Not a day passes where broadcasters aren’t scrambling to adapt to the rapidly changing landscape of digital video consumption.
With so much economic uneasiness, strategic realignment, and technological upheaval, the only certainty is that whichever organizations acclimate to the current environment the quickest will emerge on top.
Amidst this backdrop, JW Player (JWP) commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study with SNY (SportsNet New York) and examine the potential return on investment (ROI) broadcasters may realize by deploying JW Player. This process was carried out by JWP experts, SNY team members, and Forrester researchers.
Through a rigorous process of interviewing, financial modeling, projecting, and due diligence, JWP and Forrester constructed a framework to prove the potential financial impact on similar organizations over a three-year period. A thorough investigation of the costs, benefits, and risks associated uncovered overwhelmingly positive results.
Background
Prior to working with JWP, SNY was entangled in a clunky video solution that drastically hampered workflows while lacking the analytical capabilities to uncover valuable insights. Monetization opportunities were limited due to relying on third-party advertising partnerships, while SNY’s team was virtually in the dark as to understanding viewer engagement and retention metrics.
Following a prolonged period of inefficiency, the organization decided it was time to pivot to an end-to-end online video platform (OVP) that was able to exceed their audience’s dynamic consumption needs.
When evaluating potential vendors, SNY had stringent requirements for their next video partner, including:
- All-in-one platform designed to scale
- Maximize ad revenue
- Reduce time to market for video production while enhancing the current video workflow
- Produce a high-quality, high-speed video player with autoplay functionality that easily integrates with the organizations APIs
- Enhanced viewer data and analytics
- Unparalleled customer service and technical expertise
JWP’s OVP checked all the boxes and proved to be the turnkey solution SNY desperately needed. Once the terms were settled, JWP began deployment and a dynamic relationship was underway.
Key findings
After a 3-year period, it was clear that SNY’s decision to partner with JWP was a fruitful one.
135% ROI over 3 years
SNY increased ad revenue by $2.9 million through improvements in audience targeting, with growth in the number of ad impressions of 190% in Year 1 and 150% in Years 2 and 3. The scale of video inventory to be sold for advertisement also increased from 10% to 100%. These gains result in a three-year risk adjusted PV of $2.9 million.
When factoring in the costs of deployment (platform fee, training, strategy, development, maintenance), the end result is an increase in ROI of 135% over a 3 year period and a net present value (NPV) of $1.76M.
Nearly double video production capacity and workflow efficiency
Production capacity increased by 83% and workflow efficiency increased by 93%, respectively. The end-to end workflow allowed the organization’s video team to decrease broadcast time from 30 minutes to 2 minutes, while increasing the number of videos broadcasted per month from 5 to 30. Workflow efficiency gains result in a three-year risk adjusted PV of $103,600.
Improved video production uptime by 95% from faster service request response
SNY realizes significant time savings during the broadcasting process due to JW Player’s responsiveness to real-time video service requests. With JW Player, average response time decreases considerably. Improved production uptime results in a three-year risk adjusted PV of $19,400.
Improved agility and faster insights through an intuitive platform
The interviewees noted that the tool and accompanying dashboards across all capabilities in the JW platform are user-friendly and require little internal training. Further, the metadata infrastructure allowed internal stakeholders to easily aggregate data across multiple audiences for advertisers.
JWP’s formula for success for broadcasters
Forrester’s TEI report showcases the potential ROI broadcasters can expect by working with JWP, relying on SNY as a case study. The full report explains in meticulous detail how the solutions devised by JWP can be applied to broadcasters of any size, with heaps of data to support this assertion.