The captive audience is gone

The captive audience is gone
SHARE
THIS



As more people view more video content on their smartphones, tablets, and connected devices, John Farrell, director of YouTube Latin America foresees the audience for online video will be greater than that viewing traditional TV by 2020.

While this is a massively bold prediction, the signs are there. According to Netflix CEO Reed Hastings, the company streamed more than 4 billion hours of video and added more than two million new subscribers in the first three months of this year.

The company’s push into exclusive content and its much acclaimed political thriller, House of Cards, starring Kevin Spacey is paying big dividends.

Commenting about the move to original programming, Ted Sarandos, Netflix’s chief content officer once famously declared, “The goal is to become HBO faster than HBO can become us.”

He thinks it’s just a matter of time before cable and television companies eventually adapt to become more like Netflix. “The Internet is attuning people to get what they want when they want it. House of Cards is literally the first show for the on-demand generation."

Online video bingeing

Indeed wrapping up original programming with instant gratification is a major point of differentiation for the company at the moment. Rather than drip feeding their programmes week by week in traditional TV style, Netflix released the entire 13 episodes of House of Cards on 1 February. On the back of the success of this show, the company is planning to release a number of other original titles over the year using the same approach.

Online video streaming is becoming the new norm. Here in Australia where Netfix is not available, (though not wholly inaccessible), online video content consumption is soaring. According to Nielsen VideoCensus March 2013, 11.5 million Australians streamed online videos during March this year and viewed a total of 1.77 billion streams, spending something like 5.02 billion minutes to stream the content.

Nielsen reports that on average, Australians spent 7 hours and 17 minutes watching online video and viewed 154 streams in March. The top three sites for online video streaming in this country are YouTube (by a country mile), followed by Facebook, and Vevo. ABC Online Network, news.com.au and smh.com.au also rate in the top ten.

At the same time, Ooyala’s Global Video Index: 2012 Year in Review, offers key insights into how viewers consume video online around the world, and highlights the growth of video consumption across mobile devices. The number of hours spent watching streaming video on tablets and mobile doubled in 2012, and iPhone users watched twice as much video on their phones than Android users last year.

Of course, as viewers spend more time consuming online video content from online video streaming companies like Netflix, advertising dollars will flow accordingly. The rapid growth of online audiences will fundamentally change not only the way viewers consume video content, but give advertisers on these platforms a much more accurate picture of how the audience is interacting with their ads.

Interestingly, speaking at the FT Digital Media Conference in London in April, WPP CEO Sir Martin Sorrell said that Google was about to become its biggest recipient of global ad dollars. And Google has an army of salespeople ready to pounce.

Extra Reach Tool

This year Google is pitching that it can overcome TV's biggest weakness: the expense of reaching light TV viewers. “National TV buys can pretty easily reach heavy TV users, but advertisers have to spend more on reach and frequency to find the last few when they happen to tune in. This year, all of Google's salespeople will be armed with what they call an ‘Extra Reach Tool’ to show TV advertisers that viewers can be reached for less money on YouTube.”

The wealth of online entertainment options that are now available to consumers anywhere, anyplace means more and more Australians are simply time shifting their favourite TV shows, bingeing on entire TV series over a wet weekend, and grabbing chunks of content via YouTube channels when it best suits them.

This shift in behaviour will drive innovation in programming with new formats for content production and distribution.

To find out more about online video in Australia, download our podcast with Simon van Wyk in conversation with John Treloar, Ooyala’s Managing Director for Australia and New Zealand.  

Simon van Wyk is Founder of HotHouse

 

Please login with linkedin to comment

Latest News

Sunday TV Wrap: Nine’s News & Celeb Apprentice Top Rankings, But Seven Steals The Win Overall
  • Media

Sunday TV Wrap: Nine’s News & Celeb Apprentice Top Rankings, But Seven Steals The Win Overall

Nine claimed the most watched show of the night (its 6pm news bulletin) and best rating reality show (Celebrity Apprentice), however, it wasn’t enough to give it a Sunday night win, with arch-rival Seven pinching the crown. All numbers are OzTAm metro. Seven won the night – namely thanks to its AFL coverage – taking […]

by B&T Magazine

B&T Magazine
“Come The F@ck On!” Fury As Man Charged $18 For Two Ice-Creams As Flake Shortage Grips UK
  • Media

“Come The F@ck On!” Fury As Man Charged $18 For Two Ice-Creams As Flake Shortage Grips UK

A British man has made the headlines after he savaged an ice-cream vendor on Facebook for slugging him £10 ($A18.30) for two ice-creams with a Flake. Apparently the high cost of the ice confection treat is due to the current heatwave in the UK (temperatures topping 27 degrees in places) that’s led to people overwhelming […]

by B&T Magazine

B&T Magazine
“Repeat, This Is Not A Joke!” Adani Releases Climate Action Corporate Video!
  • Campaigns

“Repeat, This Is Not A Joke!” Adani Releases Climate Action Corporate Video!

Adani – the Indian-based multinational that owns the highly controversial coal mine in Queensland’s Galilee Basin – has jumped on the corporate goodwill bandwagon, releasing a climate activism video. The one-minute, 20-second video is called “#ican” and, rather than point the blame at corporates for climate inaction, it infers it’s more an individual’s responsibility. The […]

Facebook Joins Forces With Lifeblood To Launch New Blood Donations Feature
  • Media
  • Technology

Facebook Joins Forces With Lifeblood To Launch New Blood Donations Feature

Facebook is has announced a partnership with Australian Red Cross Lifeblood (Lifeblood) across Australia to help top up the nation’s blood supply with much-needed new donations. Launching as part of Lifeblood’s National Blood Donor Week (14-20 June), Facebook’s new Blood Donations feature has already helped over 100 million Facebook users sign up to receive notifications […]

Hands using mobile payments, Digital marketing. Banking network. Online shopping and icon customer networking connection on virtual screen, Business technology concept
  • Technology

Twilio Segment Launches Journeys To Help Marketers Improve Personalisation

Twilio Segment has announced the launch of Journeys, a new product built on the Segment CDP that allows marketers to easily build sophisticated customer journeys and orchestrate personalisation at scale, through every channel, and across their entire customer experience stack. A customer journey is the entire experience a customer has while interacting with a brand, over […]

New Zealand’s Favourite Ad Revealed
  • Media

New Zealand’s Favourite Ad Revealed

Insight agency TRA has asked 1,000 New Zealanders about their favourite ads, and the top ten ads most liked by the public are also very effective at achieving business results. According to the findings, ASB’s “Ben and Amy” has taken the number one spot, with nearly twice as many people mentioning this ASB campaign as […]

It’s Time To Refocus Customer Experience In The Era Of Risk
  • Opinion

It’s Time To Refocus Customer Experience In The Era Of Risk

In this guest post, Andy Mellor, regional vice president, ANZ at Kofax, asks what does customer experience look like in this era of privacy and risk? “You never get a second chance to make a first impression.” If only you had a dollar for every time you heard this saying, right? When we talk about customer […]

Influencer Exposed For Faking Business-class Flight
  • Marketing
  • Media

Influencer Exposed For Faking Business-class Flight

A French influencer has been snapped travelling in economy despite posting a photo of herself flying business class on social media. Océane El Himer, a Dubai based French model and influencer, posted a photo of herself posing in front of a business class seat on a recent flight, with the caption “Next stop: Monaco. Je […]

A Naked Shane Jacobson Saves Water For Sydney Water
  • Campaigns

A Naked Shane Jacobson Saves Water For Sydney Water

Aussie actor and media personality Shane Jacobson has joined forces with Sydney Water to launch a new water conservation campaign called Turn it off, Bob – urging us to think differently about our relationship with water. The campaign launched yesterday, and features Jacobson in character as the likeable larrikin, ‘Bob’, whose long steamy shower sparks […]

Aussie Shoe Brand TWOOBS Embraces Anti-Marketing In Push For More Consumer-conscious Shopping
  • Marketing

Aussie Shoe Brand TWOOBS Embraces Anti-Marketing In Push For More Consumer-conscious Shopping

After relaunching in September last year, TWOOBS has become a ‘kinda’ shoe brand by also focusing on making the world a ‘kinder’ place and creating more consumer-conscious shopping. The vegan shoe brand founded by sisters Jess and Stef Dadon changed its marketing approach last year and stopped using social media to push sales the old-fashioned […]

Visit Sunshine Coast Hires New Head Of Marketing
  • Marketing

Visit Sunshine Coast Hires New Head Of Marketing

Highly experienced tourism marketer Kelly Ryan has been appointed to lead the marketing efforts at Visit Sunshine Coast (VSC). During the past 12 years, Ryan has supported Canberra’s tourism industry in senior marketing roles, including as director of strategy and insights as well as director of marketing at VisitCanberra. Most recently, Ryan has been working […]

GHO Sydney And Family Planning NSW Launch ‘Planet Puberty’ Platform
  • Campaigns

GHO Sydney And Family Planning NSW Launch ‘Planet Puberty’ Platform

GHO Sydney has developed a new educational platform for Family Planning NSW to help parents and carers of children with disabilities navigate the changes to their bodies, emotions and social interactions. The project, ‘Planet Puberty’, was made possible through funding from the federal government’s Department of Social Services, and was co-designed with people with disability […]