If Online Video Were A Baseball Game: Inning-by-Inning Summary

You always hear how online video is in the “early innings.”

Perhaps, but tell that to anyone who’s worked in online video for years, and they’ll roll their eyes, saying the industry’s been around forever, and sometimes it feels like we’re in the dog days of August.

Incidentally in both 2008 and 2010 I said that “video is where search was in 2002.” The past two years have brought change, and in an article down the road, we’ll ask “where’s video in 2012 relative to search?”

But today, we’ll look at the history of online video as if it were a baseball game (please forgive the mid-season and off-season analogies, though).

It’s a Long Season, But This Game is in the Late Innings

The more appropriate analogy is that it’s early in the season, with a number of games already played.

We’re actually in the late innings of this match pitting the Distribution Disruptors vs. the Content Monarchs, with the Disruptors representing the NY Yankees, armed to the teeth with nearly $1 billion in financing. The Monarchs, meanwhile, were one of the original franchises that have struggled of late.

1st Inning (2004-05)

On October 15, 2004, Jon Stewart goes on CNN “Crossfire” and criticizes journalists. CNN.com’s error of not making the video available gives aggregator iFilm its breakthrough, as the clip goes viral (with viral videos being as common as hitting for the cycle). In 2005m iFilm is acquired by Viacom for $49 million but is then sent down to the minors, never to be heard of again. Meanwhile, Stewart galvanizes his role as the rotation’s ace.

Score after 1: Content 2, Distribution 1.

2nd Inning (2005)

Former 1990s era superstar and 1994 rookie-of-year AOL makes a comeback on July 2, 2005 by live streaming Live 8, a fundraiser to end poverty, featuring over 1,000 musicians in 10 concerts. Marking the end of AOL’s walled garden era, it was a perfect harmony between content and distribution.

Score after two: Content 3, Distribution 2.

3rd inning (2006)

Three former Paypal employees register the YouTube.com URL in May 2005. Depending on whom you ask, they either a) exploit the DMCA; or b) leverage the explosion of UGC on their way to a $1.65 billion sale. A “grand slam” for Distribution. Content adds two points nonetheless, thanks to “Lazy Sunday” and all of those music videos.

Meanwhile, with YouTube coming out of nowhere and becoming Distribution’s franchise player, many highly touted prospects (Revver, Guba, GoFish, etc.) are released, put on waivers or sent down to the minors.

Score after three: Distribution 6, Content 4.

4th inning (2007-08)

MySpace sets its sights on video, licenses premium content and orders scripted entertainment series, including “Quarterlife.”

The odd walk and single (NBC acquires LX.tv for local content, while Adconion acquires Kush TV for push into branded entertainment) narrow the lead.

As YouTube establishes itself as Distribution’s marquee star, distributors DailyMotion and Metacafe raise $34 million and $30 million respectively in August 2007, raising expectations.

Content’s Hulu launches in late 2007, silencing the critics in the cleanup batting order and becoming the first bona fide challenge to UGC domination and YouTube supremacy.

Score after four: Distribution 7, Content 5.

5th inning (2008-09)

The 2008-09 recession is a mid-game funk that cuts back everyone’s appetite for heavily funded, long-term bets. A barrage of Content and Distribution players are cut from the roster. Content cuts Ripe despite a $45 million investment.

Comcast and Time Warner announce TV Everywhere; Content stands a chance.

Score: Distribution 7, Content 6.

6th inning (2010)

AOL’s Tim Armstrong signs a barrage of free agents, buying custom content maker StudioNow for $36.5 million and syndication aggregator 5Min for $65 million.

Meanwhile, Viacom’s lawsuit against Google/YouTube is dismissed.

Score after 6: Distribution 10, Content 7.

7th inning (2011)

Content publishers repeat mistakes of previous seasons and games, letting video ad networks steal bases and scale revenues. Despite the intermediation businesses’ lack of differentiation or defensibility, ad networks drive home multiple runs and add to Distribution’s lead.

But, as they come up to bat for a second time in the inning, things end abruptly with the bases loaded as would-be acquirers offer lower price-to-revenue multiples than expected.

Score after seven: Distribution 13, Content 8.

8th inning (2011-12)

Distribution loses more momentum as perennial Gold-glover Netflix ends error-free game streak with series of bizarre missteps in 2011: reluctance (or inability) to retain key content deal with Starz, a rebranding snafu, and a share price hangover, which lead to the decision to move into content. The wild pitches lead to points for Content.

In a sign of the times and the closest thing resembling a trade, Google’s YouTube also signals a shift in strategy, realizing that no amount of lipstick (algorithms and targeting) will make a pig (dog on a skateboard) look attractive. The company decides to underwrite $200 million worth of content.

Not to be outdone, Hulu surprises some by announcing that it will be spending $500 million in content in 2012 – despite revenues of “only” $420 million in 2011. It, too, ventures into content.

While Content cuts the lead, Distribution’s checkbook reminds all who’s in the lead.

Score after eight: Distribution 13, Content 11.

And now we find ourselves in the Top of the 9th inning. How do YOU think this game will end? The season?
by Ashkan Karbasfrooshan , Monday, March 5, 2012 (Media Post)

2012: The Year Of The (Video) Dragon

I recently attended a Goldman Sachs event. A member of their team took the stage to speak about many different factors affecting our economy, and said 2012 would be a year of prosperity. I agree -- especially when it comes to online video.

I’ll explain. There were times, very recently, when things like iPad apps, or social media, (whatever that really means) took precedence over video. Other times, publishers “were not really monetizing video” yet because Tremor was yet to be around. When 5min’s syndication was yet to be available. When WatchMojo CEO was yet to educate the market about video production. When there were only CPC, CPM and CPA -- not CPV. Times before Brightcove had the “Play” annual event with 500 attendees. Before Louis CK published his show on the Internet only. Before Adap.tv introduced an RTB platform for video. Before Youtube generated a billion dollar in revenue through its YPV program. Before Netflix changed its pricing model to encourage online video streaming and took a mega-dive in price per share, and before people admitted that video was somewhat desired -- but less obvious. Yes.

If you are involved in the video space, then you know what I’m talking about. Video was cool but it was not “it” just yet. However, 2012 has arrived, and now video is becoming “it” -- yes!

Publishers realize that it’s time to double down on video -- and for a reason. Video monetizes better than anything else: advertisers come for your video inventory and stay for the rest. Premium publishers claim $30-$50 in video pre-roll revenue -- mind you, that is 8x-10x the range over display advertising. So I already see Directors of Video being hired by companies, and I see events that are all around video, and I see competition around video that indicates the beginning of the space’s maturity. I see big companies hire consultants to advise their board on how to build a video strategy. I see video is becoming real.

I feel 2012 is the year of video -- mainly because it is now monetized. Real traffic of video views now means real and superior revenue. Being a top publisher without a real video strategy or millions of video views is irresponsible.

For the Chinese, the Year of the Dragon happens only every 12 years, and it means the luckiest year of all. Interestingly enough, 2012 happens to be the Year of the Dragon. If you are now in the video space, you’re in the right place, since this is the Year of the (Video) Dragon. Good luck! by Adam Singolda

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Consumers care more about what’s in a brand video than how long it is. That’s the conclusion of a new study from Invodo tracking consumer response to e-commerce and shopping videos. Invodo is an online video e-commerce company with clients including Office Depot, Toys R Us, and Verizon.

Invodo surveyed more than 1,000 online consumers who had watched product videos on retail and brand sites, and the results showed that several common assumptions about online video don’t hold up. For instance, many experts say 30 seconds is the ideal length for videos, but Invodo found that about 37% of consumers spent more than three minutes watching product videos that are educational or demonstrate how to use a product. Invodo also found that two-thirds of consumers watch videos on so-called “information-intensive” products two or more times.

This study has interesting implications for brands producing how- to, informational and other product-related videos. "The biggest takeaway of this research for brands is this: Forget about adhering to any 'industry standard' time limit for product videos," said Craig Wax, CEO of Invodo. "If anything, our research suggests that packing too much content into a shorter video may be a mistake. As long as the video is compelling and helps them make a purchase decision, most consumers are willing to absorb videos much longer than 30 seconds. Focusing on video content and quality will help brands drive business results."

Also, about 66% of consumers said seeing a video demo of a product before buying that item online made it easier for them to understand how the product works and half said that watching a product video before buying an item online made them less likely to return the product. Finally, consumers prefer more professionally produced videos with nearly half saying higher quality videos were more reliable in helping them to make purchase decisions.

The study was done in partnership with the e-commerce consultancy e-tailing group. Media Post article.

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DRIVING MORE VIDEO THRU SOCIAL MEDIA

Each day, more than 150 years worth of YouTube videos are watched on Facebook, an increase of 2.5 times the amount viewed a year ago. What’s more, every minute Web users are sending more than 500 tweets containing YouTube links, tripling over last year, according to stats from YouTube.

Indeed, video is growing more social. Plus, YouTube has said that 100 million people take a social action each week on YouTube, which could range from likes to shares to comments.

Given the symbiotic links between social media and online video, how can brands and marketers boost their video performance with social tools? Mark Robertson, founder of ReelVideo and the Web site ReelSEO , shared some best practices.

For starters, brands may find it effective to drive video viewers to social channels with links and information in the video on the brand’s social presence, or even with bonus videos or footage on a brand’s Facebook page. That can increase exposure and brand awareness, he said. “If the viewer then engages with the brand on social channels – on the video site like YouTube and on other social channels – it will likely assist the video’s performance as well as many SEO signals [which] are now tied to social interactivity,” Robertson said.

Annotations in the video can also drive views and interactions because they can encourage social actions, such as liking a page. “Content owners can remind and encourage YouTubers to thumbs-up, subscribe, etc., which can increase social interaction within YouTube,” he said, adding that YouTube has even said that its search algorithm favors videos that drive traffic to other videos, playlists, channels, or subscriptions via linked annotations.

Brands can also drive social fans to video with regular and easily accessible videos on a social page, or can incentivize existing social fans with additional video, such as exclusive clips. “Content is key with social in that the video content brands expose to social audiences could be uniquely created for that audience,” Robertson added.

Don’t forget to keep the videos short. Videos between 15 seconds generate the most clickthroughs in the social world, followed by videos just over 60 seconds, according to Jun Group stats.

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