By now, I have seen about a dozen CES wrap ups, the first of which, ironically, came after just the first day. Ultrabooks, lack of iPad killer, and the iPhone5 rumor mill seemed to dominate the discussion. My experience after the last week in Las Vegas was “beyond the devices” and admittedly beyond the hype. Over four days, Cisco held nearly 500 customer, press and analyst meetings, and after very extensive research (read: polling a few of my teammates in the ever lengthy elevator lines), here is my top takeaways from CES 2012:
Show: CES is now the single largest service provider show in North America. There are a few others, but in terms of customer engagement, this is the biggest. From Europe to Asia, South America and Australia, an incredible array of SPs are there. Forget the show’s name Read More »
Marthin De Beer, Senior Vice President of Cisco’s Video and Collaboration Group takes time at CES to share his thoughts on the service provider video market. He highlights Cisco’s video experience demos at the show, and discusses how we are helping customers through our end-to-end architecture, with strategies to bridge legacy infrastructure to future IP-centric architectures, including the emergence of home gateways. Read More »
These new Videoscape products power ‘video in the cloud’ experiences by bringing live and on demand video together, offering a consistent look and feel across devices whether its a PC, MAC, iPad, iPhone or Android device. Videoscape is leading Service Providers through the migration, with a unique open software platform, providing a path to an all IP-based video infrastructure. Service Providers can now provide their consumers the ability to move, pause and resume video content on any device, following them whenever they go.
Recently at the Consumer Electronics Show I had a enlightening conversation with the head of a major movie studio. He told me that they spend close to $1 billion annually to “acquire the same customer over and over–people that go to movies.” That’s because the natural goal with each movie is to maximize box office revenue. Since web properties deliver little incremental revenue today, all their effort is placed on the traditional revenue streams.
They create web properties and social engagement platforms primarily for promotional purposes that live for about four to six weeks after the in-theater window. Then, they are abandoned and they start over on the next film. With the cost of the average Hollywood movie promotional website running about $1-3 million, the studios lose an opportunity to understand, engage and monetize that audience.
The lack of recognition on digital opportunities goes even deeper. At the Digital Media Wire/Variety Future of Film Conference, a tech startup that does social widgets for film sites said they loved coming to Hollywood because it was “like printing money–every film studio wants to ‘do social.’” They said they were surprised at the end of each engagement because they’d try to transfer the audience data they collected via the widget back to the studio, and they’d be told to keep it; that the use of that data wasn’t the studio’s “job” and that they wouldn’t know what to do with it anyway. The startup said it was fascinating to watch studio CFOs scrutinize the ROI on every campaign as measured by impressions, click through rates, etc, but then walk away from the most valuable assets–the data and the relationship with the consumer–that the social app was generating.
Movie studios perhaps are optimizing around revenue today (box office) but not yet optimizing around the revenue and asset of tomorrow. That asset is data. By having a source of data about their audience that can do useful things, studios can both decrease marketing costs and develop new revenue sources around that audience and film property.
While Cisco Eos can help studios accomplish short term promotional goals via a socially enabled entertainment experience, the real added value is over the long term. That value is realized in three ways: Read More »