove reliable, consumer remains the same as in the glory or Blu-ray disc, an Ultra HD episode of an a natural course of action is a return to rou- days of DVD: to provide a pleasurable ex- SVOD (Subscription Video On Demand) tinely employing the services of third party perience in exchange for their hard-earned service’s original series, a companion app to QC companies. dollar. When consumers feel they are get- a network TV show, or an UltraViolet EST A comprehensive QC evaluation not only ting good value for their money and are (Electronic Sell-Through) movie watched on protects, but enhances a project in many ways. happy with their purchases – both physical an iPad, the content owner’s reputation is on In addition to helping ensure that the releas- and digital – they are more inclined to keep the line every time a consumer interacts with ing studio’s legal obligations are met by verify- spending, to keep connecting with the films the content. Since their focus has always been ing the presence of warnings and disclaimers, and television programs they love. The goal on the consumer experience, not on creating as well as confirming that the proper availabil- of this business, after all, is to provide that the content itself, third party QC companies ity dates are encoded in the metadata, a good connection. n

DISCOVER TOMORROW’S TELEVISION

www.ixonos.com/tv M&EJOURNAL 126 INNOVATION CONTENT

Evolution Not Extinction: How to Successfully Navigate Digital Disruption

Companies can streamline operations, speed time-to-market and take control of their bottom lines By Harris Morris, CEO, T3Media

Abstract: The new content ecosystem requires a radical rethinking of the entire digital media supply chain – one which allows content owners to maximize the value of every piece of content in their libraries, while enabling them to focus on their core creative capabilities and cater to the needs of today’s consumers. Content creators and distributors need to establish a digital supply chain that allows them to protect their legacy businesses, while also positioning themselves for those innovations still to come.

n age-old adage reminds us that try Association of America. It was a stunning Third time’s the charm hindsight is 20/20. As M&E free fall that resulted in the loss of more than We’d be wrong to think the music industry’s companies struggle to make $6 billion dollars in annual revenue. cautionary tale is an aberration. That same Asense of dramatic shifts in how It took the music industry nearly five years level of disruption soon upended publish- they create, manage, distribute and monetize to wake up to the crisis confronting it. By ing. For newspapers, the recession started content, there is one question most haven’t 2010, digital revenues had increased by 1,000 in 2005—a full six years after the virtual been able to answer: what can we learn from percent; but digital growth from almost noth- collapse of the traditional music industry— the mistakes of other industries interrupted ing to something came too late. The industry and the bottom fell out even more quickly. by massive digital disruption, and how can we had lost control of its consumers—and left Within five years of reaching its revenue avoid those mistakes in our own? innovators to take control of the market. peak in 2005, the newspaper industry lost 55 As a result of massive technology innova- Basic economics would seek to explain the percent of its advertising revenue. tion—namely, the Internet—the way con- massive revenue losses as a function of dimin- It was clear that executives still had much sumers access and listen to music was disrupt- ishing demand. In fact, the opposite is true: to learn from the painful lessons of their ed overnight. In the decade that spanned 1999 there has been an explosion of (legitimate) peers. to 2009, the music industry’s revenues were choice, flexibility and access to music for con- As they say, the third time is the charm. cut in half, according to the Recording Indus- sumers. Demand isn’t the issue. Since its peak of $22 billion in 2004, the

M&EJOURNAL 127 INNOVATION CONTENT Even with awareness of content supply chain challenges, few companies are taking control of their content and their consumers in ways that optimize user experience, and the bottom line.

U.S. home entertainment market has lost near- Here’s how: n Monetize content: There’s no question ly 20 percent in annual revenue, seeing double- n Minimize opex and capex: Many compa- that today’s array of channels, platforms and digit percentage revenue losses in some years. nies make massive investments in hardware, distribution partners creates massive com- The unexpected shift has squeezed the bottom software and resources without having content plexity for digital workflows. But, it also cre- line of every content creator, and thrust con- demands to justify those investments. Profit ates huge opportunities to monetize and extent economics further into the spotlight. margins, which are already under pressure from ploit every second of content in your library. the relatively small size of digital deals, suffer You can’t monetize what you don’t know Digital red ink even more when opex and capex costs grow. you have. Comprehensive library manage- The explosion of new distribution channels— And, these aren’t one-time investments. ment capabilities allow companies to catalog and the complexity associated with managing More content created and fulfilled over time their content, exposing assets securely to the and fulfilling into those channels—is no sur- requires increased storage with more sophis- people who need access to them. Content prise to anyone with a grasp on today’s content ticated management capabilities. Software portals enable access-controlled rights to ecosystem. But even with awareness of content and hardware upgrades consume time and research, browse and fulfill content. This ease supply chain challenges, few companies are tak- sources, and introduce risk into already fraught of search and visibility is essential to sales and ing control of their content and their consum- processes. licensing teams driving time-sensitive deals. ers in ways that optimize user experience, and Even content owners with large volumes Worse than your own impaired content the bottom line. are at dangerous disadvantages. In today’s eco- visibility, imagine the impact on your poten- Few content creators and distributors have system, content format specifications, packag- tial licensees and consumers. With a central- content volumes that warrant the infrastruc- ing requirements, discovery demands and local- ized, secure and managed archive, you can ture scale, resource expertise and operations ization processes require continual evolution make decisions about how, when and where needed to exist in the new ecosystem. Yet, of workflows and technology, not to mention to expose content externally to potential often, content owners try to bring these capa- professional expertise. With every new partner, buyers. This increases your content reach for bilities in-house. channel or technology improvement, there is monetization through licensee self-service– The result? Inefficient operations, bloated often a new and unique workflow requirement. which fuels more revenue, faster. infrastructure (that becomes obsolete quickly) iTunes takes delivery via Aspera. Cable More than ever, successful digital asset and quality that suffers due to ever-changing VOD needs metadata in accordance with management also depends on the ability specifications, packaging requirements and CableLabs specifications. Nielsen’s watermark to capture, create and distribute rich, flex- SLAs. It’s no wonder that many organizations is catching-on for multi-channel measurement. ible metadata. Technical and descriptive still question if digital revenues will ever really Encryption. Logos. Forensic Watermarks. The metadata is the fingerprint of your content, offset traditional losses. That scenario is hard to list is endless. allowing buyers to evaluate the content imagine when digital operations are in the red. Content owners need to boost the produc- you bring to market and ultimately driving tivity and profitability of their digital business- downstream discovery for audiences. When Economics for new audiences es by minimizing opex and capex investments. thinking through a successful digital strat- Upside-down digital businesses don’t have By leveraging the depth and breadth of agile egy, metadata schema definition and enrich- to be par for the course. Content owners and service providers, content owners unburden ment are essential. distributors need to embrace a new math to themselves from having to adapt to ever-chang- Today’s metadata is dynamic and liv- streamline their operations, speed time-to- ing end-to-end content requirements. And, ing. Schemas change. Licensing partners market and take control of their bottom lines. they can do so at disruptively low cost. have unique requirements for descriptive metadata and the formats in which that information is delivered. Being able to capture Harris Morris’ digital media and enterprise software solutions experience spans and transform the metadata you have—with media and entertainment, education and technology-enabled consumer industries. tools that tightly integrate into overall Previous roles include CEO of the Broadcast Communications Division of Harris digital workflow—streamlines operations, Corporation, Chief Strategy Officer of Thomson Learning and a Partner at Bain & reduces cost and creates visibility. Company. Continued on Page 161 M&EJOURNAL 128 INTERACTIVITY THE NEW DIMENSION IN VIDEO STORYTELLING Fuisz Media gives viewers the power to engage directly with the products, people, and scenes in any video - ads, branded content, feature length, and more.

For more information, please contact @fuiszmedia [email protected] fuiszmedia.com INNOVATION

CONTENT Mining Metadata Gold with Semantics Experts are turning to new models to better define metadata and to store it more flexibly and accurately By Matt Turner, Chief Technology Officer, Media and Publishing, MarkLogic Corporation

This process means creating a row for every possible type of metadata including dates, contributors, asset information and categories. This can become rapidly complex due to the need to define in advance all the possible permutations of the metadata. Problems may include defining a single model across multiple types of assets, selecting attributes that cover specific uses and adopting new information as data and purposes change. In addition to the items of metadata, expressed as the columns in the model, the values of the columns also need to be managed. Many of the items of metadata are managed in lists called controlled vocabularies or look-up tables. Taxonomy tools are used to create and manage these lists and the selection Abstract: The value of metadata of these items gives the metadata context for continues to grow in today’s digital ith the rise in the value of a given purpose. The typical taxonomy ap- metadata and its direct proach is to manage categories in a hierarchy marketplaces and maximizing this impact on the new digital with the distinct levels all having distinct sub- value impacts nearly every part of business, metadata is becom- levels of choices. entertainment and media organizations. W ing a critical asset for product creation and Categories and taxonomies are also tai- Metadata is also becoming more distribution. This is driving the need for more lored to specific business purposes. Internal complex, covering not just the asset accurate and flexible metadata. To address this processes have different needs than external information but now including product need, organizations need to look beyond the distribution processes, for example. The meta- traditional tools and technologies for manag- data may have either many similar categories and title data, contributor and topics, ing metadata and embrace new approaches, or generic categories that do not have the and details on usage and consumption. including NoSQL databases and semantic specificity required for each distinct business With the rise of new technologies technologies to create, manage and deliver process. This can cause additional data pro- tailored to handle the intricacy of more accurate and complete metadata. cessing or clean up as different systems use the today’s information, new approaches metadata. Traditional metadata are available to manage metadata. These approaches also require that all the Traditional metadata management processes items of metadata including categories be Enterprise NoSQL databases and define, up-front, the metadata required for the explicitly associated with the metadata record. Semantic technology can make a wider organization, using tools that range from Excel If an asset is associated with several categories, set of data available to users and reduce spreadsheets to taxonomy and ontology man- all of those categories must be associated with the complexity and cost of delivering agement tools. These tools all define a fixed set the asset directly in the metadata record. This this valuable resource. of attributes for the metadata, typically in the can lead to metadata models that have hun- rows and columns of a relational database. dreds of attributes to explicitly capture all of

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the complexity of the information in the single metadata record. Example of a Semantic Triple To address these issues, metadata experts are turning to new models of data to both better define metadata and more flexibly and accurately store it.

NoSQL databases Hierarchical, complex and sparse metadata are not well suited for relational databases and their strict rows and columns. Therefore many A simple example about a contributor could entertainment organization might model all organizations are adopting enterprise NoSQL be information about his location starting with the possible characteristics a famous fictional database technology that allows metadata to be a fact: “John lives in London”. Combined with character might possess, map those attributes defined and stored with a flexible schema with- the information that “London is in England,” over the many different times that character out giving up data integrity or security. Instead we can now also state “John lives in England”. has appeared in films or shows and provide of defining up-front every item that must go The data modeled in this fashion can be used different metadata values tailored for produc- into the metadata record, the NoSQL approach with other data about England to derive new tion and distribution. allows for each record of metadata to store only information about John – for instance that he (and all!) the attributes that make sense for that lives in a monarchy. Semantic Web and NoSQL particular asset. The model can also be extended with more together Schema flexibility addresses some of the is- information about John. We can state that John New technology capabilities are bringing sues found with the traditional approach: is an actor and, if John is the lead character for the schema flexibility of a NoSQL database n Varying types of assets can have the different a show, we can link John to the details of that together with power of semantic technology. types of metadata they need with out having to show, all actors of that show, when that show MarkLogic’s Enterprise NoSQL has seam- also carry or fit into a model not suited for that is in production. We now have new levels of lessly combined these two data models into a asset. insight into his activity for instance when he was single component, removing the final hurdle n A wider set of data can be stored including working in a given year or what other actors he to fully leveraging the value of the semantic data suited for a specific purpose for one kind has worked with. models with the active, operational metadata. of asset and not another because the model The creation of this type of data requires data This combination addresses some of the can allow for the flexible storage of additional management structures called ontologies. On- major issues with taxonomy management: information without having to pre-define that tologies are similar to taxonomies that describe n The relationships do not need to be only information. look-up lists except that the ontologies describe hierarchical but can express many different as- n New information can be added as data sourc- the collection of triples and are not only hierar- sociations and be linked together to correctly es or metadata models change without having to chical. In our example, the ontology would de- model complex metadata attributes. rebuild the system. scribe the types of data we are recording (people n Using several ontologies, metadata can With enterprise NoSQL systems like Mark- and places) and the types of relationships they now record relationships (instead of catego- Logic, this flexibility can be used without any can have (lives in and is in). ries) for the many different purposes of the loss in data integrity or reduction in security. Ontologies are also expressed as triples and, asset. Enterprise NoSQL allows for processes to along with the types data and relationships, n Because the ontologies are independent of ensure the data is accurate and has the core at- they can also define the values of that data. For the individual metadata records, changes to tributes needed for the system and that the in- instance we can restrict place to a list of known the data and additions of new types of data formation can only be accessed with the correct locations including London and England. can be done at any time without having to permissions and rights. This approach is particularly valuable for reprocess or remodel the metadata. entertainment as it allows for the accurate cre- Using semantic triples, the metadata Semantics ation of models – or ontologies – that are tai- record does not need to store attributes for To address the complexity of managing cat- lored to the specific uses of the metadata within every single possible value related to the egories and taxonomies and to record more an organization. It can also record and manage record. With only a few defined semantic accurately the intricate relationships for an as- the details of that organization’s specific prod- relationships, an asset can be linked to a much set such as categories, genres and contributors, ucts. If our simple example explains where John broader set of data -- making metadata man- organizations are also embracing Semantic Web can live, a complex real-world example for an agement much more efficient. For example, a technology. Semantic Web technology is a new approach Matt Turner works with customers and prospects to create leading edge to defining and managing relationship data. information and digital content applications with MarkLogic’s Enterprise Using a simple format called a triple, Semantic NoSQL database. Matt works closely with MarkLogic’s customers McGraw-Hill, Web technology indicates facts, concepts and Warner Bros., Conde Nast and LexisNexis. Before joining MarkLogic, Matt was object and how they are related. at Sony Music and PC World. M&EJOURNAL 131 INNOVATION

Melding Data Models and streamlining the content creation process.

CONTENT The live video feeds, sport scores and schedules were also tagged to the ontology with automated feeds updating the information. This data was used to create the public website (bbc.sport.co.uk) that, for the Olym- pics alone, featured over 10,000 pages. All of this content was dynamically generated from the ontologies and the articles, video feeds, scores and schedules and was constantly updated as results and scores were tallied. The resulting user experience broke many records in the UK with, at times, more people watch- NoSQL Metadata record (l.) with semantic triples (r.) associated to an ontology. ing and interacting with the events via the site than over traditional broadcast. metadata record using our fictional character, Dynamic delivery the asset only needs to be associated with the In preparation for the hosting of the London Conclusion specific title where the character appears. All Olympics in 2012, BBC Sport adopted a Se- As metadata becomes even more important to the other data about the character, for instance mantic Web approach to not only the manage- the delivery of digital products for media and where and when they lived, what genres and ment of the metadata of the assets it would be entertainment organizations, leveraging new categories they fit into, would all be automati- delivering on its web pages, but also the delivery approaches to address the many challenges cally available to that record with that one item of the experience to the end users. with traditional tools is becoming critically of metadata. The BBC Sport team developed sports important. With this model, the metadata can now ontologies that contained the categories of Semantic Web technology combined provide accurate and complete information to events and sports and the key players and or- with Enterprise NoSQL allows metadata to a much wider range of audiences, the processes ganizations in each sport. Individual articles address more information, including data for for maintaining the metadata are much more and information about the teams and athletes multiple purposes with more flexibility in the efficient and the metadata will be a much more were tagged with just the links to the ontology, management of the data while maintaining valuable asset to the organization. greatly reducing the amount of editorial work the data integrity and security. n

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Driving Digital Profits and Reducing Risk The need to improve digital supply chain efficiency Mike Side, CEO and Co-Founder, Mediamorph

s busy, on-the-go film, television Abstract: The burgeoning digital marketplace brings with it a continually and sports viewers, we’ve never growing supply of current and library content, but it also disrupts content had it so good. Streaming and creation. In order to capitalize on the digital opportunity, the digital video supply Adownloading digital video in chain must operate as efficiently as possible across the entire ecosystem, for HD is ubiquitous, so we can watch the major- both suppliers and distributors. ity of programs on demand whenever we want to. New services with apps for our laptops, tablets and phones mean we can watch just Digital Entertainment Group, U. S. con- the inherent challenges of digital video disas easily when travelling as we can at home. sumer spending on digital consumption tribution. Many of us are more likely to be watching TV (EST, VOD and subscription streaming) Deals between studios, networks and vid- streamed through a games console, smart TV has continued to grow heartily; for the first eo operators are changing rapidly as digital app or set-top boxes than we are to be watching half of 2014, spending on digital totaled $3.6 business models evolve. For studios, there are a live broadcast. billion in the U.S., up nearly 17 percent from the difficulties of tracking and understand- New entrants are producing original shows, the roughly $3.1 billion spent in first half of ing sales behavior across increasing volumes unbound from the traditional studio and 2013. of platforms, devices, and formats. This is network system. Subscribers get to watch and As the market expands, satellite, cable and on top of the challenge of managing content green light pilots. Producers, networks and IPTV operators must provide high quality rights, metadata and asset delivery to a grow- video operators are building new funding mod- and differentiated services to grow their cus- ing content partner base. els based on exclusive digital windows across tomer base. Competing next to them, stand- For video service operators and digital their respective customers. alone OTT providers have to be able to scale retailers, increasing content volumes and the This golden age for consumers of digital rapidly in order to survive and thrive. associated data complexities increase the risk content has been complex and difficult to One thing is clear: in order to capitalize around remaining compliant to windows and achieve for the studios – but they have been on this opportunity, the digital video supply rights restrictions imposed by content own- rewarded as digital revenues continue to grow chain must operate as efficiently as possible ers. Additionally, editorial and programming as a significant percentage of their businesses. across the entire ecosystem, for both suppli- decisions are impacted by the operational According to figures published by DEG: The ers and distributors. This means addressing concern of processing larger data volumes to

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CONTENT For studios, there are the difficulties of tracking and understanding sales behavior across increasing volumes of platforms, devices, and formats. This is on top of the challenge of managing content rights, metadata and asset delivery to a growing content partner base.

understand what titles are available when and Another cross-industry collaborative rights management systems. Availability and where. Finally, the increase data volumes lead project is the Digital Entertainment Group’s license period updates, known as “avails”, come to challenges in revenue management, with Digital Data Tracker, the goals of which are to via emails, attachments, or links to content the accuracy and timeliness of suppler pay- allow more sharing of industry data between management systems, and video operators and ments made more difficult. members, to better understand content perfor- retailers face a huge volume of data that needs mance and purchase behavior. The end result to be managed. That management includes The need for standards from the Digital Data Tracker should ulti- identifying avails relevant to their deals, match- One major difficulty across the industry is mately be better decisions and higher revenues ing them to contracts in a rights management the lack of standardization in the way digital for both studios and the sales channels. system, and making licensing selections. From content, rights and data is shared. Data is Even for a company gaining benefits from there, downstream content management sys- exchanged using varying file types and for- implementing standards and engaging in data- tems and delivery platforms need to be notified mats; Microsoft Excel is widely used, but each sharing projects, back-office systems and busi- that a title is available or needs to be taken company has unique templates, field names, ness processes must be flexible enough to adapt down. rights data models, territory identifiers, etc. to the rapidly changing times. Legacy applica- Manual management of this data is ex- These factors are also in constant flux, with tions, which weren’t designed for digital, force tremely time-consuming. When businesses report formats, identifiers and data fields inefficient workarounds. In many cases, large lack visibility of content rights and availabil- changing over time. For partners, it means cross industry ERP systems are not well suited ity, there are risks of content underutilization they continually need to make changes to to manage the fast pace of change that has or breach of contract. their back-end systems. occurred in Media and Entertainment. And The bottom line is that if content goes The industry is attempting to address while improving processes and technologies up too early, too late, or in the wrong place, these challenges, with companies and industry are important, the majority of these projects everyone loses. Automating the flow of data groups working towards new standards. They are internal only. There needs to be much more from content providers to their digital part- are also engaging in collaborative projects to focus placed on solutions that improve col- ners gives greater clarity into and control improve sharing of industry data and refining laboration between content owners and video over content availability. Eliminating manual digital supply chain processes. service operators. effort frees up time for operations and pro- The Entertainment Identifier Registry gramming teams to concentrate on schedul- (EIDR) is one such standard, where content Data and asset management ing and package creation, content reporting owners who are EIDR members register titles One key area of focus needs to be at the start of and analysis. That in turn helps companies and receive a unique identifier used when the digital distribution chain, specifically in how spot trends and informs better programming sharing data about their content. The En- content owners tell video service operators what and title selection decisions. tertainment Merchants Association (EMA) content is available to them. Rights manage- Implementing systems that provide has developed a metadata standard for digital ment systems can adequately capture contract control and drive efficiencies in these cross- audiovisual content, an XML framework de- details agreed to when entering into a new deal, industry processes allows video operators and signed to support the transfer of information but there is a continual flow of new information retailers to rapidly scale the number of con- about titles from content owners to digital about title availability, exclusions and license tent providers and amount content. Scaling, retailers. Similarly, the Asset Distribution In- periods that are being sent out by content pro- in an automated manner, means opportuni- terface (ADI) is an XML metadata standard viders. This data sent throughout the lifecycle ties to not only drive up digital revenues, but developed by CableLabs. of an agreement is not addressed by traditional also reduce overall risk. n While the emergence of standards is undoubtedly beneficial for the industry, Mike Sid has helped leading entertainment companies build their digital until they are much more widely adopted by entertainment systems and businesses. His experience in digital entertainment content providers and digital retailers they ranges from leading the media and entertainment vertical for a major Web alleviate, but do not remove, the problems of integrator and building the infrastructure for digital entertainment at Sony managing multiple data sources and formats. Music to establishing a semantic web start up as the leader in its space. M&EJOURNAL 134 INNOVATION CONTENT

Broadening the Entertainment Experience in a Connected World Lessons learned from the 2014 FIFA World Cup By Johann Schreurs, Connected Workflows Solution Manager, EVS

Abstract: This article looks at a specific example of multimedia services around a major sporting event: the 2014 FIFA World Cup in Brazil. It delves into the multimedia operation that was designed, implemented and serviced by HBS, FIFA TV’s host broadcaster for the event.

Live matchcast second-screen user interface.

ess than five years ago, no one had seen be used as contestant research: if you do well on global soccer fans so value. Every camera an iPad. Now, however, it is impos- your tablet at home, you could be in the studio was recorded independently on a bank of 16 sible to underestimate the impact that playing for real prizes. EVS servers. Each game generated more than Ltablets and smartphones have had on Sports are ideal for multimedia, multi-lay- 60 hours of coverage. the broadcast industry. It is equally impossible to ered content. Sports engender tremendous pas- But in the television feed from each game, measure the social changes tablets have brought sion and devotion, and fans are always eager to only one camera could be on air at a time. about, with our desire to be better informed, to learn more about their favorite teams, athletes There was a huge treasury of footage, which know more. Viewers are no longer passive. The and events. was ripe for exploitation. Licensed by FIFA, smart broadcaster or producer will understand HBS set about developing a rich multi-screen this, and retain the attention of the viewer by Delivering World Cup 2014 to viewing experience. It turned to EVS to providing additional engaging content. the world provide the platform for delivery of live mul- That keeps the consumer within a managed FIFA TV manages the whole process to ensure timedia to smartphones, computers, tablets, experience, delivering a combination of attrac- that each match, and each rights holding broad- connected televisions and other devices. tive and engaging content. It also keeps the caster (media rights licensee, or MRL), delivers The resulting service allowed consumers viewer within the single brand, retaining audi- a consistently high quality of coverage. For the to select their own perspective of the FIFA ence loyalty and increasing the opportunities for 2014 tournament the camera plan for each World Cup. They could select angles from revenue generation. stadium was identical, with no fewer than 34 an interactive camera plan, and set up their Where does this additional content come cameras, including a helicopter for beauty shots, own replays of critical action. from? Creative producers will quickly identify a spider-cam, and numerous super slow motion FIFA provided a “white label” set of apps, suitable material. Reality-style programming and ultra motion cameras. that could be tailored to the branding and is ideal for backstage views. Game shows allow The reason for so many cameras was to requirements of individual MRLs. An API the viewer at home to play along, and because provide a view of all the action from multiple was also available for MRLs that wanted to the app is connected to the production, it can angles, allowing for the analytical replays that implement the service within an existing and

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Multiscreen Content in Motion CONTENT

platform consumers chose to watch. Traditional, hardware-based video processing would not have been a practical solution, because the load was very peaky: during and immediately after matches the demand for encoding was massive. For this reason, EVS chose a cloud solution from Elemental to perform the encoding. This ensured the system was able to reliably deliver high quality content within reasonable timeframes. During live matches, the six live feeds came via EVS XT3 servers and were automatically processed by C-Cast agent contribution encoders and sent as 10Mb/s streams over Content flow for the The 2014 FIFA World Cup Project, which was designed, fiber to the IBC in Rio. From there, they were implemented and serviced by HBS, host broadcaster of the event. sent over fiber to Amazon Web Services in Dublin, Ireland, where C-Cast cloud produc- familiar online environment. So the solution embedded data, delivered via a live stream or tion was hosted. provided both the back end content produc- as a file for catch-up viewing. Using this struc- To provide resilience in the feed to the tion and front end – user interfaces – so MRLs ture, the system was able to deliver six camera cloud platform, the signal was fragmented could serve their viewing audience with mini- angles during live streaming, and as many as 24 into two-second packets. This provided the mal additional effort or cost. angles for on-demand content. most efficient use of the available network, as well as making it practical to retransmit lost The service The six live streams included: packets. The user applications developed for MRLs n the main match coverage Elemental cloud encoding then generated included applications for iOS and Android, n coverage focused on team A a bouquet of 10 different bitrate versions, in phone and tablet versions. It also included n coverage focused on team B which provided all the required delivery and an online user interface, which again could be n coverage focused on the star player in team A adaptive bitrate versions. These were distrib- customized by the MRL. n coverage focused on the star player in team B uted to the MRLs that had elected to take the To support these user facilities, the back n the “tactical” channel, including interviews multimedia service via a global CDN. end had to support multiple live match ver- and specialist comment. The Elemental encoding also referenced sions; dedicated mobile and multimedia feeds; Users of the catch-up service could view additional information, and added links to additional video on demand clips; multi-angle most of the stadium cameras. When the app extra dedicated content such as interviews, content; in-match clips; multi-media and text was loaded, an interactive camera plan was pre- highlights and archive clips. messages; interactive data access; and data visu- sented on screen, making it easy for the user to alization. choose the preferred view, and to switch views Multi-angle content The great advantage is that all this content to follow specific pieces of action. Drawing on the huge amount of content was already available in the International The technical challenge was to process the available at each match – from 34 cameras Broadcast Centre (IBC) or at the match venue. high-quality HD video from the servers into and slow-motion replays – the best angles, as What was required was a means of managing the right formats, codecs and wrappers for well as unseen actions, were selected by dedi- it all, and providing the processing necessary mobile and online delivery. Over the course of cated operators in the IBC, who had access to to create the different formats. For the 2014 the 64-game tournament, close to 4,000 hours all the content transferred from the venues. World Cup, EVS’ C-Cast connected content of video content would need to be processed Selected and approved clips were transferred platform was the managing system, combining to deliver the best possible quality on whatever as 10Mb/s clips into a dedicated storage area, live production infrastructure with a flexible central cloud-based platform. Johann Schreurs joined EVS in 2011.His focus is to create new products that will enable consumer interactivity. Previously, he worked at Procter & Gamble in the Live streaming - matchcast Global Data Client team. He managed global SAP projects implementations. In The “matchcast” was a combination of the 2001, he founded Globule Bleu, a communication agency highly specialized in all main match coverage – as broadcast – with Internet activities. M&EJOURNAL 136 INNOVATION CONTENT

Using this platform, the first clips were available within about three minutes of an event taking place, and at least three angles were provided at that time. More assets built up later. part of the FIFA Max (media asset exchange imported into C-Cast Central to be displayed that the peak streaming rate was 6.9 terabytes server) network. on all devices, again providing another way a second. These clips were then transferred, using for consumers to engage with the action. Overall, more than 10 million apps were Aspera over fiber, from Rio to the Amazon The same platform also provided the path downloaded, and as many as three million S3 storage facility in Dublin for processing. for other, non-match content. These packages users a day chose to enrich their experience These feeds were processed in the cloud using included interviews with players, stadium through the app. Over the course of the tour- BrightCove Zencoder, again to produce the tours and other interest reportage, and high- nament, more than 24 million unique users 10 different bitrate formats for final delivery. lights shows. watched tens of millions of hours of content Using this platform, the first clips were This additional video on demand content through the multimedia solutions. available within about three minutes of an was edited in the IBC, delivered to Bright- The technology is here for billions of event taking place, and at least three angles Cove Zencoder in the Amazon cloud, and on people worldwide to have access to near-live, were provided at that time. More assets built to the CDN for global distribution. original and personalized action from a range up later. of live events, satisfying viewers’ thirst for Users saw these scenes appear on the Record-breaking viewership innovative, immediate and targeted content. timeline of their devices. Using the interac- and engagement All that is required now is for producers and tive camera plan, they were able to select the According to content delivery network broadcasters to grasp the creative opportu- angles to review the action. Ambient audio provider Akamai, more data was streamed nities and to develop continuing revenue from the stadium was added to each clip to from the 2014 World Cup than any other models (think real-time advertising). Ours is maintain the excitement. event in history. During the Argentina versus a new media reality that has moved far away External analytics, provided by Oris, were Netherlands match, online demand was such from a single screen. n INNOVATION

CONTENT “The key for CBS and for all the major media companies (is) continue to produce A-quality premiere content, and you will get paid. You’ll get paid differently than you do today, but you’ll always get paid. Content wins.” –Bill Gates, from “Content is King,” 1996

Content is King An analysis of key trends affecting change in TV programming By Von Johnson, CEO, MCF Media Solutions

Abstract: Evolutionary changes are affecting the style of programming and TV content. These changes are driven by both cultural and technological shifts and are both broad and profound. This article analyzes key shifts in the areas of the rise of new TV networks and production, the emergence of reality TV, the revival of the big-budget production and the influence of online content on TV.

t’s doubtful that Bill Gates knew how explosively and core movie service to include original programming designed profoundly true this statement would prove to be. If to capture adults 25 to 54. The new network, FXX, will target it weren’t true, then Roku wouldn’t have 700 content adults 18 to 34. FX president John Landgraf recently men- I channels (adding an average of one per day), ESPN tioned plans to achieve original programming parity with ABC, wouldn’t garner the heftiest household sub-fees in all of U.S. NBC, FOX and CBS over the next few years. cable (estimated at $5/sub), American Idol wouldn’t be locally Not all niche networks are successful, however, and News formatted in 42 countries, and You Tube’s Annoying Orange Corp. has made its share of blunders. Recent reboots include wouldn’t have hit a billion views last January. Incidentally, the the former Speed network becoming Fox Sports 1; Fox Soccer latter spawned a video game, a series on Cartoon Network, a becoming the new FXX network in September 2013; and Fox range of toys and a clothing line in the span of four years. Reality becoming National Geographic Wild late last year. An exhaustive review of the broad and profound changes af- There are other new channels popping up that have en- fecting media would be more ambitious than this article strives demic advertisers, which are specific to the topic. An example to address. However, several key trends are worthy of focus: is O’Neill surf equipment tied to Xtreme sports. These adver- the rise of new TV networks and production, the emergence tisers can afford to get involved because of the low cost of entry of reality TV, the revival of the big-budget production and the and the efficiency of the ad spend to reach a very targeted audi- influence of online content on TV. ence. These new networks are very vertical and deeply engaged with their target audience. New TV networks and growth New niche networks continue to capture an increasingly frag- TV programming today vs. 5 years ago mented audience. News Corp. recently announced the launch The chart reveals the top ten prime-time program types on of a third FX-branded channel, for example. FX will continue the broadcast networks from 2001 to 2011. Note this analysis to cater to 18- to 49-year-old viewers as FXM is expanding its’ does not include programming outside the top ten programs,

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Shifting TV Reality

A look at the primetime audience and top genres over the past decade.

time that really demands attention is exciting,” Fox Senior VP-Event Series Shana C. Waterman said in The Hollywood Reporter on May 3, 2013. Moreover, studios continue to lean towards big budget, franchise tent pole theatrical releases and away from adult dramas in the $50-100 million range in an effort to mitigate risk. This creates an opportunity for producers to close that gap on television. “With the kind of movies being made right now, there are a lot of people who have adult drama stories that are harder to get made,” said Gina Balian of FX, in the same THR story. “Television has become a really attractive place.” Some of the new programming is al- nor does it consider cable networks or plat- feature film tent poles, attracts advertisers, ready underway, including an adaptation forms. Taking that handicap into consider- attracts international broadcasters, creates of Joel and Ethan Coen’s Fargo; Grand ation, the chart is useful to sense a number of subscriber ‘stickiness’ and places the net- Hotel from Sam Mendes, about a fictional interesting trends. works in a space traditionally reserved for n Reality television has consistently captured pay television. the largest percentage of the audience watch- Mini series like The Bible and The Vikings ing the top 10 broadcast programs since 2003. are perfect for cable budgets because they are n Eight percent of the top ten programs in essentially document-dramas with very little prime time 2003 were sporting events, growing dialog, rich production values, international to 19.4 percent in 2010 and beyond. scope and stories driven through narration. n The audience for scripted drama peaked at Netflix entered the arena with a $100 43 percent during 2005-2006 and dropped to million investment in House Of Cards with 21.6 percent by 2010. Still, scripted drama is Kevin Spacey, a non-commercial serial a consistent presence in broadcast television’s that’s squarely aimed at the $8 per month top 10, and since Nielsen did not include cable streaming subscriber who may be attracted or OTT networks in the analysis, they may to an alternative to HBO. Commercial have missed an insightful migration statistic. cable network AMC hit grand slams with n Sitcoms are in short supply among the Walking Dead and Mad Men, products that broadcast top ten. Again, audiences may be ultimately land on Netflix or Amazon as getting their laughs elsewhere. Big Bang Theory, non-commercial versions. and Two and a Half Men are notable excep- The traditional networks are looking tions. at mini-series as a way to mitigate live TV The next chart demonstrates the reliability events and sports and shore up a slightly of traditional broadcast networks to reach a eroding reality base. “A lot has changed in large audience. Note that the most popular the media landscape, and the notion of creat- cable-based network is ESPN. ing an event that is on for a shorter period of

Re-emergence of branded Von Johnson is a C-level executive with experience in distribution, technical services series and mini-series and project management at Universal Television Distribution, The Walt Disney More than 30 U.S. broadcast and cable net- Studios, Disney Channel, Walt Disney Imagineering, Turner Entertainment Co. works are commissioning original scripted and DIVA Systems (a video-on-demand technology pioneer in Menlo Park, CA). programming. Expensive story-driven televi- Mr. Johnson is co-founder of White Ash Broadcasting, Inc., licensee for central sion production is attractive because it mirrors California’s NPR affiliate, KVPR-FM, Valley Public Radio. M&EJOURNAL 139 INNOVATION

Expensive story-driven television production is attractive because it

CONTENT mirrors feature film tent poles, attracts advertisers, attracts international broadcasters, creates subscriber ‘stickiness’ and places the networks in a space traditionally reserved for pay television.

terrorist plot in Paris; Sutton from Alexan- Online content moving to TV subscriber-based TV and video-on-demand der Payne and Michael de Luca, about the Popular content that started as a videogame markets. infamous U.S. bank robber Willie Sutton; is also making its way to TV screens and vice “This is a slightly new model.Halo 4 is Mad Dogs from Shawn Ryan, a black com- versa. one of the first properties that we’ve taken edy originally seen on British television; Case in point is SyFy Network’s $40 mil- out that first aired on a YouTube-funded and Mayflower from Paul Giamatti and lion dollar series Defiance that bowed day channel,” Jonathan Ford, Content Media’s Gil Netter, about the Puritan expedition and date with a $60 million dollar MMO Executive VP of Television and Digital, said to the New World. (Massively Multiplayer Online game ) that in Variety in April, 2013. “This show, which Even Amazon is producing 14 pilot pro- features the same characters and environ- is driven by a strong brand, has helped grams through its new Amazon Studios divi- ments from the series and takes the story prove that there is an economic model for sion and letting viewers help decide which in different directions. The success of one entertainment beyond the traditional TV programs get the final green light. “We doesn’t necessarily guarantee success for the windows.” think there is an opportunity to reinvent the other. Amazon Studios division head and for- process of developing original films and TV On the other hand, Content Media’s mer Disney executive Roy Price agrees, tell- shows by getting lots of feedback and input Halo 4: Forward Unto Dawn began as a ing Associated Press in April, 2013, “Why from our customers much earlier in the de- short form series on YouTube’s Machinima follow the guru method when you don’t velopment process,” Bill Carr, Amazon’s VP network. The series was so successful have to anymore? The audience is out there, of Music and Video said in a March, 2013 online that the distributor packaged the and the audience is interested. We might as issue of Businessweek. episodes and sold them as a feature in DVD, well make them a partner in the process.’’ n

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How to Boost Digital Media Revenues Successful strategies and techniques used by the video game industry By Charles Tigges, Regional Director for Media, Entertainment, Software, and Online Services, hybris Software / SAP

Abstract: As early entrants use, typically seven days or thirty days, after into digital entertainment, video which a payment must be made to continue. game publishers have accumulated The freemium strategy relies on in-app pur- nearly 40 years of lessons learned, chases and other paid premium options. Free versions of multiplayer games are distributed as avoidable mistakes made, and relevant a starting point in a game and, at some point, experiences they can share with newer players naturally and organically reach a seam- digital entertainment developers. less barrier that leads them to spend money. This article suggests innovative Monetization has been built into the product monetization strategies originally starting from its design. There may be other developed for the games business, forms of monetization along the way, plus a requirement to view a video commercial or and ideas that other media distribution static advertisement. and entertainment players can adapt to With a freemium, limited use is free, their unique segments. perhaps subsidized by ads, with an enhanced version of the content available for a charge. The advantage of freemiums over free trials is ll entertainment producers that freemiums provide a seamless conversion should be aware of the critical from free to paid versions, while free trials importance of leveraging modern are sometimes a little more labor intensive to Atechnologies and digital com- convert, and may require the customer to make merce platforms that support the testing of new additional software, game, or media downloads. monetization strategies, not through time-con- By hybris estimates, as much as 85 percent suming and expensive IT initiatives, but with of the revenue being booked by mobile game business tools that empower digital marketers distributors is derived from the trial and to make informed decisions, and keep offerings freemium markets with upselling and in-app real-time and tailored to ever-changing cus- purchases. A few years ago, most games were tomer demands. pay-to-play, but today most mobile games are can other media players test such models in distributed as freemiums, monetizing as an Questions to be answered: their own businesses? in-app purchase – and this is where the greatest n Can the freemium game model be translated growth is taking place. Even the video game into a customer acquisition tool for other Trials and freemiums console companies are making immediate digital entertainment distributors? What can Free trials, freemiums, and subsidized content upsell offers to their customers for additional be learned from game developers and publish- have subtle yet important differences, and each characters, upgraded cars in race games, and ers about lowering the entry hurdle for digital can be fine-tuned by entertainment produc- expanded pay-to-play options together with purchases? ers to optimize audience acquisition. Game their boxed games, like the recently launched n How can the media industry benefit from publishers encourage buyers with a seamless Watchdogs by Ubisoft. the learning around targeted in-game and real- transition between free play and pay-to-play. For television and films, techniques adapted time promotions? Can digital video and televi- In the course of play, an added feature or a from gaming can be easily added to the com- sion producers follow similar approaches to game-enhancing tool (a sword or upgraded merce strategy. Perhaps the pilot or first few acquire and retain long-term audience? weapon) can be easily purchased with a single episodes of a TV series are free, in order to en- n Game publishers are pushing the boundaries click, offered in a contextual way, such as when gage viewers and promote viral social sharing. of traditional customer loyalty programs with a multiplayer battle is about to begin. At an appropriate point, when audience inter- highly granular digital reward systems. How Free trials usually have a limited period of est is piqued, an upsell offer is made – addi-

M&EJOURNAL 141 INNOVATION CONTENT tional episodes or chances to preview a new contextual video advertisements and direct create new revenue streams that generate rev- release, before it is available to the general offers for click-through purchases. enue limited only by the geography of their public. This concept not only helps increase Comcast Cable has already started mov- content distribution and the pocket books of viewer numbers, but also initiates a direct ing into this area by inserting targeted, their audience. relationship between content producers and dynamic ads into its Xfinity brand of on- Omni-commerce opens the door to any end-consumers, becoming a revenue stream demand programming to TV set top boxes, touchpoint, including smartphones, tablets, for repeat purchases. computers, tablets and smartphones, driving digital wearables, and kiosks in shopping Other video premiums might include the monetization of more content to more malls, hotels, transportation hubs, and theme digital assets layered on top of a broadcast devices and consumer touchpoints. parks. The potential audience scope and show, extra celebrity content, or directors’ Broadcasters, too, have been looking for reach of entertainment developers has never cuts and additional scenes. With IP-based new revenue opportunities and alternatives extended as far and wide as they do today. video and IPTV, there could be an upsell to traditional ads. One new option made offer from a single screen format to a multi- possible by modern commerce platforms Digital reward systems screen promotion that allows users to view is for television production companies to In gaming, when players log in every day of a program on a tablet or smartphone. When create metadata in parallel with content the week, their digital reward value, known popular theme music and sound tracks are a development to identify products, cloth- as “VIP Value” grows exponentially over part of the mix, added revenues are possible ing, beverages, vehicles, and other items time. People are incentivized to come back via online music downloads through plat- depicted within the program. These items and, if they miss a day, they may lose some of forms like iTunes. could be purchased by viewers as they watch their status or be required to purchase addi- an episode. With a state-of-the-art product tional downloadable content. Real-time and targeted catalog management system, this oppor- The potential of this strategy in other en- promotions tunity instantly becomes reality for both tertainment sectors is an inverted example of Digital technology enables producers to physical and digital products. the free trial period. As a person visits a mov- offer real-time and targeted promotions, as Cross promotions could produce im- ie or TV show site regularly, he or she may be game companies have been doing for years. mediate conversions in travel or food awarded a loyalty bonus, digital reward value One example of this is Machine Zone’s shows. When a viewer sees a desirable points, or some other special status. Game of War, a multiplayer strategy and hotel, restaurant, theme park, or airline Other revenue-enhancing possibilities for fighting game. At specific points during in a show, they could click to make a res- entertainment companies exist within loyalty play, there are tailored purchase oppor- ervation or purchase a ticket in real time. programs, when they deploy tailored web- tunities. The time required for a player to Commodities such as beverages, foods, sites integrated with an e-commerce engine build a civilization and assemble an army tech gadgets, and books could also be that senses user “likes” and preferences across can be shortened by buying virtual gold or ordered instantly for home delivery, or social properties. game performance “boosts.” Users can pur- pickup from a nearby store. chase shields and immunity from attacks, Anything viewed in a streamed movie Those who came before and teleports from one “city” to another, could be purchased instantly, provided the By learning from the experiences of some to achieve a strategic advantage. Target product information is encoded in the meta- of the more seasoned game developers, and offers are made to specific user profiles, data, and the viewer is linked electronically adopting modern omni-commerce technolo- or when a specific situation exists during into a purchase account. hybris has devel- gies, entertainment producers can leapfrog the game. Two or three different packages oped a demo used in its software labs that more rapidly into creating and implementing may be offered at any time, with conver- shows a tablet displaying contextual product mature and effective digital monetization sions producing welcomed profits for game information and commerce functionality for models. Another good strategic step is to developers. specific products appearing on TV, sensed partner with a best-of-breed commerce plat- For motion picture and television through an encoded audio signal. form developer who enables digital media producers, similar opportunities include By leveraging the mature world of multi- companies to optimize cross-selling and up- promotions targeted to specific profiles, channel and omni-commerce used by nearly selling opportunities that can be gained from such that frequent movie watchers are of- every large retailer and major manufacturer direct relationships between producers and fered a premium movie package, or sporting today, digital entertainment producers can consumer audiences. n enthusiasts receive special offers for bundled sports packages. This is more difficult in a Charles Tigges is a Regional Director for Media, Entertainment, Software, and traditional broadcast environment but, with Online Services at hybris Software, an SAP Company. He previously worked as IP-based video and IPTV, individual viewer a production executive in TV broadcasting, games, and digital services with the profiles can be identified and targeted with BBC and BSkyB, and he holds a masters’ degree in media and communications relevant promotions or dynamic inserts of from the University of St. Gallen in Switzerland. M&EJOURNAL 142 INNOVATION CONTENT

The New Entertainment Bundle—A Victory for Consumers Cable and satellite face the biggest threat of substitution from Internet TV By Steven Herrera, Consultant at Zaszou, LLC

Abstract: Consumers are not satisfied with cable/satellite TV because it forces them to pay high prices for large bundles of channels they never watch. Subscription video- on-demand (SVOD) services such as Netflix have become mainstream, but have shifted their focus to original content. Meanwhile, TVs connected to over-the-top (OTT) devices, such as those offered by Roku, allow access to a proliferation of genre- specific streaming services and the creation of custom bundles. What will the new distribution models look like? How will cable and satellite evolve? How will new revenue be generated? What will it all mean to consumers?

he home entertainment industry They are forced to purchase large bundles of has been rapidly evolving as long- channels they never watch; service blackouts relevant to their interests. There is a perfect standing business models—such occur when broadcasters and cable/satellite storm brewing to cause new distribution Tas cable and satellite television providers fail to reach deals; and prices increase models to take shape. subscriptions, and commercial advertising to with no corresponding increase in value. Con- mass-audiences—have recently been disrupted tent bundling even came under fire from leg- Creative forces unleashed by the widespread adoption of Internet video- islators last summer when Senators John Mc- The shift to streaming video is forcing con- on-demand (VOD). Changes in technology Cain and Richard Blumenthal co-sponsored tent providers such as film and television have caused changes in audience consumption the Television Consumer Freedom Act of studios to revisit their licensing opportuni- habits. Consumers are increasingly streaming 2013 to force providers to offer channels on an ties. They are considering whether to license video content from the Internet, not only to à la carte basis. film and television content to Internet computers, but to Internet-enabled TVs and Meanwhile, over-the-top (OTT) consumer streaming services in addition to, or instead mobile devices. Although linear cable TV and electronic devices such as the Roku 3 and Ap- of, traditional cable operators. The issue, of DVRs remain popular with Baby Boomers and ple TV enable access to numerous streaming course, is revenue generation and cannibal- Generation Xers, younger generations of “cord services on an à la carte basis. Genre-specific ization of their own owned and operated cutters” and “cord nevers” increasingly rely streaming services available through these distribution channels. Right now, content on online video for all of their entertainment OTT devices are growing and have managed providers still earn a major source of their needs. to attract sizeable audiences. Consumers are income from cable and satellite distribu- In general, consumers are not satisfied with starting to demand the ability to build their tors—by a wide margin. the service offered by cable/satellite providers. own custom bundles of genre-based channels However, in negotiations between con-

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CONTENT The Current Broadcast/Cable/Internet TV Ecosystem

is a public service, an important communication system for emergency situations, and a viewing experience that is deeply ingrained in consumers.

How will cable and satellite evolve? Cable and satellite providers face the biggest threat of substitution from Internet TV. We have seen cable providers explore ways to co- exist with Internet streaming to mitigate the risk of cord cutting. For example, Time War- ner Cable made its entire lineup of channels available through an app on the Roku box as a convenience for cable subscribers. We’ve also seen the opposite cross-over between streaming services and cable boxes when Netflix struck a deal to build an app into the set-top boxes of three cable operators: Atlan- tic Broadband, Grande Communications, and RCN Telecom Services. Most of the companies that provide cable TV also provide Internet service.

In the long run, the major cable providers could go in several directions. They could: n Counter Internet streaming services by Consumers navigate an increasingly complex web of services to access offering their own à la carte business model, programming and pricing that appeals to them. or smaller groupings of channels in “skinny bundles.” n Become Internet-only providers. tent providers and cable companies, the tides vices. The streaming market serves as an outlet n Focus on their core strength of providing are turning in favor of the Internet streaming for more niche programming, which would coverage of live events such as sports and con- services. As contracts come up for renewal, otherwise be passed on by the major networks. certs, allowing all other content to exist on cable companies looking to reduce their pro- In the long run, film and TV content providers Internet TV. gramming costs are giving up the digital rights are carrier-agnostic. to content. Content providers are recognizing Aggregators refocus the value of selling these rights directly into Broadcast television is here The mainstream subscription VOD services the VOD marketplace. This bodes well for to stay such as Netflix, Amazon, and Hulu have shift- the burgeoning streaming services, which are Over-the-air broadcast television seems to be ed their focus to the development of original looking to expand their inventory of rights. here to stay, even as cable and OTT televi- programs. Although Internet streaming services such sion evolves. Broadcast TV still maintains its As more of the premium film and TV con- as Netflix are often looked at as competitors dominance for sports and special events, such tent providers introduce their own streaming to traditional television networks, the two are as the Academy Awards, the Super Bowl, and channels, content aggregators like Netflix, actually interdependent: TV networks need to Monday Night Football. Over-the-air television Amazon, and Hulu will be threatened. sell streaming rights to VOD services to generate income, and the streaming services need Steven Herrera is a consultant with Zaszou, LLC. A former systems engineer popular content to attract subscribers. The film for Raytheon, he has also held market research positions at Spotlight Pictures and television studios could even develop new and Anchor Bay Entertainment. He has done graduate work in the area of TV series specifically for video streaming ser- entertainment business. M&EJOURNAL 144 INNOVATION CONTENT

Consumers are starting to demand the ability to build their own custom bundles of genre-based channels relevant to their interests.

These aggregators could go in several di- emerge, and existing TV networks—such as zon Fire TV even has voice recognition. rections. They could: those offering live sports and news—migrate Consumers can create their own cus- n Continue to produce unique content to to Internet delivery. Consumers have thus tom bundles of streaming services to suit differentiate themselves from each other. far enjoyed commercial-free content through their tastes. The Roku box offers over 1,200 n Give up content licensed from the major subscription streaming services and devices, streaming channels, some of which are genre- studios altogether, becoming standalone but ads may slowly creep in. specific and have managed to attract sizable streaming channels offering their own brand audiences. Today, consumers are using these of entertainment. Advertisers reach targeted genre-specific channels as complements to n Subdivide themselves into genre-based audiences mainstream VOD services such as Netflix. streaming services to suit the diverse needs Advertisers are attracted to media that can Full reliance on streaming video services of viewers—there are those who like House reach large audiences, and they pay for adver- does have drawbacks. There is the lack of ac- of Cards but don’t like Hemlock Grove, for tising based on CPM rates, or cost per thou- cess to live sports and a time lag for access to example. sand impressions. The larger the reach, the newer season TV series. Also, consumers love more advertisers pay. Marketers are starting “linear” television— it’s so easy to just push ISPs upgrade the plumbing to take notice of the potential of Internet- the Power button and Channel Up or Down Internet service providers, which may or enabled televisions, but most media buyers to stumble across something familiar and may not also provide cable service, probably still don’t know how to purchase video ads for comforting to watch. Technology giants such will not be adversely affected by the shift to smart TVs or TVs connected to a streaming as Google, Apple, and Amazon may soon sim- Internet TV. As more and more consumers device such as a Roku box. plify Internet TV so that consumers can enjoy look to OTT services for their video needs, Internet TV is in its infancy, but as audi- watching TV in “lean back” mode—having and as Netflix moves to higher resolution 4K ences grow, advertisers will start to catch on, the right content pushed to them at the end streaming, there will be increased data traffic and Internet TV will generate dual-revenue of a long work day—just as with linear televi- on the network. Internet service providers streams—subscriber fees and advertising sion. may have to upgrade the network infra- fees—just like the traditional cable business structure in order to meet the demand for model. Internet TV will then be a viable The future of television bandwidth and higher quality. However, the platform for more premium content such as unfolds cost of these upgrades may not be passed on live sports from ESPN and cutting-edge series TV of the future is a customizable experi- to consumers, as we have seen Netflix absorb from HBO. ence, and there are an endless number of this cost by paying Comcast for this work. Video streaming also gives advertisers the possible scenarios that could play out in the ability to target ads to individual households. next three to five years. OTT video stream- OTT device makers see a This allows advertisers to spend their budgets ing is one alternative to the cable bundle new beginning for TV more efficiently, eliminating the waste of ad- that has gained traction with consumers, but The OTT streaming function as it exists vertising to mass audiences as with traditional broadcast and cable stakeholders must keep today as an external add-on to the television television. up with new trends in consumption patterns is an interim solution. The key to future suc- and technology. The entertainment industry cess will be for device manufacturers such Consumers are in the driver’s has historically been slow to react to technol- as Roku to integrate their operating systems seat ogy changes, often taking the wait-and-see into new televisions. Just as Windows and OTT streaming devices such as the Roku 3, approach. Content providers will be wary of Mac are the platforms for computers and Apple TV, and Amazon Fire TV—which creating premium content unless they feel iOS and Android are the platforms for mo- have all reached consensus pricing around confident of seeing big money. Advertisers bile, we may soon see consolidation in Inter- $99—allow the user to stream content from won’t spend on a new medium until there are net TV platforms. Roku already has partner- the Internet to the living room television. big audiences. But, there won’t be big audi- ships with TV manufacturers Hisense and These OTT devices are a one-time purchase, ences unless there is great content. And the TCL to integrate the Roku functionality so consumers can avoid paying the leasing fees new medium is different as it allows better right into the television. associated with a cable box. And they provide targeting for advertisers. The tides are turning Streaming media devices may soon com- an improved user experience. Content can be in favor of the consumer and the future of TV pletely replace the traditional Time Warner easily discovered with the Roku 3 thanks to a is taking shape as more and more stakeholders Cable box or AT&T U-verse receiver, as search function that can be controlled with an shift to streaming to address the diverse needs more premium VOD streaming services iOS or Android mobile device, and the Ama- of consumers. n

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CONTENT Unleash the Power of Privacy to Protect Your Content Real content security threats lie within the cycle of production and distribution By David Melnick, Founder and CEO, Weblife Balance

n age-old adage reminds us that now delivered via Web-browsing3 hindsight is 20/20. As M&E n Web use liability losses are up as compa- companies struggle to make nies are unwilling to enforce strong accept- sense of dramatic shifts in how able use policies. A n they create, manage, distribute and monetize Additionally, inappropriate Web use (e.g., content, there is one question most haven’t cyber loafing, gambling, or accessing pornog- been able to answer: what can we learn from raphy) increases employer liability and costs the mistakes of other industries interrupted U.S. businesses $178 billion in lost produc- by massive digital disruption, and how can we tivity annually. avoid those mistakes in our own? n Above it all, CIOs have less control of Driving changes to privacy today are techno- their corporate networks than ever due to logical evolutions such as the migration of most “consumerization” trends which prioritize of our content to the cloud, our constantly teth- employee preferences for communications ered state to our device(s) and the explosion of technology access and usage, to the detri- social media, enticing us to live our professional ment of the control and security of the cor- and personal lives out online. The resulting porate network. “always-on” and “always-available” ethos that As lawmakers play catch up with the has emerged, coupled with the increasing avail- technological shifts taking place that ability of our personal identifying information threaten personal privacy, a groundswell of (PII) online has forced us to begin re-examining public awareness is rising that has profound Abstract: As we complete our the importance of privacy in our lives. economic, political, civil liberty and secu- These changes become increasingly chal- transformation from an industrial to rity implications. The right to privacy in lenging for organizations, as individuals’ per- an information society, we find our all spheres of life is pretty solidly protected sonal online activity occurs in the workplace personal privacy increasingly appearing in Europe, which is leading the way with a or they interact with organizational assets. in the crosshairs. Content has become revamp of the Data Protection Directive This employee personal use of the Internet the currency of this era, and personal to accommodate modern technology and exposes organizations to privacy obligations, globalization. But one year after the Edward privacy unlocks bthe vault. No matter cyber threats, and Web use liability. Privacy Snowden revelations about government and security of the workplace network is under how much people complain, most of spying, the U.S. is still struggling to define increasing distress due to several developing us are willing to sacrifice our personal the scope of personal privacy protection and trends. privacy in the name of content, has only stood up budding, fragile legisla- n Cyber threats are up. Increased experience consumerism and convenience. Those tion such as the USA Freedom Act. Thank- and training of hackers, both individuals, and companies that are willing to advocate fully, the proposed “Consumer Privacy Bill state-sponsored, leads to record number of of Rights” and the recent Supreme Court for individual privacy will catapult their malware incidents causing data breaches, cyber decision in Riley vs. California foreshadow theft and intellectual property losses.2 businesses into a category-killing broader privacy legislation, which may well n 90 percent of fully undetected malware is leadership position. bleed over into the workplace.

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Next generation content protection strategies will need to segment the personal, high-risk Internet use that individuals expect from the content development and distribution-related activities they are performing every day.

Meanwhile, evidence abounds that while contractors and employees, so critical to devel- The future of privacy in consumers pay lip service to caring about pro- oping the content also accidentally, and in some entertainment tecting their online privacy, they are willing to cases even intentionally, cause content loss. A decade from now, the global privacy land- sign away their rights in the name of consumer- For example, according to a Symantec and scape will look dramatically different, and it ism and convenience. In fact, the 2014 EMC the Ponemon Institute white paper titled will continue to shape the way the entertain- Privacy Index surveyed 15,000 people in 15 “What’s Yours Is Mine – How Employees ment industry interacts with individuals. countries to produce a ranking of nations based Are Putting Your Intellectual Property at Computing technologies will increasingly on consumer perceptions and attitudes about Risk”, employees are moving IP outside the be integrated into our private person, giv- data privacy, and their willingness to trade pri- company in all directions. Over half of 3,317 ing people more intuitive, inherent ways to vacy for greater convenience and benefits online. respondents admitted to emailing business access content 24-7, whether at work or at In the U.S., 56 percent of respondents (51 per- documents from their workplace to their per- home, putting increasing pressure on execu- cent globally) indicated they are willing to trade sonal email accounts, and 41 percent said they tives to find innovative ways to develop and their online privacy for convenience. The Index do it at least once a week. Forty-one percent deliver that content securely. Meanwhile, revealed that privacy is a complex issue, with also said they download IP to their personally- content storage and distribution services will consumers indicating they want the benefits owned tablets or smartphones, leaving confi- occur exclusively in the cloud. of technology without having to sacrifice any dential information even more vulnerable as it From a legal standpoint, laws will evolve to of their privacy. They expect the government, leaves corporate-owned devices. In addition, interpret the Fourth Amendment as pro- the companies they do business with and the over half of respondents do not believe that viding individuals a right to privacy, even vendors they buy from to take responsibility for using competitive data taken from a previous in the workplace, as an inalienable right. In protecting their privacy. employer is a crime. parallel, consumers will begin to appreciate This is nowhere more evident than in the Some content protection strategies in the the privacy rights they are forfeiting and entertainment industry. As part of its digital development and distribution process advocate become less willing to compromise them. makeover, executives are working feverishly shutting down all access to the Internet for em- As the natural consequences of sharing to distribute digital content efficiently and ployees and contractors, but that approach just personal information online become more economically. They are having to adapt to stifles the creative need to access the Internet commonplace, individuals will stop pawn- this new reality in order to meet consumer to develop the content. The reality is that em- ing responsibility for their personal privacy demands for unfettered, convenient access to ployees and contractors both need to access the off on others and will become proactive and the content they love. These dramatic changes content and also access the public Internet that engaged in protecting it fiercely as contrac- are also forcing industry executives to deal with simultaneously gives rise to our growing cyber tors and employees. unprecedented technological and policy issues threats. We need an approach that accepts and Thankfully, entertainment executives do that go well beyond the traditional scope of the manages the risk of that new reality. NOT have to choose between the security business, including cyber security, individual The next generation content protection of their content or their contactors and privacy, content piracy, and illegal distribution. strategies will need to segment the personal, employees’ privacy. Those that want to be While they’re experimenting with ways to high-risk Internet use that individuals ex- successful should take a leadership role in monetize content distribution in the informa- pect from the content development- and the privacy debate and develop a long-term tion era, it’s essential that entertainment ex- distribution-related activities they are perform- content protection strategy that makes pri- ecutives acknowledge that cyber threats pose a ing every day. Providing a personal portal for vacy protection a core competency and a set strategic risk to their content and therefore the employees to use for personal Web use is one of practices that actually enhance content lifeline of their business. way to protect your network and information protection, benefiting the business and the assets from any dangerous online activity em- creative individuals that the business relies Addressing content protection ployees may engage in. upon to thrive. n Content is the currency upon which entertainment companies build their business, and David Melnick has almost 25 years’ experience in technology and security. He has protecting that content is essential to growing worked extensively with both U.S. and global companies advising them on setting the bottom line. But as most understand, the strategy, developing risk-based priorities, and operationalizing effective governance real threats lie within the lifecycle of production of highly sensitive and regulated data. Melnick has authored several books, and distribution, not with the consumer. The including PDA Security: Incorporating Handhelds into your Enterprise. M&EJOURNAL 147 INNOVATION

CONTENT Bringing Order to Digital Identifiers The case for streamlining with EIDR By Richard Kroon, Director of Engineering, Entertainment IDentifier Registry (EIDR)

always agree on what these descriptive data are or how they are structured – even titles may differ, especially when abbreviated to fit within arbitrary space limitations. Thus, record matching has been a long-standing challenge and remains an ongoing expense. The process can be improved significantly if the two parties agree on a single identifier for each project or asset. However, this is a point-to-point solution and the number of identifiers expands geometrically with the number of parties involved. Worse yet, since title management and other workflow support systems are not particularly flexible, there is often no place to record these point- to-point identifiers in each party’s workflow support systems, so they reside off to the side, requiring manual effort to re-link them Abstract: M&E workflows are uring the Studio Era, there was at every touch point. increasingly complex and revenue is no need for the sort of durable, Providers of niche solutions – aggregated derived from increasing numbers of globally unique audiovisual metadata, digital distribution, television works identification provided guides, performance results, etc. – often lower-value transactions. Anything D by EIDR. At that time, vertically integrated provide their own identifiers, requiring their that can reduce costs, increase supply monopolies exercised complete control over customers to track these external identi- chain velocity, or put organizations in production, distribution, and exhibition and fiers in addition to their internal identifiers a position to respond quickly to new there were no ancillary markets. Then came and all the point-to-point identifiers they threats and opportunities is worthy of television, the break-up of the Hollywood stu- developed with their close partners. In most consideration. Common use of EIDR as dios, the rise of independents, home video, and companies, there is no one place where all of the Internet. Now it is impossible to imagine these identifiers are stored, leading to a com- a globally unique, persistent identifier an audiovisual work that does not pass through plex structure of inter- and dis-connected will accrue multiple benefits throughout multiple hands and that is not viewed in mul- Towers of Babel with occasional isolated the media & entertainment ecosystem at tiple media and innumerable places over a long silos of common understanding. So now, multiple points within every span of time. Whenever two or more parties instead of just manually matching different product supply chain. must communicate about a common work or bits of metadata in the hopes of keeping cooperate on a single project, they must first product flowing through the supply chain, find common ground. people are also called upon to match and Traditionally, companies communicated manage different identifiers that facilitate by exchanging descriptive metadata along with brief spurts of automation within a prod- any contract, asset, or transaction and then uct’s years-long lifecycle. This works, after relied on manual labor to match everything a fashion, so long as margins remain high together. Sadly, communicating parties do not and transactional volumes remain steady.

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Metadata Enrichment Metadatafor Content Enrichment Discovery for Content Discovery

However, market fragmentation, the disinte- Cri.c gration of discrete release windows, and the Reviews myriad options encompassed within digital Comments Guide delivery mean that the status quo cannot be Metadata from Friends maintained.

The promise of alternate IDs The universal adoption of EIDR will help solve EIDR these communication and matching problems. Companies will continue to use internal iden- VOD Cast Bios & tifiers for their own purposes, but EIDR will Metadata Filmography be the lingua franca that facilitates all multi- party transactions. Until that glorious day, Time-‐Indexed real-world transactions will remain dependent Metadata on some indeterminate number of identifiers, generated by different parties for various purposes. Each EIDR record can carry an unlimited number of matched For example, in an eight-party ecosystem, alternate identifiers. there could be up to 28 different point-to- point identifiers per asset. One hopes that the ID one party possesses to a different ID that when one buys enhanced descriptive metada- party generating the point-to-point identifier another party requires. In a simple example, ta or audience ratings information. However would already have that ID stored in their in- where Party A has an EIDR ID but would they arrive and for whatever reason they were ternal systems, but everyone else will certainly like to communicate with Party B who does generated, the receiving party cannot make have to match the external IDs to their inter- not (say, a distributor wishing to purchase use of the provided data until they are tied nal systems. That means there would be 21 enhanced descriptive information from a meta- to the receiver’s internal records. The fastest, different ID matching efforts across the eight data aggregator), Party A may be able to use cheapest, and most reliable method for doing parties for each asset. If each party used EIDR EIDR to find Party B’s proprietary identifier this is via a globally unique, shared ID, such as their external identifier, there would only and avoid the need for manual matching or the as EIDR. The next best solution is by translat- be eight ID matches necessary – a system-wide tracking of yet another point-to-point ID. In ing the IDs each party already possesses via savings of at least 13 matching efforts per asset. a more complex example, neither party has yet a common point of reference--namely, the (Recall that the same asset ID may need to be mapped their internal systems to EIDR, but EIDR alternate identifier repository. matched multiple times if it is not tracked in may find that they each possess IDs associated Proper identification via a shared identi- all of the necessary internal systems.) with the same EIDR record, allowing EIDR to fier or alternate ID translation can deliver The labor savings of moving from meta- act as the translator between them. significant cost savings and can help make data-based matching to ID-based matching is an organization sufficiently nimble to take significantly greater than even this, since meta- It’s the data, stupid advantage of new revenue opportunities as data-based matching does not lend itself well To paraphrase James Carville c. 1992, as far as they present themselves. These alternate IDs to automation and must be repeated every time the business side of the media & entertainment come from a variety of sources. Vendors often there is an interaction between the parties, industry is concerned, “It’s the (meta)data, store a studio’s internal ID when prepping a which could be a dozen or more times per asset stupid.” Every business transaction requires an deliverable, making that a possible pivot point per distribution partner in a digital distribu- exchange of data. This could be data about an for future transactions. Data aggregators and tion workflow. (See the Winter 2013-14M&E item offered for sale to consumers, television digital retailers, such as IMDb, Baseline, and Journal for a case study showing the labor sav- guide data, performance data, etc. In some Amazon, often publish their IDs along with ings of moving from manual matching at each cases, the data document and facilitate the their data, making the IDs a valuable tool for touch point in a two-party digital distribution transaction, as with B-to-B sales. In other cases, multi-party identification exchange. Local workflow to an EIDR ID-enabled process.) the data are the focus of the transaction, as acquisitions may arrive with a potpourri of The next best thing to using an EIDR ID for all multi-party communications is using Richard W. Kroon is an award-winning videographer and has held senior the EIDR alternate identifier repository (con- positions with the MPAA, Technicolor, and MovieLabs. He is a Certified Project taining studio internal IDs, IMDb IDs, BFI Management Professional (PMP) and PRINCE2 Registered Practitioner. IDs, ISANs, Rotten Tomatoes IDs, Netflix He holds a BS in Computer Science, an MBA, and an MA in Media and IDs, etc.) to facilitate the translation from an Communications Psychology. M&EJOURNAL 149 INNOVATION CONTENT

identifiers, making it difficult to link them JV partner, who must then incorporate the with other corporate records. affected works into their internal master title Alternate IDs in the EIDR Registry It is also possible to use the EIDR system – or match them to existing records registration hierarchy to move from one if they are already there from a prior deal. identified asset to a related asset elsewhere When the JV partner returns performance Amazon ASIN in the tree – such as from a transcode data to the originating studio, they must be Baseline to the abstract work or from one edit to re-mapped into the recipients’ data systems. another. In these cases, the assets do not These data exchanges cannot be automated BBC technically share a common ID in any as they stand. If both of the JV partners had BFI reference system, but are still associated EIDR IDs for all of their titles, this process with one another via unambiguous links could run lights-out. Failing that, they could BUFVC in the EIDR registry. use EIDR to transform separately known IDs For example, before greenlighting a into an exchangeable ID. It is not as conve- Canal+ theatrical motion picture project, one nient as using an EIDR ID directly, but it is Disney Studio ID studio will review competitive data still an improvement over repeated manual showing the past performance of similar title matching. Fox Studio ID works. The collected data cover theatri- Having the ability to translate one ID into Gifford cal performance, cable TV, broadcast another as an intermediate stage helps orga- TV, VOD (pay-per-view, subscription nizations reap immediate benefits while they IMDb based, Internet-delivered), electronic sell work towards full EIDR integration. Other ISAN through, physical media sales, etc. across areas of potential cost savings or revenue en- multiple markets worldwide. No one data hancement include: ITV provider covers all of these channels in all n Elimination of organizational of these territories, so the studio must col- redundancies IVA (Video Detective) n lect and aggregate data from more than 25 Procurement consolidation Flixster (Rotten Tomatoes) different sources – per title – to develop n Easier satisfaction of compliance a complete picture of the competitive requirements NBCUniversal Studio ID landscape. Only then can an informed n Increased supply chain velocity Netflix business decision be made. n The ability to quickly explore new revenue In another example, there is a studio opportunities Red Bee that does not have room to store an ex- n Improvements in the consumer second tensive list of third party IDs in its master screen experience Sony Studio ID n title system. Instead, it has a hyperlink to Collecting money you are already owed TheCinemaSource each title’s record in the EIDR Web UI. n Paying what you owe with less effort and By clicking on that link, the studio’s users greater accuracy Veronica Publishing suddenly have access to hyperlinks to a Warner Bros. Studio ID variety of Internet-searchable data sources World harmony through including BFI, IMDb, ISAN, Rotten shared identification West10 Tomatoes, and IVA, and retailers such as Every business transaction is driven by data, Amazon and Netflix. They can also access and every set of data is linked by some com- pre-matched internal IDs to obtain data mon point of reference. If we still lived in the from commercial aggregators including 1940s at the pinnacle of the Studio System, survival necessity. Common use of EIDR Baseline, Red Bee, Veronica Publishing, the status quo would serve just fine. But as a globally unique, persistent identifier and West 10. The studio’s staff can use we do not, and it does not. Workflows are will accrue multiple benefits throughout these resources to verify how their works increasingly complex and revenue is derived the media & entertainment ecosystem at are being presented to the public and to from increasing numbers of lower-value multiple points within every product supply augment their descriptive offers in B-to-B transactions. Anything that can reduce costs, chain. Until that day, the EIDR alternate or B-to-C avails. increase supply chain velocity, or put orga- ID repository can be used to break down the Another studio regularly engages in nizations in a position to respond quickly Towers of Babel that have grown up around joint ventures for foreign distribution to new threats and opportunities is worthy point-to-point and proprietary identifiers, of their produced content. They provide of consideration. Something that can do all allowing organizations to realize these future descriptive and business metadata to their three, is not a commercial advantage, it is a benefits today. n

M&EJOURNAL 150 M E S A

Media & Entertainment Services Alliance Thanks to our Members MESA would like to thank its members for supporting our year-round efforts to advance the creation, production and distribution of entertainment content. Through this support our media, events and industry initiatives are made possible.

n 1K Studios n 5th Kind n 3rd i QC n Adobe n AdStream n Akamai n AllDigital n Amazon Web Services n Apex CoVantage n Applicaster n Aspera n AudioEye n Avalon Consulting n Box n Boxfish n Brightcove n BuddyTV n Capgemini n Cast & Crew Entertainment Services n CenturyLink Technology Solutions n Cinram Group n Citadel Information Group n Civolution n Cognizant n ContentBridge Systems n Creative Future n Deluxe n DirecTV n DISH Network n Dolby n Ease Entertainment Services n EIDR n Electronic Arts n EMC Isilon n Empress MAM n Equinix n EVS Broadcast Solutions n ExciteM n Filmtrack n Fotokem n Front Porch Digital n Fuisz n HCL America n Hitachi Data Systems n Huawei n HP n Hightail n Hybris Software n IBM n iGate Technologies n Independent Security Evaluators n Information Builders n Infosys n iPowow n Ixonos n Jargon Technologies n Level 3 Communications n L&T Infotech n Los Angeles Duplication & Broadcasting n MarkLogic n MCF Technology Solutions n Mediamorph n MediaMax Online n M-Go n Microgen n Microsoft n Microsoft Azure n Net Power & Light n Nextelligence n NSS Labs n OneScreen n OpenText n Oracle n Piksel n Prosum Technology Services n Proxyvision n PwC n Qlik n Quantum n Riversand Technologies n Rovi n Saffron Digital n Samsung n SAS n Scanavo n Signiant n Sohonet n Sony DADC n Sony Media Cloud Services n T3 Media n Technicolor n Teradata n Testronic n TiVO n TOK.tv n Tomorrowish n TwoVee n UST Global n V2 Solutions n Verizon Digital Media Services n Visiware n Vubiquity n Watchwith n Weblife Balance n Xytech n Yidio n YuMe n Zaszou

Become a member by contacting: Guy Finley, Executive Director, [ 917 ) 513-5963, [email protected]

www.MESAlliance.org INNOVATION

CONTENT Using MDM for Mastering Data in the New Digital World

“Data! Data! Data! I can’t make bricks without clay!” – Sir Arthur Conan Doyle (Sherlock Holmes)

By Ninad Raikar, Director Strategic Solution Alliances, Riversand Technologies

Abstract: As the media and entertainment industry goes through disruptive changes with the dynamic digital supply chain, managing data effectively and building a next generation data driven technology infrastructure is critical to success.

n today’s new digital world, media and entertainment companies are continually changing their operating models to create a better digital experi- Ience for consumers. Content is being accessed by consumers across multiple channels and devices. By 2018, two-thirds of the revenue growth in the media industry will be through digital sources. For industry players to adapt to the disruptive invasion of the digital supply chain, they must first manage their data. They will have to transform themselves to be truly data-driven. This will involve investing in people, processes and taking their technology infrastructure to the next level. According to PwC’s Global Entertainment and Media Outlook, by 2018 two-thirds of revenue growth from consumers and advertising will be digital. That means that of the $241 billion growth in total US media consumer and advertising revenue from 2013 to 2018, $157 billion will come from digital sources. Two of the best-performing consumer subsegments use a model where consumers pay for around-the-clock access: digital music streaming, where revenue will grow

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the MDM initiative. The selected MDM software should have robust data modeling, workflow and integration capabilities. Identi- fying duplicates, merging data across sources and measuring data quality related function- alities in the tool can be very helpful through Benefits of MDM this phase.

critical to gain an accurate view of the activi- Governance at a 13.4 percent CAGR, and electronic home ties and performance of a title across multiple Once data is consolidated into a single video OTT/streaming, set to rise at a 28.1 per- channels. MDM system, organizations can start build- cent CAGR. The success for media and entering advanced governance, analytics and tainment companies over the next five years How would mastering title decision making on top of their master data. will be based on how well they adapt to the information help? Enterprise-wide information performance digital environment and how effectively they Managing title data across the digital supply indicators can be built to ensure accurate and can monetize the digital consumer. chain and facilitation of the information flow complete data. This will help build better is imperative to success. Master Data Manage- analytics and decision making processes. The Fragmentation of ment (MDM) tools and technologies help MDM software used should have strong data information companies with streamlining their title data, quality management, governance and report- Digital media is causing a disruption to con- creating a single source of truth across multiple ing functionality to best support this phase. ventional means of publishing, distribution, channels and managing consistent and trusted and consumption of content. Fragmentation data across the enterprise. Build intelligence of titles, edits, movies, and other IP related To have a truly successful MDM imple- To be truly data-driven, organizations should information across the digital supply chain can mentation, it is important to ensure that not be able to create insights and build intel- cause inefficient processes and duplication of only that the right tool is selected, but also ligence to depict a model and predict future information. Lack of a single source of truth that the processes and infrastructure neces- offerings. Title data can be connected to con- and golden record for title information will sary to support the MDM tool are in place. sumer, social and other channel data to create make it increasingly difficult for companies Organizations typically take a step-by-step a 360 degree view. This will help organiza- to enforce copyright and IP protection across approach to their MDM initiatives. This can tions achieve a complete view of their title multiple channels. help organizations to socialize the changes in information and derive insights into consum- It has been nearly 75 years since the studios process required by MDM in a gradual fashion er behavior. The MDM software should not have had to deal with technology changing to achieve maximum effectiveness. only be able to manage title information, but their platform and distribution channels. Now, also be able to manage the relationships with consumers are expecting products at the click Consolidation consumer and channel based data. of a button. It is important for organizations to The first step is to consolidate the data across In the end, organizations that can effi- create, manage, market and distribute content multiple systems and create a single source ciently manage their master data and harness at extremely fast speeds compared to tradi- of truth with a golden record. This will help the intelligence gained from easy-access to tional cycles. streamline the process of collection and dis- consistent, accurate information will certain- As distribution channels keep expanding, tribution of data, creating a quick win for ly thrive during the dynamic digital era. n consumers are getting more information savvy. There is an increasing need to store more and Ninad Raikar is responsible for managing strategic solutions for the Media and more information around title data – not only Entertainment industry at Riversand. Prior to this role he was also involved the basic title information, but information in developing Riversand product strategy and product management. His past specific to the consuming channels as well as experience involves working as an Architect for Accenture and Tata Consulting metadata for the titles. Information is also Services. M&EJOURNAL 153 INNOVATION CONTENT A New Age of Innovation for the Entertainment Industry

A complete digital media supply chain will help control production costs and spur innovation By Charles Matheson, Industry Strategist Media & Entertainment, OpenText

Abstract: Media companies are at the forefront of the digital transformation. Information technology has been a critical tool in realizing this transformation, but all of this effort has created a parallel IT organization within media companies separate and distinct from the business IT unit. The imperative for media companies today is integration of their existing production workflows with their enterprise business systems to create a true digital media supply chain.

edia and entertainment companies are it’s not uncommon for some departments to have sev- dealing with transformational changes in eral DAM systems, each for a specific task in the overall how they manage and distribute digital production workflow. An enterprise class DAM system Massets. The business is changing its produc- can simplify this complexity by aggregating content and tion workflows and distribution systems to accommodate establishing a standard interface, but the realities of digi- digital files and create new products. All are looking to tal production create a real life situation where no single understand and leverage new technological innovations DAM system can hold all the content being created—and like 4K Ultra HD workflows, social media forecasting, more digital media is being created every day. More im- physical and digital bridged platforms, and UltraViolet. At portantly, DAM systems as a rule are not integrated with the same time, new models for content localization, cloud- real time pricing, rights or customer data so the creation, based storage and production solutions, and omni-channel management and distribution of media projects takes place distribution are disrupting established digital media work- without this critical information. flows. In this digital age of entertainment, companies are now looking ahead for better ways to sell and serve their Orchestrate the process customers. In the word cloud above are some of the basic Every production system or platform has a workflow en- components they will need to drive innovation in the com- gine specific to the tasks the system is designed to perform, ing years. and capabilities contained within a software platform can be impressive. Media workflows require something more No DAM can contain it universal, however. Over the years the enterprise services Every media company needs a Digital Asset Management bus (ESB) has been assigned the “traffic cop” task of linking system to keep track of its digital files, establish workflows together different production systems and managing the and, through automation, control the time it takes to cre- order in which jobs are assigned and managed. But the ESB ate content. Every large media enterprise will have several needs a lot of help. Business process management (BPM) DAM platforms spread across multiple departments and acts as a conductor for the assemblage of software tools and

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platforms that form the total production envi- frastructure should be done through enterprise worked world and new mediums for con- ronment – including back office business sys- software. Files sizes are so large that they need sumption of content. Some media segments tems. Using BPM software, a true end-to-end to be stored on tape and moved to fast disk for have felt the sting of this new paradigm workflow can be created and executed linking editing, color correction, quality control, etc. A sooner and more dramatically than others, diverse production platforms and leveraging media management system needs to give users but the rate of change is accelerating and all the embedded workflows contained in those insight on file location, transfer time and play- media companies will be forced to change systems. If the BPM software is well designed out speed. The disconnect between the digital or loose market share. Distribution of nu- it will take into account both mapped out, workflow, metadata and actual “real life” file merous file types over multiple networks straight-through processes and case- or proj- that makes the product is an often overlooked to an unknown universe of display devices ect-specific processes, as both types of business reality of vendors promising to manage meta- is a daunting business requirement and process occur in media production workflows. data disconnected from the actual data. The best uncharted territory for media firms that, DAM platforms manage metadata and proxies for most of their history, had tight control Federate content repositories but also extend seamlessly into the vast pool of over content format and distribution. There Though DAM systems are essential to digital storage to manage the master file itself. is no way to meet this challenge by “throw- media management, they are only part of the ing more people at it” – the only way to content story in a fully realized digital media Leverage the power effectively distribute content to business supply chain. Along with multiple DAM of the cloud associates, retailers or direct to consumers is systems, all enterprises will have a number The cloud is probably the most appropriately through software automation. of other content systems for holding related named IT term since the days of “client/server” documents and contracts that should be inte- and the amorphous, opaque and stratospheric Manage your creative grated into the whole. In addition, many “cre- qualities of the name make it malleable, mysteri- community ative professionals” will simply ignore DAM ous and distant, but let’s bring it down to earth. The creative process for making media is a systems and store content on file servers or Outsourcing IT infrastructure can be cost effec- social process requiring the participation of personal hard drives until the artwork is fin- tive as long as the production IT group has con- numerous collaborators. The digital media ished. Aggregating this digital content, even if trol and is not locked in to a proprietary platform supply chain should exploit the power of only in a virtual manner, and linking together that they can never leave. Since most media com- social networking technology to bring teams related media is important to making the digi- panies already have a substantial investment in together, both inside and outside the organi- tal media supply chain function properly. If a enterprise software, finding a cloud provider that zation. An integrated social media platform producer or creative lead doesn’t know what can integrate with and leverage that investment is can provide instruction and quick answers digital assets exist, or where they are stored, or preferable to starting from scratch. Many CFOs to common problems with the numerous if the latest version is available, the entire pro- like the capex vs. opex financial rational for cloud systems that make up the digital media supply duction process gets bogged down in repeated deployment, but in the digital media supply chain chain. Properly implemented, the social media searches and validation procedures. Having a more strategic assessment needs to be employed platform will allow for media companies to a platform that can search, access and move when deciding what the cloud can and cannot acquire new content from creator/consumers content from multiple DAM systems/content do. A hybrid cloud environment that mirrors, or outside the traditional production process. It repositories—including SharePoint servers, at least integrates with, the on-premises systems also allows media companies to get real time file servers and hard drives—is essential to that make up the current digital media supply feedback from vendors, partners and custom- making the digital media supply chain work. chain will save time and money over the long run ers in a controlled environment. and give administrators direct control over cloud- For the future, a complete digital media Manage tiered storage based applications. supply chain from inception of a project Storage requirements at media companies through creation, management, distribu- have grown at an astonishing rate as file sizes Distribute to all your customers tion and transaction will help to not only of digital media increase. How to manage The traditional forms of content distribution control production costs, but to also spur the mountain of data that is now the daily are being displaced or superseded by the net- innovation. n creation of a media enterprise is top of mind for almost all CTOs who write the checks Charles Matheson has more than 25 years of experience working for and with for storage infrastructure. Media companies companies in the M&E industry. For 10 years he was a digital media specialist need to implement a multi-tiered storage for IBM. He also created the digital media strategy for EMC Corp’s Cloud infrastructure that allows digital files to be Infrastructure Group. He has developed innovative IT solutions for The New stored on fast disk, object storage and archival York Times, ABC Television Network, Ogilvy & Mather, Pearson PLC, The tape, but the management of that storage in- Walt Disney Company and Warner Bros. M&EJOURNAL 155 INNOVATION

CONTENT The Personalization of Business Management Systems for Today’s Global Enterprise Modern facility management systems must be organic extensions of your production platform By Greg Dolan, COO, Xytech Abstract: In a global marketplace where content creators and distributors are increasingly challenged to produce a wide variety of formats, business and content management processes are more important than ever. While many companies focus on the individual pieces of the content creation and distribution cycles, very little attention is paid to the business systems driving them. Today, a successful company needs to effectively merge the business management process with the automation process to create a holistic management and operational strategy for the entire enterprise.

Not all that long ago, a media business could thrive while making employees bend to the will of their IT systems, and the idea of servicing a worldwide clientele was pa- tently absurd. Then the global explosion of istorically, facility management to cope with today’s challenges and completely formats and distribution channels set the solutions were monolithic sys- inappropriate as platforms for change. previous paradigm on its ear. In many cases, tems unable to meld easily with however, business systems have continued Hthe needs of individual users, Beware the buggy whip to just chug along; blissfully unaware of the adapt to a global marketplace or modify core Essentially, those traditional systems equate radically different market conditions their workflows on an as needed basis. They focused to well-intentioned buggy whips in the space users confronted. on a legacy business model filled with appoint- age. The introduction of ad hoc management Businesses can little afford the inefficien- ment-based schedules and permanent staff practices, the velocity of metadata, and the cies inherent in these legacy systems. Facility management. Linear approaches to automated downward pressure placed on pricing have management systems must be organic exten- billing rates, the lack of interface to other sys- made redundant data entry and inefficient sions of the production platform, and they tems in the enterprise, and the inability to cre- workflows more than an inconvenience. They must conform to the global marketplace, ate an integrated network of all participants in are a potential death knell for a business of as well as to the personalized needs of indi- the supply chain left these dated systems unable any size. vidual users.

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The dawn of the open system I’ve been to dozens of technical conferences Three Keys to a Modern Facility Management System over the years, and I’m always surprised to find order management left out of any serious discussion of overall automation. At the end of the day, somebody has to request the content being consumed, do they not? Doesn’t it make sense to begin the automation process with the actual order? You’d be amazed at the error rate introduced by human mistakes in the translation process of order to workflow. I believe the reason for this omission isn’t a lack of understanding, but rather exhaustion brought on by watching traditional business systems try to operate in the current world with yesterday’s technology. With so many other challenges to address, wading into the quagmire of management software no doubt seemed a poor use of valuable time. Now with (semi-)solid interface proto- cols and componentized design, new facility management systems are on the market and well positioned to meet today’s challenges without impeding the ability to adapt to rapid change. There are several keys to a modern system. with data payloads through a translation phase, taxonomy maps, multilingual user interfaces First is personalization. The functions where data is converted to the target format. and on the fly currency conversion are re- of a system at large, as well as an individual By using this model, integrations are not sin- quired. user, are now easily tailored to need. This gularities but ongoing, configurable features of is made possible by system design based a platform. Conclusion around a development platform where Thirdly, internationalization is a key com- With ever shrinking margins and the con- the interfaces are modifiable extensions ponent of a modern Facility Management Sys- tinuing commoditization of technology, a of the platform itself. A successful system tem. Multilingual and multi-currency features strong production platform is mandatory to will easily create separate user interfaces are great starts. Federation of schedules, master manage the sheer velocity of content. Tight- for administrative staff, operational crews, data, asset repositories, orders information and er budgets demand that businesses wring effi- management and file management. These purchase order information is key to today’s ciencies out of every system at their disposal, interfaces can be modified without going business world. and the days of looking at a facility manage- back to the vendor and can now walk a user The true path of data is no longer inside a ment system as simply the “house calculator” through the process outlined by manage- system or even across a platform. Data paths are long gone. While systems traditionally ment in a logical and elegant manner, as op- now flow amongst systems. A purchase order played a key role in converting operational posed to training staff how to work around in one system can set up a work order in an- details into General Ledger Transactions, a system’s shortcomings. other. The movement of an asset in one storage their mandate has greatly expanded. Secondly, interfaces to all systems in system is now radiated to multiple business Hopefully our article armed you with a company’s workflow are even more im- systems. This structure allows the supply chain the right questions to consider as you evalu- portant. To achieve seamless integration, to evolve from something a manufacturer runs ate whether you have a buggy whip in your APIs cannot be bolted on to legacy systems. to a matrix of systems all participants in the hand or if you’re hitching a ride with Henry Systems must have a componentized archi- ecosystem leverage. To do this successfully, Ford. n tecture and use automated workflows to trigger data movement and transformation Greg Dolan directs Xytech’s operational, sales and marketing organizations functions. For instance, a vendor may use worldwide. He joined Xytech after a decade at another firm, where he successfully an internal workflow engine as part of its introduced a suite of software products for the media services, broadcast, and video core offering. In this case, triggering events transmission industries. He has held other senior positions; including CIO of New are created and launch workflows populated York Media Group and Manager of Budget Systems for Sedgwick James. M&EJOURNAL 157 ADINDEX

Company Website Page Company Website Page

3rd i QC...... www.3rdiqc.com...... 109 MarkLogic...... www.marklogic.com...... 2

5th Kind...... www.5thkind.com...... 61 MCF Technology Solutions...... www.mcftech.com...... 132

Adobe...... www.adobe.com...... 103 Medialogiq...... www.medialogiq.com...... 123

AdStream...... www.adstream.com...... 36 MediaMax Online...... www.mediamaxonline.com...... 79

Akamai...... www.akamai.com...... Back Cover Mediamorph...... www.mediamorph.com...... 87

Amazon Web Services...... www.aws.amazon.com...... 89 Microsoft Azure...... www.azure.microsoft.com...... 35

Apex CoVantage...... www.apexcovantage.com...... 160 NSS Labs...... www.nsslabs.com...... 43

Aspera...... www.aspera.com...... 13 OpenText...... www.opentext.com...... 31

AudioEye...... www.audioeye.com...... 63 Optimity Advisors...... www.optimityadvisors.com...... 93

Avalon Consulting...... www.avalonconsult.com...... 114 Oracle...... www.oracle.com...... 163

Brightcove...... www.brightcove.com...... 9 PricewaterhouseCoopers...... www.pwc.com...... 19

Capgemini...... www.capgemini.com...... 56 Riversand Technologies...... www.riversand.com...... 81

Cognizant...... www.cognizant.com...... 65 Saffron Digital...... www.saffrondigital.com...... 45

EIDR...... www.eidr.org...... 27 SAS...... www.sas.com...... 74

FilmTrack...... www.filmtrack.com...... 11 Signiant...... www.signiant.com...... 7

Fortium...... www.fortiumtech.com...... 106 Sony DADC...... www.sonydadc.com...... 47

Front Porch Digital...... www.fpdigital.com...... 91 Sony Media Cloud Services...... www.sonymcs.com...... 73

Fuisz...... www.fuiszmedia.com...... 129 Teradata...... www.teradata.com...... 59

HCL...... www.hcltech.com...... 67 Testronic...... www.testroniclabs.com...... 55

Hightail...... www.hightail.com...... 41 TOK.tv...... www.tok.tv...... 140

Hitachi Data Systems...... www.hds.com...... 83 UST Global...... www.ust-global.com...... 71

HP...... www.hp.com...... 5 V2 Solutions...... www.v2solutions.com...... 49

Hybris Software...... www.hybris.com...... 57 Verizon Digital Media Services...... www.verizondigitalmedia.com...... 69

IGATE...... www.igate.com...... 39 Vubiquity...... www.vubiquity.com...... 97

Independent Security Evaluators...... www.securityevaluators.com...... 53 Watchwith...... www.watchwith.com...... 86

Ixonos...... www.ixonos.com...... 126 Weblife Balance...... www.weblifebalance.com...... 51

L&T Infotech...... www.lntinfotech.com...... 137 Xytech...... www.xytechsystems.com...... 99

Zaszou...... www.zaszou.com...... 23

M&EJOURNAL 158 We Bring Media & Entertainment Tech Company Website Page Professionals Together All Year Long

HITS smart 2ND SCREEN M E S HOLLYWOOD content SOCIETY A SOCIETY hollywoodITsociety.com MESAlliance.org/smartcontent 2ndscreensociety.com Media & Entertainment Services Alliance M E S A Proud to represent those companies WıTH EUROPE charged with advancing the efficient women in technology | hollywood Content Delivery & Security Association Media & Entertainment creation, production and distribution of both physical CDSAonline.org Services Alliance MESAlliance.org/WiTH MESAeurope.org and digital entertainment media. www.mesalliance.org 2015 Event Calendar Supply Chain Information Technology Content Security Second Screen MESA Europe January 2nd Screen Summit @CES 2015 Las Vegas, NV

February HITS Breakfast New York, NY Content Protection Briefing WiTH Luncheon Los Angeles, CA Paris, France Metadata Madness Content Protection Briefing Smart Content Summit Europe March Los Angeles, CA Los Angeles, CA New York, NY London, UK

April Take the DAM(n) Tour @NAB MESA Member Party @NAB 2nd Screen Sunday @NAB MESA Europe Reception @NAB Las Vegas, NV Las Vegas, NV Las Vegas, NV Las Vegas, NV, USA

May Hollywood IT Summit Metadata Workshop Los Angeles, CA Brussels, Belgium June ESCA Digital WiTH Breakfast 2nd Screen Summit: Sports HITS Europe Los Angeles, CA @CE WEEK London, UK New York, NY

July MESA Executive Retreat Content Protection Briefing Content Protection Briefing New York, NY Berlin, Germany

August ESCA Digital Europe London, UK September L.A.msterdam Party @IBC Amsterdam, The Netherlands 2nd Screen Summit @IBC Amsterdam, The Netherlands

October HITS: Data, Marketing & Analytics MESA Reception @AdWeek Content Protection Summit EU Los Angeles, CA New York, NY London, UK Smart Content Summit HITS: Broadcast @CCW LiveTV L.A. Data & Analytics Workshop November WiTH Luncheon New York, NY London, UK Los Angeles, CA Los Angeles, CA

December Forecast:Hollwood 2016 Content Protection Summit US MESA AB Dinner/Holiday Party Los Angeles, CA Los Angeles, CA For more information contact: Guy Finley, Executive Director [ 917 ) 513-5963 [email protected] www.MESAlliance.org INNOVATION CONTENT The poweroftwo Continued frompage162 Plus, anymisstepthatcausesapooruserex- Building a platform that had the ability to Building aplatformthathadtheabilityto capabilities. ownership. Manyarefindingthatevenafter other contentdeliverynetworks,infrastruc- confidence andallegiance. is overwhelming its technical and staffing is overwhelmingitstechnicalandstaffing perience issuretocauseacrisisinconsumer and preparation, managing the entire process and preparation,managingtheentireprocess are expertsincontentcreationandrights are seizingupontheopportunity,as give providersapathtoconsumersatisfac- tion and bottom-line profitability became tion andbottom-lineprofitabilitybecame the capitalinvestment,contentacquisition ture providersandavarietyofbusinessesthat together, keepingitontimeandbudget. Call 703.709.3000 oremail [email protected] Learn more aboutApex’s Media Solutions. your contentintodigitalgold. making itmoresearchableandeasilymonetized. Callus.We’ll show youhowwecanturn of theworld’s leadingmediacompaniestoenhanceaudio,photosandvideowithrichmetadata, You’re sittingonagoldmineofcontent,andApexcanhelpyouleverageit.We workwithsome into digital gold. digital into content media turns Apex A handful of start-ups and new entrants A handfulofstart-upsandnewentrants to leveragethatdemandintoarealrevenue-generatingsupply. content onatelevision.Thereisstillrealopportunityforproviders Studies showthatthemajorityofpeoplewatchmosttheirvideo 1,200 networks in 92 countries. 1,200 networksin92countries. with 150,000 servers deployed on more than with 150,000serversdeployedonmorethan with content owners, multichannel video with contentowners,multichannelvideo video services. delivery networkandisamarketleaderinde- offering a broad set of modular services that offering abroadsetofmodularservicesthat direct-to-subscriber streaming,electronicsell- ny boasts a highly distributed global platform ny boastsahighlydistributedglobalplatform possible when Vubiquity and Akamai agreed possible whenVubiquityandAkamaiagreed programming distributors(MVPD)andover- platform videoservices.Thecompanyworks include a deep library of licensed content, include adeeplibraryoflicensedcontent, set-top box delivery, a digital storefront, and set-top boxdelivery,adigitalstorefront,and to leveragetheirstrengths. the-top providers (OTT) in over 37 countries, the-top providers(OTT)inover37countries, through (EST) as well as other next-generation through (EST)aswellothernext-generation livery ofmultiplatformIPVideo.Thecompa- Akamai operates the world’s largest content Akamai operatestheworld’slargestcontent Vubiquity istheleadingproviderofmulti- The two have combined experience, The twohavecombinedexperience, Akamai solutionsasneeded,ratherthan versions of each title needed that are needed versions ofeachtitleneededthatare resolves threeoftheindustry’sbiggestbottle- customers. Thecompany’shybrid-elastic cost-effective firstgenerationplatformthat necks —content,technicalandinfrastructure. ing edge content delivery network without ing edgecontentdeliverynetworkwithout model givescarrierstheabilitytoutilize as-a-Service (CaaS),apowerful,scalableand strength andinfrastructuretocreateContent- scalable andoptimizedtoprovideahigh tracking evolutions in technology to be ready tracking evolutionsintechnologytobeready to playontoday’sdevices,andareconstantly expertise topreparethe20orsodifferentfile enables EntertainmentEverywhereonalead- quality, seamlessviewingexperiencefor for the devices of tomorrow. for thedevicesoftomorrow. licensing or preparation headaches. CaaS licensing orpreparationheadaches.CaaS Akamai’s cloud-basedplatformis On the technical side, Vubiquity has the On thetechnicalside,Vubiquityhas INNOVATION CONTENT

buying for peak and not using that potential or within the Cloud Platform. purchased through Vubiquity or through 364 days of the year. The Carrier is able to offer an additional another vendor. That content is stored and service without having to invest millions of delivered via Akamai. A preferred third CaaS in action: VOD dollars in new infrastructure or stress over party vendor, alá Saffron or CSG, is rec- Let’s say a Tier 2 carrier in Latin America technical complications. ommended for app development. Akamai wants to give its customers the ability to catch- would store and deliver the content from up with their favorite shows by watching full CaaS in Action: TVOD the LCDN, MCDN or within the Cloud episodes online, but lacks both the content and In another example, let’s look at a Tier 1 carrier Platform, depending on the services pur- platforms to deliver. in Germany that wants to launch a TVOD chased by Carrier. Here, the carrier is able to The carrier’s first step is to either li- OTT service so its subscribers can watch full- open a new revenue stream without the head- cense the content (or purchase licensing length movies on any device for a set price. aches of content preparation and delivery. services) from Vubiquity. From there, Vu- While the carrier has a licensing relation- biquity transcodes, packages, and edits the ship and has access to the required rights, it The future is now content before transferring it to Akamai’s needs a solution for content preparation, The introduction of Content-as-a-Service network for storage and delivery. Finally, storefront, app development, DRM, storage gives cable operators, who for years have the carrier works with Akamai to find the and delivery. been limited to regional customers, access right delivery platform — a Licensed Con- So, the Carrier works with Vubiquity to the same pool of potential customers as tent Delivery Network (LCDN), a Man- to ingest, transcode, package and edit con- OTT services. Indeed, CaaS offers the ability aged Content Delivery Network (MCDN) tent. DRM Key Management can also be to acquire content with consortium prices, universal processing, and preparation so Steven Chester is responsible for setting the strategic direction of Akamai’s that content is ready to play on every device, digital media distribution solutions and services for the premium content cloud-based storage and a delivery network industry. He works closely with major studios such as 20th Century Fox, that spans the globe. Paramount, Disney, and Sony Pictures, as well as distribution outlets like So, CaaS enables cable operators the ability to Netflix and Best Buy to develop solutions that benefit the entire digital satisfy their customers today while building distribution workflow. for a profitable future. n

T3MEDIA Continued from Page 128 Simplicity sets the stage gies, processes and workflows demands n Maximize speed-to-market: Today’s con- Today’s digital content landscape continues massive investment in infrastructure and nected consumer demands access to content to broaden. With that growth and uptake, people. Technology becomes outdated. on any platform, any time. Distribution technology and process demands also grow. Specialized skills are scarce. Am I investing Apex turns media content windows have collapsed, creating demand to To be successful, content owners need to too much time and money building out a push content into more markets, more chan- navigate increasingly complex workflows with digital supply chain that creates excess cost nels and more platforms faster than ever. simplicity. and confusion? into digital gold. Release paces continue to accelerate, Creative companies can’t afford to get n Do my consumers get the content they with some content bypassing traditional bogged down in technical and operational want when they want it? Collapsing re- windowing altogether. This means that processes that distract from their core business lease windows apply pressure across the all content versions need to be prepared, focus: to make and monetize content. entire supply chain. Faster paces, unfamil- You’re sitting on a goldmine of content, and Apex can help you leverage it. We work with some packaged and delivered faster than ever So, what do you need to think about to iar requirements, and new technologies of the world’s leading media companies to enhance audio, photos and video with rich metadata, before. These impacts flow upstream. ensure your business doesn’t go the way of the increase mistakes and compromise quality. Promos, trailers and spots are under more Compact Disc? Here are some key questions Are my people, processes and technology making it more searchable and more easily monetized. Call us. We’ll show you how we can turn deadline pressure, especially for interna- to consider: agile enough to keep pace with today’s your content into digital gold. tional territories where in-country local- n Am I leaving money on the table? To- demands, and anticipate tomorrow’s in- ization is needed. day’s content ecosystem offers more oppor- novations? Digital supply chain delays create lags tunities than ever to turn content inventory It’s time to take a lesson from other bringing content to market. These lags are into licensing revenue. Do I have the right industries that have gone through similar catastrophic—wasting marketing dollars, capabilities to capture, catalog and share the cycles of digital disruption. Today’s digital frustrating licensees, and ultimately, slic- content I own with the people who want to economy isn’t a short-lived innovation, it’s ing into revenue with lost sales. Content buy it? an essential change in the way audiences creators need capabilities that allow them n Are my digital operations distracting me engage with you and your media. Luckily Learn more about Apex’s Media Solutions. to exceed the pace of change and streamline from what’s most important? Keeping up for M&E companies, the third time is the Call 703.709.3000 or email [email protected] operations without sacrificing quality. with the acceleration of digital technolo- charm. n M&EJOURNAL 161 INNOVATION

CONTENT Content-as-a-Service Enables Entertainment Everywhere New platform can remove barriers to content, technology and infrastructuret By Steven Chester, VP of Global Media, Akamai

Abstract: Content-as-a-Service (CaaS) is the first generation platform that answers consumer demand for Entertainment Everywhere made possible by a unique industry partnership between Vubiquity and Akamai. This third-party solution enables carriers, retailers and online retailers (distributors or providers) to offer consumers access to the entertainment they want to watch on a leading edge content delivery network without content, licensing, preparation or storage headaches. The CaaS infrastructure is a cost effective solution that ensures the highest quality playback on any device.

he conversations around the water coolers in pay Meanwhile, studies show that the majority of people still TV providers’ headquarters have become hubs of watch most of their video content on a television in their home. concerned whispers. Because, even as the amount of So, there is still a real opportunity for providers to leverage that T available award-winning content swells, consumers demand into a real revenue-generating supply. are leaving in droves. In fact, Bloomberg reported in March But, the barriers to launch a new Entertainment Everywhere that subscriptions to pay television services declined in 2013, service are plentiful and daunting. First, licensing content can for the first time ever. cost anywhere from 50 to 70 percent of revenue. Second, device, Those consumers — as well as a new generation of view- DRM and format fragmentations means operators must cre- ers who are not signing up for traditional cable service — are ate, store and distribute up to 20 versions of each title, which flocking to online video services thanks to the greater avail- increases transcoding and storage costs. Then there is the capital ability of broadband services. Netflix, just one of those services, investment it takes to build out virtual storefronts, an e-com- recently announced it has reached 50 million paid subscribers. merce backend and DRM systems. The trend is not slowing down, either, since of the 745 mil- Add to that the less obvious challenges of finding and manag- lion homes with broadband service 64.6 percent will use it to ing the extensive number of vendors it takes to bring the service watch online video and television at least some of the time. Continued on page 160 M&EJOURNAL 162 #1 Business Software

• All of the entertainment companies in the Global 500 run Oracle applications

• 12 of the top 15 U.S. media companies run Oracle applications

• 3 of the 4 major U.S. television networks run Oracle applications

For more information visit oracle.com/goto/media Or call 1.800.ORACLE1.

14388_HITS Digital Marketing and Analytics Summit LA_AD_Rd1.indd 1 9/5/14 4:36 PM

M&E Journal Content Innovation n Cloud Solutions n Consumer Connections Winter 2014-15 Volume 6 Number 1