(We're also entirely API-based for programmatic high-volume encoding, so if you're thinking of things like video editing and manual post-production, that's not really what we do.)
So why wouldn't folks use the API on (say) Rhozet's tool and maintain control of the flow?
> We do what the "professional" non-cloud tools do, but in the cloud,
Yes, I assume that you have a "professional" engine since you have a team of only 20 people.
> and we have many customers who are investing more than $6,000.
Kudos. Now when they find out that they can take the transcoding API in house for about that much money, what financial incentive will they have to stay with Zencoder?
FULL DISCLOSURE: I worked pro video at Apple and am now a very happy employee of Zencoder.
But costs less. THAT is the point. (A quad-core is almost there, dual hex xeons will provide 10x capacity. Not enough? Add more cores. At $2000/mo, the payoff is pretty easy in less than a year.)
Look: You guys have a business which is not yet breaking even. Perhaps that will fix itself with a bunch more customers. But as with all businesses, once your invoices start showing up on the CFO's screen, he is going ask to design you out. He will walk down to the office of his head IT geek, who is always trying to justify his salary, and say: What does it cost to take this in-house?
You think the IT geek is going to say: Oh no. We need to have that in the cloud.
Really?
I'm probably missing something, so I'd be happy to be enlightened.