MAD Perspectives Blog

 The Enterprise is a Broadcaster

Peggy Dau - Wednesday, November 25, 2009

Many of us grew up with the Big 3 Broadcasters:  CBS, NBC and ABC.  When we hear the term broadcast, we immediately think of news and entertainment programs offered by these networks.  We have adapted to include FOX, CW and the myriad of cable networks providing news 24x7, entertainment and education programming.  However, I don't think think that many us actually think about enterprise companies broadcasting.  But, they do!

The volume of content being created and shared, live and on-demand, by corporations is increasing dramatically.  IDC's White Paper, Best Practices for Enterprise Content Delivery, estimates that employees are watching an average of 2 hours of video per month.  Initially, only very large companies could implement video streaming.  They were driven by a desire for consistent executive communication to employees.  They faced high production costs and high networking costs due bandwidth requirements.  However, they saw the benefit of enterprise video.  As companies became more geographically dispersed, video solutions provided alternatives for excecutive communication, training, product promotion, investor relations and customer service.  Large companies soon realized they could not exist without a variety of video-centric solutions.

Simulteneously, streaming formats advanced subsequently providing better quality yet requiring less bandwidth.  DRM and network security improved thus providing confidence for corporate communication teams and IT and Networking specialists.  In addition, tools evolved to pro-actively monitor and manage the networks thus ensuring a positive quality of service.  Hosted services also evolved to alleviate the burden on the corporate network.  With VPNs available to host and delivery content securely, small & mid size companies were able to take advantage of the same benefits as the big guys. 

As a result, there are now multiple terabytes of video content resident at most enteprise companies.  Enterprises are broadcating live to their investor community and employees while making educational, promotional and training content available on-demand.  Companies, such as Ascent Media, Grass Valley, Avid and others, that have provided solutions to the traditional media & entertainment industry, now also provide solutions to the Enterprise.

Considering the size of the Enterprise Video market this is not surprising.  Wintegreen Research anticipates enterprise video to be a $14.4 billion market by 2014.  IDC anticipates enterprise online video to grow at a compounded rate of 50% over the next 5 years.  The economy, lack of standards and continuously evolving and emerging solutions will challenge the growth, but the committment and value seem clear. The enterprsie market cannot compare with the size and complexity of the traditional broadcast market, yet when combined with the focus exhibited by the enterprise on implementing these solutions and the evolution of vendor solutions it is clear that Enterprises have become Broadcasters.

What's your perspective?