VideoNuze readers and podcast listeners know that as the streaming wars have heated up I’ve become focused on whether subscribers will increasingly churn in and out of various services (“spinning” as I’ve called it). There are arguments on both sides of this issue, and it’s not yet clear to me how it will unfold.
But research late last week from PwC suggested that the potential for spinning is quite high. When PwC asked “Would you make any changes to your current subscriptions in order to subscribe to these new services?” 64% of respondents said they would terminate or downgrade one or more current services while 36% said they would make no changes to current services.
I'm pleased to present the 230th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
This week found Colin at the BroadbandTV Con event in Santa Clara where he was impressed by the 2 keynotes, by Eric Berger, EVP, Digital Networks, Sony Pictures Television (Crackle) and Roy Sekoff, President and Co-Creator of HuffPost Live. Eric and Roy provided insights about their strategies and the audiences they're pursuing. Both services are highly successful in their own ways. Colin shares his observations, and compares and contrasts the two.
One commonality is that both services are free to viewers and ad-supported, which brings us to our next topic, PwC's growth forecast for online video advertising, which I covered this week. We dig into the details and other PwC numbers. Even though PwC projects video ad spending will more than double, to $6.8 billion in 2018, Colin actually believes the forecast is too conservative. He explains why and what would really impress him.
Listen in to learn more!
PwC released its Entertainment & Media Outlook for 2014-2018 yesterday, forecasting that online video advertising in the U.S. will hit nearly $6.8 billion in 2018, more than double the projected 2014 level of $3.3 billion.
PwC sees video advertising as achieving a 19.5% compound growth rate from 2013-2018, trailing only mobile Internet advertising, forecast at 22.1% CAGR. Video advertising's share of all wired Internet advertising is projected to jump from 8.7% in 2014 to 14.5% in 2018.