Online video predictions for 2008
08/12/2007 - 21:17
M. AMIGOT, IBLNEWS

Founders of Brightcove, Jeremy Allaire and Adam Berry, have written a “state of the industry” report with some online video predictions for 2008. Like these ones:

- To date the advertising focus has been on monetizing video streams, but is this shortsighted. Content owners should develop audience-centric strategies, looking for new ways to blend ad formats, insertion policies, and targeting tactics across pages, short-form video clips, long-form shows, and open distribution. Audience monetization strategies will deliver greater yield and a much better user experience, and better sustainability.

- The last 12 months saw an explosion in video publishing across a wide array of website. Video is becoming so pervasive that if you have a web property without video something is wrong with it.

- 2007 has been the year of Internet TV Platforms, which give media owners the ability to control how video is published on their own sites and syndicated across the Internet. Essentially, platforms enable website publishers and content owners to build their own online properties, syndicate video and monetize their contents. Platforms make it possible for contents owner to build their own branded websites and control their own distribution and destiny.

- In 2008 we will have an Internet video market divided in two major groups: platforms and aggregators (like consumer sharing sites, commercial video portals, social networks).

- Consumer video sites (YouTube, Metacafe, Veoh, DailyMotion as dominant forces) try to leverage their traffic into meaningful distribution opportunities, though there are no major success stories in terms of revenue. Some of the 2006 players have been shut-down and others are on the chopping block. Commercial video portals as MSN Video, AOL, Yahoo TV, MySpace TV, Hulu, Comcast/Fancast, and desktop clientes like VeohTV, Adobe Media Player, Joost, Bablegum, are emerging. They use a 90/10 or 80/20 revenue split model with content owners. Social networks like FaceBook, MySpace, Bebo and iGoogle aggregate much traffic, and they will compete with consumer video sites and commercial video portals.

- Most of platforms operate in a business model that is almost always built around charging for usage of their service in one way or another. Community platforms like KickApps, Ning, Prospero, and Pluck allow build branded destinations with deep community features including profile pages, comments, ratings, blogs, forums, and chats. They let thousand of destinations develop around specific interests, topics, niches and brands, and are largely complementary to Internet TV platforms, and many customers can use both.

- More 2008 trends:
Media companies and new start-ups will continue to build successful branded destinations so they can control the access to audiences. They will offer consumers a more focused and differentiated experience, including exclusive content, and by giving advertisers a better environment to build their brands.

Content owners will continue to develop distribution strategies, seeking wider distribution, in most cases with advertising attached. They will try to bridge the gap between aggregators and their own branded destinations.

The explosive growth that has happened with the major network episode players, and the increasing access that consumers have to long form, high-quality video will push Internet TV closer to traditional broadcast TV, with full-screen, immersive experience.

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