Volume 1, Issue 1 — January 29, 2008

DS [Digital Signage] — Volume 1, Issue 1 — January 29, 2009

 

 

Volume 1, Issue 1 — January 29, 2008
 
 

A Note from the Publisher

Welcome to the first issue!

Editorial

The Digital Signage Warning
By Gary Kayye, CTS

Headlines News

Tech Data U.S. to Distribute Rise Vision's Digital Signage Content Management Solution

VISIX Adds Digital Signage SaaS Solution

Pantel Launches Weatherproof DS LCD Monitors

Retailer FASTSIGNS Adds Digital Signage to its Offerings

C-nario Launches New DS Product Aimed at Small and Medium Sized Businesses

Digital Signage Case Study of the Month

Toronto Transit Commission

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Welcome to the first issue of rAVe DS [Digital Signage]!

If you are a regular reader of rAVe ProAV Edition, then you know two things: first, that digital signage is an exploding market with a ton of money to be made in it — even in this difficult economy, and second, that AV integrators hold less than 5 percent of the market, with IT integrators dominating the rest. We're here to change that. Read my editorial below to find out how we're going to educate you on how to start, succeed and profit in the digital signage market.

Enjoy this issue!

–Gary Kayye, CTS

 

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The Digital Signage Warning!

By Gary Kayye, CTS

Let this premiere issue of rAVe DS [Digital Signage] serve as a warning as well as a springboard for a new beginning.

The DS market is dominated — and I mean dominated, by IT integrators, advertising agencies and even graphics designers who are all, quite honestly, wondering how this fell into their lap and counting the money, in most cases.

Trust me, it's true. Before deciding to launch rAVe DS [Digital Signage] I did a ton of research in the market to understand what the heck was going on. In fact, we originally intended to launch it in September 2008, but delayed the launch so that I could learn it better — I wanted to know it inside and out.

And, now I think I do.

So what?

Well, if you knew what I know, you wouldn't say that. In the world of digital signage (actually, I like the term dynamic signage, but will call it digital signage until we convince the market otherwise), the AV market plays a very small part. We are losing major, major opportunities — daily — in this market.

That's all going to stop. And, we're going to help the AV world play in a big way. We're going to teach you what the digital signage market is all about, how to play in it and, most importantly, how to make a lot of money in it.

Think you don't need our advice and you're already a DS player? Well, write to me, call me or e-mail me because I want to hear your story (and probably, write a column). But, I am betting if you're in AV, you're missing most of the opportunities — and, certainly, the most profitable ones.

For example, one of the market content delivery solutions is a company called VISIX. You may have even heard of them — they're run by an AV industry veteran, Sean Matthews (Ed Matthews, the co-founder of Technical Industries in Atlanta — remember them? — his son is Sean). He's an AV guy. He WANTS to see the ProAV integrators dominate digital signage.

And, his company is a major player in digital signage. Listen to these stats. In 2008, VISIX (www.visix.com) gained 197 new DS clients (end users to you), and just sold their 1000th system (each "system" has one server and many players, so they now deliver content to tens of thousands of endpoints). That's a lot of DS gear and services. The key word there is "services" because they use a hybrid approach that combines hardware with what the IT industry would call a SaaS (Software as a Service) model where you make money selling the service, based on how many users or endpoints there are.

Well, he competes with the like of Ronin, Scala, Broadsign, etc — all IT-based companies, some also using a SaaS model, serving the DS market. But, unlike them, he PRIMARILY sells and markets through the AV-channel. All well and good, right?

Not so fast. Listen to this: in 2008, only about 50 percent of these opportunities came from the AV channel. The other half was generated from… VISIX — that's right, from the actual DS manufacturer. So, Sean did the "right thing" in that he brought the opportunity TO the AV integrator to ask them to deploy the installation that they, the manufacturer, found. In fact, 95 percent of all opportunities are pushed back to the AV integrators. Not many IT manufacturers would do this — trust me.

Anyway, back to the meat of this article. Of the 197 new clients, 173 of the systems were actually configured by VISIX themselves. Why? The AV integrator asked them to do it.

What's the big deal? Well, the AV integrator sold the gear — the VISIX stuff, the Exton IP-Links, the wire and the content servers, but — now listen to this — VISIX did all the programming and software configuration (the intellectual property) on those 173 systems. What the heck? I know that AV integrators KNOW that the money's in the service — you all understand the Crestron and AMX model, right? Sell the $1500 control system and pack it with $3500 worth of intellectual property (otherwise known as programming), and the IP is where you make all your profit.

But the AV integrators sold the gear and bailed on the intellectual property — ironically the highest margin and largest chunk of money in the long run.

Not only that, but upon completing those 173 systems, VISIX signed software maintenance agreements (SMAs) with all of them AND even sold SMAs from last year's installs too!

Now, this isn't an easy sell. Like all service sales, it's labor intensive and requires handholding (and consulting and training and access to a help desk, etc). VISIX initiated over 2800 remote support sessions in 2008 via WebEx, but that's what they attribute to the high renewal rate of the SMAs.

And, remember, this is one example, of one company — it happens to be THE ONE that's supporting the AV Channel. Imagine all the opportunities I am not telling you about — the one's that went to IT companies or manufacturers targeting IT.

Look, the DS market is complicated. It's not as simple as selling a flat screen monitor, a projector, a document camera or even a control system. But, it's not rocket science — sorry, Sean. It's simply an IT-enabled example of an AV-system. Content is generated with some sort of graphical (and scheduling) software, encoded with a content server, sent over a network or the Internet, decoded on the other end and played on a flat-screen (in most cases).

Doesn't that sound real AV'ish to you? It does to me!

So, hang with us, subscribe to rAVe DS [Digital Signage] and we'll get you up and running by the end of 2009. In fact, I will go as far as to say that if you will follow us through each issue in 2009, we (the AV channel) will have 20% of the market by year's end — instead of less than 5% now.

More to come!

–Gary Kayye, rAVe Visionary and 20-year Industry Veteran

 

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Think This Issue is Too Pro-VISIX?

Maybe this one is. But, truth be told, we TRIED to find other DS content SaaS companies out there that support or even care about the ProAV channel (did you know that Wireless Ronin, a BIG DS company, pulled out of InfoComm 2009?) — and we couldn’t. So, if you’re in Digital Signage and you DO support the ProAV integration channel, then tell us. We will be more than happy to print your story. We're going to do everything WE can to educate and help the AV dealers get a bigger percentage of the digital signage market, and want you to do the same. NEC does. Sharp does. They just happen to not introduce any new products for DS this month. But, we WILL cover them. Promise.

Let’s face it, 2009 is going to be a tough year, but the digital signage market is growing exponentially. We intend to help the AV channel get a piece of the DS pie. If you're helping, we promise to give you press coverage every step of the way! Send your press release t
o pr@ravepubs.com or call us in the office at 919-969-7501.

 

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Tech Data U.S. to Distribute Rise Vision's Digital Signage Content Management Solution

Rise Vision, Inc. a provider of a web-based content management system for the control of digital signage networks, announces that Tech Data Corporation will distribute the Rise Display Network to its value-added reseller customers via its Digital Signage and Projectors Specialized Business Unit (SBU). Tech Data offers a broad line of displays, cabling, mounts and other digital signage components and accessories in addition to the Rise Display Network, providing its resellers with a complete digital signage offering.

Is Tech Data an AV Integrator? We think not. A message to Rise Vision: AV integrators understand BOTH the IT side and the AV side of the DS market. If you can’t support an inside-sales force and want a distributor that badly, why not partner with Electrograph — an AV-based distributor! Geez.

This is why we launched rAVe DS. We intend to fix this problem and bring the digital signage back to AV where it started back a decade ago with NEC Display Solutions.

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VISIX Adds Digital Signage SaaS Solution

VISIX, that company I just wrote about in my column, has launched a digital signage software as a service solution for the ProAV integrator community to use to ease into the DS market. This is a great way to start as a true integrator of BOTH the hardware and the software side of the DS market.

The offering is built upon the long-standing AxisTV platform (something many ProAV integrators must be familiar with as they've been exhibiting AxisTV at InfoComm for years), which was designed and built as a web-based solution and is deployed in 1000 systems around the world.

Visix SaaS subscribers can exploit 90 percent of the functionality found in the premise-based solution, which is built on the same architectural platform. At the visual playback level, communicators will see no difference in the products since they are both compatible with Visix channel players and media appliances. The SaaS offering pulls information from the Visix content manager, and users can set refresh rates to as short as one minute.

Users will see a number of traditional SaaS benefits including minimal initial investment, no content server maintenance, no responsibility for data backup and storage, and new builds and releases deployed regularly without user or IT intervention.

The Visix SaaS offering requires a 2-year commitment with monthly auto-pay secured to a credit card or annual payments with discounts tied to a year over year scale. There is a minimal set-up fee of $330 for the new SAAS offering and monthly access fees start as low as $284 (excluding players).

Check it out at: http://www.visix.com/products/axistv/index.htm

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Pantel Launches Weatherproof DS LCD Monitors

Pantel, known as the worldwide leader in outdoor weatherproof TV and monitor solutions, this week announced that it will launch multiple new weatherproof digital signage-specific LCD monitors at the 2009 Digital Signage Show (DSE) held in Las Vegas next month.

The new 42- and 52-inch models have been designed specifically for use in commercial DS applications, whether indoors, or outdoors in the elements. They are available with an optional internal computer package and also in either vertical or horizontal configurations. The new 42- and 52-inch models are priced at $5,999.99 and $12,999.99, respectively, with additional computer and heating options also available. All models are scheduled for availability in Q1 2009.

Check out the specs of the new monitors at: http://www.panteltv.com/

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Retailer FASTSIGNS Adds Digital Signage to its Offerings

Why do I even cover this story? To demonstrate the fragmentation of the market and how everyone's going after a market that we, the AV channel, should CLEALY dominate.

FASTSIGNS International Inc., the worldwide franchisor of FASTSIGNS sign and graphics centers, announced the addition of digital signage to its sign and graphics offerings. FASTSIGNS digital signage offering is the first mainstream, readily available digital signage system for local installations (trust me, FedEx is next), whether a customer needs one digital unit or thousands. FASTSIGNS has selected to work with two of the leading innovators in dynamic digital signage, Scala Inc. (a content software provider) and NEC Unified Solutions (you know them well), to implement this program. You can't blame NEC or Scala for doing this when we, the AV channel, are doing less than 5% of the market.

However, I think FASTSIGNS will be in over their heads trying to implement and manage these systems. It's very different than printing a giant paper sign and there is creativity and technical AV knowledge involved — more than your average teenage part-time jobber will be able to tackle for these stores.

My recommendation? If your office is near a FASTSIGNS office, go talk to them NOW. They will not be able to pull this off with out the partnership of someone who knows AV.

FASTSIGNS has been researching dynamic digital signage for the past year and a half and has created what they label "a viable and cost effective solution to meet customers' needs."

So, are you going to listen to us and consider a relationship with FASTSIGNS? Well, in case you do, here are their worldwide locations: http://www.fastsigns.com/locations.html

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C-nario Launches New DS Product Aimed at Small and Medium Sized Businesses

C-nario announced last week said that they plan to launch a digital signage solution for small and medium businesses (SMBs) at ISE 2009 next month in Amsterdam.

C-nario's C-Sign enables users to upload all types of content (video, images, text) easily, schedule the content and manage it through a Web browser with a user-friendly interface, from anywhere, anytime. C-Sign is a Web 2.0 Rich Internet Application (RIA) and it includes pre-designed graphic templates that can be easily customized to the user's preferences and language, enabling multiple users to access the system in different languages at the same time. But, this requires either AV or IT integrators to design and install it — and we'd prefer to see the AV-channel do it.

The new solution helps SMBs enhance customer experience, promote their brand, and deliver useful information in the most efficient manner. C-Sign has been rumored to have a good quality product and can be scaled from a standalone system to networked multiple displays.

C-Sign, which will be sold through C-nario's partners (have you called them to sign up yet?), is a significant addition to C-nario's portfolio of digital signage solutions: C-nario Messenger — a digital signage display, distribution and management platform; C-nario Advertiser — a revenue generating, distribution and ad management system; and C-nario Entertainer — a platform for fully managing and operating complex high-quality video, audio and data-based displays.

You should check them out at: http://www.c-nario.com/

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Toronto Transit Commission

The ONESTOP Media Group (OMG) is the digital signage network operator for the Toronto Transit Commission (TTC), which manages all the public transport in Toronto. TTC's three main arms are buses, trams and subways.

The Challenge?

To install a multimedia distribution system that will deliver real-time information via 1,500 screens to be located throughout the subway system. The up to the minute information is to include subway updates, safety alerts, news, sports, weather, entertainment and advertising. This content will be displayed to over one million passengers a week.

How'd They Do It?

Using the Minicom AVDS system (a Cat5-based AV distribution network of transmitters and receivers), they manage the content (the advertising, news, weather and transit schedule) at the head-end and send it via Cat5 to each display — addressing each one via an analog type system. In this case, this is a hardware-based solution where the software is centralized and management of the system is centralized – creative design and the Transit System itself maintains management of the system content.

To read the entire case study, go to here [PDF]

Next month, we'll feature a different approach to digital signage in a software-based solution via the network where you can control each display independently and change content on-demand from a de-centralized system. Both approaches work and both approaches make it easy for ProAV integrators to get into the DS market.

 

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So, that’s rAVe DS [Digital Signage] for this month! Remember, we are here to HELP the AV market penetrate the DS market. Less than 5 percent of the DS market is integrated by AV companies. The other 95 percent is IT-based. Now, there are AV publications and even an association that would like to draw those IT people in to AV (it would increase readers, right? – and more readers means they can charge more for ads). That is NOT what we are doing. rAVe DS is specifically designed to pull AV into the DS market and teach AV companies how to take business away from the currently dominated by IT market.

For those of you NEW to rAVe, you just read a 100% opinionated ePublication that’s designed to help AV integrators. We not only report the news and new product stories of the digital signage industry, but we stuff the articles full of our opinions. That may include (but is not limited to) whether or not the product is even worth looking at, challenging the manufacturers on their specifications, calling a marketing-spec bluff and suggesting ways integrators market their products better. But, one thing is for sure, we are NOT a trade publication that gets paid for running editorial or product stories. Traditional trade publications get paid to run product stories — that’s why you see what you see in most of the pubs out there. We are different: we run what we want to run and NO ONE is going to pay us to write anything good (or bad).

Don’t like us, then go away — unsubscribe! Just use the link below.

To send me feedback, don't reply to this newsletter — instead, write directly to me at gary@ravepubs.com or for editorial ideas: Editor-in-Chief Sara Abrons at sara@ravepubs.com

rAVe [Publications] has been around since 2003, when we launched our original newsletter rAVe ProAV Edition. rAVe HomeAV Edition, co-published with CEDIA, launched in February, 2004. rAVe Rental [and Staging] launched in November 2007. rAVe ED [Education] launched in May 2008. rAVe DS [Digital Signage] was launched in January 2009.

To read more about my background, our team, and what we do, go to https://www.ravepubs.com

Copyright 2008 – rAVe [Publications] – All rights reserved – All rights reserved. For reprint policies, contact rAVe [Publications], 510 Meadowmont Village Circle, Suite 376 – Chapel Hill, NC 27517 – (919) 969-7501. Email: sara@ravepubs.com

rAVe Rental [and Staging] contains the opinions of the author only and does not necessarily reflect the opinions of other persons or companies or its sponsors.

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