CEO Vestergaard on four different categories of potential sales avenues on the recent CC:
First category is oddballs. That's everything from licensing to hardware manufacturers to integrating into third party software and that sort of thing. Those are all going to be custom priced.
The second opportunity would be going to the big ad agencies. So imagine on McDonald's I want to put a TV commercial on a website. I can go through an ad agency that’s using Clipstream G2 and I can just drop that ad into a web server, just a standard web server, and I reach across all the computers, but I also reach smartphones. And with player-based solutions it's common to have penetrations as low as 85 percent, so 15 percent of the people actually don't see the ad. Whereas with our stuff it'll just—it'll always play. So the people that are hosting the ads are going to make more money because 100 percent are going to view it, and it's going to be a better experience for the advertiser because it's going to be instant and cross platform and everybody's going to get the same experience.
The third opportunity would be going to the web developers. Adobe's got an army of about 150,000 web developers signed up that regularly buy their encoder software for a few hundred bucks. We'd like to harness that army ourselves. We're still trying to price out exactly how the technology's going to work. Some of those decisions are still being made. We're doing a lot of market research right now, but basically the web developer would use our encoder software, convert the video into our format, and then just upload it to any old web server or possibly more than one web server to put the content out there. Once they've converted it they don't really need to talk to us anymore, and that's going to be a credit-based system. So the web developers will come to our website. They'll put in their credit card number, buy credit, and just build the credits into—or use the credits to create clips. As you notice, that’s an automated system. It doesn't take a lot of staff on our side and it scales really well. We can reach an awful lot of web developers automatically just through the website.
And then the fourth and last opportunity would be enterprise-type clients that do a lot of video. So that could be anything from like a CNN or a YouTube type company that’s just processing a ton of video. We would give them our batch encoder and we'd negotiate a monthly site licence and we'd tie the videos to only play on their particular website. So unlike the web developer videos, which would be free to go on more than one website, these would be locked down and they'd be enterprised just to that particular URL.
