Return on Corporate Streaming Investment

Today, Rich Seidner, VP of Research and Analysis for Streaming Media, Inc., announced preliminary results of a first-of-its-kind research report identifying the return on investment of streaming media applications in corporate communications and e-learning at a keynote speech for Streaming Media West 2001 in Long Beach, California.

Among the most surprising findings were that just 14 percent of companies surveyed viewed corporate communications as the primary use for streaming media in their enterprises. This statistic differs from previously published results suggesting corporate communications was much higher among enterprise priorities. The report finds companies are using streaming media for applications as varied as training, product launches, human resource applications and surveillance.

Seidner’s research indicates an estimated total of $250 million to $400 million will be spent in 2001 on streaming media in the enterprise market. But Seidner did temper this saying "no one knows just how big the market is just yet."

The soon-to-be-released report found 95 percent to 97 percent of companies interviewed were not managing ROI because "nobody’s figured out how to measure it," said Seidner. He outlined several individual case studies from enterprises as varied as a semiconductor maker to a major university to an oil giant, which all have begun streaming media initiatives within their networks.

Initial results, said Seidner, find that staff and equipment costs are highest. Seidner said some companies don’t necessarily include network or infrastructure costs that have already been implemented.

While the costs per company and person for enterprise streaming applications spread across a wide range, Seidner sees this tracking of investment in corporate streaming applications as just beginning. "Many companies report they’ve begun streaming initiatives in just the last year, " said Seidner. "And it may appear that unit costs are astronomically high for initial costs, but the benefits will come later."