Short-form has strong future but TV and films drive online video

Short-form has strong future but TV and films drive online video

Stronger revenue growth opportunity from OTT and SVOD services like Hulu and VUDU, as well as the Netflix juggernaut, will eclipse totally short-form video says an ABI research note.

Observing first in the OTT and Multiscreen Services Market Research report that short-form video from services such as YouTube and Dailymotion has become ‘far more than cats playing the piano’, ABI expects that the short-form market’s revenue potential will approach $13 billion by 2019, carrying a 6 year CAGR of 18.5%.”As the overall online video market evolves we anticipate the value for short-form video will rise in kind. Multi-channel networks (MCNs) that work with content contributors and advertising agencies targeting services like YouTube are finding suitors and partners among some of the largest industry players in video,” explained ABI practice director Sam Rosen, “While much of this is linked to preparations for the future, these are aggressive steps forward that could help define the what, how, when, and where we watch content.”

Yet even though impressive by any standards, ABI says that when one takes into context the greater online video market, which includes over the top content (mid- and long-form content), short-form video’s share of the market is expected to decline. ABI attributes this to stronger revenue growth opportunity from OTT services like Netflix, Hulu, and VUDU, which often generates more revenue per play. Overall ABI the broad online video market to reach over $56 billion by 2019, with a 6 year CAGR of 23.1%.

“Subscription services such as Netflix continue to headline the market, but EST in North America is starting to gain momentum,” added ABI senior analyst Michael Inouye. “While initiatives like UltraViolet continue to make progress many still view the market from a service-centric point of view, leaving opportunities for companies to try differentiation strategies to win consumers. The landscape for video is shifting, but so far it continues to move at a steady pace, rather than in seismic shifts.”

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