At Zype, we find that our customers are often challenged by the need to present detailed forecasts to stakeholders, management, and creators in their network that show how a video business can grow.

As a software company, we can relate to this challenge. In our early stages, we also had to build models that allowed us to run our business and communicate growth potential to investors.  We were lucky to have great resources in the marketplace from leaders in SaaS, like Christoph Janz from Point 9 and his great SaaS Metrics model. In fact, we were lucky enough to have Point 9 invest in Zype a few years after we adopted the model they put together for young SaaS businesses.

We noticed that there wasn't anything for video businesses to rely on to provide similar value in forecasting.  Content owners considering or running SVOD based revenue model need basic tools to see how their investments might perform. We've been building these models for our customers for a while and thought it would be a good idea to share a version with everyone.

We are happy to share this revenue forecast spreadsheet for video subscription businesses. Just click the link below! Be sure to also make a copy, and plug in your own numbers.

PS - We are working on a Video Business Metrics model (which would get a bit deeper than this in evaluating some core business drivers). Stay tuned!

Revenue Forecast Spreadsheet for Video Subscription Businesses

At the beginning of 2017, Cable TV had its worst quarter yet after losing around 762,000 of their TV subscribers. Traditional media companies’ viewership is down across the board—Disney,  ESPN and entire sports leagues like the NFL, NBA, and MLB are all losing massive amounts of viewers. ESPN, for example, has lost over 10 million subscribers since 2011 and recently had to fire a slew of journalists and on-air personalities to adjust.

The writing's on the wall. People are changing how they consume video and more and more people are choosing to ‘cut the cord.’ As cable viewership is on the decline, the demand for sports live streaming has grown in particular, and it’s become more accessible than ever with the rise of user-friendly video CMS platforms. Now, everyone from national league games to local high schools is able to capitalize on the demand for live sports streaming.

In that same quarter that cable had an exponential drop in subscribers, Twitter aired more than 800 hours of live streaming content from over 400 events ranging from politics, sports, news, and entertainment. These numbers beg the question: why is sports live streaming so hot?

Traditional media and major sports leagues aren’t sitting back while they lose their subscribers. In fact, it has driven them to experimentation and testing for survival. For example, the NFL recently experimented streaming their “Thursday Night Football” games on Twitter so fans could watch NFL games in HD on their phone. While Twitter will not be streaming NFL Games in the future (the NFL struck a $50 million streaming deal with Amazon instead), the short-run live streaming partnership was one of the first of it’s kind of this magnitude.

The Houston-based Texan Live saw a similar opportunity with a subscription and advertising-based streaming service in their local market (the 8th largest DMA). Texan Live uses Zype Live to power their on-demand subscription and live video network and they haven't looked back since.

With the massive movement of pay-tv subscribers to alternative sources, the money had to go somewhere. However, the syndication of live sports events is so rooted in traditional media-based relationships that it’s a huge indication of where video streaming is headed.

 Can you imagine an ESPN without live sports? 

If sports leagues like the NFL start to see a higher return from partnerships with live streaming platforms such as Amazon, Twitter, and other OTT apps, then we could very well be looking at an entirely different landscape in just a few years.

Live streaming isn’t just for the big fish. Smaller scale sports networks have the ability to capitalize on the trend as well. With a content management system (CMS), local and regional sports networks can use live streaming to tap into a much larger network and leverage social media platforms to magnify their distribution.

The powerful ability to deliver the same live stream, at the same time, to every screen through one seamless platform is the obvious next step for local sports networks such as Texan Live. They are creating localized digital communities around their live sports content. These partnerships also allow sports leagues, as well as local content producers and broadcasters, to own their revenue and audience like never before—without the interference of a middleman.

Get ready for the next wave of local, national and international sports live streaming. You thought cable and satellite networks exploded the sports broadcasting landscape? How many streaming local ESPNs or MLB.tvs are out there? Request a demo and get ready for the tsunami!

Sports Live Streaming Is Red Hot From National League Games To Local High Schools

The video content creation industry has been through a series of tumultuous changes in recent years. The mass migration of viewers to video streaming platforms, followed by content owners and creators completely changed the landscape of how content makes its way to viewers’ screens.

This ongoing shift of power from traditional cable providers to video streaming platforms has created a dynamic environment. Traditional entertainment companies are seeking new avenues of content distribution and monetization. At the same time, “YouTube first” content creators like PewDiePie and Philip DeFranco are increasingly looking to move their premium content onto more stable and better monetized environments.

While there are stark differences between the two groups of content producers, both are focused on building independent Vertical Networks comprised of: owned & operated websites, YouTube channels, social media outposts, in addition to distribution on platforms such as Roku, AppleTV, Amazon FireTV, and Smart TVs.

While video streaming platforms such as YouTube had a great concept that played on viewers’ desires for instant gratification and curation, in the early days there wasn’t a lot of attractive content available.

The transformation of these video streaming platforms into today’s mainstream culture was built on the backs of content owners who were willing to take the risk and explore new avenues. As streaming platforms gained more traction with viewers and carved a larger slice of the video content market share, the platforms matured into more powerful entities.

With this new-found power, streaming platforms gained the ability to attract more content owners and fund the creation of their own content. It also allowed them to implement stricter, less favorable revenue sharing agreements with content owners.

These “take it or leave it” ultimatums—which didn’t happen during YouTube’s first decade—have created one of the first labor issues in the digital age. YouTube and Twitch streamers, who could be viewed as employees of YouTube and Twitch, have recently started to encounter rocky times. Streamers who rely on YouTube and Twitch for their full-time income face the risk of being swept up in algorithmic or business changes.

For example, YouTube’s ongoing ad pulling controversy (due to certain videos being labeled inappropriate) has hurt content owners. The most famous case was when PewDiePie —a YouTuber with over 55 million subscribers—saw a significant decrease in his ad revenue because of YouTube's  stricter advertising standards ( due to significant pressure from advertisers). While this case may be of one of the most famous examples of a YouTuber feeling the pinch, it isn’t the first or last. Just ask Philip DeFranco.

It’s important to reiterate that content owners always have the power because of their content. Video streaming platforms rely on content to attract viewers, and in turn, viewers create revenue by watching ads.

While video platforms provide a huge audience from the sheer amount of traffic on the sites, content owners have the massive responsibility of building, maintaining, and monetizing their audiences.

With a dizzying 1.3 billion people using YouTube, it’s easy to overlook any alternative routes. But the power and responsibility to keep subscribers, content, and revenue potential ultimately lies with you, the content owner.

When you take full ownership of the entire process, you are able to insulate yourself from any algorithmic or business model risks that are inherent with video streaming platforms.

The crux of the streaming platform issue is, “Who owns the audience?”

As the content owner, you also own the audience, whether you’re a traditional entertainment company or a “YouTube First” creator. Content owners that build loyal followings—not only on their streaming platforms, but across all social media platforms and even their own websites—provide valuable and monetizable entertainment for their audience.

Ultimately you have the power to build new revenue opportunities independent of YouTube and Twitch—revenue opportunities that are 100% yours using transaction and subscription business models. You should still use advertising and sponsorship models wherever you’re streaming your content. Streaming platforms like YouTube can evolve to be a key fan outpost that supports building audiences and redirects them to higher revenue opportunity distribution platforms.

In order to move beyond relying solely on video streaming platforms, organization is paramount. Organizing into labor unions or other organizations is great, but it’s equally important for content owners to organize around the content and ideas that drive audiences to their content in the first place. Fans aren’t interested in revenue disputes with YouTube and Twitch. Content owners who solely organize around labor disputes won’t build on their audience's interests.

Being independent means taking full control of your livelihood. You have the opportunity to partner with like-minded independent content producers for the benefit of your subscribers. For example, think about how ad networks are organized based on interests and demographics. This could be an organizing principle for independent content producers and talent (e.g. JASH, Funny or Die). What form this takes is ultimately up to you.

The power will always lie with the content creators and owners. Corporate giants don’t necessarily have the power to dominate how your content is distributed and monetized. Just think of the stark differences between how the music industry operated 20-30 years ago, versus how it operates today.

While mass audience platforms like YouTube and Twitch are user-friendly, fans will always seek out the content they value and enjoy. Today’s content owners have the opportunity to build and nurture audiences across a variety of platforms that minimize risks while increasing their revenue upside. The variety of video money making models (ad-supported, subscription, transaction, donation, sponsorship) offers a path to independence and power. The time is now for creators and owners to strategize, prepare, and stay ahead of the game.

Ready to take ownership of your audience and revenue? Request a demo to see how Zype can help you build new revenue opportunities independent of YouTube.

Content Owners: You Have The Power, Time To Seize It

When you want to get your content on streaming devices like Amazon Fire TV, Roku and Apple TV, you know you have a daunting task ahead of you. With a plethora of OTT options available, your first step is deciding on a platform to build out your OTT service.

It’s important to pick a platform that aligns with your business goals and resources because this is going to be your foundation for everything: uploading, transcoding, content management, VOD and/or live streaming, monetization, couponing, analytics, digital rights management and distribution.

When evaluating different platforms, there are a couple of key points you should carefully consider as you navigate the tricky waters of OTT platforms. Your decision should be based on the following areas and what you want to get out of them for your video business.

There are two pricing models that exist depending on which platforms you’re evaluating. The first is revenue share, which allows you to get started with no upfront capital investment will continue to take a significant portion of revenue as you grow. Revenue share platforms also have other restrictions and provide less control, so pay careful attention to any terms of service for the OTT options you’re considering. The second option is a platform purchase with a software licensing model. Here, you pay a recurring fee for your ongoing use of the technology. The benefit is that all the revenue you earn from your business goes directly to you and your costs don’t change according to your business’ revenue growth. This allows for complete revenue ownership and the flexibility to make business decisions around your content.

Questions to Ask: What’s the platform’s pricing model? How would I receive payments from subscribers and content transactions? Who owns the IP?

How do you plan to monetize your content? It goes without saying that your OTT platform will need to support whatever monetization method you choose. For instance, if you plan to run ad-supported VOD in complex setups for ad bundles, you’ll want a quality SSP solution like Google, Fybr or SpotX to help with those fills. Don’t forget to confirm that your potential provider can support advanced configurations and ad insertion points. In fact, you should consider a platform that supports multiple monetization methods — SVOD, TVOD and AVOD — so that you can ensure flexibility within the platform as your own business grows and adapts.

Questions to Ask: Which monetization models are supported on your platform? How complex can our ad setup be? Can I pre-sell TVOD or SVOD ahead of their live dates? Can I do AVOD, TVOD and SVOD at the same time? What fees are associated with setup?

The resources needed to manage content and build out a solution can be significant. Make sure to take into account your current resources available to manage an OTT solution, along with any technical requirements to get to market. You’ll likely want a platform that is intuitive, dynamic and simple to use.

Questions to ask: How sophisticated does your platform’s end user need to be? How long does it take to get up and running within your platform, including video import and time to go live? How many team members do I need? Are you a self-service or full-service team?

Analytics are the lifeblood of your video business, so it goes without saying that understanding your video analytics is crucial for future content decisions. Look for a platform that gives you insight into multiple areas including content performance (most watched, most requested, etc.), monetization (total revenue, new subscribers, total subscribers, new and total transactions), and comprehensive video analytics (average play, total plays, stream hours for live and VOD, viewer demographics, device information, etc.). For example, if you are seeing a high rate of Roku plays but the starting point is Xbox, you want to know that information as it gives a lot of insight into your audience.

Questions to Ask: Which analytics do you offer and how often are they updated? How granular can I get? Can I export the data? Can you give me trending info on my users and the content entry points by user?

If your content changes frequently or you have a consistent publishing schedule, look for a platform that enables you to set publishing activation and deactivation times for content. Automating this aspect will remove the need to manually monitor and curate content.

Questions to Ask: Is it possible to schedule content publication? How can I structure playlist and automate video ingestion? What dynamic features do you offer around publishing?

Content access rules can restrict the display of content based on geography and device across your entire library, or just for specific videos. You may have content licensing rules or want to plan a coordinated rollout into different markets or devices. As such, it will be important for you to select an OTT platform which can provide flexibility in terms of access rules.

Questions to Ask: Can I limit access to my content by geography and device? What options do I have around pre-selling my content ahead of time and allowing those partners to benefit from that on my OTT platforms?

The extent to which your platform provider lets you create custom metadata — allowing you to go beyond simple title and description — can open up new video SEO and content management opportunities. Custom metadata can amplify your marketing and promotion efforts to increase discovery, as well as give you the ability to organize and present your content in ways that are unique to your business and appreciated by your audience.

It’s a tremendous undertaking to take on custom development across all the disparate devices you’ll want to reach. Look for a platform or partner that has ready-to-use app templates or Software Developer Kits (SDKs) that provide a solid foundation to speed up time-to-market and reduce costs. The whole OTT world is quickly moving to a feed-based setup to accommodate any environment, as a result, for the first time in a long time spending tons of money on custom and complicated OTT apps isn’t the best investment.

Questions to Ask: For which devices do you provide app templates or SDKs? What is your average build time and response time in your terms of service?

Finally, look for a platform provider that understands the OTT industry and will stay ahead of the curve as new devices enter the market or additional requirements arise. Assuming that you want your content on devices like Opera TV, Apple TV and Amazon Fire TV, you should be looking at platforms that concentrate on OTT rather than general video platforms that are multi-purpose and lack product focus.

Questions to Ask: What’s your product roadmap? How often do you release new features and platform updates? What are your common customer profiles? What type of customer gets the most out of your platform?

Going OTT is a major decision; however, it’s almost always a good one. This series is meant to help you weed out the lackluster choices, and make sure that you end up with the best OTT platform to meet your needs. Think that Zype can help? Request a demo today!

Hoping to have this information with you wherever you go? Download this PDF!

What are the Top 9 Features to Look for in an OTT Platform?

Happy summer solstice! We’ve been busy working on product updates to make the most of the long summer days. Check out what’s new:

If you use playlists, you may already be utilizing smart ordering to automate the ordering of videos displayed to your audience (for example, order all videos from A to Z).

We’ve taken it one step further and improved the smart ordering feature to allow you to set ordering at multiple levels. Now, you’re able to set a 1st level order (for example, group videos by published date), and then apply a secondary sort order to each sub-grouping of videos (for example, sort by A to Z).

This provides powerful new automated capabilities for ordering content within your playlists.

Check out Zype Live! Haven’t upgraded yet? See some benefits of our Live workflow including flexible monetization options, powerful distribution, and access to awesome features like easily archiving your live streams to VOD.

Want to master live broadcasting? Learn more by checking out our recent webinar here.

 Improved User Experience for Managing Playlist Relationships 

We’ve improved the experience for managing playlist relationships within the dashboard.  Now, when you drag and drop a group of nested playlists (or “parent” playlist) you will see all of the children moved along with the parent. This makes it easier to manage playlist relationships, especially if you’re moving large groups of playlists around.

Think any of these updates can help your video business? Request a Zype demo today!

What’s New At Zype This Week: Playlist Smart Ordering, Improved Playlist Management UI

What’s New At Zype This Week: Improved playlist smart ordering, improved User Experience for Managing Playlist Relationships

In recent years, the digital video industry has experienced a boom like never before.

Today, a third of all online activity is spent watching videos. The sheer number of content consumers has triggered an influx of video creators looking to take advantage of the spike in traffic. Content creators from all types of industries have started to look towards video as the next frontier in the search for exposure, audience development, and creative expression.

It’s become standard for podcasters to simultaneously release audio and video versions of their podcast to appeal to a broader audience. Video Podcasting is a powerful tool that can help grow your fan base and allow you to create consistent, engaging content.

If you have been podcasting for a while, chances are that you’ve mulled over the idea of adding a video component to your podcast. If you’ve felt any hesitations about breaking into the world of video content, don’t fret - you’re not alone.

Refining your goals and setting metrics for success is often one of the most overlooked steps for video podcasting, let alone for all digital media endeavors, but this stage is pivotal for a successful video podcast.

Begin by asking yourself: why do you want to start video podcasting?

At a superficial level, many new video podcasters want to take advantage of the new sources of traffic. However, there’s going to be a fair share of competition fighting for exposure. There has to be something that sets you apart, whether that be your content, creation style, or marketing strategy.

If you are posting your videos to YouTube without actively promoting them, engaging your audiences, and using audience feedback to adjust your video strategy, then your video channel will merely become a repository for your content.

Those who venture into video podcasting often find that it can become incredibly rewarding, but also very time-consuming. This is why it’s important to create key performance indicators (KPIs), and SMART (specific, measurable, attainable, realistic, and time-based) goals. This will help you to justify the process and see if there is a return on your investment of time, money, and efforts.

 Know Thyself, Thy Subjects, Thy Audience 

Before committing to video podcasting, it’s important to understand the expectations you are setting for yourself, and devise a plan on how to meet them. Video podcasting can take a lot of work and often require multiple videos a week. Without an adequate process to film, edit, upload, and market your content—you’ll end up spending your days slogging along and struggling to keep up with your goals. Your best bet is to equip yourself with software that can help streamline and automate some of the processes so you can focus on creating content. Additionally, a huge part of any sort of content creation is a ruthless refinement of what your main subjects of discussion are.

It’s important to understand and constantly benchmark whether your content is staying on track with user expectations. For example, if your podcast is primarily branded as a marketing advice podcast for entrepreneurs and you’re creating cooking videos, you’ll start to chip away at the cohesiveness of your brand.

It is key to understand what your audience likes and dislikes in terms of topics and execution. This can be done by gathering feedback from the people who are watching your videos, as well as looking at video analytics to understand what sort of patterns arise from minor tweaks to your videos.

You can also look at your audio podcast analytics to get a better idea of who the audience is and who the video should target. The next step is to create an event schedule to keep your audience interested.

There’s a lot to establish before the actual filming of a podcast. You must understand your audience and establish a general theme for your content. Also, make sure you have the means to produce content on a frequent basis.

Curious to see what’s next? Stay tuned for part two of How to Start a Video Podcast.

Do you think that Zype can help you start video podcasting? Request a demo today!

How to Start a Video Podcast: Part 1

Zype's CEO on DEW Webinar: Optimizing OTT Distribution

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Revenue Forecast Spreadsheet for Video Subscription Businesses

Sports Live Streaming Is Red Hot From National League Games To Local High Schools

Content Owners: You Have The Power, Time To Seize It

What are the Top 9 Features to Look for in an OTT Platform?

What’s New At Zype This Week: Playlist Smart Ordering, Improved Playlist Management UI

How to Start a Video Podcast: Part 1

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