Analysis for 'UGC'

  • Survey: Online Video is Mainly an Entertainment Medium

    There are all kinds of videos available online these days, but, according to a recent survey by the NY Times Consumer Insights Group, those that entertain are still the most popular for frequent viewers. 78% of survey respondents who watch online video several times per month cited "entertains me/enjoyable" as the reason they watch online video, followed by "makes me laugh" (71%). In third place was "learn something new" (64%).

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  • Nearly 1/3 of Adult Internet Users Now Post Videos Online, Doubling Since 2009

    It's common knowledge that watching online videos has become hugely popular, but it turns out that posting videos has also experienced a huge surge recently. According to new research from Pew, 31% of adult Internet users now post videos, more than double the 14% that did so back in 2009. Though posting is still most common among 18-29 year-olds (with 41% doing so), 30-49 year-olds are right behind (36%), trailed by 50+ year-olds (18%). See chart below.

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  • 5 Items of Interest for the Week of Nov. 29th

    Following the Thanksgiving break last Friday, VideoNuze's end-of-week feature of curating 5-6 interesting online/mobile video industry news items that we weren't able to cover this week, is back. Read them now or take them with you this weekend!

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  • Study: User-Generated Video Product Reviews Can Be As Persuasive As Ads

    A new study of user-generated video product reviews has found that they contain the same kinds of persuasiveness and memorability traits as found in professionally-produced advertisements, therefore suggesting that they offer significant complementary value. In the study, comScore used its content assessment methodology, "ARS Zipline," to score a sample of 25 user-generated product reviews from EXPO Communications' database. They were compared to professional video ads drawn from the comScore ARS database.

    The scoring process focused on the user-generated reviews' persuasiveness and memorability, based on rational, emotional and structural attributes. Of the 25 reviews, 17 (68%) scored at least in the average range while 8 (32%) scored above average. The key takeaway is that some product reviewers intuitively convey persuasiveness and memorability even absent the rigorous development and testing employed in the professional ad process. The study found that reviewers tended to focus more on the product and its attributes, driving home key messages around product convenience and quality, both of which increase persuasiveness. 

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  • 5 Items of Interest for the Week of Sept. 6th

    Though it was a short week due to the Labor Day holiday, there was no shortage of online video industry happenings this week. As I've been doing each of the last few Fridays, following are 5-6 noteworthy industry stories for your weekend reading pleasure.

    Ooyala Raises $22 Million to Accelerate Global Expansion
    Online video platform Ooyala's new $22 million round is a bright spot in what's been a pretty slow quarter for online video industry private financings. Ooyala's new funds will help the company grow in the Asia-Pacific region. Ooyala said it is serving 550 customers, double the level of a year ago.

    Google TV to Roll Out World-Wide Next Year
    Even though the first Google TV-enabled devices have yet to be deployed, Google CEO Eric Schmidt said this week that he envisions a global rollout next year. The connected device landscape is becoming more competitive for Google TV given the growing number of inexpensive connected device options.

    Business Groups Question Net Neutrality Rules
    Three pro-business trade groups urged the FCC to drop its net neutrality initiative, citing the "flourishing" broadband market and concerns that regulations will curtail new investments and hurt the economy. It seems like everyone has a different opinion about net neutrality, so the consensus needed to move regulation forward is still down the road.

    ESPN, YouTube Link Up for Promo Campaign
    This week ESPN and YouTube kicked off their "Your Highlight" campaign, enticing ESPN viewers to upload their own sports clips, with the best ones to be shown on SportsCenter. Then the best of the best will win a trip to ESPN's studios to watch a SportsCenter taping. It's a great promotional concept, using online video to further invest ESPN viewers in the brand. Whoever thought it up deserves a shout-out.

    Life Without a TV Set? Not impossible
    Another interesting data point to tuck into your back pocket: according to a 2010 Pew study, just 42% of Americans feel a TV set is a "necessity," down from 64% in 2006. Pew interprets this as a loss of status for the TV, as other devices like computers and phones have become video capable. The perception of convergence is taking root.


     
  • ExpoTV's New Research Service is Another Example of "Purpose-Driven" UGV

    ExpoTV has formally launched "Kitchen Table Conversations," (KTC in my shorthand) a new research service in which certain members of its community provide video responses to a set of brand-sponsored research questions. The resulting video footage provides authentic, qualitative insights on actual consumers' habits, attitudes and behaviors. KTC is yet another example of "purpose-driven" user-generated video, a concept I began discussing in Fall '08 that continues to gain traction. I talked with Expo's president Bill Hildebolt yesterday to learn more about how the new research service works.

    For those not familiar with Expo, it is a community-oriented site where consumers create videos of themselves reviewing products they've used. The site now offers a catalog of 300,000+ of these "videopinions" on a wide diversity of products, generated by 60K+ community members. Over time Expo has evolved from being an outlet where users alone chose which products to review (which they can still do) to a model where sponsors are able to tap the community for video reviews of specific products. Members receive points in exchange for their video submissions and other activities.

    Bill explained that the KTC research service originated from sponsors approaching Expo with a desire to interact with community members on a deeper level. With KTC, the research sponsor (e.g. brand, ad agency, trade organization, etc.) can submit a series of questions and the respondent profiles they want to target. Expo then taps into its member database and offers invitations to participate. Because participants have a track record of submitting video to Expo, a minimum quality level is pretty well assured. As part of its service, Expo can edit the submitted videos into a package or just provide them raw to the research sponsor to use as they'd like.

    While online research is not a new concept (how many of us have filled out surveys or email questionnaires), what's different here is the reliance on video, which provides a different level of insight. Bill said that for researchers, KTC fits between traditional focus groups (where a group of individuals is brought together in a room to discuss their views of a product) and "ethnography" (a process whereby professional researchers actually live with participants for a period of time studying and capturing their behaviors). Bill believes that KTC provides many of the same authentic, on-location benefits of ethnography, but at a price comparable to focus groups and in a far-quicker turnaround time of 2 weeks or less.

    Expo has run half a dozen KTC research projects over the past 9-12 months, working to refine the process. The adjacent video, from one of the research projects (focusing on moms' grocery shopping habits), is a good example of an edited result. In it, you see and hear women in their own homes, speaking authentically and showing specifics (e.g. a coupon folder, handwritten lists, etc.) of how they do their shopping. The video won't be mistaken for prime-time entertainment, but to researchers looking for nuggets of insight, it's golden. For agencies in particular, which can incorporate select segments of KTC video into their client pitches, it's a totally new approach to consumer research.

    KTC is the latest example to hit my radar of how certain types of user-generated video can be used for very productive purposes. Regardless of what might be said about YouTube's and others' inability to monetize the user-generated video uploaded to their sites, one of the derivative benefits of all this user activity is that an army of amateur videographers has been created, many of whom are comfortable in front of and behind the camera. Their video won't win an Oscar or Emmy any time soon, but as Expo and others are proving, their skills and passion are valuable and can be tapped for various purposes.

    What do you think? Post a comment now.

     
  • 4 Items Worth Noting for the Nov 9th Week (Flip ads, YouTube ad-skipping, NY Times video, Nielsen data)

    Following are 4 items worth noting for the Nov 9th week:

    1. Will Cisco's new Flip Video camera ad campaign fly? - Cisco deserves credit for its new "Do You Flip" ad campaign for its Flip Video camera, a real out-of-the-box effort comprised entirely of user-generated video clips shot by ordinary folks and celebrities alike. As the campaign was described in this Online Media Daily article, finding the clips and then editing them together sounds like heavy lifting, but the results perfectly reinforce the value proposition of the camera itself. The ads are being shown on TV and the web; there's an outdoor piece to the campaign as well.

    Cisco acquired Flip for nearly $600 million earlier this year in a somewhat incongruous deal that thrust the router powerhouse into the intensely competitive consumer electronics fray. Cisco will have to spend aggressively to maintain market share as other pocket video cameras have gained steam, like the Creative Vado HD, Samsung HMX and Kodak Z series. There's also emerging competition from smartphones (led by the iPhone of course) that have built-in video recording capabilities. I've been somewhat skeptical of the Cisco-Flip deal, but with the new campaign, Cisco looks committed to making it a success.

    2. YouTube brings ad-skipping to the web - Speaking of out-of-the-box thinking, YouTube triggered a minor stir in the online video advertising space this week by announcing a trial of "skippable pre-roll" ads. On the surface, it feels unsettling that DVR-style ad-skipping - a growing and bedeviling trend on TV - is now coming to the web. Yet as YouTube explained, there's actually ample reason and some initial data to suggest that by empowering viewers, the ads that are watched could be even more valuable.

    One thing pre-roll skipping would surely do is up the stakes for producing engaging ads that immediately capture the viewer's attention. And it would also increase the urgency for solid targeting. Done right though, I think pre-roll skipping could work quite well. At a minimum I give YouTube points for trying it out. Incidentally, others in the industry are doing other interesting things improve the engagement and effectiveness of the pre-roll. I'll have more on this in the next week or two.

    3. Watching the NY Times at 30,000 feet - Flipping channels on my seat-back video screen on a JetBlue flight from Florida earlier this week, I happened on a series of highly engaging NY Times videos: a black and white interview with Oscar-winning actor Javier Bardem, then a David Pogue demo of the Yoostar Home Greenscreen Kit and then an expose of Floyd Bennett Field, the first municipal airport in New York City. It turned out that all were running on The Travel Channel.

    Good for the NY Times. Over the past couple of years I've written often about the opportunities that broadband video opens up for newspapers and magazines to leverage their brands, advertising relationships and editorial skills into the new medium. By also running their videos on planes, the NY Times is exposing many prospective online viewers to its video content, thereby broadening what the NY Times brand stands for and likely generating subsequent traffic to its web site. That's exactly what it and other print pubs should be doing to avoid the fate of the recently-shuttered Gourmet magazine, which never fully mined the web's potential. I know I'm a broken record on this, but video producers must learn that syndicating their video as widely as possible is imperative.

    4. Nielsen forecast underscores smartphones' mobile video potential - A couple of readers pointed out that in yesterday's post, "Mobile Video Continues to Gain Traction" I missed relevant Nielsen data from just the day before. Nielsen forecasts that smartphones will be carried by more than 50% of cell phone users by 2011, totaling over 150 million people. Nielsen assumes that 60% of these smartphone owners will be watching video translating to an audience size of 90 million people. Its research also shows that 47% of users of the new Motorola Droid smartphone are watching video, vs. 40% of iPhone users. Not a huge distinction, but more evidence that the Droid and other newer smartphones are likely to increase mobile video consumption still further.

    Enjoy your weekends!

     
  • Google is Being Clumsy in Explaining YouTube's Performance

    Yesterday's "YouTube myth busting" post on its YouTube Biz Blog had the opposite of its intended effect: rather than providing more transparency about YouTube's performance as it hoped to do, it only set off another round of frustrated posts in the blogosphere imploring Google to release actual YouTube numbers.

    The post came on the heels of last week's Q2 '09 earnings call and supplementary briefing call (transcripts here and here) which were full of optimistic, yet confusing comments about YouTube's "trajectory" from a handful of Google's senior executives.

    Here's what CFO Patrick Pichette said on the supplementary call: "I think that it is true that we are pleased with YouTube's trajectory. And in part the reason why we're communicating it to the Street is there's been so much press over the last quarter with all of these documentations of, you know, massive cost and no business models and all kind of negative press that we've read a lot about. And we just wanted to kind of reaffirm to the Street that this is a very credible business model and it's one that's got trajectory. So in that sense it's just to kind of tell everybody that we're on progress on the plan that we had made for it."

    But what plan is he referring to? In almost 3 years of owning YouTube, Google has never publicly disclosed a specific plan for YouTube or laid out its business model, so attempts at reaffirming it fall flat because there's nothing against which progress can be judged. Here are other comments, with my reactions in parentheses.

    Pichette on the earnings call: "We are really pleased both in terms of its (YouTube's) revenue growth, which is really material to YouTube and in the not long, too long distance future, we actually see a very profitable and good business for us, so from that perspective, we are really pleased with the trajectory." (WR: that sounds pretty bullish)

    Jonathan Rosenberg, SVP of Product Management on the earnings call: "I think what I said - or what I meant to say was that monetizable views have tripled in the last year and that we are monetizing billions of views every month." (WR: that sounds bullish too, but wouldn't some actual numbers really bolster this point?)

    Rosenberg on the supplementary call: "And that's part of why I think it's taken us time to kind of triangulate toward what works, and I think some of the things that we have now are still in the pretty nascent stages..." (WR: nonetheless, per earlier comment, profitability can already be forecast in the not too distant future?)

    Nikesh Arora, President of Global Sales Operations and Business Development on the earnings call: "So we are seeing significant sell-through in most of our major markets where we have YouTube homepage for sale." (WR: of what ad unit - pre-rolls or display?)

    Arora on the earnings call: "So I think the next phase of YouTube is going to be toward pre-roll video on short clips and long form video (which we are in the process of doing) various deals in, which we've announced in the past." (WR: that's new news, YouTube's spoken primarily of overlays in the past)

    Rosenberg on the supplementary call: "I would not say our overall optimism that we expressed with respect to YouTube is primarily a function of one specific format. We've actually been testing pre-rolls, I think, for quite a while. So if you interpret that one single comment to pre-rolls to imply the broad conclusion with respect to optimism on YouTube, I think that's probably a mistake." (WR: so maybe pre-rolls aren't actually the next big thing?)

    Yesterday's post: "Myth 5 YouTube is only monetizing 3-5% of the site. This oft-cited statistic is old and wrong, and continues to raise much speculation." (WR: what is the percentage then?)

    CEO Eric Schmidt on the earnings call: "The majority of YouTube views are not professional content. They are user generated content because that's the majority of what people are watching." In response to whether YouTube is able to monetize user-generated content: "Has not been our focus." (WR: again, letting us know what percentage is professional and the focus of monetization would be very helpful)

    These comments raise lots of questions about how far along Google actually is in understanding YouTube's traffic and its ability/plan to monetize it. I think Google is being clumsy in explaining YouTube's performance because it got nervous about the eye-popping estimates that have been floating around lately about how much money YouTube is losing and rushed to try to mitigate this perception, but without being ready to present real numbers as backup. Further, I don't think it rehearsed its executives very well about what to say or how to say it, so the improvised comments did not convey a clear consistent message.

    As someone who believes YouTube has enormous long-term value for Google, my advice is that its executives should just stay mum on YouTube until they're ready to make a logical case backed by facts and data. That may take longer than Google or the market hoped, allowing the rumor mill to continue to churn. But continuing to make unsupported statements will only rile YouTube followers further, and eventually sap Google's credibility.

    What do you think? Post a comment now.

     
  • 4 News Items Worth Noting from the Week of July 13th

    Following are 4 news items worth noting from the week of July 13th:
     
    TV Everywhere survey should have cable industry clicking their heels - I wasn't at all surprised to read results of a new Solutions Research Group survey fielded to 500 Comcast and Time Warner Cable subscribers giving the concept of TV Everywhere positive reviews. As Multichannel News reported, in the overall survey 28% of respondents said the idea was "excellent" and 45% said it was "good." Digging in further though, among those 18-49 the "excellent" score surged to 80%, while 87% of Hulu and Fancast users approved of the idea. Unprompted, respondents cited benefits like convenience, remote viewing, getting better value from their cable subscriptions, watching on PCs in rooms without TVs and catching up on missed programs. My take: consumers "get" what TV Everywhere is all about and already have positive initial reactions, meaning there's very significant upside for the cable industry.

    Paid video forecast to surpass free - A Strategy Analytics forecast that got attention this week says that the global paid online video market will be worth $3.8B in 2009, exceeding the global free online video segment which will total $3.5B. I haven't seen the details of the forecast, but I'm very curious what's being included in each of these numbers as both seem way too high to me. The firm forecasts the two segments to grow at comparable rates (37% and 39%), suggesting that their size will remain relatively even. I suspect we're going to be seeing a lot of other research suggesting the paid market is going to be far larger than the ad-supported market as sentiment seems to be shifting toward subscriptions and paid downloads.

    Consumer generated video contests remain popular - VideoNuze readers know I've been intrigued for a while now about contests that brands are regularly running which incent consumers to create and submit their own videos. Just this week I read about two more brands jumping on the bandwagon: Levi's and Daffy's retail stores. NewTeeVee had a good write-up on the subject, citing new research from Forrester which reviewed 102 different contests and found the average prize valued at $4,505. I see no end in sight for these campaigns as the YouTube generation realizes it's more lucrative to pour their time into these contests than training their cats to skateboard. Brands too are recognizing the wealth of amateur (read cheap!) talent out there and are moving to harness it.

    MySpace has lots of work ahead to become a meaningful entertainment portal - The WSJ ran a piece on Monday based on an interview with Rupert Murdoch in which he was quoted as saying MySpace will be refocused "as an entertainment portal." That may be the winning ticket for MySpace, but I'm not totally convinced. MySpace has been in a downward spiral lately, with a 5% decline in audience over the past year, a 30% headcount reduction and an executive suite housecleaning. While always strong in music, according to comScore, its 48 million video viewers in April '09 were less than half YouTube's 108 million, while its 387 million video views were about 5% of YouTube's 6.8 billion. Clearly MySpace has a very long way to go to give YouTube serious competition. It will be interesting to see if the new management team Murdoch has installed at MySpace can pull off this transition.

     
  • Catching Up on Last Week's Industry News

    I'm back in the saddle after an amazing 10 day trip to Israel with my family. On the assumption that I wasn't the only one who's been out of the office around the recent July 4th holiday, I've collected a batch of industry news links below so you can quickly get caught up (caveat, I'm sure I've missed some). Daily publication of VideoNuze begins again today.

    Hulu plans September bow in U.K.

    Rise of Web Video, Beyond 2-Minute Clips

    Update on New Channels

    ABC Content Now on Hulu

    Nielsen Online: Kids Flocking to the Web

    Amid Upfronts, Brands Experiment Online

    Clippz Launches Mobile Channel for White House Videos

    Prepare Yourself for iPod Video

    Study: Web Video "Protail" As Entertaining As TV

    In-Stat: 15% of Video Downloads are Legal

    Kazaa still kicking, bringing HD video to the Pre?

    Office Depot's Circuitous Route: Takes "Circular" Online, Launches "Specials" on Hulu

    Upload Videos From Your iPhone to Facebook Right Now with VideoUp

    Some Claims in YouTube lawsuit dismissed

    Concurrent, Clearleap Team on VOD, Advanced Ads

    Generating CG Video Submissions

    MJ Funeral Drives Live Video Views Online

    Qik Raises $5.5 Million

    Why Hulu Succeeded as Other Video Sites Failed

    YouTube's Pitch to Hollywood

    Invodo Secures Series B Funding

    Comcast, USOC Eye Dedicated Olympic Service in 2010

    Consumer Groups Push FTC For Broader Broadband Oversight

    Crackle to Roll Out "Peacock" Promotion

    Earlier Tests Hot Trend with "Kideos" Launch

    Mobile entertainment seeking players, payment

    Netflix Streams Into Sony Bravia HDTVs

    Akamai Announces First Quarter 2009 State of the Internet Report

    Starz to Join Comcast's On-Demand Online Test

    For ManiaTV, a Second Attempt to be the Next Viacom

    Feeling Tweety in "Web Side Story"

    Most Online Videos Found Via Blogs, Industry Report

    Cox to Turn "MyPrimeTime" Dial to 100

    How to Start a Company (and Kiss Like Angelina)

     
  • 4 Industry Items from this Week Worth Noting

    YouTube mobile video uploads exploding; iPhones are a key contributor - The folks at YouTube revealed that in the last 6 months, uploads from mobile phones to YouTube have jumped 1,700%, while in the last week, since the new iPhone GS was released, uploads increased by 400% per day. I didn't have access to these stats when I wrote on Monday "iPhone 3GS Poised to Drive User-Generated Mobile Video," but I was glad to see some validation. The iPhone 3GS - and other smartphone devices - will further solidify YouTube as the world's central video hub. I stirred some controversy last week with my "Does It Actually Matter How Much Money YouTube is Losing?" post, yet I think the mobile video upload explosion reinforces the power of the YouTube franchise. Google will figure out how to monetize this over time; meanwhile YouTube's pervasiveness in society continues to grow.

    Nielsen study debunks mythology around teens' media usage - Nielsen released a new report this week "How Teens Use Media" which tries to correct misperceptions about teens' use of online and offline media. The report is available here. On the one hand, the report underscores prior research from Nielsen, but on the other it reveals some surprising data. For example, more than a quarter of teens read a daily newspaper? Also, 77% of teens use just one form of media at one time (note, data from 2007)? I'm not questioning the Nielsen numbers, but they do seem out of synch with everything I hear from parents of teens.

    Paid business models resurfacing - There's been a lot of talk from media executives about the revival of paid business models in the wake of the recession's ad spending slowdown and also the newspaper industry's financial calamity. For those who have been offering their content for free for so long, putting the genie back in the bottle is going to be tough. Conversely for others, like those in the cable TV industry, who have resisted releasing much content for free, their durable paid models now look even more attractive.

    Broadcast TV networks diverge on strategy - Ad Age had a good piece this week on the divergence of strategy between NBC and CBS. The former is breaking industry norms by putting Leno on at 10pm, emphasizing cable and avidly pursuing new technologies. Meanwhile CBS is focused on traditional broadcast network objectives like launching hit shows and amassing audience (though to be fair it is pursuing online distribution as well with TV.com). Both strategies make sense in the context of their respective ratings' situations. Regardless, broadcasters need to eventually figure out how to successfully transition to online distribution, something that is still unproven (as I wrote here).

     
  • Reviewing My 6 Predictions for 2008

    Back on December 16, 2007, I offered up 6 predictions for 2008. As the year winds down, it's fair to review them and see how my crystal ball performed. But before I do, a quick editorial note: each day next week I'm going to offer one of five predictions for the broadband video market in 2009. (You may detect the predictions getting increasingly bolder...that's by design to keep you coming back!)

    Now a review of my '08 predictions:

    1. Advertising business model gains further momentum

    I saw '08 as a year in which the broadband ad model continued growing in importance as the paid model remained in the back seat, at least for now. I think that's pretty much been borne out. We've seen countless new video-oriented sites launch in '08. To be sure many of them are now scrambling to stay afloat in the current ad-crunched environment, and there will no doubt be a shakeout among these sites in '09. However, the basic premise, that users mainly expect free video, and that this is the way to grow adoption, is mostly conventional wisdom now.

    The exception on the paid front continues to be iTunes, which announced in October that it has sold 200 million TV episode downloads to date. At $1.99 apiece, that would imply iTunes TV program downloads exceed all ad-supported video sites to date. The problem of course is once you get past iTunes things fall off quickly. Other entrants like Xbox Live, Amazon and Netflix are all making progress with paid approaches, but still the market is held back by at least 3 challenges: lack of mass broadband-to-the-TV connectivity, a robust incumbent DVD model, and limited online delivery rights. That means advertising is likely to dominate again in '09.

    2. Brand marketers jump on broadband bandwagon

    I expected that '08 would see more brands pursue direct-to-consumer broadband-centric campaigns. Sure enough, the year brought a variety of initiatives from a diverse range of companies like Shell, Nike, Ritz-Carlton, Lifestyles Condoms, Hellman's and many others.

    What I didn't foresee was the more important emphasis that many brands would place on user-generated video contests. In '08 there were such contests from Baby Ruth, Dove, McDonald's, Klondike and many others. Coming up in early '09 is Doritos' splashy $1 million UGV Super Bowl contest, certain to put even more emphasis on these contests. I see no letup in '09.

    3. Beijing Summer Olympics are a broadband blowout

    I was very bullish on the opportunity for the '08 Summer Games to redefine how broadband coverage can add value to live sporting events. Anyone who experienced any of the Olympics online can certainly attest to the convenience broadband enabled (especially given the huge time zone difference to the U.S.), but without sacrificing any video quality. The staggering numbers certainly attested to their popularity.

    Still, some analysts were chagrined by how little revenue the Olympics likely brought in for NBC. While I'm always in favor of optimizing revenues, I tried to take the longer view as I wrote here and here. The Olympics were a breakthrough technical and operational accomplishment which exposed millions of users to broadband's benefits. For now, that's sufficient reward.

    4. 2008 is the "Year of the broadband presidential election"

    With the '08 election already in full swing last December (remember the heated primaries?), broadband was already making its presence known. It only continued as the year and the election drama wore on. As I recently summarized, broadband was felt in many ways in this election cycle. President-elect Obama seems committed to continuing broadband's role with his weekly YouTube updates and behind-the-scenes clips. Still, as important as video was in the election, more important was the Internet's social media capabilities being harnessed for organizing and fundraising. Obama has set a high bar for future candidates to meet.

    5. WGA Strike fuels broadband video proliferation

    Here's one I overstated. Last December, I thought the WGA strike would accelerate interest in broadband as an alternative to traditional outlets. While it's fair to include initiatives like Joss Wheedon's Dr. Horrible and Strike.TV as directly resulting from the strike, the reality is that I believe there was very little embrace of broadband that can be traced directly to the strike (if I'm missing something here, please correct me). To be sure, lots of talent is dipping its toes into the broadband waters, but I think that's more attributable to the larger climate of interest, not the WGA strike specifically.

    6. Broadband consumption remains on computers, but HD delivery proliferates

    I suggested that "99.9% of users who start the year watching broadband video on their computers will end the year no closer to watching broadband video on their TVs." My guess is that's turned out to be right. If you totaled up all the Rokus, AppleTVs, Vudus, Xbox's accessing video and other broadband-to-the-TV devices, that would equal less than .1% of the 147 million U.S. Internet users who comScore says watched video online in October.

    However, there are some positive signs of progress for '09. I've been particularly bullish on Netflix's recent moves (particularly with Xbox) and expect some other good efforts coming as well. It's unlikely that '09 will end with even 5% of the addressable broadband universe watching on their TVs, but even that would be a good start.

    Meanwhile, HD had a banner year. Everyone from iTunes to Hulu to Xbox to many others embraced online HD delivery. As I mentioned here, there are times when I really do catch myself saying, "it's hard to believe this level of video quality is now available online." For sure HD will be more widely embraced in '09 and quality will get even better.

    OK, that's it for '08. On Monday the focus turns to what to expect in '09.

    What do you think? Post a comment now.

     
  • The Incredibly Growing YouTube

    Closing out the week, I missed this blurb from Information Week yesterday reporting YouTube's staggering dominance of broadband video traffic. New numbers out from Hitwise show that in May '08 YouTube garnered 75% of the 10 million visits to 63 video sites that Hitwise is tracking. That's 9 times the traffic of #2 MySpaceTV and more than 20 times that of the #3 site which is Google's other video property (remember it?)

    According to Hitwise YouTube's share rose 26% from a year ago compared with drops by all the others in the top 5 sites except Veoh, which rose by 32% from a year ago.

    It's just mind-boggling to think that one site could have such market share, particularly when a lot of the networks' programs cannot be found there. I think it speaks to how strong users' appetites are for UGC and viral content remain, how YouTube has become a de facto video platform for lots of smaller players in the industry (and consumers) and how the company is likely beginning to enjoy some early success with its partners' channels.

    A few months ago, in "YouTube: Over-the-Top's Best Friend" I wrote that YouTube is quickly becoming the perfect ally for all those makers of new broadband-to-the-TV devices. These companies desperately need content and credible brands to help pull through consumer demand. YouTube offers both. In this sense, YouTube has huge value yet to be tapped (of course demonstrating that it can monetize its massive audience wouldn't hurt its partnership value...)

    However, looked at another way, YouTube's success should be very encouraging to other players. To start with, YouTube is doing a marvelous job educating the world about the virtues of broadband video. And while YouTube is the market's 800 pound gorilla, it is still leaving key opportunities open for other players to differentiate themselves. Potential areas include high-quality delivery, ad-based and paid monetization and offering content that YouTube simply doesn't have (examples: Comedy Central programs like "The Daily Show" and "Colbert Report")

    Volumes are yet to be written about YouTube. Whether it turns its market-leading traffic into a financially-explosive franchise or forever remains a red-ink spewing blip on Google's P&L is yet to be seen. Either way, when the history of broadband video is written, YouTube will be featured prominently.

     
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