For a slow holiday week, there are a couple of big news stories that could potentially change the landscape of the online video space. It could all be speculation, but anyone that pays attention to what’s happening in online video or is in charge of digital marketing for their organisations should probably take note nonetheless.
On March 25th the Business Insider and Fast Company both released stories about major players looking to do some interesting things with video. First up is Spotify, the digital music service that allows users to play music wherever and whenever they are online, via computer, tablet, or mobile, for a monthly fee. The service also has a social element to it which allows users to create playlists, see what their friends are listening to, and share great new song discoveries. While Spotify is popular with many consumers, their margins are relatively low due to the fact that they have to pay the music labels each time a user listens to a song. Therefore, they are looking for ways to create exclusive content to increase their margins and turning to video. Whether that means they become another on-demand video service such as Netflix or HBO creating successful series such as House of Cards or Sex and the City remains to be seen (Source: Business Insider).
Another interesting development in the online video space this week revolves around Yahoo. They are in talks to buy Dailymotion, a relatively small YouTube competitor which, according to Fast Company proves “that the future of the Internet lies squarely in video” (Source: Fast Company). The article makes some pretty impressive points in terms of how the web is shifting from text to online video which makes the potential Dailymotion purchase by Yahoo all the more interesting. While YouTube is for the moment the “single point of upload and playback for web video” other major players such as Facebook, AOL, and Amazon have made an impact in the video space. Most notably for those of us in the video syndication space, is AOL’s revenue jump in part due to their 5Min acquisition. This has allowed them to build a video network with a mix of created, curated, and live video with the ”understanding that they need to be both a destination and a distributor of video to third party sites” (Source: Fast Company).
The three trends the Dailymotion acquisition and/or the Spotify video business model move could validate for the growing popularity of the use of online video revolve around: audience, devices, and money. The holy trinity for lack of a better term. Video drives website traffic and the increasing use of mobile devices increases the use of video, which ultimately brings in advertising revenues. Here are a few fun facts to chew on keeping those trends in mind:
Audience: The sum of all forms of video (TV, video on demand [VoD], Internet, and P2P) will be approximately 86 percent of global consumer traffic by 2016. (Cisco)
Devices: 93% of smartphone users use their devices in the home, and almost 50% of users watch videos on their smartphones. 90% of smartphone searches result in an action such as a purchase or a visit to a business. (Google Blog, April 2011)
Money: Online video is the fastest growing ad format in 2012 with nearly 55% growth. (eMarketer, January 2012). The online video industry will reach $28.72 billion in 2017, soaring from the $3.79 billion recorded in 2010 and the $11.14 billion expected in 2012. (Digital TV Research). Source: Fast Company
About Preview Networks
Preview Networks is a content marketing platform for brands and content aggregation and syndication platform for publishers. We provide the tools for brands to centrally distribute and manage marketing and PR content across media destinations, devices, and commerce platforms; allowing media partners to automate content acquisition delivering audience and advertising revenue growth. Acquired by Rightster in February 2013, our combined offering strengthens video distribution, marketing, and monetisation services globally.