Australia-based online video platform service provider Movideo last week announced a four-year technical alliance with Microsoft for the use Windows Azure to deliver its video software-as-a-service worldwide.
Movideo's CEO Tony McGinn said the technical alliance comprises a four-year global pricing agreement for Microsoft Azure amounting to $4 million. Terms of the deal include technical, sales and marketing support.
In an interview with Asia Cloud Forum, McGinn explains the dynamics of online video delivery and consumption in Asia, why subscription video on demand is a strong business model, and the company's first steps taken to enter the Chinese market. Read excerpts below:
Asia Cloud Forum: What makes Asia a prospective market of online video delivery?
Tony McGinn: The dynamics of what's happening in Asia with faster, cheaper broadband, devices, connected TVs, over the top TV, IP TV, are creating a tremendous environment for consumers to be able to enjoy video online. What we need are great platforms to deliver it, great clouds to store and manage it, and CDNs (content delivery networks) to get it to the customers in a seamless experience, as well as good business models to monetize it.
What are the available business models in the media sector? How can cloud computing help stretch one's capacity in service delivery?
McGinn: The three key business models that are serving the media sector are: 1) Advertiser-funded video -- the pre-rolled video ads that you see before you view the video; 2) Transaction-funded video on demand, which requires you to buy a pass and select movie content for a short period of time anchored to that device; and 3) Subscription video on demand.
I think subscription video on demand has a very exciting future here in Asia. It is where you pay a monthly subscription to be able to consume, depending on what the publisher is offering you, an array of movie content.