Media Companies Continue Foray Into Online Video

As more media companies shift their resource to the Web, the battle for dominance in online video is growing.  Businesses ranging from traditional broadcast networks to newspaper and magazine publishers to pure-​play Internet companies are posting online video streams. Brightcove and TubeMogul are two companies who have begun to analyze the state of the online video industry. The findings in their most recent report can help industry players and watchers figure out which trends are taking hold.

For example, advertisers will want to know how consumers are engaging with online video. The report findings indicate the following:

  • Broadcast networks command the most viewing time per video.
  • The highest completion rates for online video occur at sites owned by newspaper and magazine publishers.

When it comes to determining how consumers locate online video, consider these statistics:

  • Google is king and “generates the highest volume of referral traffic to online video content”.
  • Yahoo drives viewers with the highest level of engagement to newspaper publishers that provide online video.
  • Twitter is responsible for driving traffic to online content offered by broadcast networks, magazine publishers and music labels.

Currently, only 33% of companies that post online video on their sites say that their top reason for doing so is to increase advertising inventory. However, the need to monetize these efforts is becoming important. As a result, more effort will go toward attracting marketers to advertise in this format. For the rest of the year, these operators say they will employ the following strategies to monetize their video efforts:

  • In-​stream advertising 31%
  • In-​page advertising 22%
  • Sponsorship 34%
  • Subscription 18%
  • Pay per view 16%
  • Pay to download 12%
  • Other 11%

As more of these companies expand inventory for online advertising and competition increases, it will be interesting to watch the effects on pricing.

[Source: Online Video & The Media Industry. Brighcove & TubeMogul. 6 May 2010. Web. 17 Jun. 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.