NAB and VROI-The Real Value Of Video

Wow, has it been a whole year since I last posted? Time flies when you're witnessing history in the making. My apologies. I've been head-down on some very exciting video driven entertainment, education and information projects for clients. I promise more frequent updates as the year progresses.

At the NAB convention held earlier this month in Las Vegas, it became obvious to me that the field of exhibitors is indeed growing smaller. Shortly after that thought passed, I had another thought that the trait the remaining vendors had in common was that their customers were able to define the bottom line value of the technology they offered. As I meandered down the aisles, I would hear repeatedly in passing "Neat, huh"? or "Isn't this cool"? But it wasn't the booths pitching neat and cool that were filled to capacity. Instead, companies pitching "measurable ROI" and "dramatic reduction in operational costs" and "exploitation of new revenue streams" boasted of the biggest crowds. These crowds, and the companies attracting them weren't really talking about technology, but were instead focused on VROI-Video's Return On Investment.

It's interesting to see this unfold. I began my observations in the early 90's as I witnessed first hand the impact that new video technology can have on an organization. I believe it was 1992 when as a video editor for CNN, I got my hands on a prototype non-linear editor that had been dropped off by a company called Avid. They wanted us to test it. Problem was, it was just a computer. There were no Sony beta decks, routers or other pieces of peripheral equipment. Just a computer. Over the next few months, I spent my lunch hour investigating non-linear editing. For me, the technical and workflow ramifications were immediate. "No more tape! No more boxes of tape"! The creative ramifications came next. "No more linear thought process! I'm free"! But there was a much bigger contribution this suspect computer would ultimately make to CNN as a whole. Turns out, a few years later...the network tossed out all linear editing bays and moved in a similar computer. The network went tapeless. Why? Better peed, lower operating costs, dramatically reduced workflow complexity, tighter integration with other departments throughout the network, and greater creative possibilities. It was all measurable, definable, undeniable. And I think the same thing is true for the future of media management, monetization and measurement solutions. Ultimately, it's not how cool technology is that wins the day. The question that must be answered in order for wide adoption of any media technology is: How measurably positive is the value?

Today, broadcast networks still distribute their live content via satellite distribution. Is this because terrestrial distribution via IP mechanisms can't deliver the same quality? Nope. It's because there are few instances where the ROI of an IP distribution model is clearly defined and undeniable. I feel like we're on the crest of a mountain of doubt though...and about to slide down the other side to a valley of confirmation. Personally, I would be shaking in my shoes if my career hinged on the success of video distribution via satellite. IP distribution is far less expensive, delivers equal or better quality and provides support for multi-screen distribution. Not to mention that it's really tough for a snowstorm or atmospheric nuisance to interrupt the feed. The cherry on top of this technology sundae is that IP distribution over terrestrial networks offers extended global reach and a plethora of new revenue models to exploit. I have clients today who have realized this value first hand, and they are all beginning to aggregate the internal data that will once and for all crystallize that the new way...is a better way.

If you're a video technology provider about to hang a shingle on another trade show booth, it might be important for you to fly up to 10,000 feet or so and look down on the industry. There are mega-trends just being born that will be pivotal in the way your potential client thinks and the decisions they make about how they will conduct business in the coming few years. Is your technology just neat? Or, does it deliver the bottom line impact that can help them be more profitable?