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Metadata Key to Monetizing Online Video

posted in: Articles | 1 | October 21, 2015 6:19PM

 

Rapid TV News | Metadata Key to Monetizing Online Video | October 19, 2015 | By Roger Franklin

TV viewing habits changed drastically in the past few years, and content providers and advertisers have not kept up. This truth is the driver for the recent flurry of activity in the industry—broadcast giants buying live-streaming companies and cable providers launching over-the-top (OTT) channels.

The numbers explain why industry players, especially those with older business models, are worried.

  • Nearly half of the world’s TV households will be watching online video globally by 2020 (Digital TV Research)
  • 87% of viewers admit to simultaneously using a second screen device while watching TV (Lingospot)
  • Gen Z-ers multitask across at least five screens daily and spend 41% of their time outside of school with computers or mobile devices (Business Insider)
  • Mobile’s time share of viewing online video has increased by 200% in the course of a single year (Ooyala Global Video Index Q3/2014)
  • Traditional TV ad revenue will drop from $59.9 billion in 2015 to $7.5 billion in 2018. OTT revenue will rise from $8.4 billion in 2015 to $31.5 billion in 2018 (The Diffusion Group)

Here’s what it boils down to:

One Response

  1. Peter Ralston
    | Reply

    This article reminds me of a few other instances where paradigm shifts in consumer demand were embraced by the eventual winners and rejected by the eventual losers.

    For instance, there used to be a lot of Borders bookstores when I was growing up during the 2000’s. Following the slow demise of things like paperback books, hardback books, magazines, and audio CDs, the Borders near my house closed about a decade ago, along with their sister stores in the area. However when I ventured out to go to college, I was shocked to see Barnes & Noble bookstores doing well in other parts of the metropolitan area. The two stores had very similar concepts, but I would argue one of the big difference-makers was Barnes & Noble’s embrace of the new digital book medium in the form of their own tablet: the Nook. They now use Samsung as their OEM for the hardware, but Barnes & Noble is still profiting from creating a platform they use to monetize digital content just as easily as the hardback books being bought by the old-fashioned bookworms, if not easier because of the overhead savings inherit to the digital content model.

    Another notable instance was Kodak’s early rejection of the digital photo medium for fear it would threaten their film business. It cost them huge market share in the photography industry, much of which went to Sony who led the way in digital camera innovation.

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