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6 Items of Interest for the Week of Oct. 18th
It was another busy week for online/mobile video, and so VideoNuze is continuing its Friday practice of curating 5-6 interesting industry news items that we weren't able to cover this week. Read them now or take them with you this weekend!
Networks block Google TV to protect themselves
Yesterday news started breaking that ABC, CBS and NBC are blocking access by Google TV. There are numerous concerns being cited - potential disruption of advertising, encouraging cord-cutting, incenting piracy, diminished branding, unsatisfactory ad splits with Google, and general worry about Google invading the living room. Each item on its own is probably not enough to motivate the blocking action, but taken together they are. Still, doesn't it feel a little foolish that broadcasters would differentiate between a computer screen and a TV screen like this? For Google, it's more evidence that nothing comes easy when trying to work with Hollywood. I'm trying to find out more about what's happening behind the scenes.
TWC Lines Up For ESPN Online Kick
An important milestone for TV Everywhere may come as early as next Monday, as #2 cable operator Time Warner is planning to make ESPN viewing available online to paying subscribers. Remote access is part of the recent and larger retransmission consent deal between Disney and TWC. TV Everywhere initiatives have been slow to roll out, amid cable programmers' reluctance. Further proving that remote authenticated access works and that it's attractive with a big name like ESPN would increase TV Everywhere's momentum.
Hulu Plus, Take Two: How's $4.95 a Month?
Rumors are swirling that Hulu may cut the price of its nascent Hulu Plus subscription service in half, to $4.95/mo. That would be a tacit recognition of Hulu Plus's minimal value proposition, largely due to its skimpy content offering. As I initially reported in August, over 88% of Hulu Plus content is available for free on Hulu.com. More important, Netflix's streaming gains have really marginalized Hulu Plus. Netflix's far greater resources and subscriber base have enabled it to spend far bigger on content acquisition. Even at $4.95, I continue to see Hulu Plus as an underwhelming proposition in an increasingly noisy landscape.
Viacom Hires Superstar Lawyer to Handle YouTube Appeal
Viacom is showing no signs of giving up on its years-long copyright infringement litigation against Google and YouTube. This week the company retained Theodore Olson, a high-profile appellate and Supreme Court specialist to handle its appeal. While most of the world has moved on and is trying to figure out how to benefit from YouTube's massive scale, Viacom charges on in court.
Verizon to sell Galaxy Tab starting November 11th for $599.99
Verizon is determined to play its part in the tablet computer craze, this week announcing with Samsung that it will sell the latter's new "Tab" tablet for $600 beginning on November 11th. The move follows last week's announcement by Verizon that it will begin selling the iPad on Oct. 28th, which was widely interpreted as the first step toward Verizon offering the iPhone early next year. Apple currently owns the tablet market, and it remains to be seen whether newcomers like the Tab can break through. For his part, Apple CEO Steve Jobs said on Apple's earnings call this week that all other tablets are "dead on arrival." Note, if you want to see the "Tab" and learn more about how connected and mobile devices are transforming the video landscape, come to the VideoSchmooze breakfast at the Samsung Experience on Wed., Dec. 1st.
One-Third of US Adults Skip Live TV: Report
A fascinating new study from Say Media (the entity formed from the recent merger of VideoEgg and Six Apart), suggesting that 56 million, or one-third of adult Internet users, have reduced their live TV viewership. The research identified 2 categories: "Opt Outs" (22 million) who don't own a TV or haven't watched TV in the last week and stream more than 4 hours/week, and "On Demanders" (34 million) who also stream more than 4 hours/week and report watching less live TV than they did a year ago. Not surprisingly, relative to Internet users as a whole, both Opt Outs and On Demanders skew younger and higher educated, though only the latter had higher income than the average Internet user. This type of research is important because the size of both the ad-supported and paid markets for live, first-run TV is far larger than catalog viewing. To the extent its appeal is diminishing as this study suggests poses big problems for everyone in the video ecosystem.
Categories: Aggregators, Broadcasters, Cable Networks, Cable TV Operators, Devices, Mobile Video, Telcos
Topics: ABC, Apple, CBS, ESPN, Google TV, Hulu Plus, iPad, NBC, Samsung, Say, Time Warner Cable, TV Everywhere, Verizon, Viacom, YouTube
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iPad Users' Click-Through Rates On Video Ads Are Running Higher
Click-through rates on video ads shown to iPad users are much higher than similarly formatted ads shown to iPod Touch, iPhone or Android users according to new research released today by Rhythm New Media, a large mobile video ad network.
In analyzing their viewers' behavior in Q3, Rhythm found that iPad users' click-throughs on Rhythm's "interactive pre-roll" unit were 2.32%, which is 58% higher than the 1.47% for the iPod Touch, which came next. Rhythm CEO Ujjal Kohli, who I spoke to last week, said the data suggested the iPad's larger, more immersive environment is leading to more engagement with ads and users' higher inclination to click-through, particularly when more video is involved.
Categories: Advertising, Mobile Video
Topics: iPad, Rhythm New Media
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5 Items of Interest for the Week of Oct. 11th
Continuing VideoNuze's Friday feature of highlighting 5-6 interesting online/mobile video industry stories that we weren't able to cover this week. Read them now or take them with you this weekend!
JetBlue Unvails Ads Created By Mullen
Take a moment to head over to YouTube today where JetBlue has bought out the top-of-page expanding banner for a hilarious new ad campaign, "You Above All," featuring a series of reality-style videos of New Yorkers in situations that mock the JetBlue competitors' service. The clever JetBlue campaign follows the head-turning Sylvester Stallone YouTube ad for "The Expendables" from a couple months ago and underscores the ascendance of YouTube as the #1 piece of online real estate for break-the-mold video campaigns for high-profile brands. Google is capitalizing on YouTube's appeal by featuring it prominently in its current "Watch This Space" ad campaign promoting the value of display advertising.
Google TV Guns for Cable Deals
And speaking of Google, with the recent introduction of Google TV, the company is reaching out to cable operators to ink integration deals similar to what it showcased with satellite operator Dish TV last week. Google TV offers tantalizing potential, particularly to smaller operators, to add Internet elements to their core video service, helping better compete with over-the-top entrants like Netflix. Conversely, as we saw this week with the funding/public launch of BNI Video (and in a series of separate product announcements coming next week), technology vendors are lining up to offer cable operators the ability to deliver their own Internet experiences. It's a very confusing time for cable operators, who must figure out whether to go it alone and invest heavily, or partner with a tech giant like Google.
comScore Releases September 2010 U.S. Online Video Rankings
comScore's video rankings for September yielded no big surprises, as Google/YouTube continued to be the dominant online video provider and Yahoo narrowly retook the #2 spot from Facebook. comScore changed the way it publicly reports its data this past June which has made it a little harder on independent analysts like me to show trending data as I used to do. Nonetheless, I'm hoping to have some new trending charts to share soon.
Blip.tv Predicts Best Quarter Yet for Web Creators
More encouraging news on the online video ad front, as video platform/distributor blip.tv said this week that Q4 '10 is on track to be its best quarter ever. Blip has been a very important player in bringing independent web series to market and its ability to monetize is a key driver of sustainability for many fledgling creators. Blip's news synchs with overall online video ad momentum in first half '10.
Introducing the JW Player for Flash and HTML5
Last month I wrote about how the open source JW Player is receiving 15K downloads per day. This week version 5.3 of the JW Player was released which integrates Flash and HTML5 into a single video player, using a unified JavaScript API. What that means is that anyone embedding the new player can seamlessly deliver either Flash or HTML5 video with the browser auto-detecting which playback mode to use. Since browsers and devices are still quite heterogeneous in what formats they support, initiatives like this help reduce friction in publishing and user experience.
Categories: Advertising, Cable TV Operators, Devices, Indie Video, Technology
Topics: blip.TV, comScore, Google TV, JetBlue, JW Player, YouTube
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Study: User-Generated Video Product Reviews Can Be As Persuasive As Ads
A new study of user-generated video product reviews has found that they contain the same kinds of persuasiveness and memorability traits as found in professionally-produced advertisements, therefore suggesting that they offer significant complementary value. In the study, comScore used its content assessment methodology, "ARS Zipline," to score a sample of 25 user-generated product reviews from EXPO Communications' database. They were compared to professional video ads drawn from the comScore ARS database.
The scoring process focused on the user-generated reviews' persuasiveness and memorability, based on rational, emotional and structural attributes. Of the 25 reviews, 17 (68%) scored at least in the average range while 8 (32%) scored above average. The key takeaway is that some product reviewers intuitively convey persuasiveness and memorability even absent the rigorous development and testing employed in the professional ad process. The study found that reviewers tended to focus more on the product and its attributes, driving home key messages around product convenience and quality, both of which increase persuasiveness.
Categories: UGC
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Online Video Advertising is Best Performer in FH '10, Up 31% to $627 Million
Online video advertising is the fastest-growing ad category on the Internet, up 31% to $627 million in first half 2010 from $477 million in first half 2009 according to new research released by PwC US and the IAB.
However, video advertising still only amounts to 5% of total Internet ad spending, with search, at 47% (over $5.7 billion in FH '10) still dominating the landscape. However, video advertising is benefiting significant tailwind and is poised for lots of growth ahead. In its favor are shifting consumer behaviors toward online viewing, an exploding array of premium-quality/brand-friendly content, broad adoption of connected device which enable long-form online-delivered video viewing on TVs, and improved ad infrastructure (e.g. targeting, management, engagement, etc.).
When I talk to executives at video ad networks, brands, agencies and content providers they all confirm lots of activity in moving over TV and online budgets to video. I expect plenty more of this as online video viewership gains further momentum. The full ad spending breakdown for FH '10 is below.
Categories: Advertising
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AdoTube Data Suggests Video Ads Benefit From Viewer Control
AdoTube, an online video ad manager and network is releasing data on the performance of its "Polite Pre-Roll" and interactive ad formats this morning, which provide more insight about viewers' behaviors and preferences. AdoTube's Chief Strategy and Operations Officer Steven Jones walked me through the results yesterday.
AdoTube began offering the Polite Pre-Roll format last year to clients and has done A-B testing on it vs. standard pre-roll ads on 30 million servings. With the Polite Pre-Roll, viewers are able to click to close the ad, and then a reminder overlay appears at the bottom of the screen, which also can be closed out. In addition the Polite Pre-Roll has far deeper engagement opportunities than standard pre-rolls.
Categories: Advertising
Topics: AdoTube
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Nielsen: iPad Already In 3.6% of U.S. Homes in Q2. How's That Compare?
I was checking out Nielsen's Q2 '10 Home Technology Report findings and one stat jumped out at me: 3.6% of U.S. homes now own an iPad. The percentage would actually be a little higher than Apple's own data given that it reported 3.27 million iPads sold in the quarter ending June 26th (assuming there are approximately 110-115 million U.S. households).
Either way, when you think of iPad sales in household penetration terms, the question that comes to mind is how long after their introductions did digital products and services like DVR, HDTV, broadband Internet, VOD and others reach 3.6%? I don't know the answer, but I suspect it was far longer than a single quarter.
With Apple's next quarter performance due on Oct. 18th, we'll see how many more millions of iPads were sold in the 3rd calendar quarter of 2010. And of course with Q4, the holiday quarter, now underway, the biggest wave of purchases is just ahead. At some point it will be fascinating to overlay the iPad's early years' quarterly household penetration curve on other digital products and services. No doubt it will tell a remarkable story of success.
What do you think? Post a comment now (no sign-in required).
Categories: Devices
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5 Items of Interest for the Week of Sept. 27th
It's Friday and that means that once again VideoNuze is featuring 5-6 interesting online/mobile video industry stories that we weren't able to cover this week. Have a look at them now, or take them with you for weekend reading!
Nielsen Unveils New Online Advertising Measurement
comScore Introduces Digital GRP `Overnights` in AdEffx Campaign Essential
Dueling initiatives from Nielsen and comScore were announced on Monday, aimed at translating online usage into comparable TV ratings information, including reach, frequency and Gross Ratings Points (GRPs). While online video ad buying is ramping up, the tools to measure viewership in a comprehensive way have been lacking. This is one of the main issues holding back content providers from participating in TV Everywhere.
Analyst: Cord-cutting fears overblown
New research shared this week by BTIG analyst Rich Greenfield concludes that less than 8% of the market is actually interested in cord-cutting. The big impediment: losing access to sports and cable programming, which is unlikely to migrate to free over-the-top alternatives. Greenfield's conclusion is that cord-cutting isn't a major threat to pay-TV operators over the next 3-5 years. Notwithstanding the research, another factor I'd point to that could tip cord-cutting the other way is consumers' belt-tightening. Much as nobody wants to lose access to programming, if the price is perceived as too high, they'll make compromises.
Why YouTube Viewers Have ADD and How to Stop It
Abandonment rates for online video have always been a concern, and using new research, Visible Measures CMO Matt Cutler now quantifies the behavior. Expect 20% of the audience to drop out within 10 seconds of hitting play, 33% by the 30 second mark and 44% by 60 seconds in. Pretty sobering data but incredibly important in thinking about content creation and monetization.
Networks Have Sharing Issues With Hulu
Hulu's New Hoop
On the one hand, Hulu's network partners, ABC, NBC and Fox are reportedly pulling back ad inventory that Hulu is allowed to sell, yet on the other, Hulu is reportedly out aggressively selling ads in Hulu Plus, its subscription service. Meanwhile this week Hulu also announced that Hulu Plus will be accessible on both Roku devices and TiVo Premiere, as it continues chasing Netflix in the subscription game.
The New Apple TV Reviewed: It`s All About the Video
Apple TV devices started shipping this week, and reviews began popping up all over the web. This mostly positive review indicates that the user experience is solid, but that content selection is still skimpy. That's no surprise given how few deals Apple has struck to date. Yet to be seen is how Apple TV performs when it can access other iOS apps.Categories: Advertising, Aggregators, Analytics, Broadcasters, Devices
Topics: ABC, Apple TV, comScore, FOX, Hulu, NBC, Nielsen, Visible Measures, YouTube
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Are Pay-TV Providers Getting Hit By a Perfect Storm in Q3?
The U.S. pay-TV industry, which as a whole lost multichannel video subscribers for the first time in Q2 '10, may be heading for a soft 3rd quarter as well. As Multichannel News reported yesterday, Time Warner Cable's CFO Rob Marcus said at a conference this week that Q3 "video net losses are pacing ahead" of where they were in Q3 '09. He attributed the downturn to recession-related factors of high unemployment, high home vacancy rates and slow new home formation. Though that's a fair explanation, it's only one element in a perfect storm pay-TV operators now find themselves battling.
Aside from the above recession-related matters, pay-TV operators are also up against belt-tightening that's rooted in basic household economics. As Craig Moffett at Sanford Bernstein pointed out in a note last weekend, in the past 25 years, cable and satellite spending has increased from 1/2 of 1% of discretionary spending to 1.4%, a growth rate that's triple other household discretionary line items.
Categories: Cable TV Operators, Satellite, Telcos
Topics: Sanford Bernstein, Time Warner Cable
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Report: Newspapers Lead in Off-Site Viewership Rate
When it comes to videos being viewed off of their own web sites through embedding, it turns out that newspapers lead all other verticals, according to a new Q2 '10 online video usage report from Brightcove and TubeMogul. For newspapers, 13.6% of their videos are consumed off-site, whereas for broadcasters, which had the lowest percentage of off-site viewership, it was 1.9%.
For minutes watched per view on-site vs. off-site, newspapers decline a little, from 1:25 minutes on-site to 1:10 off site, far better than broadcasters which dropped from 3:00 minutes to 1:59 minutes. Only one vertical, online media, actually increased its off-site viewership time, to 1:45 minutes from 1:32 on-site. Whether through proactive syndication or making video embeddable on other sites so that users can virally distribute video, off-site viewership is important because it helps bring content to where users already are, rather than forcing them to come to a destination site. Of course, more views equals higher monetization. With their primarily short-form video, newspapers are well-suited to off-site consumption, and from the data it looks like they understand this and are taking advantage.
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Topics: Brightcove, TubeMogul
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5 Items of Interest for the Week of Sept. 6th
Though it was a short week due to the Labor Day holiday, there was no shortage of online video industry happenings this week. As I've been doing each of the last few Fridays, following are 5-6 noteworthy industry stories for your weekend reading pleasure.
Ooyala Raises $22 Million to Accelerate Global Expansion
Online video platform Ooyala's new $22 million round is a bright spot in what's been a pretty slow quarter for online video industry private financings. Ooyala's new funds will help the company grow in the Asia-Pacific region. Ooyala said it is serving 550 customers, double the level of a year ago.
Google TV to Roll Out World-Wide Next Year
Even though the first Google TV-enabled devices have yet to be deployed, Google CEO Eric Schmidt said this week that he envisions a global rollout next year. The connected device landscape is becoming more competitive for Google TV given the growing number of inexpensive connected device options.
Business Groups Question Net Neutrality Rules
Three pro-business trade groups urged the FCC to drop its net neutrality initiative, citing the "flourishing" broadband market and concerns that regulations will curtail new investments and hurt the economy. It seems like everyone has a different opinion about net neutrality, so the consensus needed to move regulation forward is still down the road.
ESPN, YouTube Link Up for Promo Campaign
This week ESPN and YouTube kicked off their "Your Highlight" campaign, enticing ESPN viewers to upload their own sports clips, with the best ones to be shown on SportsCenter. Then the best of the best will win a trip to ESPN's studios to watch a SportsCenter taping. It's a great promotional concept, using online video to further invest ESPN viewers in the brand. Whoever thought it up deserves a shout-out.
Life Without a TV Set? Not impossible
Another interesting data point to tuck into your back pocket: according to a 2010 Pew study, just 42% of Americans feel a TV set is a "necessity," down from 64% in 2006. Pew interprets this as a loss of status for the TV, as other devices like computers and phones have become video capable. The perception of convergence is taking root.
Categories: Broadband ISPs, Cable Networks, Deals & Financings, Devices, Regulation, UGC
Topics: ESPN, FCC, Google TV, Net Neutrality, Ooyala, Pew, YouTube
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5 News Items of Interest for the Week of Aug 23rd
Following is the latest update to VideoNuze's new Friday feature, highlighting 5-6 of the most intriguing industry news items from the week that VideoNuze wasn't able to cover.
Ads skipped by 86% of TV viewers, but TV ads still most memorable
A new Deloitte survey unsurprisingly finds high rates of ad skipping among DVR users watching time-shifted programs, yet also notes that 52% of respondents say TV advertising is more memorable than any other type (only 2% cited online video advertising). Is there a love-hate relationship with good old TV advertising?
Endemol USA Plans Kobe Bryant Web Series
Online video continues attracting celebrities, with the latest being LA Laker star Kobe Bryant, who will be featured in 8 episodes teaching Filipino kids about hoops. The series is being produced and promoted by powerhouse Endemol. More evidence that independent online video is gaining.
NFL Sunday Ticket To-Go, Without DirecTV
DirecTV unbundles its popular NFL package, selling online access to non-subscribers for $350. It's not clear there will be many takers at this price point, but it does raise interesting possibilities about unbundled subscribers connecting to their TVs and also how sports will be impacted by online and mobile viewing.
TiVo Launches Remote with Slide-Out Keyboard
TiVo is enhancing navigation with a long-awaited keyboard that slides out of its standard-shaped remote control for $90. With TiVo's new Premiere box offering more video choices than ever, quicker navigation is required. As other connected devices hit the market, it will be interesting to see what clever solutions they come up with too.
MTVN's Greg Clayman Heads to News Corp to Lead iPad Newspaper
Amid the ongoing shuffle of digital media executives, MTV Networks lost a key leader in Greg Clayman, who's moving to News Corp to head up their new iPad newspaper. Greg's been on VideoSchmooze panels and we've done webinars together; he always brings great insights as well as a terrific sense of humor.Categories: Advertising, Cable Networks, Devices, Indie Video, People, Satellite, Sports
Topics: Deloitte, DirecTV, Endemol USA, MTV, News Corp, NFL, TiVo
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Pay-TV Industry Loses Subscribers in Q2 '10 For First Time Ever; Cable Bears Brunt
Research firm SNL Kagan is reporting today that the U.S. pay-TV industry (cable/satellite/telco) lost 216,000 multichannel TV subscribers in Q2 '10, the first time the industry as a whole has lost subscribers. Cable operators bore the brunt of the losses, dropping 711,000 subscribers, with Kagan saying 6 of the 8 operators reporting suffered record quarterly losses. By contrast, telcos added 414,000 subs in the quarter and satellite providers gained 81,000. The losses leave cable's industry share at 61%, down from 63.6% a year ago.
Kagan analyst Mariam Rondeli ascribed the quarterly losses to low housing formation and high unemployment due to the ongoing recession, coupled with churn due to promotions from last year's broadcast digital transitions expiring. Rondeli pointed out that over-the-top video alternatives were not the cause. By comparison, the pay-TV gained 378,000 subscribers in Q2 '09, meaning there was a swing of 594,000 subscribers year-over-year. U.S. Pay-TV providers as a whole ended Q2 '10 with 100.1 million subscribers.
Looking ahead, I've heard some murmurs that Q3 '10 could be softer than in prior years, again partially due to the recession, but also because seasonal college students' subscriptions may be reduced due to over-the-top alternatives. While we've yet to see any tangible evidence of cord-cutting, the first impact may simply be slower multichannel sign-ups from younger users more accustomed to watching online. We'll see.
What do you think? Post a comment now (no sign-in required).Categories: Cable TV Operators, Satellite, Telcos
Topics: SNL Kagan
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For Mobile Video, Primetime Continues to be Most of the Time
Rhythm New Media's Q2 '10 mobile video advertising report, which is being released this morning, continues to show how mobile video consumption is spread throughout the day. Unlike online video or traditional TV, where there's a large difference in viewership between the 8pm-11pm primetime daypart vs. other dayparts, the Rhythm data (see below) shows a more even distribution. Rhythms data is based on about 1 billion content views and 75 ad campaigns run during the quarter. Adam Wright reported similar findings in Rhythm's Q1 '10 report.
Categories: Advertising, Mobile Video
Topics: Android, iPhone, Rhythm New Media, ScanScout
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Sports Continues to be Shining Star of Online Video
The final ESPN3.com and UnivisionFutbol.com streaming viewership numbers for the FIFA World Cup provide the latest evidence that sports are the shining star of the online video world for both free and paid viewing. Here's some sample data for recent free online sporting events:
FIFA World Cup: ESPN3.com (7.4 million unique viewers, 15.7 million hours viewed), UnivisionFutbol.com (10 million hours viewed)
2010 NCAA March Madness: CBSSports.com (8.3 million unique visits to MMOD video player, 11.7 million hours of video and audio)
2009-2010 Sunday Night Football: NBCSports.com (2.2 million unique visits, 1M hours viewed, 29 minutes of average tune-in time)
2008 Beijing Summer Olympics: NBCOlympics.com (70 million video streams, 10 million hours viewed, 27 minutes of average tune-in time)
Categories: Sports
Topics: CBS, ESPN3, March Madness, NBC, Univision, World Cup
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YouTube Surges to Almost 15 Billion Views in May
comScore has released its May online video rankings and at the top of the list, as usual, is YouTube. In May it racked up a record 14.6 billion video views, up 11.5% from April. YouTube's market share actually dipped slightly in May, to 43..1%, still its 3rd-highest monthly share since comScore began releasing this data in Jan '07. Total video views were also at a record high of 33.9 billion views in May.
The chart below shows how remarkable YouTube's growth has been since Jan '09. YouTube has more than doubled its monthly views from 6.3 billion. Meanwhile, YouTube's market share has hovered right around 40% each month, with its lowest level at 37.7% in Oct '09 and its highest of 43.5% in April '10. YouTube is generating more than 10 times the monthly views it was when Google acquired it.
Categories: Aggregators, Music
Topics: comScore, Hulu, VEVO, YouTube
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VideoNuze Report Podcast #65 - June 18, 2010
Daisy Whitney and I are pleased to present the 65th edition of the VideoNuze Report podcast, for June 18, 2010.
This week Daisy and I return to the topic of cord-cutting, with Daisy tamping down some of what she reported about possible momentum here. Daisy cites new research from Nielsen and from Leichtman Research Group as evidence that in fact cord-cutting isn't actually happening (at least not yet). For my part, as I've said going back to my post in Oct, '08, I don't see much cord-cutting happening any time soon, both because viewers would lose cable TV network programs they love and because it's still not mainstream to connect broadband to TVs.
We then discuss my post early this week about ABC doubling the ad load on its iPad app, and soon on ABC.com as well. As I said earlier this week, it's tough from a consumer standpoint to see more ads, but the reality is these programs need to be effectively monetized, or well, these programs will cease to exist.
Click here to listen to the podcast (15 minutes, 29 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!Categories: Broadcasters, Cable TV Operators, Podcasts
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Cisco: Video will be 91% of All IP Traffic by 2014
Cisco released its annual Visual Networking Index forecast today, a model based on a combination of analyst projections and data collected from Cisco customers. Cisco is forecasting that global IP traffic will increase 4.3 times though 2014 and that video will be the primary driver, accounting for 91% of traffic by 2014.
Video's dominance is based on "Hyperconnectivity" which Cisco says is driven by the growing penetration of broadband, the increasing screen space and resolution on consumer devices, the proliferation of network-enabled devices and the increase in power and speed of computing devices. Mobile devices were also included in this list, but specific traffic was denoted separately and, in line with last year's forecast is set to increase 39 times, with video accounting for 66% in the year 2014.
Categories:
Topics: Cisco
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Total Video Viewership Down Slightly in April; YouTube Share Jumps
comScore has released its new online video rankings for April '10 which show total videos viewed of 30.3 billion, down almost 3% from the prior month's 31.2 billion. As a result, YouTube, which was roughly flat in April at 13.1
billion videos, saw its market share increase to 43.5%, its highest level since July '08. It was also YouTube's second highest share since I started tracking the comScore numbers in Jan '07 (when YouTube had a relatively paltry 16.2% market).
The 3% decrease in total videos from March '10 to April '10, compares with a 5% decrease from March '08 to April '08 and a 16% increase from March '09 to April '10. While it's hard to discern any trends around these 3 year numbers, one thing worth noting is that over the last 6 months, with the exception of blips up in Dec '09 and Jan '10, total video views have stayed relatively stable right around 30 billion. I'm not sure exactly what to conclude from that, but I'll certainly be watching the coming months to see if viewership is flat-lining or just taking a breather.
Categories: Aggregators
Topics: comScore, Hulu, VEVO, YouTube
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Rhythm New Media Releases Bullish Stats on Mobile Video Usage and Ads
A report this morning from Rhythm New Media, a firm that develops mobile video apps for TV programs and runs its own mobile video ad network, provides fresh reasons to be bullish on mobile video. The report is based on an estimated 250 million video views/month that Rhythm has tracked in Q1 '10 on its mobile video platform. Two key stats that jumped out for me: an average 86.7% completion rate and a 1.7% click through rate for its 15-second pre-rolls. The latter is roughly consistent with data Will reported from Rhythm about 6 months ago. It is noteworthy that Rhythm's click through rates are holding steady as it scales up.
To get a sense of how Rhythm's mobile data stacks up against online video advertising data, I compared it to a report eMarketer and YuMe released based on Q4 '09 data, which showed a steady decline in click through and completion rates for pre-rolls. Rhythm's completion and click through rates are 24% and 56% higher than those in the eMarketer/YuMe report. While it's
a bit of an apples vs. oranges comparison because YuMe's much larger network includes many different types of video content (vs. Rhythm's TV program only) and the ads YuMe surveyed were a mix of 15-second and 30-second spots (vs. Rhythm's 15-second only), the differences may be an early indicator of the contrast between mobile and online video.
Categories: Advertising, Mobile Video
Topics: eMarketer, Rhythm New Media, YuMe
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