real cost of physical media distribution
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Proprietary and Confidential
File-Based Content Distribution Management Has Immediate ROIThe Real Cost of Physical Media Shipments
| Proprietary and Confidential©2010 Signiant Inc
Physical Media Distribution
2
| Proprietary and Confidential©2010 Signiant Inc
Physical Media
3
Physical Media Capacity (minutes) Cost $/Minute
Film 9 minutes $450 $50.00
Video Tape HD (HDCAM SR) 33 minutes $100 $ 3.03
Video Tape SD (Digi Beta) 33 minutes $20 $ 0.61
DVD 120 minutes SD (4.7GB) $10 $ 0.08
DVD Blue Ray 120 minutes HD (25 GB) $20 $ 0.17
Hard Drive 4800 minutes HD (1TB) $100 $ 0.02
Solid State Memory 300 minutes HD (64 GB) $150 $ 0.50
| Proprietary and Confidential©2010 Signiant Inc
Physical Media
4
Physical Media Capacity (minutes) Cost $/Minute
Film 9 minutes $450 $50.00
Video Tape HD (HDCAM SR) 33 minutes $100 $ 3.03
Video Tape SD (Digi Beta) 33 minutes $20 $ 0.61
DVD 120 minutes SD (4.7GB) $10 $ 0.08
DVD Blue Ray 120 minutes HD (25 GB) $20 $ 0.17
Hard Drive 4800 minutes HD (1TB) $100 $ 0.02
Solid State Memory 300 minutes HD (64 GB) $150 $ 0.50
| Proprietary and Confidential©2010 Signiant Inc
Physical Media
5
Physical Media Capacity (minutes) Cost $/Minute
Film 9 minutes $450 $50.00
Video Tape HD (HDCAM SR) 33 minutes $100 $ 3.03
Video Tape SD (Digi Beta) 33 minutes $20 $ 0.61
DVD 120 minutes SD (4.7GB) $10 $ 0.08
DVD Blue Ray 120 minutes HD (25 GB) $20 $ 0.17
Hard Drive 4800 minutes HD (1TB) $100 $ 0.02
Solid State Memory 300 minutes HD (64 GB) $150 $ 0.50
| Proprietary and Confidential©2010 Signiant Inc
Physical Media
6
Physical Media Capacity (minutes) Cost $/Minute
Film 9 minutes $450 $50.00
Video Tape HD (HDCAM SR) 33 minutes $100 $ 3.03
Video Tape SD (Digi Beta) 33 minutes $20 $ 0.61
DVD 120 minutes SD (4.7GB) $10 $ 0.08
DVD Blue Ray 120 minutes HD (25 GB) $20 $ 0.17
Hard Drive 4800 minutes HD (1TB) $100 $ 0.02
Solid State Memory 300 minutes HD (64 GB) $150 $ 0.50
| Proprietary and Confidential©2010 Signiant Inc
Why Physical Media? Why Not?
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Why?
•Price
•Portability
•Installed Infrastructure
•“The Standard”
Why Not?
•Physically shipped
-Time
-Cost
•Labor Intensive
•Price
•Security
| Proprietary and Confidential©2010 Signiant Inc
• Cons–Failure (mechanical)–Security – theft – large capacity–Wasted Capacity
• Pros–Large Capacity – Low Cost–Data Managed with IT Policies (security, backup, etc)–Ideal for Transmission of Files over Networks from Disk-to-Disk
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Hard Disk?
| Proprietary and Confidential©2010 Signiant Inc
Day in the Life of a “Dub”
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1. Duplication
$75
$50
$50
$25
| Proprietary and Confidential©2010 Signiant Inc
Day in the Life of a “Dub”
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1. Duplication
2. Pack Ship$75
$50
$50
$25
| Proprietary and Confidential©2010 Signiant Inc
Day in the Life of a “Dub”
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1. Duplication
2. Pack / Ship
3. Track / Deliver$75
$50
$50
$25
| Proprietary and Confidential©2010 Signiant Inc
Day in the Life of a “Dub”
12
1. Duplication
2. Pack / Ship
3. Track / Deliver
4. Ingest
$75
$50
$50
$25
| Proprietary and Confidential©2010 Signiant Inc
Summary of Cost
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•International Shipments Can Be Substantially More
•“Bad Dubs” Can Result in Missed Deadlines and up to $700 in replacement cost
•Shipping tapes or Disks has hard costs
Total Hard Cost to Ship Tape or Disk
Duplication $75
Shipping $50
Tracking / Deliver $25
Ingest $50
Total ~$200
Range $100-500
| Proprietary and Confidential©2010 Signiant Inc
Solution: Content Distribution Management
• Files are Moved Over Networks–Low Cost of Media - hard drive – remember $0.02/min –Low Cost of Labor – files move and are tracked automatically–Can Be Faster Than Shipping
• Perceived Barriers?–Cost of Bandwidth–Network Latency–Cost for Content Distribution Management Solution – ROI
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| Proprietary and Confidential©2010 Signiant Inc
Theoretical Times to Transmit 1 Hour of Content
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Network speed
CD 1.5Mb/s
DVD 5Mb/s
MPEG2 50Mb/s
Std Def 270Mb/s
High def 1.2Gb/s
128Kb/s 12 hrs 39 hrs 16 days 88 days 13 mth1.5Mb/s 1 hour 3 hrs 33 hrs 8 days 33 days10Mb/s 9 min 30 min 5 hrs 27 hrs 5 days
100Mb/s 1 min 3 mins 30 min 2hr42m 12 hrs
400Mb/s 14 sec 45 sec 8 min 40 min 3 hrs
1Gb/s 5 sec 18 sec 3 mins 16 min 72 min
| Proprietary and Confidential©2010 Signiant Inc
Theoretical Times to Transmit 1 Hour of Content
16
Network speed
CD 1.5Mb/s
DVD 5Mb/s
MPEG2 50Mb/s
Std Def 270Mb/s
High def 1.2Gb/s
128Kb/s 12 hrs 39 hrs 16 days 88 days 13 mth1.5Mb/s 1 hour 3 hrs 33 hrs 8 days 33 days10Mb/s 9 min 30 min 5 hrs 27 hrs 5 days
100Mb/s 1 min 3 mins 30 min 2hr42m 12 hrs
400Mb/s 14 sec 45 sec 8 min 40 min 3 hrs
1Gb/s 5 sec 18 sec 3 mins 16 min 72 min
| Proprietary and Confidential©2010 Signiant Inc
Theoretical Times to Transmit 1 Hour of Content
17
Network speed
CD 1.5Mb/s
DVD 5Mb/s
MPEG2 50Mb/s
Std Def 270Mb/s
High def 1.2Gb/s
128Kb/s 12 hrs 39 hrs 16 days 88 days 13 mth1.5Mb/s 1 hour 3 hrs 33 hrs 8 days 33 days10Mb/s 9 min 30 min 5 hrs 27 hrs 5 days
100Mb/s 1 min 3 mins 30 min 2hr42m 12 hrs
400Mb/s 14 sec 45 sec 8 min 40 min 3 hrs
1Gb/s 5 sec 18 sec 3 mins 16 min 72 min
• What about latency? LA NY
| Proprietary and Confidential©2010 Signiant Inc
Theoretical Times to Transmit 1 Hour of Content
18
Network speed
CD 1.5Mb/s
DVD 5Mb/s
MPEG2 50Mb/s
Std Def 270Mb/s
High def 1.2Gb/s
128Kb/s 12 hrs 39 hrs 16 days 88 days 13 mth1.5Mb/s 1 hour 3 hrs 33 hrs 8 days 33 days10Mb/s 9 min 30 min 100 hrs 27 hrs 5 days
100Mb/s 1 min 3 mins 30 min 2hr42m 12 hrs
400Mb/s 14 sec 45 sec 8 min 40 min 3 hrs
1Gb/s 5 sec 18 sec 3 mins 16 min 72 min
• What about latency? LA NY
| Proprietary and Confidential©2010 Signiant Inc
Theoretical Times to Transmit 1 Hour of Content
19
Network speed
CD 1.5Mb/s
DVD 5Mb/s
MPEG2 50Mb/s
Std Def 270Mb/s
High def 1.2Gb/s
128Kb/s 12 hrs 39 hrs 16 days 88 days 13 mth1.5Mb/s 1 hour 3 hrs 33 hrs 8 days 33 days10Mb/s 9 min 30 min 100 hrs 27 hrs 5 days
100Mb/s 1 min 3 mins 30 min 2hr42m 12 hrs
400Mb/s 14 sec 45 sec 8 min 40 min 3 hrs
1Gb/s 5 sec 18 sec 3 mins 16 min 72 min
• What about latency? LA NY
• With Signiant?
| Proprietary and Confidential©2010 Signiant Inc
Theoretical Times to Transmit 1 Hour of Content
20
Network speed
CD 1.5Mb/s
DVD 5Mb/s
MPEG2 50Mb/s
Std Def 270Mb/s
High def 1.2Gb/s
128Kb/s 12 hrs 39 hrs 16 days 88 days 13 mth1.5Mb/s 1 hour 3 hrs 33 hrs 8 days 33 days10Mb/s 9 min 30 min 5 hrs 27 hrs 5 days
100Mb/s 1 min 3 mins 30 min 2hr42m 12 hrs
400Mb/s 14 sec 45 sec 8 min 40 min 3 hrs
1Gb/s 5 sec 18 sec 3 mins 16 min 72 min
• What about latency? LA NY
• With Signiant?
| Proprietary and Confidential©2010 Signiant Inc
Cost of Internet Bandwidth
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Network speed Price / Month
Theoretical Data
Transferred (TB) / Month $/TB
1.5Mb/s (T1) $ 300 0.5 $ 597 10Mb/s
$ 1,500 3.3 $ 448 45Mb/s (DS3)
$ 5,000 15.1 $ 332 100Mb/s
$ 7,500 33.5 $ 224 155Mb/s (OC3)
$ 10,000 51.9 $ 193 1Gb/s $ 25,000 334.8 $ 75
| Proprietary and Confidential©2010 Signiant Inc
Measuring ROI
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| Proprietary and Confidential©2010 Signiant Inc
Example 1:120,000 Tapes Annually: 100 Locations
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•4 Month Payback Period
| Proprietary and Confidential©2010 Signiant Inc
Example 2:12,000 Tapes Annually: 20 Locations
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•7 Month Payback Period
| Proprietary and Confidential©2010 Signiant Inc
Example 3: Company Owned Trucks
25
Marginal Cost Savings Physical Media Shipment
Tapes Shipped Per Month between 2 locations
16,000
Truck Trips / Month 16
Cost Per Month Trucks $44,000
Cost Per Month Tapes $240,000
Total Cost Per Month $284,000
Investment: Content Distribution Management
Bandwidth (155Mb/s x2)
$20,000/ Month
Hardware $12,000
Software / Maintenance Yr1
$100,000
Implementation $50,000
Total Fixed Investment $162,000
Payback Period
Marginal Cost Savings Monthly – Physical Media Shipments
$284,000
Increment Month Expenses Bandwidth
$20,000
Monthly Savings $264,000
Fixed Investment $162,000
Payback Period 0.6 Months
| Proprietary and Confidential©2010 Signiant Inc
Example 4: Tape Infrastructure Replacement Cost
• Aging Tape Infrastructure Requires Maintenance
• Professional Tape Machine Maintenance = $20K / Machine
• Company had 100 Machines or a $2M Expenditure
• Implementation of Content Distribution was less than $500k or ¼ Machine Maintenance cost PLUS Marginal Cost Savings of Moving Files vs. Tape
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| Proprietary and Confidential©2010 Signiant Inc
Environmental Life Cycle of a Tape
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•Production of the plastic and metal tape - energy, pollution, waste material
•Assembly and packaging - energy, packaging waste
•Shipping to the warehouse - energy in the form of fuel for boats, planes and trucks
•Distribution to the end user - energy in the form of fuel for boats, planes and trucks
•Duplication - energy to run tape machines, pollution in the form of heavy metal due to tape heads running across metal oxide tape
•Shipping - energy in the form of fuel for boats, planes and trucks, more packaging waste
•Ingest - energy to run tape machines, pollution in the form of heavy metal due to tape heads running across metal oxide tape
•Disposal - thrown in a landfill at the end of its useful life
Imagine – multiplied by 130,000
World’s Tallest Building
130,000 Tapes 4X as tall
| Proprietary and Confidential©2010 Signiant Inc
International Value Added Tax
• VAT on Digi BetaCam Tape–20% x $20 tape cost = $4
• VAT on “Intellectual Content”–20% x Revenue Stream Generated by Content on Tape
–20% x $100,000 = $20,000
• This is the difference between making and losing money on international distribution of content
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| Proprietary and Confidential©2010 Signiant Inc
Time to Market
• Time to deliver a Tape is 24-48 hours–From Dub to Ingest
• Time to deliver a File is Minutes to Hours ~ 5 Hrs
• Delays cost real money:–Syndication = lost revenue – statistics show that the longer it takes to offer content from original air date – the less revenue captured
–Production = increased cost – delays in the production / post production process increase the costs to product content
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| Proprietary and Confidential©2010 Signiant Inc
Conclusion
• Physical Media Shipment is –Deeply Entrenched–Business As Usual–Continued Use Will Actually Make You Less Responsive and Less Competitive
• Moving to File-Based Distribution offers–Faster Delivery Time–Lower Overall and Labor Cost–Immediate ROI
• Every Month You Wait is Wasted Dollars
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| Proprietary and Confidential©2010 Signiant Inc 31
For More Information Go To:www.signiant.com/tapewhitepaper
www.signiant.com
www.digitalmediagalaxy.com
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