Featured in Forbes Magazing on
May 21, 2007
By Quentin Hardy
Big Media strikes back with
Web video almost as good as real TV.
Until recently the internet strategy
for broadcasters like Disney's ABC, Fox , Time Warner (nyse: TWX - news - people ) and Televisa was to promote shows
online so people would go watch them on a TV set. Their
big fear was that a generation of viewers would throw
over traditional television for jerky, five-minute
productions on YouTube.
But maybe short attention spans were
just a function of bad technology. A handful of show
producers are trading in the Web's old flavor of video
delivery (the dominant one being Adobe Systems (nasdaq: ADBE - news - people )' Flash) for newer technologies that deliver clear
and smooth streamed images. Their supposedly
attention-deficient viewers are suddenly half-hour fans
again.
"We've got them for 22 minutes a
session, compared with 3 or 4 minutes," says Ronald
Berryman, senior vice president at Fox Interactive
Media. Fox and ABC insert sponsors' names, such as
Clorox and Allstate (nyse: ALL - news - people ), right before the show and above the viewing box
while the show runs. "We can increase advertising and
deliver long-form content."
A company called Move Networks in American Fork, Utah is at the forefront of
this next evolution. Move does for video what voice over
Internet networks did for telephone calls: It breaks up
the video into bits and efficiently reorganizes them
over the network so there's no need for the special
computer servers and dedicated transmission lines
required on streams using Flash. Shows such as Fox's 24 and Prison Break , ABC's Lost and Grey's Anatomy, and the CW Network's Everybody Hates Chris are now being streamed
using Move software.
Move executives say they handle more
than a million full episode streams a week, and
viewership has doubled every month. Move says it is now
delivering as much as 200 terabytes, or 200 trillion
bytes, of streams per day (the average is 80 terabytes),
roughly in line with YouTube but more than the Web sites
of CNN, NBC and CBS.
Fox, which tested Move Networks'
technology on the Web sites of 24 of its affiliates last
year, plans to expand to 200 affiliates this summer and
give consumers video-editing tools so they can produce
their own brief programs. Another broadcaster, which was
paying $1 million a month to deliver jerky versions of
its shows, expects those costs to drop up to 85% with
Move.
Move, like Flash, requires users to
install a software player. But unlike YouTube-style
Flash video, which fetches streamed bits in a series of
requests from a set of servers at the sender's end, Move
gets bits from the closest storage cache (similar to
technology from Web video giant Akamai) and brings them
back to the screen at the best streaming rate based on
the network's traffic load. It uses standard Internet
protocols, which means it can take advantage of the many
server farms around the world that offer up Web pages.
Both ABC and Fox say there is nothing else that can
stream at this scale.
Move, with 55 employees and $22
million in funding from Hummer Winblad and Steamboat
Ventures (Disney's venture capital arm), has been in
business for five years. It started out as an attempt to
move large files by e-mail (thus the name Move Networks)
but switched to video delivery in 2004 once its
founders, both from Novell (nasdaq: NOVL - news - people ), realized that video was going to be a dominant
medium online. "People may want to watch chunks, but
more people want to watch long forms," says Chief
Executive John Edwards. "The industry just had to solve
the glitches."
Quality and profits. How
radical can the Internet get?