Q&A with Stephan Balzer, Senior Vice President of Marketing at iXL

Germany's streaming media industry is experiencing some particular growing pains -- the end of a telecom monopoly, a lack of professionals knowledgeable about the technologies and the markets. But as iXL's Stephan Balzer points out, things can only get better.

IXL, an Internet consultancy with such high-profile clients as America Online and Virgin Atlantic, is positioned to be part of the solution. The German Multimedia Association (dmmv) -- a 900-member group representing the online and offline multimedia business community in Germany, where Balzer is head of the working committee on entertainment -- is also focused on bolstering Germany's streaming industry.

Streamingmedia.com: What is the state of the streaming media industry in Germany, and where is it heading?

Stephan Balzer: If you have a look at the growing number of startups that focus on that area you will notice that this market has not yet been fully developed -- it is in flux. So far, mainly the large full-service providers like iXL or Pixelpark have been involved in corporate events, which they broadcast using streaming media. The consumer market is not yet developed as well, but I expect it to grow strongly over the period of the next 12 to 15 months. The businesses involved have either a traditional background -- radio networks, pure-play-Internet companies, and entertainment-based websites, for instance -- that see streaming as one differentiator, such as when they sign an exclusive deal for concerts.

Streamingmedia.com: Deutsche Telekom, which enjoyed a monopoly until recently, initially promoted ISDN as the connectivity solution for the Internet. Is this what has limited the growth of other broadband technologies in Germany?

Stephan Balzer: Yes, of course it has to do with the changes that our telco infrastructure is undergoing. Deutsche Telekom as the number one provider and ex-monopolist is still pushing ISDN, and now DSL services are being added as well. At the same time the cable industry is being deregulated, but cable is mainly used for TV purposes, and there are no cable modems in use in Germany. So in the next couple of years, mainly ISDN, DSL, and not to forget wireless technologies will be strongly supported and used in Germany.

Streamingmedia.com: What are the predominant business models in the German streaming media market?

Stephan Balzer: The same that you can find in other countries. Mostly services and advertising-based models, which still have a hard time as the market is not as advanced as it is in the U.S..

Streamingmedia.com: What role can the dmmv play in helping this market to advance?

Stephan Balzer: The dmmv is the largest organization representing the new industry here in Germany, and of course there are always more things to do. We have been pushing on different levels concerning education: On the members side, we've been offering our members special offers for training or discounted rates at professional training institutions. We also do a lot on the public and lobby level, since this is not only a problem of our industry but something that affects the nation in general. There has been a discussion about the German educational system and the lack of trained and qualified personnel. Still, I believe, there needs to be more done. We are trying to explain to politicians both on the local level and the national level in Berlin how important that sector is for growth in our industry.