| Delivery questions to ponder
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 | Delivery questions to ponder
by Michael Klinger on Sep 29, 2010 at 4:21:14 pm |
Sorry – this is long but relevant:
I just re-read this entire category and I have some questions to ponder and take this subject a little deeper.
In my work and business we’ve been using FTP for file delivery for something like 15 years now and we’ve probably been serving our own FTP on site for about 10 years, which is a way to save 1/2 of the upload /download process compared to an off site FTP. Up to a point that has worked out for those customers who are willing to come and get their stuff or put their stuff on our site. For us that has been many of them, but there is always the YouSentIt crowd and those that need files put on their servers with specific specs and in specific places.
Over those years we’ve all become steadily more ambitious with uploads and downloads. At first, it was just a few files from a voice record, then more and more and more depending on how much time and relative connections on either side, pushing our luck along the way. At my facility, we are routinely moving finished or reference Quicktime or other media around as large as 4 gig.
But even so, somewhere around a 4 gig file is on the upper limit of what I think is reasonable compromise between a realistic upload/download experience with our current setup. That’s quite a bit actually, relative to the 50 megs we first did in the mid ‘90’s and at the time we considered that risqué.
So here we are in late 2010 and because of so many variables out of our control. How to deal to have a plan to meet so many needs? Interfacing with another site it at the mercy of their connection, our connection, the speed we get in between, equipment, file types, and maybe most difficult: The client’s perception of what is a realistic file to deliver this way.
Case in point: A couple of nights ago, we uploaded a 4 gig file to London (from Los Angeles). It had to be done in one of the short list of required high quality file types (including uncompressed). Based on their list and relative quality consideration we chose the less of the evils and went with ProRes HD 1080. Like others here have experienced, it had to be loaded to their site and the company receiving the file wasn't willing to come and get it from ours. Even though we have a decent connection and the receiving end had a decent connection we weren’t getting even 1/10th of our potential upload speed and this was a 7+ hour upload -- even when there was no other activity in our office at the time. No harm done, I suppose in the middle of the night with no tight deadline, but of course, my client didn’t anticipate this and there is an education needed here to explain all the variables to this transmission that are out of our control their only point of reference is what it is like to load a YouTube video and they want to know what the H*** is wrong with us, why would it take 7 hours? And it was only 4gigs because it was only 3 minutes long. Obviously ProRes HD is a lofty choice and there are more compressed options, but that was the expectation, so we do our best to meet the client’s needs and to push the envelope (in the name of science) if no harm is done.
So here are a few the questions that are on my mind:. I use the term FTP generically to describe all similar options:
1.) What size Internet pipe is the typical small post company going to need to be on the ready for day-to-day requests that are on the rise and increasing in ambitiousness. 3by3? 5by5? 10by10??
2.) What kind of a pricing model seems to fit these kinds of services? FTP has been for us a side dish – a way to get the work done that enables billable time -- not specifically revenue center. But if file transmission IS the service, what is the value of this as THE service? What price can you put on a file loading in the middle of the night while everyone is sleeping versus when you in the midst of it on a busy day with other demands on your connection and other resources? How can you possibly price with consistency for something that has variables out of your control – such as the recipient’s connection, or general conditions on the internet at a given time, or the myriad of file types and sizes – without having a pricing model for just one of your services made of exponential variables?
3.) How do we manage client expectations and stay grounded in reality? Taking from a current example: If a client wants to send 26 1/2 hour shows in DV PAL Quicktime to Russia and the client convinced that 180+ gigs of upload is a better option than shipping it all one little hard drive? Maybe I’m the crazy one?
4.) What services/hardware/resources fit the bill to offer a non-proprietary and the most flexible for all of these goals?
5.) When are we going to all get together and standardize a delivery format that we can all agree upon, live with and rely on without having exponential variables every step of the way?
Comments appreciated. Thanks.
Mike Klinger
Tree Falls Post
(323) 851-0299
mike@tfpost.com
http://www.tfpost.com
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• | | | |  | Re: Delivery questions to ponder by Chris Blair on Sep 30, 2010 at 12:17:59 am |
I'll take a stab at your questions:
Question 1:
We've been FTP'ing material since about 2001 and I've never heard those terms you use for the size of an internet pipeline (3x3, 5x5 etc.) What are you referring to? I'm only aware of internet connections for business (that are affordable) ranging from DSL, Cable Modem, T1 etc. T3 is out of reach of most small to medium sized businesses with prices running into the thousands per month. Even T1 is still in the $400-600 range in many U.S. Cities. We have T1 and we bundle our phone lines on it as well as internet and it's a couple hundred a month, but honestly, cable modem speeds have supplanted it in our community, although T1 is a more stable, constant speed than cable.
Question 2:
We typically charge a flat fee for an upload and it's typically in the $35 range. However, we're not uploading anything that takes 7 hours either. Most of the stuff we upload is 250MB and under. We've up or downloaded the occasional 1 or even 2GB file, but it's rare and we usually do it at night, so we don't try to ream the client for something that really doesn't take much in terms of an employee's time or take away from billable time on a workstation.
Question 3:
It's unreasonable (and not a better option no matter who says it is) to deliver 26 half-hour shows via FTP all it once vs. overnight shipping a hard drive.
Quesion 4:
Most of the viable options have been mentioned in this forum somewhere. I can't remember them all...but bottom line, if you want fast delivery, you're going to pay handsomely for it. There are no cheap, fast solutions here.
Question 5:
Never. None of us control it and as long as technology companies are trying to generate new revenue streams and products we're going to have new formats and delivery methods and expectations.
Chris Blair
Magnetic Image, Inc.
Evansville, IN
http://www.videomi.com
Read our blog http://www.videomi.com/blog
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• | | | |  | Re: Delivery questions to ponder by Rich Rubasch on Sep 30, 2010 at 2:51:53 am |
PBS still does a satellite feed once a week so stations can download and then store the shows on their servers. Done realtime via satellite.
We post 30 second promos for their shows on a local FTP server that has a simple web interface...they don't need to upload to it, only download the files. We post DV NTSC standard def because that's what they want.
Mike made a great post...we are moving soon and we now have Cable modem with 30 meg download and 5 meg up. The new place will be T1 only and we will start with 3x3...huge difference.
I uploaded a 1.3 gig DVD build the other day and it took about 35 minutes with our cable internet speeds. Not too bad. Charged $20 US for the upload.
If Google can get a foothold they promise gigabit ethernet speeds across the internet which will be a huge game changer. That would work!
We also priced out online FTP sites but they have storage limits....not near what we need, and pricey.
For now we limit it to the :30 spot. And longer programs we have delivered in H264 HD and they hold up pretty good. We "decompress" them to ProRes before editing and it works pretty good, although not entirely ideal and the national broadcast snobs won't buy into a highly compressed codec like H264...yet.
Great post...
Rich Rubasch
Tilt Media Inc.
Video Production and Post
Owner/President/Editor/Designer/Animator
http://www.tiltmedia.com
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• | | | |  | Re: Delivery questions to ponder by Scott Rachal on Oct 1, 2010 at 1:38:47 am |
First, make sure you get your bits and bytes straight (8 bits=1 byte)
By 3x3, 5x5 and 10x10, he is referring to download/upload speeds, expressed in megabits per second.
A typical consumer cable modem may deliver 3 mb/sec down, and 1 mb/sec up (non-symmetrical). A symmetrical commercial account may get 5 mb/sec down and up (5x5). My company has a 10x10 fiber connection, that serves us very well. We are lucky here in Lafayette, as that is the LOWEST tier. We can upgrade to 20x20, 50x50 or 100x100 with our municipal provider.
With our 10x10 connection, we can upload a 90-100 megaBYTE spot in about 1.5 minutes. (800 megaBITS uploaded at 10 megabits per second=80 seconds, theoretical)
We have several destinations for uploads, but most, not all, take h.264 encodes, encoded at about 25 megabits/second. (30 seconds x 25 megabits/sec = 750 or so megabits total-about 93 megaBYTES) A spot with a static background may be as small as 30-50 megabytes.
We have 1 station in town airing HD spots, and a 30 second spot encoded with the above specs looks great on the air. (1280x720 pixels, 59.94 fps, 25 mb/sec h.264)
'aint math fun!
-scott
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• | | | |  | Re: Delivery questions to ponder by Chris Blair on Oct 2, 2010 at 1:31:42 am |
Scott Rachal: We are lucky here in Lafayette, as that is the LOWEST tier. We can upgrade to 20x20, 50x50 or 100x100 with our municipal provider.
You're extremely lucky. There are areas in large cities that still don't have cable modem connectivity. We were unable to get cable internet to our building until about a year ago because it had not yet been run to the neighborhood where our building is located. And we're right across the street from the region's largest power provider, whose offices take up an entire city block.
Even with cable modem availability, T1 was a better choice because of the huge variation in speed and service we got with cable. It's specs were much faster than T1, but in actual use, the T1 is MUCH more reliable and upload speeds on average are about the same.
Most people are struggling with the speed issue and one of the reasons this forum was started was because of the repeated questions posted in other forums from people frustrated with the upload process in terms of speed, process, quality etc.
Chris Blair
Magnetic Image, Inc.
Evansville, IN
http://www.videomi.com
Read our blog http://www.videomi.com/blog
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• | | | |  | Re: Delivery questions to ponder by Rich Rubasch on Oct 3, 2010 at 2:32:00 am |
Our exact situation. We have cable at our current office because it is nestled in a residential area. We purchased a building and cable is nowhere close...actually about 2000 feet away.
We went with T1 3 x 3 with the option to go to 6 x 6. Total cost is about the same as cable, but with cable I had 25 meg down and 6 up plus full HD cable TV service.
T1 it is for now.
Rich Rubasch
Tilt Media Inc.
Video Production and Post
Owner/President/Editor/Designer/Animator
http://www.tiltmedia.com
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• | | | |  | Re: Delivery questions to ponder by Bob Zelin on Oct 4, 2010 at 5:28:14 pm |
This is a quick overview to Michael's general questions. There is no cheap answer. Unless you have a dedicated service, FTP is slow, and there is nothing you can buy to make your cable provider's slow lines speed up the process. This is the only real reason why tape, and Fed'exing drives still exist. T1, T3, and DS-3 lines are expensive to insanely expensive. And they still have limited bandwidth, so when you have to do distribution of very large files to a LOT of places, without satellite uplink, or VYVX fibre, there are dramatic limitations. Digital Delivery as of 2011 is realistic for commercial spot delivery for "the masses", but to deliver shows over generic FTP without dedicated hardware on both ends, it's just slow.
Bob Zelin
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• | | | |  | Re: Delivery questions to ponder by Michael Klinger on Oct 5, 2010 at 10:23:54 pm |
Hi everyone, thanks for the responses and perspectives.
So, I don't feel that the sky is falling, but I think that this topic is really part of a bigger question on my mind which is "what will my business be in five or ten years?" Anyone else wonder that? A significant part of my business continues to be making physical tapes and with that comes the revenue from making physical tapes.
So yes, it is important for me to start looking at what we offer for services and realize that the digital delivery that we nearly give away (while hand holding the deliveries, crossing our fingers and hoping the internet gods are kind to us) IS!!! the service that is destined to replace some our our revenue streams.
Not tomorrow or next year, but likely some day some number of years out from now. It is also a dynamic time with extremes and permutations in how diverse our delivery scenarios currently are.
Case in point: Our largest re-occurring delivery is a monthly pay-per-view reel that goes to cable outlets across the country. Not only does that order go nowhere near any of our Hi Def gear, it also goes nowhere near an FTP or digital delivery scenario. In fact 85 percent of the order is Beta SP tapes, a handful are Digibeta and dv, several are DVD and a few holdouts still want a 3/4". No Hi Def, no digital files. So that is the "other end" of the spectrum -- but at the same time quite representative of where many cable systems and other recipients are infrastructure-wise.
All things being equal and despite the fact that I am quick to embrace new technology. I actually like tape in many scenarios and I think its has it's place and has a lot of advantages as long as the receiving end has the machine to play it on. Maybe I am biased, 1/2 $ million spent on tape related gear over the years might just do that to you.
Mike Klinger
Tree Falls Post
(323) 851-0299
mike@tfpost.com
http://www.tfpost.com
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• | | | |  | Re: Delivery questions to ponder by Chris Blair on Oct 6, 2010 at 1:16:23 am |
Not sure I understand what you're saying. We make more money by encoding and sending digital files than we ever did sending tape dubs. With tape dubs, we had to buy the tape (Beta SP 5 min. tape = $5); make the dubs in real-time and spot check them in real-time; then physically ship the tape (Fed-ex overnight @ about anywhere from $13 to $20/shipment...and that was a special deal because we shipped hundreds, sometimes thousands a month). Total cost per tape dub was at least $20, plus our markup plus our dub fee. Total, somewhere in the $40 ranger per tape...but we only make about $15-$20.
With digital delivery, we can encode the spots in faster than real-time, spot check them, then FTP them with off-the-shelf software that cost us a one-time fee of about $79 per computer (5 years ago).
Total cost to us per spot? Neglible. We charge $25-$35 per encode/upload with essentially no cost....so we keep all of that. Plus we don't have shipping cost. Client is happy because it's less expensive. We're happy because we keep more money and save time.
Chris Blair
Magnetic Image, Inc.
Evansville, IN
http://www.videomi.com
Read our blog http://www.videomi.com/blog
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• | | | |  | Re: Delivery questions to ponder by Michael Klinger on Oct 6, 2010 at 7:41:13 pm |
Great insight, that's exactly what I am looking at. A good long look at how the resources, costs and profitability shuffle around to result in a win-win. Adjusting services and resources to meet a superior end result.
Your scenario makes sense but let me share another scenario on a long form delivery not feasible today to be replaced with an electronic equivalent but maybe in the not too distant future?
Currently for a long format Hi Def project delivered as a master to a network, we get about $500 for a 60 minute HDCAM-SR master. Our clients usually pay their own shipping. Subtract out about 100 bucks for the stock and that leaves $400 for the "labor" and profit per tape. We do these all day long. There are other functions which add more value and a larger price/profit on some masters, such as Dolby E encoding and closed caption authoring and encoding. Nevertheless the pure operation of putting the the deck into record bills out $200 to $300 per hour, which is a necessary amount to bill to re-coup the ($100K) cost of the equipment in a reasonable time period, create a profit AND -- a rate the market will bear due to the relative cost and scarcity of the equipment, and the relative competition in the marketplace. After all, while there are plenty of these decks around and plenty of companies that have this kind of equipment they aren't in every living room -- they aren't even in every post facility. All of this priced and marketed in a way that is apparently more attractive (to our customers) than to purchase their own deck or rent one on a day basis.
So when you build a business model around providing services with scarce equipment, you are probably best to factor in that there might be a limited run. Best to think ahead to it's eventual obsolescence and give thought to what the replacement revenue streams will be. In a future model without $100K tape decks needed on the "send" and "receive" side, that is an obvious huge savings for both parties when the cost of such equipment is cut out of the process.
As expressed in this forum, in 2010 short form digital delivery is a viable and apparently profitable -- but we aren't there yet for long form projects in the mainstream? Perhaps not until there is some combination of bigger cheaper internet pipes, a certain advancement in reduced file size and/or acceptable compression, or some advancement in hardware acceleration?
So let me propel us to a hypothetical 5 years from now and for example's sake let's say that for $1000 per month any small post company can subscribe to a delivery pipe that is fast enough to satisfy customers and deliver the quality level that is accepted by the industry. Or name a more realistic price. I have no idea if that is realistic, but let's just go with it. So at that point I no longer have to buy $100k decks, I also no longer have the revenue and profit of offering a service on a relatively scarce piece of equipment. A factor that is both positive and negative, Now I have a monthly increase in costs a monthly subscription to a data pipe for which a bill which will come for-ever. This compared to the cost of buying equipment, which is paid for and in our experience -- stays in service and earns revenue for many years longer than needed to satisfy the business model, long after it has been fully depreciated on a financial statement. Internet access is not scarce like specialty equipment is, but perhaps a internet pipe with enough bandwidth to deliver a long form project IS the replacement scarce revenue/profit center?
So, I contend that there is a lot to consider in order to adapt a business model in coming years, following the needs, trends, and profit centers. Adapting from offering the services of scarce equipment and to adjust it to a cheaper, better delivery model that represents a viable business. I look forward to this evolution.
Mike Klinger
Tree Falls Post
(323) 851-0299
mike@tfpost.com
http://www.tfpost.com
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