Some media companies are spending in excess of 100% of their digital revenue on site development, management, and hosting, says Cisco’s Scott Brown.
Cisco aims to capitalize on this inefficiency and save publishers as much as 60% of technology costs with a hosted solution called Eos.
Launched earlier this year, the company’s biggest customer is Warner Music, which launched a series of artist sites this summer.
The business around Eos is a departure for Cisco: Eos is provided to publishers for a modest licensing fee, with most revenue coming from a percentage of advertising sales on the site. The ads are sold by the publisher.
For publishers struggling with their bottom line, this seems like an attractive opportunity to partner with Cisco. However, some news media companies will prefer to host their own content.
We are told to expect more Eos customer announcements early next year.
Scott stopped by the Manhattan headquarters of Beet.TV recently for this interview.
Andy Plesser, Executive Producer
