Wednesday, September 11, 2013 5:05:42 PM
Viacom outsources video platform to Brightcove
September 11, 2013 by Homa Zaryouni in Enterprise Tech, Media Tech. 0 Comments
Bronwen O’Keefe, Senior Vice President, Nick Mom, Nickelodeon speaks onstage. Getty/ Mark Davis
Viacom announced on Tuesday that it will no longer develop its own mobile video products. Instead, it will use the services of Brightcove, an online video platform host.
The reason was speed, according to David Kline, Viacom’s senior VP and chief information officer. While Viacom could have rolled out its own service by late next year, Kline said, using Brightcove would be faster. The in-house attempt at launching online and mobile platforms had led to glitches such as bugs in the Nick iPad app. Kline said he didn’t want that to happen again for fear of losing favor with a young, impatient audience.
Not only are media companies are beginning to realize the importance of comprehensive, bug and hassle-free presence on all platforms; they are realizing they are not free to create it at a pace of their liking.
Until now, media executives and many media sources have downplayed the possibility of cord-cutting — the practice of forgoing a cable subscription in favor of on-demand services such as Netflix, iTunes and Hulu — being a serious threat to the cable and network business. The number of U.S. homes without a satellite or cable connection remains small (approximately 5% or 5 million) even though the number is growing at a fast rate (150% since 2007) according to media research firm Nielsen. Cord-cutting looks like a bigger problem, however, when studying traditional cable subscribers rather than the entire U.S. population. A study by Deloitte showed 9% of cable subscribers cut their cable subscription in favor of online outlets in 2011. That number is expected to grow even faster as services like Aereo — a service that allows viewing of local channels online — expand service locations and programs.
Indeed, growth has been strong enough that Craig Moffett, a top-ranked industry analyst, called the phenomenon “real” in June after declaring it an urban myth in 2009.
But preparation for accommodating the multi-screen user does not end in acknowledgment. On the technology side, developing for television, mobile, tablet, and smartphone screens is a costly process that is not scalable across platforms. And if the number of digital viewers grows fast enough, networks may be hoping for more cord-cutting, which would mean one less screen to design and develop for.
TAGS:BrightcoveCraig MoffettDavid KlineHuluiPadNetflixsmartphoneViacom
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