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Thursday, January 29, 2015

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  • Study: Netflix Tops for Watching Streaming TV Programs

    Here's more evidence of how watching TV programs is changing: according to part two of a TV viewer survey fielded by NATPE and CEA, 71% of respondents said they have streamed full-length TV programs in the past 6 months. No surprise, Netflix was the go-to source, with 40% having watched there, followed by 26% for YouTube and 25% for network web sites.

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  • Akamai: Global Broadband Adoption Hits 60%, 4K Readiness Still Modest

    Akamai has released its Q3 2014 State of the Internet Report, its compendium of global connection speeds and broadband adoption for fixed and mobile networks, along with 4K readiness, attack traffic and IPv4/IPv6 updates. Among the highlights are that broadband adoption rate reached 60% globally, a 1% increase vs. Q2 '14. (Broadband is defined as an average connection speed of greater than 4 mbps.)

    South Korea once again led all countries with 96% adoption above 4 mbps, followed by Bulgaria (95%), Switzerland (93%) and Israel (92%). South Korea also had the highest percentage (81%) of adoption of "high broadband" (defined as average connection speed above 10 mbps), followed by Hong Kong and Japan (both at 55%) and Switzerland (54%).

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  • Electronic Sell-Through of Movies in U.S. Reached Nearly $1.6 Billion in 2014

    Digital purchases of movies in the U.S. boomed in 2014, to $1.55 billion, up 30% from $1.19 billion in 2013, according to new data from the Digital Entertainment Group. However, the $360 million increase was more than offset by a decline in purchases of physical movies (DVD and Blu-ray) of $844 million in 2014, to $6.93 billion, an 11% drop. In fact, as the chart below shows, physical sales have declined by over $2 billion since 2011 when they were nearly $9 billion. 

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  • Evidence of Mobile Video's Ascendance Is Everywhere

    Mobile video may be the hottest trend in video today, with evidence of its ascendance seemingly everywhere. As just one data point, last week's Q3 2014 Global Video Index from Ooyala pegged mobile video plays at 30% of all online video plays. That was up from 20% share in Q2 '14, more than double mobile video's 14% share from one year earlier in Q3 '13 and quintuple the 6% share from Q3 '12.

    That scorching growth prompted Ooyala to accelerate its forecast for when mobile video's share will cross the 50% threshold industry-wide. Ooyala previously saw this happening in 2016, but now believes it will occur by Q3 '15.

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  • Nielsen's Q3 '14 Data Shows Huge Drop in Linear TV Viewing as Online Video Surges

    Nielsen has released its Q3 '14 Total Audience report (which is the new name for the previous quarterly Cross-Platform report), the highlight of which is the marked reduction in linear TV viewing across every age group except 65+, with an accompanying surge in online video. I charted the new Q3 '14 data vs. Q3 '13 data below.

    The big quarter-vs-quarter change that pops out is the 19.2% reduction in linear viewing per week by adults 18-24. This age group is now watching 17 hours, 34 minutes per week, which is 4h, 11m less than the 21h, 45m a year ago. While this group increased its online video usage by 20.7%, that only accounted for 25 incremental minutes per week.

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  • Study: Netflix Dominates Wired Internet Usage, YouTube Tops on Mobile

    Sandvine has released its latest Global Internet Phenomena Report based on data collected in March, 2014 across leading wired and mobile broadband networks. Focusing just on North America, Netflix once again dominates primetime usage, accounting for 34.9% of downstream bandwidth, more than the next 6 services combined. YouTube was second with 14.04% of bandwidth.

    It's a different story on mobile however, where YouTube remains the top downstream provider, eating up 19.75% of bandwidth, up from 17.7% a year ago, with Netflix in 5th place with just 4.51%.  The usage pattern largely reflects the difference between Netflix's long-form content focus vs. YouTube's short-form focus. YouTube's CEO Susan Wojcicki recently disclosed that 50% of YouTube's usage is now on mobile.

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  • Media, Finance and Automotive Brands Lead Online Video Advertising Adoption

    Media, finance and automotive brands continue to lead online video advertising adoption, according to new data from MediaRadar. In October, 2014 the product categories were first, second and third respectively, just as they were in October, 2013. MediaRadar found an increase in the number of brands placing online video ads in all 10 of the product categories it measures.

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  • Report: Multiscreen Video Campaigns Surge to 35% of Total Campaigns

    Multiscreen video ad campaigns running on Videology's platform in the U.S. in Q3 '14 surged to 35% of total campaigns, up 59% from the 22% share multiscreen campaigns had in Q2 '14. Multiscreen includes campaigns running either on PC/mobile or PC/mobile/connected TV. Video ad campaigns running solely on PC dropped from 74% in Q2 '14 to 60% in Q3 '14.

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  • Adobe: Online Video Starts in Q2 '14 Hit Record High of 38.2 Billion

    Adobe's Q2 '14 U.S. Digital Video Benchmark report has found that global online video starts hit 38.2 billion, a 43% increase vs. Q2 '13 and a new record among Adobe customers. Q2 was fueled in part by the heavily streamed World Cup matches in June. Mobile continued to experience strong growth too, with 26% of starts occurring on mobile devices, up from 19% a year earlier. Smartphones notched 13.6% of starts vs. 13% for tablets, the first time smartphones have pulled ahead. However, just 16.6% of mobile videos reached 75% completion.

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  • comScore: Millennials Spend 1/3 of Their TV Time Watching On Digital Platforms

    Underscoring the dramatic shifts occurring in millennials' TV viewing behavior, a new survey from comScore has found that millennials (18-34 year-olds) now use digital platforms for 1/3 of the time they watch original TV programs. That's double the 16% of time 35-54 year-olds spend using digital platforms for TV program viewing, and triple the 10% of time for those over 55 years-old.

    For all 3 age groups, computers were the preferred digital platform by a significant margin - 19% for millennials, 10% for 35-54 year-olds and 6% for 55+. Smartphones and tablets trailed in single digits for all 3 groups. Just 55% of millennials said they "typically" watch TV programs on traditional TV, vs. 70% for 35-54 year-olds and 83% for 55+.

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  • New "Sporting Views" Research Service Details Online Sports Viewership Patterns

    Sporting News Media, which operates a large sports online video syndication network, has launched a new research service called "Sporting Views," which will provide insights about how online viewers engage with sports-related video.

    The data is based on Sporting News Media's SN ePlayer network which syndicates video highlights from major leagues and rights-holders to over 350 publishers' sites, generating over 20 million unique visitors/mo and 300 million streams/mo. The SN ePlayer network has been comScore's top-ranked online video sports property for 9 of the last 12 months.

    In the inaugural report, Sporting Views found that viewing of sports content on local publishers sites is quite diffused, actually drawing big out-of-market audiences. In ten of the largest U.S. markets, 62.1% of viewers who watch sports video on local publishers' sites were from outside that market. Dallas (72.7%), LA (71.3%), New York (70.9%) and Miami (70.3%) led in terms of percentage of viewers from outside their markets.

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  • Study: Mobile Video Provides Cost-Effective Incremental Reach to TV Ads

    BrightRoll has released a new study, conducted by Nielsen, which concludes that mobile video advertising provides cost-effective incremental reach to TV advertising. Nielsen found the following incremental reach with mobile video ads in 4 verticals it studied: CPG (12.7%), Auto (11.9%), Telecom (9.5%) and Financial Services (9.9%).

    Underlying the incremental reach benefit of mobile video is Nielsen's estimate that once a brand hits 60% or more of its target audience with TV advertising, there's a point of diminishing returns, making incremental reach very expensive.

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  • Just 7% of TV Everywhere Users Cite Authentication as Main Challenge

    Industry research firm The Diffusion Group has found that, contrary to conventional wisdom, authentication is not blocking broader consumer acceptance of TV Everywhere services. TDG found that just 7% of TVE users perceive the TVE authentication process as "difficult" to "very difficult" while over two-thirds (68.4%) said it was "easy" to "very easy." Nonetheless, 82% of TVE users said eliminating TVE log-in entirely would be an important enhancement.

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  • Survey: 60% of Brands' Video Ad Spending Allocated to Programmatic

    In another sign of programmatic video advertising's rising popularity among brand advertisers, Adap.tv's newly released 2014 State of the Video Industry report has found that 60% of brands' video ad spending is now allocated to programmatic channels. That compares with 44% for ad networks and 38% for agencies and trading desks.

    However, when it comes to premium video, brands said just 23% of ad spending was done programmatically, reflecting how important publisher direct sales remains for the most coveted ad inventory. In fact, 51% of publishers said they're making premium ad inventory available for sale programmatically, up just slightly from 49% in 2013. Still, private marketplaces continue to gain, with 32% of publishers running one in 2014, up from 20% in 2013.

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  • Survey: Consumers' Cord-Cutting Intentions Remain Muted

    Interest in cord-cutting remains relatively muted according to new data from Frank N. Magid Associates. The firm, which has been surveying consumers' attitudes towards cord-cutting each of the past 4 years, found 2.9% of respondents agreeing they're "very likely" to cancel their pay-TV service in the year ahead, a slight uptick from 2.7% found in 2013, 2.2% in 2012 and 1.9% in 2011.

    Magid noted that the "very likely" level jumped to 4.9% for 25-34 year-olds, but dropped to 1.4% for those identifying themselves as ESPN viewers (live sports are widely believed to be the most formidable bulwark against cord-cutting).

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  • eMarketer: YouTube Will Account for 19% of U.S. Online Video Ad Market in 2014

    According to a new eMarketer forecast, in 2014 YouTube will account for 18.9% of the U.S. online video ad market, down from 21.2% in 2013. Still, YouTube will see a healthy 39.2% year-over-year net video ad revenue increase, from $810 million in '13 to $1.13 billion in '14. eMarketer forecasts YouTube's U.S. video ad revenue to continue growing, by 34.2% in '15 to $1.51 billion and by a further 18.3% in '16 to $1.75 billion.

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  • Study: Video is Preferred Content Source for Brand Information

    A new study from Brightcove has found that 76% of consumers cite video as their preferred content source when consuming brand information, with 79% overall favoring digital content over traditional. In addition, 24% of respondents said video is their "most trusted" source for brand content, with 44% of them saying video was more appealing, authentic (29%), engaging (28%) and shareable (10%) than other communication formats.

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  • Nielsen: Online Video Viewing Per Day Has Doubled in Past 2 Years

    Nielsen has released its Q2 '14 Cross-Platform Report, finding among other things, that online video viewing/day for Americans age 18-64 has doubled from an average of over 13 minutes in Q2 '12 to an average of over 27 minutes in Q2 '14. The 18-34 age group leads with 35 minutes/day in Q2 '14, followed by 35-49 year-olds (26 minutes/day) and 50-64 year-olds (19 minutes/day).

    Despite the gains, TV viewing still dwarfs online viewing, and held up pretty well over the 2 year period. For 18-34 year-olds, TV viewing in Q2 '14 was 4 hours, 17 minutes (a 10 minute decline since Q2 '12), for 35-49 year-olds it was 4 hours, 57 minutes (an 8 minute decline) and for 50-64 year-olds TV viewing was 6 hours, 12 minutes (a 5 minute increase).

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  • VideoNuze Podcast #240 - NFL Now Looks Brilliant; Ericsson Data Highlights OTT's Edge

    After a 2 week hiatus while I was traveling in France, nScreenMedia's Colin Dixon and I are back with the 240th edition of our weekly podcast.

    The NFL season is now officially underway and with the launch of the NFL Now app, the league is promising to deliver an unprecedented fan experience. Though it's still quite early, Colin and I discuss why NFL Now looks like a very smart move. We're especially impressed with how the NFL is threading the needle between preserving the value in its multi-billion dollar broadcast/cable TV deals while aggressively pursuing online/mobile opportunities. However, for watching live games online, we also note how convoluted the TV Everywhere experience will be this season.

    Before we get to the NFL, Colin shares insights on a new report from Ericsson Consumer Lab, which found that OTT providers are surpassing pay-TV providers in customer satisfaction. Colin compares the data for four criteria - price, quality, mobility and content. I think the report is directionally correct, but question how valid it is to compare OTT services that cost around $8/month with pay-TV that can cost 10x this amount. It's worth noting another key takeaway from the report, which is that almost as many people now watch streaming video per week (75%), as watch scheduled broadcast TV (77%).

    Listen in to learn more!

    Click here to listen to the podcast (18 minutes, 23 seconds)


    Click here for previous podcasts

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    The VideoNuze podcast is also available in iTunes...subscribe today!

     
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  • Vindico: Share of Video Ads At TV Quality Increases to 45%

    Vindico has released its Q2 '14 Adtricity rankings, with 45% of online video ad impressions receiving a grade of "A" or "B" up from 34% in its last rating in late 2013. "A" and "B" ratings are considered TV quality and are respectively defined by Vindico as "placed in high impact areas and excellently executed" and "often placed front and center, and generally well executed with minor deductions."

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