Broadband Video Perspectives for 2008 & 2009
In many ways, 2008 was a defining year for premium broadband video on the web. For the first time, many aggregators and programmers embraced a more open approach toward distributing their top tier content across video destination sites, while investing in their own brand destinations. At the same time, video views exploded across the industry, with online video consumption growing handily each month as more quality premium content became available. The audience for such programming is growing, especially among desirable younger demographics. In a recent Oliver Wyman study, commissioned by the cable association CTAM, cable respondents were watching twice as many online video (5.9hrs/week) hours as they did Video On Demand (2.9hrs) from cable set-top boxes on a weekly basis. The audience may still be small compared to linear TV, but it is clearly on the right end of the growth curve.
So, let’s get to 2009. We have all heard the doom and gloom about ad rates, but if you look more closely, the expected drop is for banner ads, not high-quality video. There is an opportunity for our customers with video advertising that shouldn’t be dismissed as companies look toward cost savings. As more consumers appear to stay home to save on entertainment costs, it is very possible that it will boost online video viewing hours.
We recognize this economic market has companies reexamining their investments, but we continue to believe broadband publishing is the critical path to next-generation consumption of news and entertainment and should not be sacrificed. To that end, we remain focused on finding efficiencies to make our customers’ broadband investments yield greater returns. We will do this by focusing on two key areas in 2009 1) improving the cost of ownership equation to drive down overall costs for providing quality video to consumers, and 2) expanding our customers’ ability to leverage existing content libraries to drive new, untapped revenue opportunities.
We will continue to build out our partner ecosystem to assist on both fronts. Many customers have told us they don’t want to be locked into a single publisher’s player or technology vendor, so we continue to add the broadest choice of vendors to have the most flexible, open ecosystem for our customers. Together, we will be able to create unique solutions that meet the individual needs of our customers in the most economical ways possible.
On the flip side of the cost equation is revenue generation. Late this year, I began to talk about the concept of the “long leash”
We recognize that 2009 will be a challenging one for many companies in the online video arena. We are fortunate to have the ability and scale to help. Even in these challenging economic times, digital businesses can be successful, and we will continue to look for more opportunities to help our customers effectively reach their audiences — wherever they reside.
— Ian Blaine
CEO, thePlatform
SVP, Content Publishing, Comcast Interactive Media
What are your broadband video industry predictions for 2009? Drop us a note.
Comments
By Ed Misicka on Dec 16, 2008
Since 1979, when I got into the cable business, customers have constantly said, “I only want to pay for the programs I watch.” They are finally getting what they want. It is pretty much free now but, so were music downloads when they first started. Music is now ninety-nine cents. Video is following. It will be free until they have enough viewers hooked then, it will be $1.99, per show and $20+/- for the season series.
Good by local off air, as we know it. Why would any network want to share ad revenue or providing for local re-transmition of network shows with the locals when they can have it all to themselves?
Welcome to the future!
By Pierre-R. Wolff on Feb 19, 2009
While we are just coming out of being a development stage venture funded company, from our prospect conversations w/the content owners and publishers of high quality online video, we totally concur w/your point on the continued enthusiasm for advertising along this content. While our SaaS app provides a video publisher focused proposition, we’ve met w/several of the top digital agencies. They see no slow down in their budgets for online video, all they want is more info to make sure the content is right for their brand advertisers.
We feel very lucky to be playing in the right space on this one, and thanks for sharing these wonderful stats. Almost sounds like we s/b talking w/theplatform about our offering given the positive feedback we’re getting fm other top online video sites.
Cheers,.../p