Monday, August 27

Video Ads Go in Line, in Time

Written by Gary Stein
For advertisers and their agencies, the notion of video on the Web has
long been an exciting but uneasy topic. In the early days, video was
exciting and new, but nearly impossible to deliver. File formats
conflicted with pretty much every site, and download speeds
practically ensured that no one would ever see more that a jumpy
bunch of half-drawn frames. But the technology on both the serving
and the receiving end got better quickly. Advertisers can now be
pretty sure the videos they put up can be viewed.

That leaves the problem of whether they would be seen. For a long
time, the reality has been that people weren't going online to look at
stuff. They were going online to do stuff. This is why this industry
is called "interactive marketing". Certainly the interactive part has
something to do with technology. But mostly, "interactive marketing"
means marketing where there's an ongoing, evolving, deepening
give-and-take between a consumer and a brand.

Watching a video isn't necessarily a give-and-take experience, which
is central to advertisers' struggle. That is, technology got better,
consumers got interested, and video began to take off. Consumers were
watching videos online. Advertisers soon followed and quickly muddied
the experience with pre- and post-roll ads and ads within the video
itself.

If you tried either pre- or post-roll, you're probably familiar with
the problems. Pre-roll ads, unless they're highly relevant to the
video the consumer chose to watch, annoy people. So much so, that
people tend to bail on the whole video rather than sit through the
ad. Post-roll is even worse. Again, unless this ad is highly
relevant, no one is sticking around to see it.

The third solution, to put the ad into the video itself, seems
anathema to the medium. Interrupting content to show an ad was
precisely the way most interactive gurus denigrated traditional
advertising. To show ads in the middle of content, in a way that's
out of the user's control, was just wrong, wrong, wrong.

But within the last several months, we seem to have gotten it at last:
place the ads within the video player frame. YouTube announced last
week that it will begin offering a very clever ad execution that
places a small strip at the bottom of certain videos, offering a
message and a chance to click for more content. VideoEgg has been
offering much the same thing for a long time now. The ad is a bit
more consistent in the VideoEgg examples, but the idea is totally on
target.

As YouTube's implementation of the inline ad takes hold of the market,
we'll see how successful this approach can be. It offers a lot of
promise. First, they're on target with consumer expectations of not
only the medium but of advertising's place in it. There seems to be a
cardinal rule that exists online: no one should ever see an ad unless
she has specifically requested to see that ad.

Sure, you can argue people don't request to see banners, but you can
also argue banners are really invitations to see the real ad (whether
that ad is a video, a rich media experience, or just a landing page).
The inline ad, however, follows that cardinal rule. It invites you to
engage further, but that's all. In fact, it goes away, never to be
heard from again, if you don't touch it.

Second, inline ads don't disrupt and barely distract. With both the
YouTube and VideoEgg executions, the ads never take people away from
the content they're watching permanently. Instead, they offer a
separate bit of content that can be consumed distinctly; the original
video is paused. Think about your own browsing habits: most likely
you're constantly hopping back and forth between multiple pieces of
content. The path consumers are asked to take through these ads is
deeply familiar.

Lastly, inline ads don't need to be limited to video. The line between
a video and a rich media experience is blurring daily, and inline
video units can take advantage of this new space. The click on an
inline video ad unit can take the viewer to a rich experience with
interactivity, games, and who knows what else. Which will be the
first brand to sell something in this space?

Whatever the immediate results are from these initial forays into
inline video advertising, we can look forward to a new video
advertising option. Shoot, in advertising in general. More and more
content will be delivered digitally in the coming years. You can
already watch YouTube via the AppleTV player, in your living room.
This online format -- one that takes the notion of interactivity to
heart -- may have life outside of Web sites.

Friday, August 24

10 Online Video Ad Competitors Compared

Found on mashable.com

While YouTube's announcement that they will start including ads in video comes as little surprise, there are already dozens of companies vying for a piece of the video advertising industry, which is expected to grow to $2.9 billion by 2010 according to eMarketer. Here is a look at 10 of the top players in the market, ranging from startups to some of the Web's biggest companies.

BrightRoll offers both pre-roll (meaning ads before a video plays) and mid-roll (ads that take place between segments of a video) advertising and places ads based on contextual, behavioral and demographic targeting. To determine content, BrightRoll looks at information like tags and keyword profiles, while using data for its publishers from ComScore to create demographic-based campaigns. The company claims to be the fastest growing video advertising company with more than 800 million ads served.

YouTube's approach to video advertising closely mirrors that of VideoEgg, who powers video uploads for major publishers like Bebo and AOL. VideoEgg uses what they call a "ticker" that shows a promotional banner within the video that can be clicked if a user wants to learn more about the product or service being advertised. In the example below, an ad is shown for the film SuperBad that when clicked shows a trailer for the movie. Ads are sold through the eggnetwork, a collection of VideoEgg's largest publishers serving more than 15 million videos per day. The format is less-intrusive than pre-roll advertising since it doesn't delay the actual video from running and is optional for the user.

AOL's online advertising network, Advertising.com, now offers pre-roll video as well as in-banner video (video ads that display in conventional banner ad sizes such as 728×90). In-banner ads seem to be growing more common on content-heavy sites replacing traditional graphic-based banner ads. Most in-banner ads require a user to click them in order to play, but some more invasive ads start automatically. In the example below, a video ad is displayed in an article on investment site TheStreet.com.
http://video.advertising.com

Roo is a resource for web sites looking for video content, video producers distributing content, and advertisers that want to advertise via video. This works by Roo licensing video content and selling advertising across their network of sites that host it. Unlike several of its competitors, Roo gives web publishers control over the advertising, allowing you to sell your own ads in addition to those sold by Roo. Through its content channels (such as sports, music, etc.), Roo targets pre-roll advertising based on user interests and demographics.

ClipSyndicate is a video network comprising of web publishers, video content producers, and advertisers. Like Roo, ClipSyndicate licenses video content from a variety of sources and distributes it via a network of web sites. Web publishers then have the option to pay a fee to host videos and sell their own ads, or can do opt for a revenue share on the ads that ClipSyndicate sells for them. At this time, ClipSyndicate ads consist primarily of 15-second pre-roll video ads.

The massively funded BrightCove operates the BrightCove Syndication Marketplace which connects video producers, content web sites, and advertisers. The company offers several different advertising formats, including combined video commercial and banner ad, video overlay (a small ad that appears while the video is playing; similar to VideoEgg), or player takeover, where the sponsor's ad occupies the entire video player and can either be clicked or skipped.

Broadband Enterprises is another online video network consisting of producers, publishers, and advertisers. The company claims more than 450 publishers including Fox News and Warner Brothers that deliver over 400 million monthly video streams. It appears the majority of the ads Broadband Enterprises sell are of the pre-roll variety.

The largest remaining independent ad network, ValueClick's video ad program is currently in beta. ValueClick's "In-stream" product displays pre and post-roll video ads, while also offering in-banner ads to place ads in traditional banner slots. In the example below, a post-roll ad for TaxBrain is shown, while the web site also makes use of ValueClick's traditional banner network by placing a 728×90 TaxBrain ad at the top of the page.

AdBrite, which operates a marketplace for a wide variety of online advertising including text, banners, and in-line ads (those ads that turn words on a page into ads) recently launched InVideo, its own video player and ad network. The ads show up in "split screen" format so you can continue watching your video as the ad is displayed. InVideo also allows you to place your own watermark into the videos, a nice feature for branding your video content.

Adap.tv places a variety of ads through the video watching experience. While allowing you to have pre and post-roll video ads, adap.tv also attempts to analyze the content of the video to provide relevant text ads while the video is playing. In the example below, the video hosts are talking about the movie "The Prestige" and a text ad promoting the DVD is shown. ScanScout offers a similar technology.

The online video space continues to see a huge amount of venture capital pour in as the race is officially on to grab the market. While it's unlikely anyone will catch the 800 gorilla of Gootube in terms of reach, "win-win" networks like VideoEgg and BrightCove are already attracting the publishers and advertisers necessary to create a viable marketplace and will help keep the industry competitive in the years to come.

Stop YouTube Ads with TubeStop

From lifehacker.com.

Windows/Mac/Linux (Firefox): Firefox extension TubeStop disables
autoplay on YouTube videos and blocks obtrusive overlay
advertisements. Deactivating autoplay will come in handy for anyone
who's followed a YouTube link and accidentally blared a video through
the workplace, while the incidental overlay ad "blocking" very quickly
dispenses with a new feature that a lot of avid YouTube fans aren't
happy with. TubeStop works by replacing the on-site YouTube player
with the embedded player you'd see on another site (which currently
doesn't host ads and doesn't autoplay). TubeStop is free to download,
works wherever Firefox does.

Thursday, August 23

Would you like video with that?

From the GoogleNews blog:

One of our goals at Google News is to offer as many different
perspectives on the news as possible. That means bringing content from
multiple sources together in a way we hope you find to be organized
and relevant. Now we're adding video to the mix: we're showing related
news videos along with our news articles to give you a broader
spectrum of info available. You'll see the prefix "Video" next to
story titles, and clicking on these video links will open a video
player directly on the page so you can watch the video right there.

Today, viewing news videos or other content types on the web can be a
frustrating experience. You often get videos that don't play, sites
that require different video player downloads, or have misleading
descriptions of the content. That's why we're working with YouTube so
you can easily view online videos without any downloads required and
regardless of what browser you're using.

For our initial launch, we have included several top news sources such
as CBS, Reuters, and a number of local Hearst TV stations. Over the
next few months, we'll continue to add new sources as fast as we can.
Right now we're just offering this addition in the U.S., the UK, and
Ireland; we hope to make it available in other languages and editions
soon.

YuMe Launches New Video Ad Formats

Video startup YuMe Networks released a set of new products Monday
aimed at providing sponsors a range of options in the wide open online
advertising space.

"Our opinion is it's highly doubtful that just one ad format is going
to be right for video," said Jayant Kadambi, CEO of Redwood City-based
YuMe. "Watching a two minute trailer on mobile you're not going to
want the same ad as watching it on television."

With ad dollars moving online and the popularity of online video
skyrocketing, marketers are increasingly interested in the space.
Online video ad spending is expected to rise from an estimated $775
million this year to $4.3 billion in 2011. (See "The Web-Video Ad
Puzzle.")

Typical Internet video ads run as "pre-roll" clips, akin to television
commercials, but many viewers consider them an annoying interruption
that they must endure in order to watch their selected clips. As a
result, a growing number of companies are developing new ways of
advertising in, on and around online videos.

A wide range of companies are experimenting with ads such as logos
that don't necessarily interrupt the video unless a user clicks on it.
These are known as overlays, bugs, or tickers. One such new YuMe
product is an "interactive overlay," which places branded items, such
as a small car driving on the bottom of the video that can be clicked
to go to a web site.

Other new YuMe products include a customizable video ad, which can
change the pricing on-the-fly and also change the retail partner—for
example from Best Buy to Circuit City—depending on the viewer's
geography, demographics, and whether the ad is served on a PC, mobile,
or TV.

The wide range of options allow for ads to be delivered across a
variety of platforms—television, computer, or mobile device—which all
have vastly different screen sizes.

Finding a way to more smoothly integrate ads into videos is one
objective of marketers. One new YuMe product overlays a "watermark" of
a brand over video content. For example, on a trailer for the movie
Spiderman, you could have a Blockbuster logo with information on
renting or buying.

Another new YuMe option is a branded player—known as a "skin"—which
wraps branding around video content. Other companies including video
site Heavy.com and WPP's Ogilvy Interactive have also used skins.

To take advantage of the viral, user-generated content craze, another
new YuMe product allows users to customize an ad. In one demo, a user
can create a greeting card from Hallmark and customize it directly in
the video player.

Other new video ad formats include San Francisco-based VideoEgg's
"crawl," which resembles the news ticker on the bottom of the video.

YuMe, backed by Kholsa Ventures, Accel Partners, and BV Capital,
streams over 100 million videos per month, Mr. Kadambi said.

The company focuses on the so-called "middle" part of the online video
market, targeting the clean professionally-produced content—though not
necessarily the most expensive television broadcast content. YuME
allows advertisers to choose specific "channels"—such as sports or
entertainment—of content to place their ads on.

Brightcove to support Adobe Flash H.264 upgrade

Press Release issued by BrightCove

We're delighted to announce Brightcove support for the latest version
of Flash video. Moviestar, announced today, is the fruit of Adobe
efforts to bring the HD-capable H.264 video standard to Flash.
Moviestar matches Flash's ubiquity and rich user experience capability
with high video fidelity. This is a combination we've all been waiting
for since Flash 6, with blocky, instant-on video, first hit.

You can preview the new player at Adobe Labs.

Paramount's decision to throw its weight behind HD DVD this holiday
season, rather than Blu Ray, is getting the top tech headlines today.
But we'll look back years from now and see that Moviestar was a much
more significant milestone.

This is a watershed announcement for the online video industry, and
really media and TV as a whole. Quality just improved. TV-like
experiences will be possible on the web. Perhaps just as important,
consumers, independent producers, and media companies of all sizes
will be able to shoot (in some cases), edit, archive and distribute in
one format. This will radically alter production workflows and
associated investments for everyone.

Brightcove remains committed to Microsoft's Silverlight initiative –
which similarly combines rich user experience with high fidelity
video, and eventually DRM. Innovation from Microsoft and now Adobe is
clearly benefiting everyone in the ecosystem. This is good news.

We expect to roll out Moviestar support later this year in our backend
tools. It promises to be a pretty smooth upgrade path for both viewers
and thousands of professional video publishers who use Brightcove each
day. Brightcove user experiences are already enabled for H.264 support
(thanks for backward compatibility, Adobe). And our private-labeled
consumer media features, which now support 3GP, should get a boost as
well. Brightcove partners won't have to do anything to their existing
players to gain this capability. We recommend archiving digital
masters in H.264 files to get ready for an upgrade later this year.

An in depth technical overview of the big news is available here.

Microsoft, Limelight strike online media deal

NEW YORK (Reuters) - Limelight Networks Inc (LLNW.O) and Microsoft
Corp (MSFT.O) said on Thursday that they had entered into a technology
agreement in which the Web content delivery company will help improve
the reliability of the software maker's online services, such as
video, music and games.
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Limelight will provide media streaming and content delivery services
to Microsoft under a multiyear deal. The two companies also agreed to
cross-license their technologies.

Financial terms of the deal were not disclosed.

Limelight competes with Akamai Technologies Inc (AKAM.O) to help
companies deliver graphics, video and music to online users more
reliably by finding less congested routes over the Internet. Its
customers include DreamWorks (DWA.N), Facebook, and News Corp's
(NWSa.N) MySpace

Wednesday, August 22

VideoEgg And Lots Of Others Call B.S. On YouTube

VideoEgg's overlay advertising system has been in the market for a
year and is driving "significant" revenue for the company. it's so
successful, in fact, that they recently launched a Facebook
advertising network based on the same technology.

The idea is to use a Flash overlay advertisement with some basic
information and graphics that takes up a small part of the viewable
video area. Users click the ad and get a more in depth video ad. It's
less intrusive than a pre or post roll ad, and has far better
performance than ads placed around a video. It's likely to become the
standard way ads are placed on video, even potentially on normal
television as the thirty second ad spot continues to decline.

Given VideoEgg's success with the unit it's no surprise that YouTube
has adopted the same format with their advertising. But it is
surprising that YouTube failed to give even a passing mention to the
company that invented the unit. VideoEgg also claims to have a patent
application on this - something YouTube will certainly have to deal
with down the road.

Nick Carr points out that much of the early press on YouTube was
written by people who failed to do their homework. Carr trashes a CNET
article that he says was basically an ad for YouTube. CNET
subsequently changed the title of their article but there is still no
mention of VideoEgg's invention of the unit

Meanwhile, VideoEgg seems to be handling the situation well and taking
advantage of the publicity. They added the graphic above to their home
page, and are talking to press about their product. Suddenly, everyone
is interested.

Flash and H.264: Together At Last

Adobe's latest version of the Flash Player puts two powerful video
codecs in a single, integrated platform.

Mark Randall, chief strategist in the Dynamic Media organization at
Adobe Systems, was obviously excited about the pre-announcement
conference call to announce the inclusion of H.264 playback in a new
version of the Flash player, code-named "Moviestar."

"I'm excited about this announcement," said Randall. "I've spent my
career trying to continuously put better quality pixels on computer
screens and this announcement could have more impact than all my
previous work combined."

Adobe's Flash 8 Video, powered by the On2 VP6 codec, is a very good
codec, and Adobe has a license option on On2's newer codec, VP7, which
is arguably better than H.264 in that it provides equal quality with
lower processing requirements. But, as Randall and others have pointed
out, VP7 was announced during the production phase of the newest
version of Flash CS3, so its day will have to wait until the next
version of the content creation software.

H.264 support, on the other hand, has been built into Flash CS3, so
it's possible to encode content into H.264 as part of the standard
Flash workflow. It's not been of particular benefit to the Flash
community, however, as no Flash Player was capable of playing back
H.264 content (the current Flash Player 9 is, however, capable of
playing back VP7 content created in other software tools and saved
with the FLV extension).

H.264 is a standards-based codec that is used by Apple for many of its
QuickTime-encoded movie trailers and special events, and the codec has
seen growing adoption as part of both Blu-ray and HD-DVD, the
high-definition replacements for traditional DVD video playback. Adobe
also intends to adopt H.264 as part of its upcoming Adobe Media
Player, which is slated for release in the first quarter of 2008.

"H.264 is already a broadly adopted industry standard," said John
Loiacono, senior vice president of Creative Solutions at Adobe, in a
press release. "Its inclusion in Adobe Flash Player, the Creative
Suite product line, and the upcoming Adobe Media Player will
accelerate customer workflows, enabling the creation and repurpose of
high-quality web video content without extra development costs."

That ability to repurpose or reuse content is of interest to content
creators whose video and audio content is slated to be used on
high-definition DVDs and the web. Adobe has pledged to support H.264
profiles at both low- and high-bitrates, including profiles up to
1080p. And with the inclusion of hardware acceleration to offload some
of the processing requirements from the client CPU to their graphics
card, content creators won't have to limit their web-delivered content
to a quality significantly different from the user experience
delivered by BluRay or HD-DVD on a larger screen. "Our hardware
acceleration testing has been very broad," said Randall. "We don't
want consumers to have to go out and purchase the latest, high-end
$500 video card just to be able to accelerate playback, so we've been
working on an extensive list of cards that will support
hardware-accelerated Flash content playback, which includes scaling to
the screen."

In addition to the H.264 video codec, the new Flash Player will also
support AAC+ or AAC High Efficiency audio encoding. This codec,
allowing for high-complexity and better high-frequency response, has
been around for several years but has not seen widespread adoption, in
large part due to the fact that iTunes and the iPod are geared toward
the traditional AAC low-complexity codec in order to maintain
compatibility across all iPods, including first-generation devices
unable to decode AAC+ for proper playback

Google's YouTube To Sell 'Overlay' Ads On Select Videos

NEW YORK -(Dow Jones)- YouTube, the popular video-sharing site owned
by Google Inc. (GOOG), plans on Wednesday to start offering
advertising within certain partners' videos using an "overlay" method
it expects will be a boon to advertisers and content creators without
irritating wary consumers.

The overlay ads are the first of several "innovative" ad types YouTube
intends to introduce, the company said. Online video is an exploding
area of Internet use, but one where successful ad models are only
beginning to emerge. The moves by YouTube - the Internet's
most-visited video destination with 189 million users worldwide in
July, according to comScore, and distributor of some three billion
minutes of video each month - will be closely watched. If successful,
the ads could boost Google's already fast-growing revenue while
reducing tensions with media companies over compensation for
copyrighted content appearing on YouTube.

YouTube's new ads involve a semitransparent, animated overlay that
appears at the bottom of videos during the first 20 seconds of play
and then disappears after 10 seconds. Consumers can close the overlay
before it goes away or click on it to launch an ad, currently a video
of any length or a flash-animation ad that can link to a Web page. The
click-to-play ad pauses the video in a kind of voluntary commercial
break, and the video resumes when the ad ends.

In one example provided by YouTube, a Warner Music Group Corp. (WMG)
video for pop-punk band Madina Lake's song "House of Cards" includes
an overlay ad for " The Simpsons Movie" from News Corp.'s (NWS) 20th
Century Fox that shows a rolling pink doughnut with Homer Simpson in
pursuit. Clicking on the overlay launches a trailer for the film.
Also, car maker BMW AG is testing two different ads, one featuring a
television ad for its 3-Series Convertible and another as part of a
cheeky "Relearn to Drive" campaign for its performance driving school.

YouTube said the ads are engaging to consumers without being intrusive
and avoid annoying them by letting them control how involved they want
to become. The format also encourages advertisers to create
high-quality ads that win over consumers.

The approach could prove much more effective than other ad types, such
as pre- rolls, which are video ads shown prior to video clips. Eileen
Naughton, director of media platforms at Google, said early tests show
that less than 10% of viewers close the overlay, five to 10 times more
people click on the overlay than on a standard display ad, and three
quarters of viewers watch the click-to- play ad to the end. That
contrasts with pre-roll ads, which are shut off by as many as 70% of
viewers, she said.

"Ads have real value as information when a user is interested and
searching for something or engaging with something they're interested
in," Naughton said.

YouTube promises advertisers several ways to target their ads to
consumers who are more likely to be interested in what they're
selling, including by choosing YouTube channels on which to advertise,
video genre or content, user demographics and geographic locations,
and time of day.

YouTube has been testing the ads for several weeks with a handful of
content partners, who receive a share of the revenue that's similar to
what Google gives partners in its keyword-based text advertising
network, estimated at a sizable 70% to 80%.

Advertisers will pay a flat rate of $20 per thousand consumer
viewings. In addition to the overlay and click-to-play ad, they get an
ad unit beside the video player. The price is similar to that of other
in-video ad units, such as pre-rolls, said Rinku Mahbubani,
interactive media supervisor at GSD&M, a unit of Omnicom Group Inc.
(OMC) that designed the BMW ads.

While Mahbubani hasn't seen reports on the success of the ads yet, "we
definitely think it's the way the future of video advertising is going
to go," she said. "You're going to get people who are truly interested
in your brand clicking through." And because there is no limit on the
length of the click-to- play ad, marketers can "go beyond the creative
limits of the 30-second spot," she said.

"We expect that there are going to be all kinds of engaging (ad)
models here," said YouTube Group Product Manager Shashi Seth. "This
opens up a whole pallet of possibilities" for advertisers

YouTube Ad Plan Shuns Pre-Rolls

On selected YouTube clips, animation will fill the bottom fifth of the
screen with 10-second advertiser messages.

NEW YORK Google, fond of its image as an unconventional company, is
bucking standard pre-roll video spots in its introduction of ads to
YouTube.

Instead, Google is casting its lot with "overlay" ads: transparent,
Flash-animated placements that appear on the bottom of the screen
while videos play. Users can click on the ads to pause the clips and
watch commercials without leaving YouTube.

While 15- and 30-second pre-roll spots, most often repurposed TV
commercials, make up the overwhelming majority of video ads, YouTube
said consumers find them irritating and distracting. A 15-second spot
placed before YouTube videos resulted in a 75 percent abandonment
rate, said Shashi Seth, a YouTube group product manager. The overlay
style generated just a 10 percent drop-off, he said.

"We found that with pre-roll and any video advertising that interrupts
the viewing experience itself, the abandonment rate was so high we
didn't feel comfortable launching with it," he said.

Now, on selected YouTube clips, animation will fill the bottom fifth
of the screen with 10-second advertiser messages. Users can close the
ad; clicking on the spot brings up a smaller window with a longer
video or other advertiser message. In its test, Google said the ads
got click rates of 1-2 percent, with 75 percent of clickers watching
the message all the way through.

In shunning pre-rolls for targeted ad invitations, Google is borrowing
a page from several startups, including VideoEgg and ScanScout, which
have tried overlay video ad features.

Google has signed up 3,000 professional content providers (such as
CBS) and 70 independent YouTube creators for the overlays; it will
split revenue with those producers, Seth said. Google has no plans to
place advertising on user-generate clips, he added.

It is launching with six advertisers, including New Line Cinema and
Warner Music, at a cost-per-thousand viewer rate of $20. In one
execution running in a music clip, 20th Century Fox promotes The
Simpsons Movie with an animation of Homer chasing a doughnut across
the screen. Clicking on the spot brings up the movie's trailer in a
small video player.

"It's not just handing your 15 or 30 to a publisher," said Ian
Schafer, CEO of Deep Focus, a New York digital agency. "It's actually
creating an ad unit, which shouldn't be that big of an issue, but it
is. It requires a little bit of creativity."

The program envisions using Google's expertise in ad targeting to
tackle another common complaint of pre-roll spots: users often view
the same ads several times per visit. Now, Google will allow
advertisers to target ads on four criteria: sex and age; geography;
time of day; and video genre.

In fact, thanks to YouTube's high volume of video views per day, users
will rarely see ads, Seth said. "We're hoping it will be infrequent
enough they won't notice," he said.

Nate Elliott, a research analyst at Jupiter Research, criticized the
approach, saying Google would do better mixing overlays with pre-roll
clips, while adding frequency and time limits.

"These don't necessarily improve the user experience at all, and they
take away a lot of value for the advertisers," he said. "That's not a
good trade-off."

Tuesday, August 21

DreamWorks Animation, Paramount choose HD DVD

LOS ANGELES (Reuters) - Viacom Inc's (VIAb.N) Paramount Pictures and
DreamWorks Animation SKG Inc (DWA.N) said on Monday they will release
their next-generation DVD titles exclusively on HD DVD ahead of what
they say could be the biggest holiday season ever for DVDs.
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Paramount had sold titles in both the new high-definition formats --
HD DVD and Blu-Ray -- but settled exclusively on HD DVD after deciding
it offered better quality, lower-priced players and lower
manufacturing costs, Kelley Avery, president of Paramount Home
Entertainment, told Reuters.

"This has been the biggest summer on record for movies, it will be the
biggest fourth quarter for popular movies for consumers," Avery said.
"At the same time, we have HD DVD players that are truly affordable."

HD DVD and Blu-Ray are waging a battle to dominate the next generation
of DVD players that promise better pictures, sound and in some cases
more content in the multibillion-dollar home-entertainment arena.

So far, most of the major Hollywood studios are selling Blu-Ray
titles, which have outsold HD DVD by 2-to-1 in the United States.

"The decision seems oddly timed given Blu-ray's tremendous momentum
both with consumers and retail," Blu-Ray's U.S. promotions chairman,
Andy Parsons, said in a statement.

But some HD DVD supporters hope to broaden their appeal to consumers
based on cost. The lowest-priced, stand-alone HD DVD player sells for
$299, compared with $499 for the lowest-cost Blu-Ray option.

Parsons said the price difference between the new formats was falling.

Paramount's first releases under the exclusive HD DVD program include
"Blades of Glory" on August 28, and summer blockbusters "Transformers"
and "Shrek the Third," due for release this autumn.

"SHREK" PREFERS HD DVD

DreamWorks Animation, maker of the blockbuster "Shrek" animated movie
franchise, had not committed exclusively to either high-definition
format but was swayed to HD DVD by the lower-cost player, DreamWorks
Animation Chief Executive Jeffrey Katzenberg said.

"They have a high-quality consumer experience that is now being
offered at a price point that we believe is going to connect with the
consumer," Katzenberg told Reuters.

Katzenberg said timing also played a part, with the holiday season
"sure to be the biggest quarter in the history of the home-video
market" and consumers facing the 2009 switch to a high-definition
broadcast signal.

"This seems to us to be the right product at the right price at the
right time," Katzenberg said. He added that sales for high-definition
discs were much too small to declare either format dominant.

DreamWorks Animation titles are distributed on home video and DVD by Paramount.

The exclusive agreement does not include movies directed by Steven
Spielberg for DreamWorks SKG, a Paramount unit. It does include all
other movies distributed by Paramount, DreamWorks, Paramount Vantage,
Nickelodeon Movies and MTV Films.

HD DVD was developed by Toshiba Corp and backed by Microsoft Corp
(MSFT.O) and is supported by Warner Bros, Universal Studios, New Line
Cinema, HBO and the Weinstein Co.

Blu-Ray discs use Sony Corp (6758.T)-backed technology and are
supported by most of the major U.S. movie studios.

Both formats came on the market last year. Blu-Ray outsold HD DVD
2-to-1 in the United States in the first half of 2007. An estimated
3.7 million high-definition discs have been sold, overall, including
2.2 million in Blu-Ray and 1.5 million in HD DVD through July,
according to Home Media Research.

Flash Player to support H.264 video

The third beta version of the Flash Player will support the industry
standard H264 video compression used in BlueRay and HD-DVD players.
This will make web video easier than ever - also for the content
producers.
H.264 is a highly efficient compression codec that aims to solve most
problems with existing video codecs. Often referred to as MPEG4, the
codec is able to scale from mobile phones to HD and beyond. It is a
well documented ISO standard and completely vendor independent. It can
be used for both downloadable or streamed video and it is already in
wide use as the format for digital TV transmissions (DVB-T, ISDB-T DVM
and more). What's so great about this then? The most important will be
the need for video content producers to encode to only one format. The
resulting file can then be played back using the Flash Player,
Quicktime, Windows Media and other video players supporting the codec.

Google / YouTube recently started the conversion of all content to
H.264 making it possible to play all their videos on mobile phones
such as the Apple iPhone and a wide range of other devices. The Flash
Player update also adds some support for the mobile video file format
3gp (based on H.264) and the professional AAC audio codec. This is a
great move from Adobe that will save some headaches with content
providers, but it will also somewhat reduce the Flash Player's
importance in the video field.

The last few years, Flash video has been THE solution since next to
everyone has the Flash Player installed. The drawback of this solution
was that content providers got into a vendor lock-in since the FLV
video files could only be played back using Flash Player. Now, we'll
get a file format that all the major software video players can use.
This makes it easier than ever to change what video player solution
your site uses and ensures access to a huge selection of video
encoding tools (If you use popular tools such as Sorenson Squeeze,
Final Cut or Adobe Premiere, you are already able to encode H264/MPG4
files). Another great advantage is that content providers can now use
dedicated hardware for compressing video, something that will
seriously speed up the encoding process. The new player will be
available on labs.adobe.com this afternoon

Adobe's 'MovieStar'

Adobe today announced the latest version of its near ubiquitous Web
video software, Adobe Flash Player 9. It's codenamed Moviestar,
because it includes H.264 standard video support – the same standard
deployed in Blu-Ray and HD-DVD high definition video players. In other
words, the quality of video has been substantially improved from the
previous version of Flash Player 9. Also added to the mix is High
Efficiency AAC (HE-AAC) audio support and "hardware accelerated,
multi-core enhanced full screen video playback".

Adobe claims that these advancements will extend their leadership
position in web video "by enabling the delivery of HD television
quality and premium audio content".

The new Flash Player will be available later today as a beta at Adobe
Labs - and the final release is slated to be available in the fall
(September - November). The last big update to Flash Player was the
launch of Flash 9 in June 2006.
Adobe: This is Tipping Point for H.264

I spoke to Mark Randall, Chief Strategist for Dynamic Media at Adobe,
about the news. He told me there were three main points to the
Moviestar release:

1) The H.264 support means superior video quality; it is also an open standard.

2) High Efficiency Advanced Audio is, says Mark Randall, a "successor
to MP3". He said it is a higher quality audio, but at a lower bit
rate.

3) It means "hardware acceleration" for Web video.

Randall also said that this represents a tipping point for the H.264
standard, because now Flash Player is supporting it as well Blu-Ray -
two big industry players.
Richer Platform for Online Video Producers

As well as the consumer benefits, this also gives online video
companies a platform to deliver richer Flash experiences on the
desktop, Web and H.264 ready consumer devices. As well as the new
Flash Player, H.264 playback will be supported by the Adobe Integrated
Runtime (AIR - a platform to create rich Internet applications to the
desktop) and applications developed with Adobe AIR software, including
Adobe Media Player in late April.

Higher quality online video is great news for consumers and producers
alike - especially in a near ubiquitous media player like Flash
Player, which is used on YouTube, MySpace and other major platforms.

Monday, August 20

Google's AdSense to Distribute Videos

LOS ANGELES (AP) -- Short Internet videos from the creator of the
animated TV show ''Family Guy'' and Raven-Symone, star of the Disney
Channel show ''That's So Raven,'' will be distributed over Google
Inc.'s AdSense network, it was announced Thursday.

Media Rights Capital, the financing company that backed last year's
film ''Babel,'' is supporting the two projects. Terms of the deal were
not disclosed.

The programs will appear in a video box that a user would click on to
start. The box will be packaged with banner advertising and video ads
that will appear either before or after the programming.

The videos will be distributed to numerous Web sites served by
AdSense, which places targeted advertising across the Internet.
AdSense signed a similar distribution deal last year with Viacom
Inc.'s MTV Networks.

Media Rights Capital will work with Google to target Web sites most
appropriate for its content, the company said.

''We feel this partnership answers the question of how best to reach
viewers online, because the Web is fragmented into millions and
millions of viewing destinations,'' said Asif Satchu, co-chief
executive of Media Rights Capital.

Seth MacFarlane, creator of ''Family Guy,'' will produce short videos
featuring new characters, while Raven-Symone will be in a ''how-to''
show, the company said.

The company said the distribution deal was preferable to aggregating
content on one site. Distributing content through AdSense means the
videos reach a broader audience, which would include new sites as they
pop up.