Skip to main content

Seesaw - the value's in the technology...

So Arqiva has decided to sell off its popular but clearly unprofitable Seesaw venture. Seesaw, it seems, has struggled in a market in which much of the catch up content that users value most is offered for free on top-drawer technology platforms like the BBC's iPlayer. The latter must rank as one of the BBC's biggest successes - astronomical cost aside, it has created an incredibly rich online TV ecosystem for UK consumers. Comparing it to Hulu, the darling of US TV consumers is like comparing a Ford Model T to a Porsche 911 - Hulu is quaint and functional but hardly a cutting edge product from an experience perspective (and yes, I know, the 911 has evolved since the 60's, which is partly the point ;) ).

Where does this leave Seesaw then? It shouldn't be forgotten in all this that Seesaw rose from the considerable ashes of the ill-fated Kangaroo joint venture. It is, therefore, based on the iPlayer technology stack. Considering the technological superiority of the iPlayer/ Seesaw platform its value as a white label product for broadcasters in non-UK market is likely to far exceed its value as a standalone VOD platform in the UK.

The BBC tried a similar thing two years ago, with the equally ill-fated Project Marquee (aka Open iPlayer). By way of full disclosure, I spent an enjoyable few months working on Marquee, so perhaps I'm biased. In my view, commerically it made a huge amount of sense - the underpinning technology stack offers broadcasters a ready made SaaS VOD player that is vastly superior to the competition, particularly in UI and hence could command a good price in project fees and in ongoing support. Leveraging economies of scale to continuously develop the platform was also a massive benefit.

Unfortunately the BBC Trust disagreed and the idea faded away. For a Seesaw purchaser, the challenge will be the lack of an anchor tenant of the BBC's scale, however Seesaw is (as I understand it) closer to being capable of white label deployment than iPlayer was, so the investment required to get it over the line may be less.

To close, I was asked by a colleague to name the buyer. If I were a betting man, I'd say "Tata", because they'd then have an end-to-end offer from digital production, through workflow, distribution and playout or perhaps "Ioko", who as Arqiva's SI partner know the platform well and could use it to shift from pure SI to digital utility. Any other thoughts?

Comments

Popular posts from this blog

Differences between Industrial and Digital businesses

Since I'm stuck on a Eurostar crawling through western France I thought I'd use the downtime to share this table I've made on the differences between Industrial and Digital companies across the main business functions. A strange insight into how my mind works... but hopeful a useful summary!

Strategic lessons from Debenhams

Yesterday’s news cycle brought with it the announcement that Debenhams, a staple of the UK high street, was now in the control of its lenders . This kind of news is sad for the employees of Debenhams and certainly for its shareholders, but it is also a good opportunity for reflection. A business that can trace its history back to 1778 may be about to cease trading forever. For leaders in the retail and associated consumer industries, now is a good time to consider what lessons can be learnt from Debenhams and what could be done to seize the opportunity presented by its passing. I’m thinking about the topic of strategic responses to emerging events at the moment because of the seeming inevitability of a recession this year or next, which will doubtless bring with it many similar situations. Before I get started, a disclaimer. I have no inside knowledge of Debenhams, I have never consulted for them, pitched to them or even met anyone in their management team. This post uses Debenham...

Impacts of a handset leasing model on mobile telcos

Following yesterday's post, here's some related thinking on the impacts on operators of handset leasing. Handset sales represent around 25% of operator revenues in a typical European market, but generate only around 5% of margin. It may therefore be the case that the scenario described would lead operators to a more profitable structural model than exists today. Oil companies are consistently and acceptably profitable, despite being (literally in some cases) the ‘dumb pipe’ that operators are so desperate to avoid becoming. One of the reasons for the oil majors sustained profitability is clear focus on their role in the value chain – to supply the fuel that enables transportation, relying primarily on location, then brand and finally product innovation to compete. BP or Shell do not need to subsidise the purchase of a car in order to drive consumption of fuel because consumers are ‘hooked’ on it (it gets them from place to place) and there are many credible car manufacturers an...