Pro online video content continues to grow

An AccuStream report published Tuesday found that Internet users watched more than 41 billion professional online videos in 2008, an increase of 24 percent from 2007. At this point, it seems very likely that professional content will eventually dominate both the attention of consumers and the wallets of advertisers.

The report, which analyzes the performance of professional online video content from 1998 to 2008, predicts that double-digit growth will continue in the category through 2012. But more than simply cataloguing trends any industry watcher is aware of, the report notes important shifts in viewing habits toward certain types of pro content that could affect programming and advertising decisions.

The report found that entertainment and kids content accounted for 30.4 percent of all professional online videos viewed in 2008, up from only 10 percent in 2001. The figures show a clear shift in viewing habits, with younger audiences migrating online to see entertainment content they once would have consumed on the television. The success that Viacom, Warner Bros., and Disney have had reaching this segment online is important for advertisers to note as they plot their online video strategies moving forward.

Another clear growth segment will come as no surprise; long-form prime-time television accounted for 39 percent of all television content viewed online, up from 13.8 percent in 2007. Hulu and competitors like TV.com have increasingly drawn large audiences to view professional television content in online video format. What's more important, Hulu especially has demonstrated that it can monetize its audience through advertising, and NBC is aggressively advertising the site, including a Super Bowl ad to attract more users.

The one category that has lost total share is music. Music content accounted for nearly half of all professional content views in 2005, as 45.6 percent of all pro videos viewed then were music related. That number has fallen to 11 percent, as older viewers find other content types more engaging and the youth audience moves online to view child-centric programming like cartoons.

Music videos are largely available on user-generated sites like YouTube, and though the Google-owned video giant has had some success monetizing these assets, it has also had to deal with music labels pulling content and demanding larger percentages of the revenue generated from the online videos.

The AccuStream data show no slowdown in the amount of views professional online video content will get going forward, and they also show the variety of content that is attracting huge audiences. While professional content may not yet receive the amount of views as user-generated content, pro content is infinitely more palatable for advertisers, and viewers are becoming accustomed to finding it online as well. Advertising networks and content producers alike should reflect on the trends and plan their strategies accordingly. I expect to see continued growth for advertising over prime-time television content, and more targeted partnership or subscription deals monetizing the large audiences on children's sites. 

- Pete 

For more:
- see the brief on the AccuStream report here