Friday, July 31, 2009

Online Event Services Industry Continues Evolution

Steve Vonder Haar recently released an outstanding research report about the online webcasting event services business.

He states that consumers of webcasting services have been motivated by two priorities: 1) the desire to keep costs low; and 2) the desire to keep involvement of their own IT departments to a minimum. For this reason, major webcasting event service providers, like ON24, have enjoyed their greatest success at the ends of the market spectrum: low cost self-provisioning services and high touch premium webcasting services.

The premium end of the market has been bolstered by the complexity of the client's needs, which has kept fees high and competition at bay. The low end of the market had become increasingly commoditized.

He concludes that service providers are going to have to push more to the middle of that spectrum and identify more companies that require well-produced webcasts for the market to continue growing.

He also mentions that the complexity of webcast events that has traditionally protected the major service providers is no longer a significant barrier to entry. Sophisticated webcasting software offered on a Software as a Service (SaaS) basis allows any number of production companies, agencies, and event companies to compete on an equal footing with the ON24s and the OnStreams.

According to Hoovers, the US marketing and services industry includes about 35,000 companies with combined annual revenue of about $80 billion. The industry is fragmented because the top 50 companies generate less than 40 percent of that revenue. In other words, there are a large number of potential buyers of enterprise webcasting software that want to compete for online event services business at a time when traditional advertising revenues are falling and internet advertising revenues are growing. Internet communications are definitely going to become a greater point of emphasis for these companies.

I am unable to attached the report, but you can request a copy at the Interactive Media Strategies website.

1 comment:

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