Forrester Consulting reveals Total Economic Impact of JW Player for broadcasters
JW Player has commissioned Forrester Consulting to conduct a Total Economic Impact (TEI) study and examine the potential return on investment (ROI) broadcasters may realise by deploying JW Player. The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of JW Player on their organisations.
To better understand the benefits, costs and risks associated with this investment, Forrester interviewed two representatives of SportsNet New York (SNY), a broadcast organisation with experience using JW Player. Forrester used this experience to project a three-year financial analysis.
The interviewees noted how prior to using JW Player, their organisation lacked both the ability to produce quality videos that met its audience’s need for dynamic consumption as well as the analytic insights to effectively maximise advertising revenue. The organisation’s previous online video player demanded the video team follow an arduous and unintuitive publishing workflow that left critical components of the process outside of their control and in the hands of the video provider. Outside of the workflow, the OVP was static, limited in functionality, and did not optimise the experience for the viewer.
Moreover, the organisation received little to no insights about their viewership’s engagement levels. And for any metrics the organisation did receive, the team was sceptical about the data’s accuracy. Finally, the majority of ads were remnant and issued through partners, leaving the organisation without the ability and understanding of how to maximise monetisation.
After the investment in JW Player, the interviewees’ organisation reduced its time to market for broadcasting videos, significantly increased audience engagement levels, and reduced the time dedicated to following up with external stakeholders to address video-player concerns, delays and inaccuracies. This led to enhanced productivity for the internal video team, increased collaboration with JW Player’s technical experts, and led to more advertising revenue.
By leveraging JWP’s enhanced video quality, advanced advertising technology and viewer analytics, the interviewees’ organisation experienced a 190% increase in ad impressions in year 1, and 150% in years 2 and 3. This improvement resulted in a three-year risk-adjusted Present Value of $2.9 million.
Workflow efficiency was also enhanced. The organisation’s video production capacity increased by 83% and workflow efficiency improved by 93%. The time required for broadcasting videos decreased from 30 minutes to just two minutes, allowing the broadcast of 30 videos per month, up from five. These gains translate into a three-year risk-adjusted PV of $103,600.
In addition, JWP’s responsiveness to real-time video service requests led to a 95% improvement in video production uptime. The result? A three-year risk-adjusted PV of $19,400, showcasing the tangible benefits of improved efficiency.
These quantified benefits alone amount to a total three-year NPV of $1.76 million, with an impressive ROI of 135%, according to Forrester.