This is the latest example of the perils of partnering in the highly volatile OVP space. Amid the 80 or so OVPs, my G2 confirms that none of them -- that's right, NONE -- are profitable (sure, one or two may have accomplished a few months of cash-flow positivity, but that is very different than actual profitability). Only one -- Sorenson Media -- not only has a decade plus legacy of innovation, but also -- and this is very important -- a legacy of long-term profitability and viability. And, I can tell you this -- we have an extremely healthy balance sheet. We are in no need to raise capital -- how many other OVPs can say that? And, that is a critical question and consideration for potential enterprise customers, particularly in these extremely challenging venture capital market conditions. Put simply -- you need to know that your OVP will be here not only today or next week -- but next year and beyond. After all, you are entrusting your prized video assets to your chosen OVP -- you need to feel confident that they are safe and secure.
And, what happens when your OVP shuts down? Look no further than the Motionbox reality -- in the precise words of Motionbox's home page, "Videos hosted on Motionbox.com will not be available on this site after August 1oth." In other words, customers, download your hosted videos now -- or they are lost forever.
Now, THAT's pain -- lots of pain. And, it's a real world issue that we have seen time and time again in this volatile OVP space. And, we will keep seeing it over ... and over ... and over again.
Businesses and enterprises simply can't -- and shouldn't -- have to deal with such pain. There is no time for it. They have no resources for it (and, even if they do, they must painfully take resources off other priorities to address the disruption to their video services). OVPs should be there to take away the pain -- not create it.
Let's be clear -- all OVPs want to help -- but they are struggling to find business models that work. And, these VC-backed firms -- with no profits in sight -- are not given the lee-way for patience. In this environment, funding dries up -- and, this makes partners and customers very vulnerable. As cliche as it sounds, being in good hands really does matter.
Sorenson Media indisputably has a unique story of trust and long-term profitability, viability and stability. Among OVPs, we also have a uniquely diversified product portfolio with multiple revenue streams. We are told by our customers that such peace of mind means a lot to them. A lot.
And it should. It really should. Think about it.