FierceOnlineVideo Leaders - Peter Csathy, CEO Sorenson Media

FierceOnlineVideo got a chance to catch up with Peter Csathy, CEO of Sorenson Media, to discuss his company's new product launch and Sorenson's progress since he took the helm in March. 

FierceOV: What are your thoughts on Sorenson's progress since you were named CEO? 

Csathy: Taking the broad view, I joined at a time when the market for Internet video is really exploding all around us and the companies in the space. I think we're in the second inning, so to say, of the online video opportunity, so it's an exciting time to join Sorenson.

In terms of our business specifically, we have the core Spark product licensing business, which is thriving. We've had big customer wins with Verizon and Qualcomm now being major licensees of the product. Our Squeeze product also continues to grow.

Now with the launch of Sorenson360, we are providing an end-to-end video delivery network. We designed it based on customer feedback to try to give them online video publishing as it should be.

We've also hired extensively during this economic downturn, have 14 years of heritage in the space, and are excited about continuing to provide our customers with great video solutions. 

FierceOV: Can you describe the core customer Sorenson360 is designed to reach and what they stand to gain from implementing the product? 

Csathy: Sorenson360 will initially be marketed to our core small-to-medium business customers and video professionals, basically the existing Squeeze customer base. They are very loyal, and they've come to trust Sorenson products for their quality. The product lets these customers get Internet video published to the Web to better sell their products and engage potential customers. Our customers told us they want an all-in-one solution to do this, and we've provided them a product, that again, we think is video publishing as it should be. 

FierceOV: You recently wrote about the "myopic view of monetization" that the press and other online video industry insiders often take regarding online video. What did you mean by that? 

Csathy: Our target with the Sorenson360 product is not people in the content business. Ninety-nine-point-nine percent of businesses on the Web are not content businesses, where they need to monetize the video content itself, such as in Hulu's case.

But I think that video can make a difference in virtually every business with an Internet presence, and I think that virtually every business should have an Internet presence now. Obviously, this isn't yet the case, and it's why I see such an opportunity here. Video engages and connects in ways that pictures and text simply cannot. It provides an immersive experience that customers will respond to, as long as it's high quality.

Video can help these businesses sell more products and do a better job engaging customers. 

FierceOV: What are ways a customer could use video to drive revenue, other than ad-supported models? 

Csathy: Well, the commerce side is the most obvious. So if I'm selling dresses or shirts, I can have an interactive demonstration of someone actually wearing the clothes, rather than screen shots or text descriptions. Or advertisements for books, for instance, could have short video clips with the author describing what moved them to write it. It's not just direct selling opportunities either, but a more engaging presence that leverages the unrivaled connectivity the Internet gives us. Video can help artists connect to fans and make meaningful connections, such as taping a quick reaction video after a concert that the fans can then view and have a deeper experience. 

FierceOV: Peter, you've taken several companies to successful exits. What advice would you give leaders in start-up online video companies about finding success in this tough market? 

Csathy: I think you have to consider some high level truths that seem really obvious, but I guarantee get overlooked more that almost any. First, you have to have passion for what you're doing, because it impacts every way you pursue your business. You also have to put a team in place that shares that passion and is talented and driven.

Secondly, and this one is really tough, there are literally so many opportunities that can be explored with partnerships and development and research, but you have to pick ones you think you can be the best at and focus. It's so much better to be really good at one thing, rather than mediocre at several.

There is also a lot to be said for experience. This is my fourth company, and I've made a ton of mistakes. But I've tried to learn from them and see those general truths that put you on the path to success.

Lastly, and this is something I want to stress, you have to have a real business model. You have to have a plan for profitability that is focused. Our biggest obstacle to implementing Sorenson360 is not staying focused, and I have to focus very closely on steering the ship to opportunities that will move the needle for our business. We have to listen to customers and innovate quickly and faster than any of our competitors.