"I'd like to know what a 'video virtualized' is? It certainly isn't $1 per video viewed."
When they take an existing video asset and index it. Newstag will have a whole library of video assets. Does the deal cover the whole Newstag library? How big is this library? There is a one off payment of $1 per extant video asset to LNU.
"3 billion hours of video are watched every month", but that really doesn't tell us much about this deal.
You're right. It doesn't, but it gives you an idea of the TAM.
"If virtualizing a video is the creation of it for online and then it goes viral and is watched 1 million times, is that $1 for the virtualization?"
Yes. See above.
"What does assembling a video entail? and $40 for assembling one thousand of them??"
The end result of any given search of the library of videos by a user is itself a video (stream), presented just for that search. LNU will get $40 for 1000 of these bespoke videos. However there is a caveat there to this figure.
"I'm struggling to convert the announcement to the actual potential revenue here".
From the announcement:
"Revenue to be generated under this agreement is dependant on take up of the service and will commence on deployment" - i.e. we will have to see how lucrative or not this agreement is going to be. I think it's a great deal. But its going to take a while to see if it turns into a river of gold.
We need a few more of these kinds of deals.
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