mid-year review of 2012 online video predictions
TRANSCRIPT
Mid-Year Review of 2012Online Video Predictions
Mid-Year Review 2012 Online Video Trends to Watch
Over 13000 people have read Skytidersquos ldquo7 Online Video Trends to Watch in 2012rdquo making it our most popular white paper
As we hit the halfway point for 2012 we thought it would be interesting and informative to look at current market data and trends to see how our predictions have panned out
On the following pages wersquoll revisit each of our previous prognostications and gauge our success Letrsquos get started
1
1 Online video traffic will continue to skyrocket
When we made our initial prediction in November 2011 it was a given that online video traffic was poised to continue its meteoric ascent in 2012 So the only factor left to be genuinely debated was the rate of growth
Familiar industry sources like Ciscorsquos Visual Networking Index (VNI) forecasted that the compound annual growth of online video would be 32 between 2010-2015 and would account for 90 of all consumer IP traffic by 2013
Skytide also concurred that online video traffic would soar but we believed that the industryrsquos already bullish forecasts were actually too low Based on the growth rates from our Telco CDN customers we made the bold forecast that online video traffic would grow by more than 50 in 2012 and that the resulting capacity crunch would be even more severe than previously considered
How accurate was Skytidersquos prediction
bull Cisco recently updated its VNI Forecast for 2011-2016 Among its predictions
Video over IP will grow 50 from 2011 to 2012 (excluding fixed private networks) When private networks are included the growth rate is still a very healthy 40
Online video over mobile devices is on track to increase by over 100 between 2011-2012 fueled by the explosion of video now being consumed on smartphones and tablet computers
bull The unbridled growth of social media also promises to send online video traffic soaring even higher through the end of 2012 Marc DeBevoise VP and General Manager of CBS Interactive recently revealed that social media is driving an average of 15 of the video views on CBScom
2
2 Operator CDNs will make big inroads
With 41 cable and telco operators reported to be in some phase of CDN deployment in 2011 (source Informa Research) and the need for service providers to offload video traffic becoming even more pronounced we predicted that the number of service providers launching their own content delivery networks would continue to grow and make inroads against legacy CDN services
How accurate was Skytidersquos prediction
bull Many North American cable multiple system operators (MSOs) have launched their own CDNs or in the throes of doing so
Time Warner recently presented at the Content Delivery Summit on the critical role its CDN plays in expanding the companyrsquos video delivery capabilities
Cox Communications also presented at the same conference on choosing the right content delivery strategy
StreamingMediacomrsquos Dan Rayburn and others have reported on Comcastrsquos CDN ambitions
bull In addition we know of several large new deployments in the works by operators (and large content providers) new to the CDN space In fact Skytide will be powering the analytics and reporting for some of them including one of the largest Operator CDN initiatives to date
3
3 Federated CDNs will finally become a reality
The topic of CDN federation has been bandied about for years with the promise that it is just around the corner
In 2011 it actually started to turn that corner First a formalized body called the Operator Carrier Exchange was announced in June of 2011 a few months later Cisco revealed the findings from a federated CDN pilot that it had conducted with several tier 1 carriers Based on that momentum we predicted that a CDN federation could be operationally deployed in 2012
How accurate was Skytidersquos prediction
CDN federation is definitely picking up speed
bull Akamai announced an operational CDN federation platformWhile our prediction was more focused on an interconnection exclusively between operator CDNs it is important to note that legacy content delivery network Akamai announced in February 20012 that it had deployed its own federated CDN platform
bull Edgecast also announced a CDN federation platform Content delivery network Edgecast soon followed in May 20012 with an announcement that it had also deployed its own federated CDN platform and was already exchanging traffic with unnamed carriers
bull Cisco revealed Phase 2 findings of CDN Federation Pilot While itrsquos still in the pilot phase Ciscorsquos federation project continues to move forward The completion of phase one was announced in October of 2011 and served to validate the concept of a CDN interconnection the second phase introduced some new participants and examined additional functionality across the federation Findings from that pilot can be downloaded here
4
4 Adoption of Adaptive Streaming will climb
The same market dynamics which led us to predict increased adoption of adaptive bitrate streaming (ABR) protocols remain at mid-year
Increasingly higher user expectations for a smooth uninterrupted online video viewing experience coupled with the rise of smartphones and other connected devices continue to bode well for further adaptive bitrate streaming adoption
How accurate was Skytidersquos prediction
Based on recent announcements and activity all signs point to an even faster rate of adoption for adaptive streaming than we originally ventured
bull In February 2012 industry heavyweights like Microsoft Adobe and Netflix publicly announced their support for MPEG DASH (Dynamic Adaptive Streaming over HTTP) a new ISO standard that could replace proprietary technologies like Apple HLS Microsoft Smooth Streaming and Adobe Dynamic Streaming
This standard is likely to be embraced by content owners because they could significantly reduce their workflow by creating a single set of files that run on all DASH-compatible devices
bull In the meantime most North American cable MSOs are rolling out TV Everywhere initiatives that deliver video content to iPads via adaptive streaming using Applersquos HLS protocol
bull Set-top box (STB) manufacturers are taking note too French STB manufacturer Netgem just introduced a hybrid OTTDTT solution at the Anga Cable Show that incorporates adaptive streaming Set-top box maker Amino also made a similar announcement at the show One has to believe that the rumored Apple TV would come standard with ABR as well
Additional reading What is adaptive bitrate streaming
5
5 MSOs amp IPTV services will extend reach into OTT
Evolving viewing behaviors and expectations mdash including the desire to watch programming anywhere and on any number of devices mdash led us to predict that IPTV providers and MSOs would soon have no choice but to begin exploring OTT models
While doing so threatens to lessen their control of the customer experience they may have little choice in the matter Viewers want to consume what they want where they want and on whatever device they want
At the same time service providers are eager to find ways to generate revenue from over-the-top traffic that is requiring large capital expenditures to upgrade their networks
How accurate was Skytidersquos prediction
Cable and IPTV operators are beginning to test OTT models
bull Verizon Wireless recently announced a new mobile video application dubbed Viewdini that seeks to profit from the over-the-top video coursing its network
It will function as a video portal that enables users to find video across multiple services mdash Redbox Hulu Plus Netflix and Xfinity among them Rather than charge customers for bandwidth consumed however this ldquotoll- freerdquo service may charge the content provider via fees like revenue sharing deals
bull Meanwhile Dish Network just announced a digital video recorder (DVR)
called Hopper that allows users to automatically record every prime-time show on ABC NBC Fox and CBS in HD for eight consecutive days it also includes the capability to zap commercials Dishrsquos Chairman Charlie Ergen described Hopper as a competitively necessary response to the threat that OTT video is posing to traditional pay-TV providers
6
6 Multi-screen viewing will become the benchmark
When we published our online video predictions in November of 2011 sales of mobile and tablet devices were on a tear and industry analysts and equipment vendors were heralding the bright future of multi-screen viewing
Fast forward to June of 2012 and the sales of smartphones and Apple iPadrsquos continue unabated fueling a continued rise in multi-screen viewing
How accurate was Skytidersquos prediction
bull Q1 2012 global smartphone sales topped 144 million versus 101 million for Q1 2011 and are expected to grow by 35 this year (source Gartner) Similarly tablet sales grew to 17 million in Q1 and are expected to also grow by 35 (source IDC)
bull These smartphone and tablet purchases are being put to use In fact research indicates that viewers watch 30 more video on their tablets than they do on their desktop computer (source Ooyala)
bull There will be nearly three networked devices per capita in 2016 up from over one networked device per capita in 2011 (source Cisco VNI)
bull Not surprisingly practically every North American MSO is now rolling out services that allow their subscribers to view cable content on their tablet computers
7
7 Online video ad budgets will swell
A perfect storm was brewing at the end of 2011 to suggest that online video ad budgets would swell significantly in 2012 In fact a ldquoVideo State of the Industry Surveyrdquo projected that budgets would increase 27 in calendar 2012
The confluence of improved online video resolution innovations in video delivery and devices and larger inventories of quality content promised to create higher levels of consumer engagement and time spent viewing This confluence would create a virtuous cycle in which increased ad dollars support more and better online video programming delivered with higher levels of QoS which in turn attract even more ad dollars
How accurate was Skytidersquos prediction
From all indications thus far in 2012 online video advertising is booming at least within the US
bull In April Americans viewed a record 95 billion video ads (source comScore Video Metrix)
bull Forrester VP and Research Director David Cooperstein recently predicted that more than 50 of marketers will test the use of digital video in 2012 versus just 20 in 2011
bull Forrester also recently published study findings that 70 of marketers plan to increase online advertising this year especially for mobile video
bull From late April to early May a group of large online video content providers participated in the inaugural Digital Content NewFronts designed to emulate the ldquoupfrontrdquo meetings that traditional television programmers have long used to let marketers purchase TV spots several months in advance
The NewFronts further legitimize the importance of online video blur the lines with TV and foreshadow media buying and planning alignment between the two
8
IP Video Management Analytics
Related White Papers
7 Online Video Trends to Watch in 2012
The year ahead promises to be full of twists and turns for online video and the digital media supply chain that serves it Dont be caught flat-footed Read ldquo7 Online Video Trends to Watch in 2012rdquo to get an advance peek at the trends that will shape the industry and how you can capitalize on the disruption to come
Read Now
The 4 Keys to Telco CDN Success
Many telecom service providers are building their own content delivery networks as a means to capitalize on the surge in Internet video coursing over their networks With this white paper we will reveal four key success factors necessary for Telco CDNs to effectively harness their competitive edge and realize success
Read Now
How Telcos and ISPs Can Learn to Love OTT
With this white paper we will demonstrate how it is now possible for telcos to improve their position in the content-to-consumer value chain create a more sustainable business model to value chain members and profit from escalating over-the-top (OTT) video traffic
Read Now
9
Mid-Year Review 2012 Online Video Trends to Watch
Over 13000 people have read Skytidersquos ldquo7 Online Video Trends to Watch in 2012rdquo making it our most popular white paper
As we hit the halfway point for 2012 we thought it would be interesting and informative to look at current market data and trends to see how our predictions have panned out
On the following pages wersquoll revisit each of our previous prognostications and gauge our success Letrsquos get started
1
1 Online video traffic will continue to skyrocket
When we made our initial prediction in November 2011 it was a given that online video traffic was poised to continue its meteoric ascent in 2012 So the only factor left to be genuinely debated was the rate of growth
Familiar industry sources like Ciscorsquos Visual Networking Index (VNI) forecasted that the compound annual growth of online video would be 32 between 2010-2015 and would account for 90 of all consumer IP traffic by 2013
Skytide also concurred that online video traffic would soar but we believed that the industryrsquos already bullish forecasts were actually too low Based on the growth rates from our Telco CDN customers we made the bold forecast that online video traffic would grow by more than 50 in 2012 and that the resulting capacity crunch would be even more severe than previously considered
How accurate was Skytidersquos prediction
bull Cisco recently updated its VNI Forecast for 2011-2016 Among its predictions
Video over IP will grow 50 from 2011 to 2012 (excluding fixed private networks) When private networks are included the growth rate is still a very healthy 40
Online video over mobile devices is on track to increase by over 100 between 2011-2012 fueled by the explosion of video now being consumed on smartphones and tablet computers
bull The unbridled growth of social media also promises to send online video traffic soaring even higher through the end of 2012 Marc DeBevoise VP and General Manager of CBS Interactive recently revealed that social media is driving an average of 15 of the video views on CBScom
2
2 Operator CDNs will make big inroads
With 41 cable and telco operators reported to be in some phase of CDN deployment in 2011 (source Informa Research) and the need for service providers to offload video traffic becoming even more pronounced we predicted that the number of service providers launching their own content delivery networks would continue to grow and make inroads against legacy CDN services
How accurate was Skytidersquos prediction
bull Many North American cable multiple system operators (MSOs) have launched their own CDNs or in the throes of doing so
Time Warner recently presented at the Content Delivery Summit on the critical role its CDN plays in expanding the companyrsquos video delivery capabilities
Cox Communications also presented at the same conference on choosing the right content delivery strategy
StreamingMediacomrsquos Dan Rayburn and others have reported on Comcastrsquos CDN ambitions
bull In addition we know of several large new deployments in the works by operators (and large content providers) new to the CDN space In fact Skytide will be powering the analytics and reporting for some of them including one of the largest Operator CDN initiatives to date
3
3 Federated CDNs will finally become a reality
The topic of CDN federation has been bandied about for years with the promise that it is just around the corner
In 2011 it actually started to turn that corner First a formalized body called the Operator Carrier Exchange was announced in June of 2011 a few months later Cisco revealed the findings from a federated CDN pilot that it had conducted with several tier 1 carriers Based on that momentum we predicted that a CDN federation could be operationally deployed in 2012
How accurate was Skytidersquos prediction
CDN federation is definitely picking up speed
bull Akamai announced an operational CDN federation platformWhile our prediction was more focused on an interconnection exclusively between operator CDNs it is important to note that legacy content delivery network Akamai announced in February 20012 that it had deployed its own federated CDN platform
bull Edgecast also announced a CDN federation platform Content delivery network Edgecast soon followed in May 20012 with an announcement that it had also deployed its own federated CDN platform and was already exchanging traffic with unnamed carriers
bull Cisco revealed Phase 2 findings of CDN Federation Pilot While itrsquos still in the pilot phase Ciscorsquos federation project continues to move forward The completion of phase one was announced in October of 2011 and served to validate the concept of a CDN interconnection the second phase introduced some new participants and examined additional functionality across the federation Findings from that pilot can be downloaded here
4
4 Adoption of Adaptive Streaming will climb
The same market dynamics which led us to predict increased adoption of adaptive bitrate streaming (ABR) protocols remain at mid-year
Increasingly higher user expectations for a smooth uninterrupted online video viewing experience coupled with the rise of smartphones and other connected devices continue to bode well for further adaptive bitrate streaming adoption
How accurate was Skytidersquos prediction
Based on recent announcements and activity all signs point to an even faster rate of adoption for adaptive streaming than we originally ventured
bull In February 2012 industry heavyweights like Microsoft Adobe and Netflix publicly announced their support for MPEG DASH (Dynamic Adaptive Streaming over HTTP) a new ISO standard that could replace proprietary technologies like Apple HLS Microsoft Smooth Streaming and Adobe Dynamic Streaming
This standard is likely to be embraced by content owners because they could significantly reduce their workflow by creating a single set of files that run on all DASH-compatible devices
bull In the meantime most North American cable MSOs are rolling out TV Everywhere initiatives that deliver video content to iPads via adaptive streaming using Applersquos HLS protocol
bull Set-top box (STB) manufacturers are taking note too French STB manufacturer Netgem just introduced a hybrid OTTDTT solution at the Anga Cable Show that incorporates adaptive streaming Set-top box maker Amino also made a similar announcement at the show One has to believe that the rumored Apple TV would come standard with ABR as well
Additional reading What is adaptive bitrate streaming
5
5 MSOs amp IPTV services will extend reach into OTT
Evolving viewing behaviors and expectations mdash including the desire to watch programming anywhere and on any number of devices mdash led us to predict that IPTV providers and MSOs would soon have no choice but to begin exploring OTT models
While doing so threatens to lessen their control of the customer experience they may have little choice in the matter Viewers want to consume what they want where they want and on whatever device they want
At the same time service providers are eager to find ways to generate revenue from over-the-top traffic that is requiring large capital expenditures to upgrade their networks
How accurate was Skytidersquos prediction
Cable and IPTV operators are beginning to test OTT models
bull Verizon Wireless recently announced a new mobile video application dubbed Viewdini that seeks to profit from the over-the-top video coursing its network
It will function as a video portal that enables users to find video across multiple services mdash Redbox Hulu Plus Netflix and Xfinity among them Rather than charge customers for bandwidth consumed however this ldquotoll- freerdquo service may charge the content provider via fees like revenue sharing deals
bull Meanwhile Dish Network just announced a digital video recorder (DVR)
called Hopper that allows users to automatically record every prime-time show on ABC NBC Fox and CBS in HD for eight consecutive days it also includes the capability to zap commercials Dishrsquos Chairman Charlie Ergen described Hopper as a competitively necessary response to the threat that OTT video is posing to traditional pay-TV providers
6
6 Multi-screen viewing will become the benchmark
When we published our online video predictions in November of 2011 sales of mobile and tablet devices were on a tear and industry analysts and equipment vendors were heralding the bright future of multi-screen viewing
Fast forward to June of 2012 and the sales of smartphones and Apple iPadrsquos continue unabated fueling a continued rise in multi-screen viewing
How accurate was Skytidersquos prediction
bull Q1 2012 global smartphone sales topped 144 million versus 101 million for Q1 2011 and are expected to grow by 35 this year (source Gartner) Similarly tablet sales grew to 17 million in Q1 and are expected to also grow by 35 (source IDC)
bull These smartphone and tablet purchases are being put to use In fact research indicates that viewers watch 30 more video on their tablets than they do on their desktop computer (source Ooyala)
bull There will be nearly three networked devices per capita in 2016 up from over one networked device per capita in 2011 (source Cisco VNI)
bull Not surprisingly practically every North American MSO is now rolling out services that allow their subscribers to view cable content on their tablet computers
7
7 Online video ad budgets will swell
A perfect storm was brewing at the end of 2011 to suggest that online video ad budgets would swell significantly in 2012 In fact a ldquoVideo State of the Industry Surveyrdquo projected that budgets would increase 27 in calendar 2012
The confluence of improved online video resolution innovations in video delivery and devices and larger inventories of quality content promised to create higher levels of consumer engagement and time spent viewing This confluence would create a virtuous cycle in which increased ad dollars support more and better online video programming delivered with higher levels of QoS which in turn attract even more ad dollars
How accurate was Skytidersquos prediction
From all indications thus far in 2012 online video advertising is booming at least within the US
bull In April Americans viewed a record 95 billion video ads (source comScore Video Metrix)
bull Forrester VP and Research Director David Cooperstein recently predicted that more than 50 of marketers will test the use of digital video in 2012 versus just 20 in 2011
bull Forrester also recently published study findings that 70 of marketers plan to increase online advertising this year especially for mobile video
bull From late April to early May a group of large online video content providers participated in the inaugural Digital Content NewFronts designed to emulate the ldquoupfrontrdquo meetings that traditional television programmers have long used to let marketers purchase TV spots several months in advance
The NewFronts further legitimize the importance of online video blur the lines with TV and foreshadow media buying and planning alignment between the two
8
IP Video Management Analytics
Related White Papers
7 Online Video Trends to Watch in 2012
The year ahead promises to be full of twists and turns for online video and the digital media supply chain that serves it Dont be caught flat-footed Read ldquo7 Online Video Trends to Watch in 2012rdquo to get an advance peek at the trends that will shape the industry and how you can capitalize on the disruption to come
Read Now
The 4 Keys to Telco CDN Success
Many telecom service providers are building their own content delivery networks as a means to capitalize on the surge in Internet video coursing over their networks With this white paper we will reveal four key success factors necessary for Telco CDNs to effectively harness their competitive edge and realize success
Read Now
How Telcos and ISPs Can Learn to Love OTT
With this white paper we will demonstrate how it is now possible for telcos to improve their position in the content-to-consumer value chain create a more sustainable business model to value chain members and profit from escalating over-the-top (OTT) video traffic
Read Now
9
1 Online video traffic will continue to skyrocket
When we made our initial prediction in November 2011 it was a given that online video traffic was poised to continue its meteoric ascent in 2012 So the only factor left to be genuinely debated was the rate of growth
Familiar industry sources like Ciscorsquos Visual Networking Index (VNI) forecasted that the compound annual growth of online video would be 32 between 2010-2015 and would account for 90 of all consumer IP traffic by 2013
Skytide also concurred that online video traffic would soar but we believed that the industryrsquos already bullish forecasts were actually too low Based on the growth rates from our Telco CDN customers we made the bold forecast that online video traffic would grow by more than 50 in 2012 and that the resulting capacity crunch would be even more severe than previously considered
How accurate was Skytidersquos prediction
bull Cisco recently updated its VNI Forecast for 2011-2016 Among its predictions
Video over IP will grow 50 from 2011 to 2012 (excluding fixed private networks) When private networks are included the growth rate is still a very healthy 40
Online video over mobile devices is on track to increase by over 100 between 2011-2012 fueled by the explosion of video now being consumed on smartphones and tablet computers
bull The unbridled growth of social media also promises to send online video traffic soaring even higher through the end of 2012 Marc DeBevoise VP and General Manager of CBS Interactive recently revealed that social media is driving an average of 15 of the video views on CBScom
2
2 Operator CDNs will make big inroads
With 41 cable and telco operators reported to be in some phase of CDN deployment in 2011 (source Informa Research) and the need for service providers to offload video traffic becoming even more pronounced we predicted that the number of service providers launching their own content delivery networks would continue to grow and make inroads against legacy CDN services
How accurate was Skytidersquos prediction
bull Many North American cable multiple system operators (MSOs) have launched their own CDNs or in the throes of doing so
Time Warner recently presented at the Content Delivery Summit on the critical role its CDN plays in expanding the companyrsquos video delivery capabilities
Cox Communications also presented at the same conference on choosing the right content delivery strategy
StreamingMediacomrsquos Dan Rayburn and others have reported on Comcastrsquos CDN ambitions
bull In addition we know of several large new deployments in the works by operators (and large content providers) new to the CDN space In fact Skytide will be powering the analytics and reporting for some of them including one of the largest Operator CDN initiatives to date
3
3 Federated CDNs will finally become a reality
The topic of CDN federation has been bandied about for years with the promise that it is just around the corner
In 2011 it actually started to turn that corner First a formalized body called the Operator Carrier Exchange was announced in June of 2011 a few months later Cisco revealed the findings from a federated CDN pilot that it had conducted with several tier 1 carriers Based on that momentum we predicted that a CDN federation could be operationally deployed in 2012
How accurate was Skytidersquos prediction
CDN federation is definitely picking up speed
bull Akamai announced an operational CDN federation platformWhile our prediction was more focused on an interconnection exclusively between operator CDNs it is important to note that legacy content delivery network Akamai announced in February 20012 that it had deployed its own federated CDN platform
bull Edgecast also announced a CDN federation platform Content delivery network Edgecast soon followed in May 20012 with an announcement that it had also deployed its own federated CDN platform and was already exchanging traffic with unnamed carriers
bull Cisco revealed Phase 2 findings of CDN Federation Pilot While itrsquos still in the pilot phase Ciscorsquos federation project continues to move forward The completion of phase one was announced in October of 2011 and served to validate the concept of a CDN interconnection the second phase introduced some new participants and examined additional functionality across the federation Findings from that pilot can be downloaded here
4
4 Adoption of Adaptive Streaming will climb
The same market dynamics which led us to predict increased adoption of adaptive bitrate streaming (ABR) protocols remain at mid-year
Increasingly higher user expectations for a smooth uninterrupted online video viewing experience coupled with the rise of smartphones and other connected devices continue to bode well for further adaptive bitrate streaming adoption
How accurate was Skytidersquos prediction
Based on recent announcements and activity all signs point to an even faster rate of adoption for adaptive streaming than we originally ventured
bull In February 2012 industry heavyweights like Microsoft Adobe and Netflix publicly announced their support for MPEG DASH (Dynamic Adaptive Streaming over HTTP) a new ISO standard that could replace proprietary technologies like Apple HLS Microsoft Smooth Streaming and Adobe Dynamic Streaming
This standard is likely to be embraced by content owners because they could significantly reduce their workflow by creating a single set of files that run on all DASH-compatible devices
bull In the meantime most North American cable MSOs are rolling out TV Everywhere initiatives that deliver video content to iPads via adaptive streaming using Applersquos HLS protocol
bull Set-top box (STB) manufacturers are taking note too French STB manufacturer Netgem just introduced a hybrid OTTDTT solution at the Anga Cable Show that incorporates adaptive streaming Set-top box maker Amino also made a similar announcement at the show One has to believe that the rumored Apple TV would come standard with ABR as well
Additional reading What is adaptive bitrate streaming
5
5 MSOs amp IPTV services will extend reach into OTT
Evolving viewing behaviors and expectations mdash including the desire to watch programming anywhere and on any number of devices mdash led us to predict that IPTV providers and MSOs would soon have no choice but to begin exploring OTT models
While doing so threatens to lessen their control of the customer experience they may have little choice in the matter Viewers want to consume what they want where they want and on whatever device they want
At the same time service providers are eager to find ways to generate revenue from over-the-top traffic that is requiring large capital expenditures to upgrade their networks
How accurate was Skytidersquos prediction
Cable and IPTV operators are beginning to test OTT models
bull Verizon Wireless recently announced a new mobile video application dubbed Viewdini that seeks to profit from the over-the-top video coursing its network
It will function as a video portal that enables users to find video across multiple services mdash Redbox Hulu Plus Netflix and Xfinity among them Rather than charge customers for bandwidth consumed however this ldquotoll- freerdquo service may charge the content provider via fees like revenue sharing deals
bull Meanwhile Dish Network just announced a digital video recorder (DVR)
called Hopper that allows users to automatically record every prime-time show on ABC NBC Fox and CBS in HD for eight consecutive days it also includes the capability to zap commercials Dishrsquos Chairman Charlie Ergen described Hopper as a competitively necessary response to the threat that OTT video is posing to traditional pay-TV providers
6
6 Multi-screen viewing will become the benchmark
When we published our online video predictions in November of 2011 sales of mobile and tablet devices were on a tear and industry analysts and equipment vendors were heralding the bright future of multi-screen viewing
Fast forward to June of 2012 and the sales of smartphones and Apple iPadrsquos continue unabated fueling a continued rise in multi-screen viewing
How accurate was Skytidersquos prediction
bull Q1 2012 global smartphone sales topped 144 million versus 101 million for Q1 2011 and are expected to grow by 35 this year (source Gartner) Similarly tablet sales grew to 17 million in Q1 and are expected to also grow by 35 (source IDC)
bull These smartphone and tablet purchases are being put to use In fact research indicates that viewers watch 30 more video on their tablets than they do on their desktop computer (source Ooyala)
bull There will be nearly three networked devices per capita in 2016 up from over one networked device per capita in 2011 (source Cisco VNI)
bull Not surprisingly practically every North American MSO is now rolling out services that allow their subscribers to view cable content on their tablet computers
7
7 Online video ad budgets will swell
A perfect storm was brewing at the end of 2011 to suggest that online video ad budgets would swell significantly in 2012 In fact a ldquoVideo State of the Industry Surveyrdquo projected that budgets would increase 27 in calendar 2012
The confluence of improved online video resolution innovations in video delivery and devices and larger inventories of quality content promised to create higher levels of consumer engagement and time spent viewing This confluence would create a virtuous cycle in which increased ad dollars support more and better online video programming delivered with higher levels of QoS which in turn attract even more ad dollars
How accurate was Skytidersquos prediction
From all indications thus far in 2012 online video advertising is booming at least within the US
bull In April Americans viewed a record 95 billion video ads (source comScore Video Metrix)
bull Forrester VP and Research Director David Cooperstein recently predicted that more than 50 of marketers will test the use of digital video in 2012 versus just 20 in 2011
bull Forrester also recently published study findings that 70 of marketers plan to increase online advertising this year especially for mobile video
bull From late April to early May a group of large online video content providers participated in the inaugural Digital Content NewFronts designed to emulate the ldquoupfrontrdquo meetings that traditional television programmers have long used to let marketers purchase TV spots several months in advance
The NewFronts further legitimize the importance of online video blur the lines with TV and foreshadow media buying and planning alignment between the two
8
IP Video Management Analytics
Related White Papers
7 Online Video Trends to Watch in 2012
The year ahead promises to be full of twists and turns for online video and the digital media supply chain that serves it Dont be caught flat-footed Read ldquo7 Online Video Trends to Watch in 2012rdquo to get an advance peek at the trends that will shape the industry and how you can capitalize on the disruption to come
Read Now
The 4 Keys to Telco CDN Success
Many telecom service providers are building their own content delivery networks as a means to capitalize on the surge in Internet video coursing over their networks With this white paper we will reveal four key success factors necessary for Telco CDNs to effectively harness their competitive edge and realize success
Read Now
How Telcos and ISPs Can Learn to Love OTT
With this white paper we will demonstrate how it is now possible for telcos to improve their position in the content-to-consumer value chain create a more sustainable business model to value chain members and profit from escalating over-the-top (OTT) video traffic
Read Now
9
2 Operator CDNs will make big inroads
With 41 cable and telco operators reported to be in some phase of CDN deployment in 2011 (source Informa Research) and the need for service providers to offload video traffic becoming even more pronounced we predicted that the number of service providers launching their own content delivery networks would continue to grow and make inroads against legacy CDN services
How accurate was Skytidersquos prediction
bull Many North American cable multiple system operators (MSOs) have launched their own CDNs or in the throes of doing so
Time Warner recently presented at the Content Delivery Summit on the critical role its CDN plays in expanding the companyrsquos video delivery capabilities
Cox Communications also presented at the same conference on choosing the right content delivery strategy
StreamingMediacomrsquos Dan Rayburn and others have reported on Comcastrsquos CDN ambitions
bull In addition we know of several large new deployments in the works by operators (and large content providers) new to the CDN space In fact Skytide will be powering the analytics and reporting for some of them including one of the largest Operator CDN initiatives to date
3
3 Federated CDNs will finally become a reality
The topic of CDN federation has been bandied about for years with the promise that it is just around the corner
In 2011 it actually started to turn that corner First a formalized body called the Operator Carrier Exchange was announced in June of 2011 a few months later Cisco revealed the findings from a federated CDN pilot that it had conducted with several tier 1 carriers Based on that momentum we predicted that a CDN federation could be operationally deployed in 2012
How accurate was Skytidersquos prediction
CDN federation is definitely picking up speed
bull Akamai announced an operational CDN federation platformWhile our prediction was more focused on an interconnection exclusively between operator CDNs it is important to note that legacy content delivery network Akamai announced in February 20012 that it had deployed its own federated CDN platform
bull Edgecast also announced a CDN federation platform Content delivery network Edgecast soon followed in May 20012 with an announcement that it had also deployed its own federated CDN platform and was already exchanging traffic with unnamed carriers
bull Cisco revealed Phase 2 findings of CDN Federation Pilot While itrsquos still in the pilot phase Ciscorsquos federation project continues to move forward The completion of phase one was announced in October of 2011 and served to validate the concept of a CDN interconnection the second phase introduced some new participants and examined additional functionality across the federation Findings from that pilot can be downloaded here
4
4 Adoption of Adaptive Streaming will climb
The same market dynamics which led us to predict increased adoption of adaptive bitrate streaming (ABR) protocols remain at mid-year
Increasingly higher user expectations for a smooth uninterrupted online video viewing experience coupled with the rise of smartphones and other connected devices continue to bode well for further adaptive bitrate streaming adoption
How accurate was Skytidersquos prediction
Based on recent announcements and activity all signs point to an even faster rate of adoption for adaptive streaming than we originally ventured
bull In February 2012 industry heavyweights like Microsoft Adobe and Netflix publicly announced their support for MPEG DASH (Dynamic Adaptive Streaming over HTTP) a new ISO standard that could replace proprietary technologies like Apple HLS Microsoft Smooth Streaming and Adobe Dynamic Streaming
This standard is likely to be embraced by content owners because they could significantly reduce their workflow by creating a single set of files that run on all DASH-compatible devices
bull In the meantime most North American cable MSOs are rolling out TV Everywhere initiatives that deliver video content to iPads via adaptive streaming using Applersquos HLS protocol
bull Set-top box (STB) manufacturers are taking note too French STB manufacturer Netgem just introduced a hybrid OTTDTT solution at the Anga Cable Show that incorporates adaptive streaming Set-top box maker Amino also made a similar announcement at the show One has to believe that the rumored Apple TV would come standard with ABR as well
Additional reading What is adaptive bitrate streaming
5
5 MSOs amp IPTV services will extend reach into OTT
Evolving viewing behaviors and expectations mdash including the desire to watch programming anywhere and on any number of devices mdash led us to predict that IPTV providers and MSOs would soon have no choice but to begin exploring OTT models
While doing so threatens to lessen their control of the customer experience they may have little choice in the matter Viewers want to consume what they want where they want and on whatever device they want
At the same time service providers are eager to find ways to generate revenue from over-the-top traffic that is requiring large capital expenditures to upgrade their networks
How accurate was Skytidersquos prediction
Cable and IPTV operators are beginning to test OTT models
bull Verizon Wireless recently announced a new mobile video application dubbed Viewdini that seeks to profit from the over-the-top video coursing its network
It will function as a video portal that enables users to find video across multiple services mdash Redbox Hulu Plus Netflix and Xfinity among them Rather than charge customers for bandwidth consumed however this ldquotoll- freerdquo service may charge the content provider via fees like revenue sharing deals
bull Meanwhile Dish Network just announced a digital video recorder (DVR)
called Hopper that allows users to automatically record every prime-time show on ABC NBC Fox and CBS in HD for eight consecutive days it also includes the capability to zap commercials Dishrsquos Chairman Charlie Ergen described Hopper as a competitively necessary response to the threat that OTT video is posing to traditional pay-TV providers
6
6 Multi-screen viewing will become the benchmark
When we published our online video predictions in November of 2011 sales of mobile and tablet devices were on a tear and industry analysts and equipment vendors were heralding the bright future of multi-screen viewing
Fast forward to June of 2012 and the sales of smartphones and Apple iPadrsquos continue unabated fueling a continued rise in multi-screen viewing
How accurate was Skytidersquos prediction
bull Q1 2012 global smartphone sales topped 144 million versus 101 million for Q1 2011 and are expected to grow by 35 this year (source Gartner) Similarly tablet sales grew to 17 million in Q1 and are expected to also grow by 35 (source IDC)
bull These smartphone and tablet purchases are being put to use In fact research indicates that viewers watch 30 more video on their tablets than they do on their desktop computer (source Ooyala)
bull There will be nearly three networked devices per capita in 2016 up from over one networked device per capita in 2011 (source Cisco VNI)
bull Not surprisingly practically every North American MSO is now rolling out services that allow their subscribers to view cable content on their tablet computers
7
7 Online video ad budgets will swell
A perfect storm was brewing at the end of 2011 to suggest that online video ad budgets would swell significantly in 2012 In fact a ldquoVideo State of the Industry Surveyrdquo projected that budgets would increase 27 in calendar 2012
The confluence of improved online video resolution innovations in video delivery and devices and larger inventories of quality content promised to create higher levels of consumer engagement and time spent viewing This confluence would create a virtuous cycle in which increased ad dollars support more and better online video programming delivered with higher levels of QoS which in turn attract even more ad dollars
How accurate was Skytidersquos prediction
From all indications thus far in 2012 online video advertising is booming at least within the US
bull In April Americans viewed a record 95 billion video ads (source comScore Video Metrix)
bull Forrester VP and Research Director David Cooperstein recently predicted that more than 50 of marketers will test the use of digital video in 2012 versus just 20 in 2011
bull Forrester also recently published study findings that 70 of marketers plan to increase online advertising this year especially for mobile video
bull From late April to early May a group of large online video content providers participated in the inaugural Digital Content NewFronts designed to emulate the ldquoupfrontrdquo meetings that traditional television programmers have long used to let marketers purchase TV spots several months in advance
The NewFronts further legitimize the importance of online video blur the lines with TV and foreshadow media buying and planning alignment between the two
8
IP Video Management Analytics
Related White Papers
7 Online Video Trends to Watch in 2012
The year ahead promises to be full of twists and turns for online video and the digital media supply chain that serves it Dont be caught flat-footed Read ldquo7 Online Video Trends to Watch in 2012rdquo to get an advance peek at the trends that will shape the industry and how you can capitalize on the disruption to come
Read Now
The 4 Keys to Telco CDN Success
Many telecom service providers are building their own content delivery networks as a means to capitalize on the surge in Internet video coursing over their networks With this white paper we will reveal four key success factors necessary for Telco CDNs to effectively harness their competitive edge and realize success
Read Now
How Telcos and ISPs Can Learn to Love OTT
With this white paper we will demonstrate how it is now possible for telcos to improve their position in the content-to-consumer value chain create a more sustainable business model to value chain members and profit from escalating over-the-top (OTT) video traffic
Read Now
9
3 Federated CDNs will finally become a reality
The topic of CDN federation has been bandied about for years with the promise that it is just around the corner
In 2011 it actually started to turn that corner First a formalized body called the Operator Carrier Exchange was announced in June of 2011 a few months later Cisco revealed the findings from a federated CDN pilot that it had conducted with several tier 1 carriers Based on that momentum we predicted that a CDN federation could be operationally deployed in 2012
How accurate was Skytidersquos prediction
CDN federation is definitely picking up speed
bull Akamai announced an operational CDN federation platformWhile our prediction was more focused on an interconnection exclusively between operator CDNs it is important to note that legacy content delivery network Akamai announced in February 20012 that it had deployed its own federated CDN platform
bull Edgecast also announced a CDN federation platform Content delivery network Edgecast soon followed in May 20012 with an announcement that it had also deployed its own federated CDN platform and was already exchanging traffic with unnamed carriers
bull Cisco revealed Phase 2 findings of CDN Federation Pilot While itrsquos still in the pilot phase Ciscorsquos federation project continues to move forward The completion of phase one was announced in October of 2011 and served to validate the concept of a CDN interconnection the second phase introduced some new participants and examined additional functionality across the federation Findings from that pilot can be downloaded here
4
4 Adoption of Adaptive Streaming will climb
The same market dynamics which led us to predict increased adoption of adaptive bitrate streaming (ABR) protocols remain at mid-year
Increasingly higher user expectations for a smooth uninterrupted online video viewing experience coupled with the rise of smartphones and other connected devices continue to bode well for further adaptive bitrate streaming adoption
How accurate was Skytidersquos prediction
Based on recent announcements and activity all signs point to an even faster rate of adoption for adaptive streaming than we originally ventured
bull In February 2012 industry heavyweights like Microsoft Adobe and Netflix publicly announced their support for MPEG DASH (Dynamic Adaptive Streaming over HTTP) a new ISO standard that could replace proprietary technologies like Apple HLS Microsoft Smooth Streaming and Adobe Dynamic Streaming
This standard is likely to be embraced by content owners because they could significantly reduce their workflow by creating a single set of files that run on all DASH-compatible devices
bull In the meantime most North American cable MSOs are rolling out TV Everywhere initiatives that deliver video content to iPads via adaptive streaming using Applersquos HLS protocol
bull Set-top box (STB) manufacturers are taking note too French STB manufacturer Netgem just introduced a hybrid OTTDTT solution at the Anga Cable Show that incorporates adaptive streaming Set-top box maker Amino also made a similar announcement at the show One has to believe that the rumored Apple TV would come standard with ABR as well
Additional reading What is adaptive bitrate streaming
5
5 MSOs amp IPTV services will extend reach into OTT
Evolving viewing behaviors and expectations mdash including the desire to watch programming anywhere and on any number of devices mdash led us to predict that IPTV providers and MSOs would soon have no choice but to begin exploring OTT models
While doing so threatens to lessen their control of the customer experience they may have little choice in the matter Viewers want to consume what they want where they want and on whatever device they want
At the same time service providers are eager to find ways to generate revenue from over-the-top traffic that is requiring large capital expenditures to upgrade their networks
How accurate was Skytidersquos prediction
Cable and IPTV operators are beginning to test OTT models
bull Verizon Wireless recently announced a new mobile video application dubbed Viewdini that seeks to profit from the over-the-top video coursing its network
It will function as a video portal that enables users to find video across multiple services mdash Redbox Hulu Plus Netflix and Xfinity among them Rather than charge customers for bandwidth consumed however this ldquotoll- freerdquo service may charge the content provider via fees like revenue sharing deals
bull Meanwhile Dish Network just announced a digital video recorder (DVR)
called Hopper that allows users to automatically record every prime-time show on ABC NBC Fox and CBS in HD for eight consecutive days it also includes the capability to zap commercials Dishrsquos Chairman Charlie Ergen described Hopper as a competitively necessary response to the threat that OTT video is posing to traditional pay-TV providers
6
6 Multi-screen viewing will become the benchmark
When we published our online video predictions in November of 2011 sales of mobile and tablet devices were on a tear and industry analysts and equipment vendors were heralding the bright future of multi-screen viewing
Fast forward to June of 2012 and the sales of smartphones and Apple iPadrsquos continue unabated fueling a continued rise in multi-screen viewing
How accurate was Skytidersquos prediction
bull Q1 2012 global smartphone sales topped 144 million versus 101 million for Q1 2011 and are expected to grow by 35 this year (source Gartner) Similarly tablet sales grew to 17 million in Q1 and are expected to also grow by 35 (source IDC)
bull These smartphone and tablet purchases are being put to use In fact research indicates that viewers watch 30 more video on their tablets than they do on their desktop computer (source Ooyala)
bull There will be nearly three networked devices per capita in 2016 up from over one networked device per capita in 2011 (source Cisco VNI)
bull Not surprisingly practically every North American MSO is now rolling out services that allow their subscribers to view cable content on their tablet computers
7
7 Online video ad budgets will swell
A perfect storm was brewing at the end of 2011 to suggest that online video ad budgets would swell significantly in 2012 In fact a ldquoVideo State of the Industry Surveyrdquo projected that budgets would increase 27 in calendar 2012
The confluence of improved online video resolution innovations in video delivery and devices and larger inventories of quality content promised to create higher levels of consumer engagement and time spent viewing This confluence would create a virtuous cycle in which increased ad dollars support more and better online video programming delivered with higher levels of QoS which in turn attract even more ad dollars
How accurate was Skytidersquos prediction
From all indications thus far in 2012 online video advertising is booming at least within the US
bull In April Americans viewed a record 95 billion video ads (source comScore Video Metrix)
bull Forrester VP and Research Director David Cooperstein recently predicted that more than 50 of marketers will test the use of digital video in 2012 versus just 20 in 2011
bull Forrester also recently published study findings that 70 of marketers plan to increase online advertising this year especially for mobile video
bull From late April to early May a group of large online video content providers participated in the inaugural Digital Content NewFronts designed to emulate the ldquoupfrontrdquo meetings that traditional television programmers have long used to let marketers purchase TV spots several months in advance
The NewFronts further legitimize the importance of online video blur the lines with TV and foreshadow media buying and planning alignment between the two
8
IP Video Management Analytics
Related White Papers
7 Online Video Trends to Watch in 2012
The year ahead promises to be full of twists and turns for online video and the digital media supply chain that serves it Dont be caught flat-footed Read ldquo7 Online Video Trends to Watch in 2012rdquo to get an advance peek at the trends that will shape the industry and how you can capitalize on the disruption to come
Read Now
The 4 Keys to Telco CDN Success
Many telecom service providers are building their own content delivery networks as a means to capitalize on the surge in Internet video coursing over their networks With this white paper we will reveal four key success factors necessary for Telco CDNs to effectively harness their competitive edge and realize success
Read Now
How Telcos and ISPs Can Learn to Love OTT
With this white paper we will demonstrate how it is now possible for telcos to improve their position in the content-to-consumer value chain create a more sustainable business model to value chain members and profit from escalating over-the-top (OTT) video traffic
Read Now
9
4 Adoption of Adaptive Streaming will climb
The same market dynamics which led us to predict increased adoption of adaptive bitrate streaming (ABR) protocols remain at mid-year
Increasingly higher user expectations for a smooth uninterrupted online video viewing experience coupled with the rise of smartphones and other connected devices continue to bode well for further adaptive bitrate streaming adoption
How accurate was Skytidersquos prediction
Based on recent announcements and activity all signs point to an even faster rate of adoption for adaptive streaming than we originally ventured
bull In February 2012 industry heavyweights like Microsoft Adobe and Netflix publicly announced their support for MPEG DASH (Dynamic Adaptive Streaming over HTTP) a new ISO standard that could replace proprietary technologies like Apple HLS Microsoft Smooth Streaming and Adobe Dynamic Streaming
This standard is likely to be embraced by content owners because they could significantly reduce their workflow by creating a single set of files that run on all DASH-compatible devices
bull In the meantime most North American cable MSOs are rolling out TV Everywhere initiatives that deliver video content to iPads via adaptive streaming using Applersquos HLS protocol
bull Set-top box (STB) manufacturers are taking note too French STB manufacturer Netgem just introduced a hybrid OTTDTT solution at the Anga Cable Show that incorporates adaptive streaming Set-top box maker Amino also made a similar announcement at the show One has to believe that the rumored Apple TV would come standard with ABR as well
Additional reading What is adaptive bitrate streaming
5
5 MSOs amp IPTV services will extend reach into OTT
Evolving viewing behaviors and expectations mdash including the desire to watch programming anywhere and on any number of devices mdash led us to predict that IPTV providers and MSOs would soon have no choice but to begin exploring OTT models
While doing so threatens to lessen their control of the customer experience they may have little choice in the matter Viewers want to consume what they want where they want and on whatever device they want
At the same time service providers are eager to find ways to generate revenue from over-the-top traffic that is requiring large capital expenditures to upgrade their networks
How accurate was Skytidersquos prediction
Cable and IPTV operators are beginning to test OTT models
bull Verizon Wireless recently announced a new mobile video application dubbed Viewdini that seeks to profit from the over-the-top video coursing its network
It will function as a video portal that enables users to find video across multiple services mdash Redbox Hulu Plus Netflix and Xfinity among them Rather than charge customers for bandwidth consumed however this ldquotoll- freerdquo service may charge the content provider via fees like revenue sharing deals
bull Meanwhile Dish Network just announced a digital video recorder (DVR)
called Hopper that allows users to automatically record every prime-time show on ABC NBC Fox and CBS in HD for eight consecutive days it also includes the capability to zap commercials Dishrsquos Chairman Charlie Ergen described Hopper as a competitively necessary response to the threat that OTT video is posing to traditional pay-TV providers
6
6 Multi-screen viewing will become the benchmark
When we published our online video predictions in November of 2011 sales of mobile and tablet devices were on a tear and industry analysts and equipment vendors were heralding the bright future of multi-screen viewing
Fast forward to June of 2012 and the sales of smartphones and Apple iPadrsquos continue unabated fueling a continued rise in multi-screen viewing
How accurate was Skytidersquos prediction
bull Q1 2012 global smartphone sales topped 144 million versus 101 million for Q1 2011 and are expected to grow by 35 this year (source Gartner) Similarly tablet sales grew to 17 million in Q1 and are expected to also grow by 35 (source IDC)
bull These smartphone and tablet purchases are being put to use In fact research indicates that viewers watch 30 more video on their tablets than they do on their desktop computer (source Ooyala)
bull There will be nearly three networked devices per capita in 2016 up from over one networked device per capita in 2011 (source Cisco VNI)
bull Not surprisingly practically every North American MSO is now rolling out services that allow their subscribers to view cable content on their tablet computers
7
7 Online video ad budgets will swell
A perfect storm was brewing at the end of 2011 to suggest that online video ad budgets would swell significantly in 2012 In fact a ldquoVideo State of the Industry Surveyrdquo projected that budgets would increase 27 in calendar 2012
The confluence of improved online video resolution innovations in video delivery and devices and larger inventories of quality content promised to create higher levels of consumer engagement and time spent viewing This confluence would create a virtuous cycle in which increased ad dollars support more and better online video programming delivered with higher levels of QoS which in turn attract even more ad dollars
How accurate was Skytidersquos prediction
From all indications thus far in 2012 online video advertising is booming at least within the US
bull In April Americans viewed a record 95 billion video ads (source comScore Video Metrix)
bull Forrester VP and Research Director David Cooperstein recently predicted that more than 50 of marketers will test the use of digital video in 2012 versus just 20 in 2011
bull Forrester also recently published study findings that 70 of marketers plan to increase online advertising this year especially for mobile video
bull From late April to early May a group of large online video content providers participated in the inaugural Digital Content NewFronts designed to emulate the ldquoupfrontrdquo meetings that traditional television programmers have long used to let marketers purchase TV spots several months in advance
The NewFronts further legitimize the importance of online video blur the lines with TV and foreshadow media buying and planning alignment between the two
8
IP Video Management Analytics
Related White Papers
7 Online Video Trends to Watch in 2012
The year ahead promises to be full of twists and turns for online video and the digital media supply chain that serves it Dont be caught flat-footed Read ldquo7 Online Video Trends to Watch in 2012rdquo to get an advance peek at the trends that will shape the industry and how you can capitalize on the disruption to come
Read Now
The 4 Keys to Telco CDN Success
Many telecom service providers are building their own content delivery networks as a means to capitalize on the surge in Internet video coursing over their networks With this white paper we will reveal four key success factors necessary for Telco CDNs to effectively harness their competitive edge and realize success
Read Now
How Telcos and ISPs Can Learn to Love OTT
With this white paper we will demonstrate how it is now possible for telcos to improve their position in the content-to-consumer value chain create a more sustainable business model to value chain members and profit from escalating over-the-top (OTT) video traffic
Read Now
9
5 MSOs amp IPTV services will extend reach into OTT
Evolving viewing behaviors and expectations mdash including the desire to watch programming anywhere and on any number of devices mdash led us to predict that IPTV providers and MSOs would soon have no choice but to begin exploring OTT models
While doing so threatens to lessen their control of the customer experience they may have little choice in the matter Viewers want to consume what they want where they want and on whatever device they want
At the same time service providers are eager to find ways to generate revenue from over-the-top traffic that is requiring large capital expenditures to upgrade their networks
How accurate was Skytidersquos prediction
Cable and IPTV operators are beginning to test OTT models
bull Verizon Wireless recently announced a new mobile video application dubbed Viewdini that seeks to profit from the over-the-top video coursing its network
It will function as a video portal that enables users to find video across multiple services mdash Redbox Hulu Plus Netflix and Xfinity among them Rather than charge customers for bandwidth consumed however this ldquotoll- freerdquo service may charge the content provider via fees like revenue sharing deals
bull Meanwhile Dish Network just announced a digital video recorder (DVR)
called Hopper that allows users to automatically record every prime-time show on ABC NBC Fox and CBS in HD for eight consecutive days it also includes the capability to zap commercials Dishrsquos Chairman Charlie Ergen described Hopper as a competitively necessary response to the threat that OTT video is posing to traditional pay-TV providers
6
6 Multi-screen viewing will become the benchmark
When we published our online video predictions in November of 2011 sales of mobile and tablet devices were on a tear and industry analysts and equipment vendors were heralding the bright future of multi-screen viewing
Fast forward to June of 2012 and the sales of smartphones and Apple iPadrsquos continue unabated fueling a continued rise in multi-screen viewing
How accurate was Skytidersquos prediction
bull Q1 2012 global smartphone sales topped 144 million versus 101 million for Q1 2011 and are expected to grow by 35 this year (source Gartner) Similarly tablet sales grew to 17 million in Q1 and are expected to also grow by 35 (source IDC)
bull These smartphone and tablet purchases are being put to use In fact research indicates that viewers watch 30 more video on their tablets than they do on their desktop computer (source Ooyala)
bull There will be nearly three networked devices per capita in 2016 up from over one networked device per capita in 2011 (source Cisco VNI)
bull Not surprisingly practically every North American MSO is now rolling out services that allow their subscribers to view cable content on their tablet computers
7
7 Online video ad budgets will swell
A perfect storm was brewing at the end of 2011 to suggest that online video ad budgets would swell significantly in 2012 In fact a ldquoVideo State of the Industry Surveyrdquo projected that budgets would increase 27 in calendar 2012
The confluence of improved online video resolution innovations in video delivery and devices and larger inventories of quality content promised to create higher levels of consumer engagement and time spent viewing This confluence would create a virtuous cycle in which increased ad dollars support more and better online video programming delivered with higher levels of QoS which in turn attract even more ad dollars
How accurate was Skytidersquos prediction
From all indications thus far in 2012 online video advertising is booming at least within the US
bull In April Americans viewed a record 95 billion video ads (source comScore Video Metrix)
bull Forrester VP and Research Director David Cooperstein recently predicted that more than 50 of marketers will test the use of digital video in 2012 versus just 20 in 2011
bull Forrester also recently published study findings that 70 of marketers plan to increase online advertising this year especially for mobile video
bull From late April to early May a group of large online video content providers participated in the inaugural Digital Content NewFronts designed to emulate the ldquoupfrontrdquo meetings that traditional television programmers have long used to let marketers purchase TV spots several months in advance
The NewFronts further legitimize the importance of online video blur the lines with TV and foreshadow media buying and planning alignment between the two
8
IP Video Management Analytics
Related White Papers
7 Online Video Trends to Watch in 2012
The year ahead promises to be full of twists and turns for online video and the digital media supply chain that serves it Dont be caught flat-footed Read ldquo7 Online Video Trends to Watch in 2012rdquo to get an advance peek at the trends that will shape the industry and how you can capitalize on the disruption to come
Read Now
The 4 Keys to Telco CDN Success
Many telecom service providers are building their own content delivery networks as a means to capitalize on the surge in Internet video coursing over their networks With this white paper we will reveal four key success factors necessary for Telco CDNs to effectively harness their competitive edge and realize success
Read Now
How Telcos and ISPs Can Learn to Love OTT
With this white paper we will demonstrate how it is now possible for telcos to improve their position in the content-to-consumer value chain create a more sustainable business model to value chain members and profit from escalating over-the-top (OTT) video traffic
Read Now
9
6 Multi-screen viewing will become the benchmark
When we published our online video predictions in November of 2011 sales of mobile and tablet devices were on a tear and industry analysts and equipment vendors were heralding the bright future of multi-screen viewing
Fast forward to June of 2012 and the sales of smartphones and Apple iPadrsquos continue unabated fueling a continued rise in multi-screen viewing
How accurate was Skytidersquos prediction
bull Q1 2012 global smartphone sales topped 144 million versus 101 million for Q1 2011 and are expected to grow by 35 this year (source Gartner) Similarly tablet sales grew to 17 million in Q1 and are expected to also grow by 35 (source IDC)
bull These smartphone and tablet purchases are being put to use In fact research indicates that viewers watch 30 more video on their tablets than they do on their desktop computer (source Ooyala)
bull There will be nearly three networked devices per capita in 2016 up from over one networked device per capita in 2011 (source Cisco VNI)
bull Not surprisingly practically every North American MSO is now rolling out services that allow their subscribers to view cable content on their tablet computers
7
7 Online video ad budgets will swell
A perfect storm was brewing at the end of 2011 to suggest that online video ad budgets would swell significantly in 2012 In fact a ldquoVideo State of the Industry Surveyrdquo projected that budgets would increase 27 in calendar 2012
The confluence of improved online video resolution innovations in video delivery and devices and larger inventories of quality content promised to create higher levels of consumer engagement and time spent viewing This confluence would create a virtuous cycle in which increased ad dollars support more and better online video programming delivered with higher levels of QoS which in turn attract even more ad dollars
How accurate was Skytidersquos prediction
From all indications thus far in 2012 online video advertising is booming at least within the US
bull In April Americans viewed a record 95 billion video ads (source comScore Video Metrix)
bull Forrester VP and Research Director David Cooperstein recently predicted that more than 50 of marketers will test the use of digital video in 2012 versus just 20 in 2011
bull Forrester also recently published study findings that 70 of marketers plan to increase online advertising this year especially for mobile video
bull From late April to early May a group of large online video content providers participated in the inaugural Digital Content NewFronts designed to emulate the ldquoupfrontrdquo meetings that traditional television programmers have long used to let marketers purchase TV spots several months in advance
The NewFronts further legitimize the importance of online video blur the lines with TV and foreshadow media buying and planning alignment between the two
8
IP Video Management Analytics
Related White Papers
7 Online Video Trends to Watch in 2012
The year ahead promises to be full of twists and turns for online video and the digital media supply chain that serves it Dont be caught flat-footed Read ldquo7 Online Video Trends to Watch in 2012rdquo to get an advance peek at the trends that will shape the industry and how you can capitalize on the disruption to come
Read Now
The 4 Keys to Telco CDN Success
Many telecom service providers are building their own content delivery networks as a means to capitalize on the surge in Internet video coursing over their networks With this white paper we will reveal four key success factors necessary for Telco CDNs to effectively harness their competitive edge and realize success
Read Now
How Telcos and ISPs Can Learn to Love OTT
With this white paper we will demonstrate how it is now possible for telcos to improve their position in the content-to-consumer value chain create a more sustainable business model to value chain members and profit from escalating over-the-top (OTT) video traffic
Read Now
9
7 Online video ad budgets will swell
A perfect storm was brewing at the end of 2011 to suggest that online video ad budgets would swell significantly in 2012 In fact a ldquoVideo State of the Industry Surveyrdquo projected that budgets would increase 27 in calendar 2012
The confluence of improved online video resolution innovations in video delivery and devices and larger inventories of quality content promised to create higher levels of consumer engagement and time spent viewing This confluence would create a virtuous cycle in which increased ad dollars support more and better online video programming delivered with higher levels of QoS which in turn attract even more ad dollars
How accurate was Skytidersquos prediction
From all indications thus far in 2012 online video advertising is booming at least within the US
bull In April Americans viewed a record 95 billion video ads (source comScore Video Metrix)
bull Forrester VP and Research Director David Cooperstein recently predicted that more than 50 of marketers will test the use of digital video in 2012 versus just 20 in 2011
bull Forrester also recently published study findings that 70 of marketers plan to increase online advertising this year especially for mobile video
bull From late April to early May a group of large online video content providers participated in the inaugural Digital Content NewFronts designed to emulate the ldquoupfrontrdquo meetings that traditional television programmers have long used to let marketers purchase TV spots several months in advance
The NewFronts further legitimize the importance of online video blur the lines with TV and foreshadow media buying and planning alignment between the two
8
IP Video Management Analytics
Related White Papers
7 Online Video Trends to Watch in 2012
The year ahead promises to be full of twists and turns for online video and the digital media supply chain that serves it Dont be caught flat-footed Read ldquo7 Online Video Trends to Watch in 2012rdquo to get an advance peek at the trends that will shape the industry and how you can capitalize on the disruption to come
Read Now
The 4 Keys to Telco CDN Success
Many telecom service providers are building their own content delivery networks as a means to capitalize on the surge in Internet video coursing over their networks With this white paper we will reveal four key success factors necessary for Telco CDNs to effectively harness their competitive edge and realize success
Read Now
How Telcos and ISPs Can Learn to Love OTT
With this white paper we will demonstrate how it is now possible for telcos to improve their position in the content-to-consumer value chain create a more sustainable business model to value chain members and profit from escalating over-the-top (OTT) video traffic
Read Now
9
IP Video Management Analytics
Related White Papers
7 Online Video Trends to Watch in 2012
The year ahead promises to be full of twists and turns for online video and the digital media supply chain that serves it Dont be caught flat-footed Read ldquo7 Online Video Trends to Watch in 2012rdquo to get an advance peek at the trends that will shape the industry and how you can capitalize on the disruption to come
Read Now
The 4 Keys to Telco CDN Success
Many telecom service providers are building their own content delivery networks as a means to capitalize on the surge in Internet video coursing over their networks With this white paper we will reveal four key success factors necessary for Telco CDNs to effectively harness their competitive edge and realize success
Read Now
How Telcos and ISPs Can Learn to Love OTT
With this white paper we will demonstrate how it is now possible for telcos to improve their position in the content-to-consumer value chain create a more sustainable business model to value chain members and profit from escalating over-the-top (OTT) video traffic
Read Now
9