emarketer webinar: the evolving online video landscape

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Unica OnDemand The Evolving Online Video Landscape: Trends & Insights The Webinar will begin at 1:00 PM EST You will be connected to audio using your computer’s microphone and speakers (VoIP). A headset is recommended. Or you may select Use Telephone after joining the Webinar. Dial-in phone: 916 – 233 – 3088 Access code: 523 – 429 – 565 Presented by: Paul Verna eMarketer Senior Analyst Sponsored by:

Post on 12-Sep-2014

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Join eMarketer Senior Analyst Paul Verna, who will discuss the state of online video content and syndication. After this webinar, you'll have a firm grasp of the online video audience, revenue models and trends for the future.

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Page 1: eMarketer Webinar: The Evolving Online Video Landscape

Unica OnDemand

The Evolving Online Video Landscape:Trends & Insights

The Webinar will begin at 1:00 PM EST

You will be connected to audio using your computer’s microphone and speakers (VoIP). A headset is recommended. Or you may select Use Telephone after joining the Webinar.

Dial-in phone: 916 – 233 – 3088 Access code: 523 – 429 – 565

Presented by:Paul VernaeMarketer Senior Analyst

Sponsored by:

Page 2: eMarketer Webinar: The Evolving Online Video Landscape

Welcome Webinar AttendeesYour GoToWebinar Attendee Viewer

is made of 2 parts:

1. Viewer Window 2. Control Panel

Type your question here

Page 3: eMarketer Webinar: The Evolving Online Video Landscape

J U L Y 2 0 1 0

The Evolving Online Video Landscape: Trends & Insights

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Agenda

Online Video Audience Metrics & Demographics

Content Mix & Venues

Case Studies: YouTube, Netflix, Hulu, Break Media, ooyala

Monetization

Syndication

Technology Convergence: From TV to Internet

Tips & Takeaways

Page 5: eMarketer Webinar: The Evolving Online Video Landscape

Overview

We’re in a transitional time

Consumer behavior, technology, monetization models, and the relationship between digital and transitional media are all in flux

The landscape will change significantly in the next few years

Opportunities about for those willing to take risks and embrace new paradigms

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Online Video Audience Metrics

147.5 million people in the US watch online video, which translates to 2/3 of Internet users

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Online Video Audience Metrics

By 2014, this number will increase to 193.1 million, or 77% of Internet users.

7% CAGR

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Audience Demographics

The largest clusters of viewers are ages 18 to 44

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Audience Demographics

The largest clusters of viewers are ages 18 to 44

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Women outnumber men in the overall online video audience, but men outnumber women among heavy TV online viewers

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Those under 25 are most inclined to watch ‘all’ or ‘most’ of their TV online

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TV Online

Increasing numbers of video viewers are watching

full-length TV shows online

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Content Mix: Movies Online

Downloading and streaming of full-length movies rose dramatically in 2009

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User-generated clips still lead the pack of online video types watched regularly by US viewers

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Case Study: YouTube

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YouTube was the undisputed leader by unique viewers, with over 100 million in May 2010

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Nielsen comScore

Case Study: YouTube

US Unique Viewers to Google Video Sites, May 2010 (millions)

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Google Hulu MSN Yahoo! Turner FIM

Source: Nielsen

Case Study: YouTube

Top Online Video Properties by Videos Viewed, May 2010 (billions)

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Google Hulu Microsoft Vevo Viacom Yahoo!

Source: comScore

Case Study: YouTube

Top Online Video Properties by Videos Viewed, May 2010 (billions)

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Case Study: NetflixCase Study: YouTube

Business Highlights

43% market share in May 2010 (comScore)

Third-most-visited site on the web

24 hours of video uploaded every minute

Over 2 billion clips served every day

Cost and technical barriers lower than ever

Preferred hosting destination for media firms

Partnerships with top content owners

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Case Study: NetflixCase Study: YouTube

Challenges

DNA is in user-generated video

Interface needs improvement

Stiff competition from Hulu in TV space

Stiff competition from Netflix in movie space

Integration between Google TV and YouTube a question mark

Monetization strategy unclear

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Case Study: YouTube

“With respect to how it’ll get monetized, our first priority is on the advertising side. We do expect over time to see micropayments and other forms of subscription models coming as well, but our initial focus is on advertising.”

—Eric Schmidt, CEO, Google, in CNET

Case Study: YouTube

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Case Study: NetflixCase Study: Netflix

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Case Study: NetflixCase Study: Netflix

Business Highlights

15 million subscribers in Q2 2010, which is up 42% year-over-year

61% of subscribers stream content

Expansion into Canada and other territories

Three platform strategy: game consoles, Blu-ray players, Internet TVs

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Case Study: Netflix

“We focus on three categories: videogame consoles, Blu-ray and Internet TV, which is just emerging. We’ve been very happy with the early progress from Sony, VIZIO and others, but that category in the very long term is likely to be the leading category.”

—Reed Hastings, CEO, Netflix, Q2 2010 earnings call

Case Study: Netflix

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Technology Integration

“The recession has increased demand for in-home entertainment, enhancing the TV experience. This, combined with new flat-panel models that access content from the Internet, will further blur the lines between TV and the Internet.”

—Ed Moran, director of insights and innovation, Deloitte

Case Study: Netflix

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Case Study: NetflixCase Study: Netflix

Challenges

Direct competition from Hulu, YouTube, Blockbuster, Apple, Amazon, etc.

Limitations on content availability

Long ramp time for Internet TVs to penetrate market

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Case Study: HuluCase Study: Hulu Plus

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Case Study: NetflixCase Study: Hulu Plus

Hulu founded on an ad-supported model

Company has crossed the profit threshold

Revenue guidance of $100M in 1H 2010

Joint-venture partners long interested in exploring paid-content

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Case Study: NetflixCase Study: Hulu Plus

Business Highlights

$10/month subscription

Available on Windows, Mac, iPhone, iPad, Blu-ray, Internet TVs

PS3, Android support in the future

Despite fee, service will carry advertising load similar to current free Hulu

Page 30: eMarketer Webinar: The Evolving Online Video Landscape

Case Study: NetflixCase Study: Hulu Plus

Challenges

High price, no pricing tiers

Service carries ads despite monthly fee

Competition from other paywalls, including newspapers, music services, data plans

Content offerings limited to JV partners

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Case Study: Hulu Plus

“If your ambition is to bring the world’s premium content to users, and to do so in a way that produces fair returns to content owners—and it is our ambition—there isn’t one single bullet…you’re going to see a tremendous number of experiments.”

—Jason Kilar, CEO, Hulu, in The New York Times

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The video content mix is shifting from ad-funded to paid and hybrid models

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Case Study: Hulu Plus

“Our research suggests that viewers have a higher tolerance for advertising than they are currently receiving. There’s revenue being left on the table and media companies have not yet extracted full value out of the medium.”

—Tania Yuki, director of online video and cross-platform product, comScore

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YouTube Promoted Videos

Leverages branded video campaigns

Similar to AdWords for YouTube

CPMs between $100 and $400

YouTube attributes CPMs to higher engagement levels with online video vs. TV

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Case Study: Ooyala

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Case Study: Ooyala

Using Ooyala’s multi-variate testing framework (currently in beta), a top media company doubled paid-content revenues twice

Extended clip preview length from 2 minutes to 3 minutes

Reduced download price from 99 cents to 49 cents

Ooyala expects monetization income to contribute 20% of revenue in 2011

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Case Study: Ooyala

Another Ooyala client increased ad engagement by changing formats

A single 15-second pre-roll produced abandonment rates of 20% to 25%

Spreading out the ad load and using shorter spots brought rates to single digits

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Case Study: Ooyala

“There are more and more opportunities to hit a consumer with advertising, but it’s not just about more advertising but better targeted ads.”

—Bismarck Lepe, President of Products, Ooyala, in an interview with eMarketer

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Case Study: Ooyala

Business Highlights

Customer dashboard enables instant syndication to all screens

Specific moments or entire clips can be shared via popular social platforms

YouTube playback gives customers access to world’s largest online video library

Flexible technology detects playback environment and scales accordingly

Product features enable testing of multiple monetization options (ads vs PPV) to determine best mix for viewer engagement and revenue

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Case Study: Ooyala

Challenges

Competition from other players in the online video platform space (Brightcove)

Competition from in-house solutions

Social venues provide ample free syndication opportunities

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Case Study: Break MediaCase Study: Break Media

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Case Study: Break Media

Business Highlights

Well-defined demographic target

Expertise in producing, licensing and distributing content

Branded websites that cater to niches within the target demo

Ad network leverages company’s content expertise with its advertising muscle

Page 43: eMarketer Webinar: The Evolving Online Video Landscape

Case Study: Break Media

“We’ve created a vertically integrated machine that’s self-sufficient in the sense that we can produce content, monetize it and distribute it….That’s really important, and most important is to do it at the right price points.”

—Keith Richman, CEO, Break Media, in an interview with eMarketer

Case Study: Break Media

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Case Study: Break Media

Challenges

Very competitive space on the professional content side

Equally crowded field in user-generated media

Also competitive on the ad-network side

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Facebook is now a key player in online video, proving the importance of social venues in the content syndication loop

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Technology Convergence: From TV to the internet

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Technology Convergence: More users connecting TVs to the internet

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Technology Convergence: Sharp increases in streaming devices

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The US will see an explosion in TVs and other devices with integrated web-video widgets

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Technology ConvergencePhase 1: Set-top boxes, game consoles

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Technology ConvergencePhase 2: Internet-connected TVs

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The online video audience is growing and becoming more demographically homogenous.

The content mix is shifting toward professional, full-length programming.

Monetization models are moving toward paid & hybrid systems but content owners must convince skeptical consumers of the value of paying for video.

Ad-supported models will remain strong.

Technology convergence will be key to the continued success of online video.

Content syndication is expanding the video audience.

Tips & Takeaways

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J U L Y 2 0 1 0

eMarketer would like to thank DoubleClick for sponsoring today’s webinar.

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There is an advertiser for every video

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Thank you for tuning in to the eMarketer Webinar:

The Evolving Online Video Landscape

Presented by:Paul VernaeMarketer Senior Analyst

Questions & AnswersRegistrants will receive a copy of the slide deck and the playback link in a follow up email within 24 hours of this presentation.

Sponsored by:

Page 58: eMarketer Webinar: The Evolving Online Video Landscape

eMarketer Online Video Coverage

Learn more about the online video landscape with eMarketer Total Access.

Visit: www.emarketer.com/productsCall: 800-405-0844 Email: [email protected]

Recent Reports:Video E-Commerce: Innovative Models Drive Sales

UK Digital News and Information Convergence

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All reports are available to Total Access clients.