Analysis for 'PWC'

  • PwC's New Viewership Research Shows Vastly Changed Landscape

    A industry friend passed me a copy of PwC's new research on viewership across platforms and by age groups this week, which shows a vastly changed landscape for entertainment consumption. On the top line, the research reports that consumers are watching 12.4 hours/week of TV and movies via download, streamed, digitally recorded and online, vs. 8.9 hours of TV and movies on network TV and basic cable. When looked at by three age groups, 18-34, 35-44 and 45-59, only the latter category watches more network TV/cable, and only for TV shows, not movies (see chart below).

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  • Online Video Advertising is Best Performer in FH '10, Up 31% to $627 Million

    Online video advertising is the fastest-growing ad category on the Internet, up 31% to $627 million in first half 2010 from $477 million in first half 2009 according to new research released by PwC US and the IAB.

    However, video advertising still only amounts to 5% of total Internet ad spending, with search, at 47% (over $5.7 billion in FH '10) still dominating the landscape. However, video advertising is benefiting significant tailwind and is poised for lots of growth ahead. In its favor are shifting consumer behaviors toward online viewing, an exploding array of premium-quality/brand-friendly content, broad adoption of connected device which enable long-form online-delivered video viewing on TVs, and improved ad infrastructure (e.g. targeting, management, engagement, etc.).

    When I talk to executives at video ad networks, brands, agencies and content providers they all confirm lots of activity in moving over TV and online budgets to video. I expect plenty more of this as online video viewership gains further momentum. The full ad spending breakdown for FH '10 is below.


     
  • 4 Items Worth Noting from the Week of August 3rd

    Following are 4 items worth noting from the week of August 3rd:

    1. Research, research, research - For some unknown reason, there was a flurry online video-related research and forecasts released this week. In no particular order:

    eMarketer was out with a new forecast indicating 188 million online video viewers in the U.S. in 2013.

    Veronis Suhler released its forecast of 2009-2013 communications industry spending, showing advertising shrinking as a percentage of total spending.

    PWC's UK office released its 2009-2013 forecast, which also anticipates declines in advertising.

    CBS's research head David Poltrack used detailed data to explain the company's online video strategy and buttress its argument that in a TV Everywhere world, it should be compensated for its content (slides are here, via PaidContent).

    Ipsos found that Americans streamed a record amount of TV programs and movies, doubling their consumption from Sept '08 to July '09.

    Yahoo and a group of research partners released data finding that 70% of online video consumption happens throughout the day and night, as opposed to traditional TV viewing which is concentrated in the prime-time window.

    Last but not least, TDG released excerpts of its research on "over-the-top" video services, available for download at VideoNuze.

    2. Unicorn Media launches, hires ex-Move Networks executive David Rice - It will be hard for some to believe there's room for yet another white label video publishing and management platform, but startup Unicorn Media is going to try elbowing its way into the crowded space, with a specific focus on large media companies. I spoke with Unicorn's executive team this week, led by Bill Rinehart, who was the founding CEO of Limelight.

    Unicorn is positioning itself as the first "enterprise-grade" solution, staking out key differentiators such as enhanced analytics/reporting, faster/easier transcoding, improved APIs for content ingest/management and more flexible monetization/ad queuing. I have not yet seen a demo, but I'm intrigued by what I heard. The company has raised $5M to date from executives/angels and has a staff of 25. David Rice, formerly Move's VP of Marketing has come on board as Chief Strategy Officer. Given the team's industry expertise and relationships, this could be a company to watch.

    3. Google acquires On2 Technologies and other encoding-related news - The blogosphere was in a flurry about Google's $106M acquisition of video compression provider On2 Technologies this week. Speculation flew about Google open-sourcing On2 new VP8 codec, which could potentially force a new standard to emerge as a challenge to H.264, today's leading codec. This is important stuff, though a little further down the stack than I usually focus, so I refer you to Dan Rayburn's analysis of the deal's implications, which is the best I've seen.

    There was other news in the emerging cloud-based encoding/transcoding/delivery market this week, as Encoding.com announced a new premium service with tighter service level agreements (4 minute max wait time and 50 Gbyte/hour/customer throughput). Encoding.com's Gregg Heil and Jeff Malkin explained the company is using the new SLAs to move upmarket to service tier 1 and 2 media companies. Separate, Encoding.com's competitor mPoint's CEO Chiranjeev Bordoloi told me they're now on a $3M annualized revenue run rate as cloud-based alternatives continue to gain acceptance.

    4. Don't try this at home - On a lighter note, there's been no shortage of knuckle-head stunt videos we've all seen online, but this one is near the top of my personal favorite list. Do NOT try replicating this over the weekend!
     
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