If Content is King, Video is Heir to the Throne

As more TV and sports broad­cast­ers are mak­ing pro­grams avail­able via mobile devices and offer­ing live con­tent to their sub­scribers, the storm of avail­able con­tent and con­sumers demand­ing it has led to the growth of video con­tent across all devices, par­tic­u­larly tablets and smart­phones. Our U.S. Dig­i­tal Video Bench­mark Report for 2012 uncov­ered some inter­est­ing trends.


TV Every­where video con­tent, which grants access to encrypted con­tent through sub­scriber authen­ti­ca­tion, has grown over 12x year-over-year (YoY) in 2012. The hockey stick growth curve is due par­tially to major sport­ing events and par­tially to the increased adop­tion by afflu­ent, tech savvy tablet device users. Mobile view­er­ship accounts for over 70% of the TV Every­where views.


How­ever, the most engaged view­ers come from the small por­tion of those access­ing the con­tent via Xbox game con­sole, aver­ag­ing over 14 plays per unique vis­i­tor.  Apple users, which are largely made up of iPads, are also highly engaged with 14 plays per unique visitor.


Online dig­i­tal video con­tent con­sump­tion has also ramped up in 2012, grow­ing at a rate of 30% YoY.  Like TV Every­where, online video con­sump­tion growth is related to mobile devices. Online video starts, defined as the ini­tial access of any video, have grown 360% for tablets and 300% for mobile phones in 2012.



Although the growth trends are very strong, they do not imply that view­ers are throw­ing out their tele­vi­sion and mov­ing exclu­sively to dig­i­tal video con­sump­tion.  In fact, most con­tent con­sump­tion pat­terns indi­cate that dig­i­tal and pre­mium video con­tent con­sump­tion aug­ments rather than replaces tra­di­tional ways of watch­ing TV.  How­ever, the col­li­sion of mobile pen­e­tra­tion, high speed data avail­abil­ity and usage pat­terns of dig­i­tal video con­tent demon­strates that con­sumers will be demand­ing that broad­cast­ers pro­vide addi­tional lev­els of access to their con­tent in the future. We expect these shifts to have pro­found impact on the future of the media business.

  • For adver­tis­ers, tar­geted ad con­tent will become more of a real­ity with large TV pro­gram­mers begin­ning to latch onto the mul­ti­ple dig­i­tal video dis­tri­b­u­tion meth­ods. With mobile devices con­tin­u­ing to shape the way con­sumers respond to media con­tent, the data shows that mul­ti­ple forms of dig­i­tal video access are here to stay and mobile con­tin­ues to be a viable medium for TV and sports related video content.
  • For broad­cast­ers, new plat­forms are pro­vid­ing incre­men­tal value and tar­get­ing capa­bil­i­ties. Early adopters of dig­i­tal video are afflu­ent, engaged, multi-device con­sumer which should spur adver­tis­ers to pay extra to gain access to this crowd. With strictly online media com­pa­nies pro­duc­ing unique con­tent, it may only be a mat­ter of time before all TV pub­lish­ers are want­ing to make more con­tent read­ily avail­able because it is the most ben­e­fi­cial for them and the consumer.
  • For con­sumers, dig­i­tal video leads us to an entirely dif­fer­ent way to con­sume con­tent, where we pay one time for dig­i­tal access to con­tent and are then able to gain access on a vari­ety of dif­fer­ent tech­nol­ogy plat­forms. Chal­lenges still remain before TV Every­where is really every­where, with the major­ity of con­sumers decid­ing to remain with stan­dard TV for broad­cast con­tent. How­ever, the future is bright for tech­nol­ogy already adopted by many large TV and sports broad­cast­ers as a valu­able way to reach a grow­ing mobile con­sumer base with valu­able video content.

Mar­ket­ing prac­ti­tioner and media exec­u­tives will want to ask them­selves if they are uti­liz­ing these chan­nels well enough yet.  We want to hear from you.  What video con­tent are you view­ing online? Where do you feel dig­i­tal video view­ing is moving?

Check out the ani­mated info­graphic below along with the full report and fol­low me on Twit­ter@tamarag for insights into the media and enter­tain­ment industry.




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