Title: Enterprise Streaming Where ROI Means Survival 14 Big Surprises
1Enterprise Streaming Where ROI Means
Survival14 Big Surprises
- Rich Seidner
- VP, Research Analysis
- Streaming Media, Inc.
2ROI Research
- Why ROI? Because its now about survival.
- Research participants from
- more than 200 companies
- from 50 industries
- in 10 countries
- 111 respondents provided in-depth data
- This is not about how our industry uses streaming
3Part I Investment
- Why do companies stream?
- What are their primary streaming applications?
- How much are companies spending?
- What are the main cost factors?
- How much do companies stream?
- What do streams cost?
- When did companies deploy streaming?
4Q1 Why Do Companies Stream?
- Cost savings, Revenue, Productivity (money)
- More customers,Web stickiness, Duration
(frequency, reach, duration) - More customers, Customer satisfaction, Web
stickiness (customer) - Revenue, Communication, Brand (mixed)
- Communication, Productivity Morale (employee)
- Communication, Productivity, Timeliness (quality)
5A1 Why Do Companies Stream?
- Cost savings, Revenue, Productivity (money)
- More customers,Web stickiness, Duration
(frequency, reach, duration) - More customers, Customer satisfaction, Web
stickiness (customer) - Revenue, Communication, Brand
- Communication, Productivity Morale (employee)
- Communication, Productivity, Timeliness (quality)
6A1 Why Do Companies Stream?
7A1 Why Do Companies Stream?
- Desired benefits vary by streaming application
8Q2 What Are the Primary Applications?
- Advertising Marketing
- Content
- Corporate Communication
- Entertainment
- Surveillance
- Training
- Web conferencing
9A2 What Are the Primary Applications?
- Advertising Marketing
- Content
- Corporate Communication
- Entertainment
- Surveillance
- Training
- Web conferencing
10A2 What Are the Primary Applications?
11A2 What Are the Primary Applications?
12A2 What Are the Primary Applications?
13Q3 How Much Do Companies Spend Annually On
Streaming?
- 10,000
- 50,000
- 100,000
- 250,000
- 500,000
- 750,000
- 1,000,000
14A3 How Much Do Companies Spend Annually On
Streaming?
- 10,000
- 50,000
- 100,000
- 250,000
- 500,000
- 750,000
- 1,000,000
15A3 How Much Do Companies Spend Annually On
Streaming?
- Its a trick question, because it depends on
company size. But - The average spending of all respondents is
1,000,000. - And the median spending is 400,000 CHECK
- Their spending averages just 2 of 1 of annual
revenue CHECK
16A3 How Much Do Companies Spend Annually On
Streaming?
17A3 How Much Do Companies Spend Annually On
Streaming?
GRAPH SPENDING OF REVENUE VERSUS REVENUE
18Q4 Whats the Biggest Cost Factor in Enterprise
Streaming?
- Equipment
- Network
- Outsource (encoding, streaming, storage )
- Production
- Staff
19A4 Whats the Biggest Cost Factor in Enterprise
Streaming?
- Equipment
- Network
- Outsource (encoding, streaming, storage )
- Production
- Staff
20A4 Whats the Biggest Cost Factor in Enterprise
Streaming?
21Table 5.2 Training Cost Factors
22A4 Whats the Biggest Cost Factor in Enterprise
Streaming?
- Network costs are usually underestimated
- Production costs do not include production that
would be done in any case for other media - Staff Equipment are 70 of spending, which
means this is an opportunity for products
services - Outsourcing is a teensy percentage of spending
which means that it is also an opportunity for
service providers.
23Q5 How Much Do Companies Stream (on average)?
- 0.1 Hours / Person / Year for 10,000 People
- 0.2 Hours / Person /Year for 20,000 People
- 0.4 Hours / Person /Year for 25,000 People
- 0.6 Hours / Person /Year for 30,000 People
- 0.8 Hours / Person /Year for 35,000 People
- 1.0 Hours / Person /Year for 40,000 People
24A5 How Much Do Companies Stream (on average)?
- 0.1 Hours / Person / Year for 10,000 People
- 0.2 Hours / Person /Year for 20,000 People
- 0.4 Hours / Person /Year for 25,000 People
- 0.6 Hours / Person /Year for 30,000 People
- 0.8 Hours / Person /Year for 35,000 People
- 1.0 Hours / Person /Year for 40,000 People
25A5 How Much Do Companies Stream (on average)?
26Table 5.3 Streamed Training Per Person
27Q6 What Does a StreamHour Cost?
- 1 / Hour
- 2 / Hour
- 5 / Hour
- 10 / Hour
- 20/ Hour
- 50 / Hour
- 100 / Hour
28A6 What Does a StreamHour Cost?
- 1 / Hour
- 2 / Hour
- 5 / Hour
- 10 / Hour
- 20/ Hour
- 50 / Hour
- 100 / Hour
29A6 What Does a StreamHour Cost?
30A6 What Does a StreamHour Cost?
- Cost depends on the mix of audio and video
- Unit cost (per hour, per person) largely depends
on use of capacity - Sweet spot is
- 0-2 Hour for audio,
- 10-20 / Hour for video
-
-
31Q7 When Did Companies Deploy Streaming?
32A7 When Did Companies Deploy Streaming?
33A7 When Did Companies Deploy Streaming?
- 98 of respondents deployed their streaming
Y2000-Y2001 - Streaming technology has been around for 8 years,
but its just now becoming mainstream! - 150 of the Fortune200 corporations stream at
their public websites
34Part II Return (on investment)
- Whats the ROI for Training?
- Whats the ROI for Advertising Marketing?
- Whats the ROI for Corporate Communications
- Whats the ROI for Entertainment?
- What are the actual results so far?
35ROI is about all of the benefits
- ROI varies by streaming application
- Training
- Advertising
- Content
- Entertainment
- 97 of respondents dont measure their streaming
ROI -
36Q8 Whats the ROI for Training?
- 50
- 100
- 200
- 500
- 1,000
- 1,500
37A8 Whats the ROI for Training?
- 50
- 100
- 200
- 500
- 1,000
- 1,500
- It all depends The answer is really all of the
above.
38A8 Whats the ROI for Training?
- Cost savings are a primary tangible benefit of
stream-training, but cost savings depends on
several variable factors - How many people need to travel
- Cost of travel
- Cost per stream-hour
39A8 Whats the ROI for Training?
- Sales and Marketing executives love using
streaming for new product launches - It saves considerable travel time for the sales
team - It reaches more employees
- It can be shared with business partners and
customers
40A8 Whats the ROI for Training?
- Case studies in the report
- Network equipment maker reduces costs by a factor
of 7 - Semiconductor maker saves 400,000 annually
- Storage appliance maker keeps sales people happy
- Professional association profits from
certification training - Business school competes against it rivals
- Telecom network saves 5.5 Million annually
41Q9 Whats the ROI for Advertising and Marketing?
- 50
- 100
- 200
- 500
- 1,000
- 1,500
42A9 Whats the ROI for Advertising and Marketing?
- 50
- 100
- 200
- 500
- 1,000
- 1,500
- Companies generate significant revenue increases.
43A9 Whats the ROI for Advertising and Marketing?
- Increased revenue is the primary tangible benefit
of streamed advertising. But many respondents
told us streaming also delivers these benefits - Streaming increases reach
- Streaming improves brand
- Streaming lowers sales costs
- And thereby lowers the cost of customer
acquisition - Streaming allows tracking of marketing collateral
44A9 Whats the ROI for Advertising and Marketing?
- Case studies in the report
- BYOBroadcast proves the ROI of streamed
advertising - Chalk Network reports sales conversion rate of 5
8 - Major online music service profits from barter
- PepsiCo reaches 1.1M consumers with its Brittney
Spears ads - slp3D reduces cost of customer acquisition for
its clients - Research Stream adds real-time market
intelligence - Top online book-seller, increases sales and
customer satisfaction
45Q10 Whats the ROI for Corporate Communications?
- 50
- 100
- 200
- 500
- 1,000
- 1,500
46A10 Whats the ROI for Corporate Communications?
- 50
- 100
- 200
- 500
- 1,000
- 1,500
- It all depends The answer is really all of the
above.
47A10 Whats the ROI for Corporate Communications?
- Pretty much the same story as for
streamed-training. - Cost savings are a primary tangible benefit of
stream-corporate communications, but cost savings
depends on several variable factors - How many people need to travel
- Cost of travel
- Cost per stream-hour
48A10 Whats the ROI for Corporate Communications?
- Senior executives love using streaming for
reaching employees - It gets the information there immediately
- It reaches more employees
- It can be shared with business partners and
customers
49A10 Whats the ROI for Corporate Communications?
- Case studies in the report
- Big Five accounting firm drives client services
- Hewlett Packard deploys enterprise-wide streaming
- Streaming service provider gains significant
competitive edge - Chevron Oil Company runs corporate compliance for
31,000 employees at 8,500 gas stations - German production company streams PR
communication for publicly traded companies
50Q11 Whats the ROI for Entertainment?
- 50
- 100
- 200
- 500
- 1,000
- 1,500
51A11 Whats the ROI for Entertainment?
- 50
- 100
- 200
- 500
- 1,000
- 1,500
52A11 Whats the ROI for Entertainment?
53A11 Whats the ROI for Entertainment?
54Q12 What Actual Results Are Companies Getting?
- Mostly positive
- Mostly negative
- Too soon to tell
- It depends
55A12 What Actual Results Are Companies Getting?
- Mostly positive
- Mostly negative
- Too soon to tell
- It depends on application
56(No Transcript)
57Part III The Whole Enchilada
- How big is the market?
- Whats the market growth?
58Q13 How Big is the Enterprise Streaming Market?
- 0M - 100M
- 100M - 200M
- 200M - 400M
- 400M - 600M
- 600M - 800M
59A13 How Big is the Enterprise Streaming Market?
- Answer No-one knows
- 111 respondents spent 104M which does not
include any company with streaming products and
services so its at least double this size,
most probably more. - Were researching the facts.
60Q14 What Is the Streaming Market Growth?
61A14 What Is the Streaming Market Growth?
- These measures indicate significant market
growth - Spending is up 100 CHECK
- People served is up 200 CHECK
- Stream Hours is up 300 CHECK
- Bytes transferred are up 400 CHECK
- Companies using streaming is up xx CHECK
62What Will It Take for Your Business to Survive?
- Streaming Media offers resources that can help
you - Streaming Media events
- Streamingmedia.com
- Streaming Media Magazine
- Streaming Media Newsletter
- Streaming Media Research
- Newsgroups
63If you want a free copy of these slides,please
email rich_at_streamingmedia.com