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Sunday, May 3, 2015
PERSPECTIVE  What's this?

What’s The Key To Online Video Becoming A $20 Billion Market? Some Democracy.

Posted by:
Jeff Segal
Director, Magid Associates’ Strategy Consulting Practice
Mike Vorhaus
President, Magid Advisors

We all know the Internet is big - some 3.5 trillion web pages big, by the latest comScore estimates. But you wouldn't know it by looking at the current state of the online video market.

Nearly a decade after advertisers started batting around the idea of the Internet's "long tail," highly branded video publishers have yet to grasp the meaning of the phrase. The online video market is now pulling in over $6 billion. That's not bad. But with an injection of democracy, the market could grow to three times that size in very short order.

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PERSPECTIVE  What's this?

VideoNuze Podcast #271: Revisiting Comcast-TWC Deal Failure; Verizon-ESPN Spat

I'm pleased to present the 271st edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

We had recorded last week's podcast just prior to the news that Comcast was dropping its merger bid for Time Warner Cable, so first up this week we share thoughts on why the deal collapsed.

In my view, the perception of the deal transformed from being cable-centric to being broadband-centric, largely due to the rise of online video usage. As a result, Comcast, post-merger, having 57% of American broadband connections under the new 25 mbps definition, became a sticking point (never mind that it actually has 56% on its own, reflecting its aggressive broadband infrastructure upgrades).

This is a key irony of the deal's failure - Comcast has invested billions in technology, but its woeful customer service ultimately undermines these investments and defines its reputation. In a hypothetical world where Comcast was a "most admired company," (like Apple, Amazon, etc.), I think it's quite possible regulators would have actually welcomed the Time Warner deal.

We then turn our attention to Verizon's "Custom TV" packaging and ESPN's lawsuit. As I explained in Has Verizon Put ESPN Into a Public Relations Headlock Over Opaque "Sports Tax?" I think Verizon is making a brazen move to reign in sports costs. Colin and I agree it's the most startling thing yet to happen in a tumultuous year for the pay-TV industry.

Listen in to learn more!



Click here to listen to the podcast (21 minutes, 6 seconds)

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