PLAN FOR REVENUE: STEP 4 TO BECOME THE BROADCASTER OF TOMORROW

Step 4 in this five-part blog series is all about monetizing your content. When selecting the right video streaming technology partner, choose one that will support next-generation advertising, subscriptions, rentals and purchases.

Broadcasters like you have traditionally relied on advertising to offset production and distribution costs. As a Broadcaster of Tomorrow, you recognize
that advertising will continue to grow, and you will need to provide a great
ad-viewing experience, but not without experimenting with a few emerging
business models.

Verizon Digital Media Services’ ADVERTISE product can reduce complexity
in your online advertising systems while providing a TV-like experience for
your viewers. It leverages server-side ad insertion rather than client-side
insertion, which is an important evolution in advertising technology.

Why is this important? With client-side ad insertion, when a user comes
to an ad break, the code pauses playback, goes and talks with a third-party ad
server, downloads those ads locally to the device, fires up a new video player
to present those new ads to the user, and resumes playback on the original
player when (or if) the ad is finished. All of these moving pieces introduce
multiple points of failure and result in a poor viewing experience.

If you’ve ever watched online video, and you’ve
been stuck in an ad break forever or you’ve been stuck looking at a countdown
timer with nothing present on the screen or you’ve had a long delay between
content and ads, you’re likely watching a client-side ad integration.

With server-side, on the other hand, all of that
back and forth happens between the back end and the ad server. As a user,
you’re just watching a stream of video that just happens to have ads in it.
That way, there’s never any buffering. There’s a consistent quality experience
across the ads. There’s no option for it to fail and have you stuck in an ad
break forever. Much like the normal ad-viewing experience on a TV set.

The second main benefit of server-side advertising is from an app
development perspective. In a client-side model, all of that code has to be
written for each and every client or platform. If you wrote all of that code in
your Flash player and then decided to release an iPad app, your developers have
to rewrite all of that integration with the ad server.

Not only is it a poor user experience, it’s also more expensive for
you, as a broadcaster, to get your apps out there. As new devices and platforms
are released, that’s additional development resources that you have to throw at
the content just to monetize it. With server-side ad insertion, it just works.

In addition to preserving existing advertising revenue, online
broadcasting opens up new opportunities to have a direct relationship with
viewers like you’ve never had before. For example, CBS, HBO and Nickelodeon
have started experimenting with new Over-the-Top (OTT) direct-to-consumer
offerings, including monthly subscriptions, show rentals and digital downloads.

Verizon PRESENT powers viewer management, payment collection, pricing,
merchandising, ordering, authentication and entitlements – the building blocks
for your future subscription or rental business. It’s all available from
Verizon Digital Media Services, in one simplified, pre-integrated workflow, ready
to help you become the Broadcaster of Tomorrow.

Check back soon for Step 5: Grow Your Audience, the last step in
becoming a Broadcaster of Tomorrow.

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