Seems like everyone and their mother is trying to launch a content service over the top these days. But so far, the ever-growing number of available streaming services has brought in real profit to only a few--even Netflix is struggling to maintain decent margins--while frustrating consumers searching for the content they want to watch. Could alliances between online video providers--rather than industry consolidation--help resolve these problems?
NEW YORK--Netflix may be an online disruptor, but it's still dependent on upstream content producers using traditional models. There's no money in transactional VOD. HBO never said it was going direct to consumers with its pure-play OTT service. And there are more eyeballs on Hulu's content than anywhere else. These are a few of the statements made by online video executives at the OTT Video Executive Summit held Tuesday here, in a panel session discussing the economics of over-the-top video.
Speaking at the Goldman Sachs Communicopia Conference in New York on Sept. 10, CBS Corp. CEO Les Moonves made it very clear. "We the networks should not be penalized because you the station do not negotiate retrans properly," he said.
Fueling arguments by pay-TV providers that its content is too widely distributed across over-the-top channels, Viacom has significantly expanded its partnership with Hulu.
SVOD. It's an acronym that industry players are dropping with alarming frequency these days. And with HBO and CBS announcing their own premium-content subscription video on demand services, it's no surprise that YouTube may be considering its own subscription service.
The top three SVOD services, Netflix, Hulu and Amazon Prime, will collectively spend $6.8 billion to acquire already produced, non-original, "off-network" programming next year. That is 31 percent more than the $5.2 million they'll spend in 2014.
Redbox Instant. Justin.TV. Xbox Studios. For every Netflix or Hulu, there's an online video programmer that started out with ambitious next-generation audience-building goals, but ended up in the "Boneyard" of failed next-generation programming initiatives.
While YouTube, Hulu and Vimeo have enjoyed success in the online video market, other providers like Redbox and Justin.tv have not been as lucky. Samantha Bookman, editor of FierceOnlineVideo, examines why a number of players have tried and failed in this fast-paced, yet still young, market segment in a new special report. The report tracks 10 online video companies that are now defunct or are struggling to stay relevant. Read more
LAS VEGAS--Mobile viewers are becoming an increasingly important part of online video providers' strategies, such that these providers are building specific services and ad campaigns for wireless users.
Online video providers will soon have to abide by a new FCC rule to caption online video clips. The new measure is an extension of a 2012 captioning requirement that applied to long-form videos posted online, such as television shows and movies.