VideoNuze Posts

Revenue in the U.S. from premium OTT services could double or triple from $4 billion in 2014 to $8-12 billion in 2018, according to new research study from Ooyala and Vindicia, which was conducted by MTM.

The study, based on input from 45 content and service providers, forecasts that just a small number of OTT providers, mainly existing ones, will dominate. Netflix is seen as the biggest of the group, although its market share will decline from 85% currently to approximately 50% in 2018. However, respondents were optimistic about the opportunity for niche OTT providers such as sports, kids, specialized entertainment and personality-drive services where they foresee 15-20 providers each having over 100K subscribers.

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A new study from research firm SmithGeiger and Net2TV has found that just 18% of 18-34 year-olds’ video viewing time is now spent with traditional broadcast and cable TV. Fully 61% of their viewing has shifted to digital devices. For 35-44 year-olds, 27% of total video viewing is on traditional broadcast and cable TV. The data is the latest in a well-documented trend toward viewership fragmentation driven by OTT services and the proliferation of digital devices.

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Tribune Publishing, seeking to leverage its deep roots in content syndication, has unveiled TCA Video Network, a new multiscreen video syndication service. TCA Video Network is part of Tribune Content Agency, which is a division of Tribune Publishing.

TCA Video Network is powered by Beachfront Media whose founder and CEO Frank Sinton told me that the deal gives Tribune access to the full breadth of Beachfront’s syndication, monetization and mobile app development platforms. Frank emphasized that Beachfront has been fully focused on mobile, which, along with data, are core to TCA Video Network’s strategy.

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Comcast has announced a new $15/month online video service called Stream, offering yet another choice to consumers not interested in the full multichannel TV bundle.

Stream will be available only to Comcast’s broadband subscribers on a no-commitment, monthly basis, with no equipment required. Stream will include broadcast networks and HBO plus Streampix and a cloud DVR. It will be available only on laptops, tablets and smartphones, so no TV access. And the linear feeds will only be available in-home, though it sounds like recordings will be viewable out of home. Stream will debut in Boston in late summer, then Seattle and Chicago later this year and elsewhere in 2016.

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At the Video Ad Summit, Frank Amorese, Media Director, Heineken USA and Dan Kern, SVP/Managing Director, MediaVest shared their insights on how online video and programmatic are changing their marketing mix. Keith Eadie, CMO of TubeMogul moderated.

Heineken is shifting marketing spending to digital channels, especially for its brands that target 21-29 year-olds since they’re watching less TV.  Dan and Frank discuss how they’re using data to drive their spending in video based on both reach and business outcomes.

They measure cost of video on the basis of CPM, viewability, quality of targeting and other factors. Frank also discusses how they’re measuring both sales lift and attribution. Frank and Dan also describe how they’re implementing programmatic, including vendor selection, plus lots more.

Watch the interview now (28 minutes, 40 seconds)

I'm pleased to present the 281st edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

Earlier this week SNL Kagan released an updated forecast of fee increases for pay-TV operators to carry broadcast and TV networks. Using that data Colin modeled what DirecTV’s programming costs would be and how they would translate into higher subscriber rates and lower margins.

No surprise, Colin’s analysis further highlights how expensive pay-TV is becoming. Colin and I discuss how this directly translates into more cord-cutting and cord-nevering given the range of inexpensive, high-quality OTT options.

All of this is happening against a backdrop of kids abandoning TV altogether. That trend was illustrated by new research from Miner and Co. Studio, which revealed that 57% of parents of kids age 2-12 say their kid prefers a device OTHER than the TV to watch video. Worse, almost half of these parents said sometimes as a punishment they take their kid’s device away and instead make their kid watch TV. We discuss the implications. (make sure to watch Miner’s video interviews too)

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Neeraj Khemlani, co-president of Hearst Entertainment & Syndication shared his insights on the new video landscape and how to succeed in it during his keynote interview with me at the recent Video Ad Summit. Neeraj has a great perspective on the topic given his role at Hearst and the company’s investments in video leaders like AwesomenessTV, Roku, BuzzFeed, Vice and others.

Neeraj sees this as a time of huge experimentation, with Hearst looking to place bets on brands that will resonate with younger audiences. The key here is for talent to be authentic and build their audiences. When this happens, they’re “earning” their distribution organically, rather than trying to establish it formally as in traditional media distribution models. That’s a huge shift.

Among other topics, Neeraj discusses “CosmoBody,” the company’s new SVOD service and why it’s ad-free, why news is a perfect fit for video and mobile, why having a strong editorial point of view is critical, how Facebook is changing video viewing and lots more.

Watch the interview now (33 minutes, 51 seconds)