TheRehab, a Denver television production company founded in 2000, spent its time making commercials and corporate videos.
Last year, it virtually abandoned that trusted business model to enter a new, unchartered territory — original online video programming, including advertising and short-form documentaries.
“In the old days, if you were a television production company, you created shows, developed a pilot and tried to find a network,” said Sean Leman, founder and director of theRehab. “But we’re doing it on the Internet. So many people are migrating from television to the Web.”
The growth and success of online video content is prompting some local video production companies to change course, and it’s shaping up to be a boon for them.
Denver-based bieMedia LLC has shifted from producing television ads and other content like corporate videos to creating video for the Web. The change has been so successful, the company is building a new 27,000-square-foot facility at Fifth Avenue and Broadway, with an estimated price tag of $6 million.
“We’ve definitely found a niche in the past few years, and technology is driving it,” said Jon Barocas, founder and chief executive of bieMedia. “Everybody is trying to jump into the space right now. They’re trying to get up and running and compete with video on their website.”
Analysts tracking the growth in online video advertising say that while it doesn’t eclipse traditional ad methods, it’s a growth leader. That’s good for small private companies such as bieMedia and theRehab.
“That is a great opportunity. At this point (online video advertising) is in a nascent stage,” said Kate Wilburn, research analyst for Parks Associates, a Dallas firm focused on digital technologies. “Anybody that gets in at this point would have a great return on their investment.”
While theRehab is focusing on producing original content, such as comedic shorts and documentaries around independent bands, bieMedia is still working with businesses.
“We’re importing the TV model to the Web,” said Mike Powl, president of bieMedia. “We’re creating 30-second commercials that could be found on TV. We adhere to normal production standards.”
Clients include job site Monster and the Yellow Pages group in Canada.
“We saw massive video adoption for sites like YouTube and (saw that) moving into advertising,” said Robert Kornblum, former vice president for Monster North America, who works as a consultant.
He said video advertising clips on the Web are more effective than a full-page magazine ad or a 30-second TV commercial.
“We thought it was an important product for us to use,” he said.
Kornblum, who still consults for bieMedia, said businesses see online advertising as a way to tell a story about their product or brand unencumbered by such constraints as airtime or federal regulation.
That is especially important in the case of employers looking for talented employees.
“The ability to tell a story is greatly enhanced, that’s why you’re starting to see a substantial market (for this),” Kornblum said. “In a tight labor market, people want to tell their story in the best way they can.”
Producing professional-quality content for the Web is key, and now technology — in the form of video cameras and editing software — is inexpensive, allowing companies like bieMedia to expand. The company said it plans to add 45 jobs over the next 18 months. It currently employs 27.
“What could be done on a $30,000 video editing system can now be done on a $2,000 editing system,” Powl said.
“We definitely have competition in the space we operate in,” he said. “It really is the barrier to entry that is pretty significant. You need to have an established client base.”
Kimberly S. Johnson: 303-954-1088 or kjohnson@denverpost.com
