At the Branded Content Summit, one of the sessions we’re excited for this year is “Video Consumption Past, Present and Future.” This interactive panel will consist of online video pioneers with discussion on video distribution and consumption trends. As a primer to the panel, below is a brief summary on content consumption, monetization of content online and the current state of online video.
From reading articles on the home computer desktop to watching video on iPads, there are different ways we consume content. With the popularity of smart phones, YouTube reports that hundreds of millions of videos are watched every month on mobile devices.
The iPad is meant for consuming rich, high quality media. MeFeedia, a video aggregator reports that the iPad users consume 3x more videos that web users and 5x more videos compared to iPhone users. (source)
Monetization Content Online
Websites monetize by leveraging a variety of income streams. The basic method of monetization for the majority of video streaming sites has been banner advertisements. In January 2010, YouTube has partnered with Sundance Film Festival and filmmakers to charge users about $5 to view footage from the 2009 and 2010 festivals. With other media outlets like New York Times, there are a couple of concerns that arise:
- Will people pay for the content? Content is consumed, bookmarked and shared, but that content is freely available. There are many people that freak out as soon as they hear about paying for almost anything online; they want it free.
- There are a new set of expectations that are created. Since most of the content is available for free, the quality of the content will be assumed to be noticeably better than free sources. If low quality content is ever published behind pay walls, the credibility of the brand would be damaged and be susceptible to slow erosion of brand value.
Current State of Online Video
On May 17, 2010, a month after their five year anniversary, YouTube hit the 2 billion view mark. There are many reasons for the success of online video but one of the dominant reasons has been the impact of advertisement.
Ashkan Karbasfrooshan, the founder and CEO of WatchMojo says “combined with the economic meltdown, media executives had the knee-jerk reaction to knee-cap free, ad-supported content in favor of subscriptions.” Karbasfrooshan continues this conversation on TechCrunch.com.
Engagement also plays a critical role in the sustainability of content oriented sites. Features like commenting, ability to favourite videos and sharing them through social media platforms such as Twitter, content gets more visibility in the market.
Join Us at the Branded Content Summit
To get a stronger grasp the direction of video consumption and the future of digital content, join us at the Branded Content Summit on June 4th. Register at http://brandedcontentsummit.com/register/