Online Video Compared to Nascent TV Market

October 17, 2008 by @smokejumper · Leave a Comment 

TechCrunch recently covered Chad Hurley, founder of YouTube, and his keynote address “A Brave New World – The Future of Managing Content” at MIPCOM conference in Cannes, France.

Here is an interview immediately prior his keynote.

In his keynote, he likens the current state of online video and advertising around it akin to the dynamics affecting the TV industry in the early 1940’s:
  • A small group of innovators introduced a new technology that has the ability to entertain and engage people on a massive scale
  • Advertisers are reluctant to risk money on this untested platform
  • Content owners are fearful of alienating their existing audiences and distribution partners
  • [Some] experts hail this new platform as signaling the demise of another (e.g. radio)
He then goes onto to debunk the current value of a centralized distribution model in today’s world.  This is evidenced by today’s consumers who want access to content on PCs, TVs, mobile phones and social networking pages.
None of this is particularly new or earth-shattering as I have discussed recently.  Chad makes reference to the recent study Forrester completed for Veoh Networks looking at how online video engages.  In reaction to that study a number of major network executives agreed that online video was adding to their viewership, rather than cannibalizing it.
However, Hurley puts forward an interestingly broad perspective on the dynamics in the video and content market and appears to make a universal call to throw off the cold war-like vestiges of “old media” vs. “new media” and rather look at it as “one media” with a common purpose:  ”to inform, move and inspire the world through information, art and entertainment.“
Kumbaya.

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Online Viewers More Engaged

October 10, 2008 by @smokejumper · Leave a Comment 

Friday media coverage round-up related to my recent post on Forrester Research report on How Online Video Engages Consumers:

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Eisner Takes Shots @ Hulu & MySpace

October 10, 2008 by @smokejumper · Leave a Comment 

I previously posted about a Veoh Networks event where Forrester unveiled research on How Online Video Engages Consumers.  At that same event, Michael Eisner “headlined” in an interview.  Yes, the Michael Eisner, former head of Disney, and current head of The Tornante Company which owns digital studio Vuguru – producer of web originals Prom Queen and Foreign Body.

Here’s some of what he had to say and my response (in italics):

  • Hulu may not represent the future of online video.  (Agreed but they have staked a rapid and growing claim around studio-produced TV content online.  Their ownership structure sure helps.  But more than than they have an attractive and very usable site).
  • MySpace is blowing a golden opportunity to dominate the space.  (I wonder if they know that?  Wonder how Facebook feels about the issue?”
  • Pre-roll ads are not the answer.  (Hallelujah!  But reality is that short (up to 15 seconds) pre-rolls are part of the answer – longer than that is annoying.)
  • And the Internet may eventually produce a hit series that reaches bigger audiences than TV ever has.  (Provocative upon initial read but basic logic would lead one to that conclusion.  If the Internet produces an audience that is larger than TV ever was and can spend marking $’s promoting a quality title in the manner that TV has, then it will happen).
While Eisner hasn’t produced that monster web original hit yet, he is able to keep costs low for his shows by “hiring more waiters than anybody.”  Those waiters are affordable because they are “non-union.” Good to know there may be job security for waiters in this economy, albeit at non-unionized, low wages.
Additional coverage of Eisner’s interview:

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Why I’ll leave cable TV behind . . .

October 9, 2008 by admin · Leave a Comment 

As more and more interesting and relevant video content is available online, I gave pause to ponder why do I need to “program” my DVR and why should I wait for Netflix to show up in my mail box in order to have entertainment in my living room when I’m ready to turn off my brain and decompress? This line of thinking comes at a time when I’m also looking at the myriad of expenses I pay around the house (isn’t everyone)?

I understand why online video holds much appeal – infinite library, “free” (ad-supported models), portability, ease of discovery, sharing with others, always at the ready when I”m wanting to watch (regardless of time, schedules, etc.) While I’ve had to “learn” the benefits of this, others (such as my 17-year-old nephew) never watch TV and wonder why anyone would. Save the exception of some live sporting events, I’m seeing the wisdom in youth.

So why not make the transition to watching all my video on a PC now? Well as much as I love my 13″ MacBook, I’m on it 8-14 hours a day and can’t imagine wanting to spend more time on it. I don’t get wanting to watch video on it – short of perhaps long plane rides (but that’s usually when I clean out email, read a book or sleep). And I will never be one to watch much video, but for short clips and highlights of my beloved Canucks and Sharks (yes I’m a professional hockey polygamist), on my iPhone (or whatever replaces it).

So when will I chuck cable and my DVR box (and the $100 per month bill along with it)? Likely when I can get my hands on a SlingCatcher. I haven’t done a detailed review of its features, but James McQuivey got an early demo. If it works as advertised, I’ll be setting up my “man-cave” complete with SlingCatcher and flat screen TV before the end of the year. My 14-year-old Sony Trinitron and DVR have served me well but must move on.

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How Online Video Engages Audiences

October 8, 2008 by @smokejumper · 2 Comments 

Much has been written about YouTube and there is ample hype about where online video is going. I don’t get too excited about the latest dog on skateboard or Japanese student in dorm room dance sensation. Forrester Research (commissioned by Veoh Networks) recently took a systemic and fundamental look at online video and the impact it is having on consumer behavior and attitudes.

James McQuivey presented a summary of this today at an event in NYC “Watching the Web: Engaging Consumers in Online Video. See James’ blog for his personal take on the subject.  The full research will be available via Veoh. It answers questions such as . . .
  1. What it means to be an engaged online video viewer
  2. Why engaged viewers watch online video
  3. How online video holds viewers attention
  4. Which types of online video are more likely to engage consumers
  5. Whether online video present advertisers with a unique medium with which to reach consumers
  6. How viewers feel toward online video advertising
  7. Which advertising experiences are more likely to be be accepted by viewers
Online Video is Hot
  • Nearly 2/3rds of those online in the U.S. watch video in a typical month (117M)
  • The average online video viewer watches 56 minutes a week (>100m of total viewing hours each week)
  • Moving beyond strictly a YouTube phenomenon – people are watching everything from animation to TV re-runs to news clips
“Our kids will take a look at us sideways when we talk about schedules for TV.”

Engaged Viewers are Most Attractive
Online video is creating a market of users who are more engaged and involved with the content being viewed (pay more attention – as I check email, switch between baseball playoffs, Monday night football and a “classic” Sharks hockey game, draft a blog entry, twitter, talk to my son and listen to voice mail) and are more receptive to ads. Marketers need to understand this audience and then leverage video content to connect to their core/target audiences.
Who are Engaged Video Viewers
Forrester defined Engaged Viewers as those who watch more than an hour of online video per week.
  • Though they are just 36% of online viewers, they watch 74% of all video
  • A third of them – 36% – are between 13 and 24 years old
  • They spend 2.5 hours with online video a week (on average), watching 6.1 different types of video content
  • They pay close attention to what they are watching (vs. when watching TV)
Forrester breaks these Engaged Viewers down into more detailed groups of consumers worth understanding.
Long-Form Video Engages More
Long-form content sites not only attract desirable viewers, but also they cultivate an environment that garners more viewer attention and engagement with advertising. Some unique attributes of those who watch long-form content online:
  • more likely to pay full attention to the videos they watch
  • interact and rate the videos they watch more often
  • 2x as likely to recall in-video ads
  • agree more readily that advertising helps pays for their free experience
  • try to replicate the TV experience by looking for things “they wish were on TV”
Implications for Content Providers
Online video growth will continue and will result in more engaged viewers. Content providers need to prepare given:
  • Engaged Viewers want even more content
  • They want it to be even easier to watch
  • They enjoy the convenience of watching many kinds of video on the same site
Implications for Advertisers
Advertisers need to rethink their approaches in order reach the Engaged Viewer
  • Think “Advertainment“, not Advertisement – be creative and don’t repeat the same ad over and over in the same piece of content
  • Use all the ad units on a page in concert to activate viewers
  • Use content (and sites) to target video ads
More details, including details on the make-up and composition of engaged video viewers, available Veoh Networks.
See NY Times (GigaOM) coverage, including recent research from Heavy.

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