While an enormous amount of ink is spilled everyday about the media industry and online video, there's still very little primary research available on the subject. Brightcove and TubeMogul have teamed up to develop a new quarterly research report with data and analysis focused on the online video market. Our goal is to contribute to the ongoing dialog on the state of the industry and inform additional research initiatives.
The new quarterly report takes a sample of aggregate data representing a cross section of platform customers. While we make no claim that our sample is statistically representative of the online video industry as a whole or of Brightcove's entire customer base, the research does provide a directional snapshot of trends in platform usage, consumer behavior, and industry sentiment.
For Q1 of 2010, our report focuses on the media industry, including broadcast networks, music labels, newspaper publishers, magazine publishers, and radio broadcasters. We uncovered a number of interesting findings, as well as a few surprises.
Across nearly every indicator, it's clear that the media industry is investing aggressively in online video initiatives, driving usage and engagement, and seizing new monetization opportunities.
- Surge in stream growth lead by broadcast networks and Web media brands. With a combined run rate of more than 700 million streams a quarter, broadcast networks grew by over 40 percent in Q1 of 2010 compared to the same quarter last year. Web media brands topped 300 percent growth across the same period.
- Spike in video publishing activity driven by newspapers and magazines. Newspapers did two billion video player loads across their websites in Q1 of 2010, up 37 percent from the same period last year. Magazines did 1.2 billion player loads in Q1 of 2010, up 70 percent compared to the same quarter last year.
- Media companies ramp video production for online distribution. In Q1 of 2010, video uploads were up 190 percent (359,256 videos) for newspapers, 60 percent for magazines (43,554 videos), 64 percent for music labels (24,538 videos), and 62 percent for radio (5,730).
- Broadcast networks garner the most time viewed per video stream. Online video content from broadcast networks average 2:53 minutes watched per stream followed by music labels at 1:50 minutes and newspaper publishers with 1:41 minutes per stream.
- Newspaper and magazines have highest video viewing completion rates. Newspapers are the best at getting viewers to watch an entire video at 41 percent of their audience finishing watching to the end of the videos. Newspapers are followed by magazine publishers at 39 percent, broadcasters at 38 percent and music labels at 29 percent.
- Twitter referrals generate highest level of engagement with online video content. Compared to other sources, Twitter referrals generate the highest level of engagement for broadcast networks (1:52 min), magazine publishers (1:23 min), and music labels (2:33 min). The exception is newspaper publishers, which see the highest level of engagement from viewers who find their content via Yahoo! (1:20 min).
- Increasing engagement is the number one reason media companies gave for adding video to their websites (76 percent) followed by strengthening their brand (60 percent), and increasing site visitors (55 percent). Surprisingly, increasing advertising inventory ranked fourth in the list of top reasons for using online video (33 percent).
- Mor than 50 percent of media companies plan to rollout ad-supported mobile video in the next 6-12 months.
- Almost 50 percent of media companies plan to add sponsorships to their online video monetization strategy in 2010.
The trend data and Q1 metrics both point toward an exciting new phase of growth and expansion for the online video sector in the media industry. It also appears that media are looking to expand ad-supported content distribution to new devices and take advantage of new monetization strategies in 2010.
While monetization is clearly an important driver for these initiatives, media companies take a broader view on the role online video plays for their website properties including engagement, brand building and audience growth.
Overall, the report signals that online video strategies are becoming more sophisticated and integral to a broad set of business objectives for media companies.