GLOBAL VIDEO INDEX Q3 2012
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1 GLOBAL VIDEO INDEX Q3 2012
2 Table of Contents ABOUT OOYALA S GLOBAL VIDEO INDEX...3 EXECUTIVE SUMMARY...4 GOING LONG: LONG-FORM VIDEO...5 TABLET AND MOBILE VIDEO...7 LIVE VIDEO VIEWING...8 Viewer Behavior AND Engagement By Device Turning Information Into Insights APPENDIX... 12
3 About Ooyala s Global Video Index Ooyala measures the anonymized viewing habits of nearly 200 million unique viewers in 130 countries every month. We process billions of video analytics events each day. Our market-leading video analytics help media companies and consumer brands grow their audiences and earn more money from mobile, multi-screen broadcasting. Ooyala works with TV networks, cable and satellite providers, movie studios and online media companies to put premium video content on tablets, smart phones, smart TVs and PCs all over the world. About Ooyala Video Publishers Ooyala works with hundreds of forward-thinking video publishers, operators and aggregators around the globe, including Miramax, ESPN, Bloomberg, PAC-12 Network, Caracol TV, CJ Entertainment, and Yahoo! Japan. This report reflects the anonymized online video metrics of these publishers. It does not reflect the online video consumption patterns of the Internet as a whole. But the size of the Ooyala video footprint, along with the variety of our customers, means this report offers a statistically representative view of the overall state of online video.
4 Executive Summary A lot happened in the world of video during the third quarter of Olympic fever took over London (and the world), the ipad 3 was released in China, and the US election picked up steam. Q3 also saw the launch of the PAC-12 Networks (powered by Ooyala), an event that raised the bar for digital sports broadcasting. The industry also saw the emergence of new mid-form content like Jerry Seinfeld s web series, Comedians in Cars Getting Coffee, demonstrating the viability of content that moves directly from creator to consumer. Going Long People continue to spend more time with long-form, premium video content, and are watching more movies, sports, and TV shows online. Tablet owners spent 71% of their total tablet video viewing time watching videos 10 minutes or longer. 30% of total tablet viewing time was spent watching content over an hour long. Tablet & Mobile Video Tablet and mobile video are still gaining traction as more viewers tune in on their smart phones, ipads and Android tablets. The overall share of tablet video viewing grew 90% in the past two quarters. Coming At You Live Live streaming video continues to engage connected audiences across all device types. The amount of time users spent watching live video on gaming consoles more than doubled in Q3. Desktop viewers tuned into live video for an average of 40 minutes.
5 Going Long: Long-Form Video TV is no longer a single screen in the living room. Viewers today are watching long-form premium content on a variety of connected devices. Tablets are quickly becoming the first screen people turn to when streaming TV shows, movies and sporting events. This is true in developing markets, and even in households with traditional televisions. Ooyala data from Q3 reveals: Viewers who watch videos on their smart phones spent nearly half their time watching premium, long-form content (defined here as videos over 10 minutes long). Long-form content accounted for 71% of all the time people spent watching tablet video last quarter. 30% of all time spent watching video on tablets was with content over an hour long. Percent of Long Form Video Views by Device Q1, Q2, Q Q Q Q Viewers who watched video over-the-top via connected TVs and gaming consoles (CTV & GC) spent 94% of their time watching videos 10+ minutes long. 42% of the total time spent watching video on CTV & GCs was with content running between 30 and 60 minutes. Videos with 60+ minute running times accounted for 41% of total viewing time on CTV & GCs. THE BOTTOM LINE As consumers gain more control over how and when they view their content, publishers must develop a more personalized and holistic view of video monetization. It is no longer optimal to think of video ads in terms of single clicks and views, especially with long-form content. Sophisticated analytics systems can help publishers optimize ad or paywall strategies based on a deeper definition of engagement that includes personal viewing habits, time of day, viewing device, and signals from a viewer s social graph. 100% 75% 50% 25% 0% Desktop Mobile Tablet CTV&GC Since the start of 2012, tablet video viewers are watching 54% more long-form content. In Q3, tablet video viewers spent 71% of their time watching long-form content like movies and TV shows up from 46% in Q1. Q GLOBAL VIDEO INDEX 5
6 Going Long: Long-Form Video For long-form premium content, there s no such thing as online video anymore. The definition of TV has changed to include any premium content viewed on an increasing number of connected screens. Monetization strategies must adapt to this new reality. Long-Form Viewing By Device Q < 10 min 10 to 30 min 30 to 60 min > 60 min Time Watched by Video Length and Device Q < 1 min 1 to 3 min 3 to 6 min 6 to10 min >10 min 100% 100% 75% 75% % of All Hours Watched 50% % of All Hours Watched 50% 25% 25% 0% Desktop Mobile Tablet CTV&GC 0% Desktop Mobile Tablet CTV&GC Nearly 20% of total desktop viewing time was spent watching content that ran 60+ minutes. 30% of the total time spent watching tablet video was with content minutes long. Q GLOBAL VIDEO INDEX 6
7 Tablet and Mobile Video We previously reported in our Q1 Video Index that after the new ipad was released in March 2012, tablet viewing jumped 26%. Since that time, the overall share of tablet video viewing has grown 90%. The share of mobile video viewing grew 39% in the past six months. Taken together, the share of time spent watching tablet and mobile video jumped 64% in Q2 and Q3. Share of Overall Video Plays: Tablet, Mobile Q2, Q Mobile Tablet Tablet + Mobile 6% THE BOTTOM LINE Video publishers who use multiscreen ad strategies can now monetize their mobile content with higher ad loads. Pre-rolls are not always best, especially on mobile screens. HLS offers mid-roll ad delivery on ios devices and connected TVs a greenfield opportunity for publishers looking to boost server-side ad insertion. Share of time watched 5% 4% 3% 2% 1% 0% April May June July August Sept Expect to see more geo-local mobile ads like this summer s Chevy Volt video campaign that targeted mobile Hulu Plus viewers (and directed them to their nearest Chevy dealer based on their location). As more viewers begin to use multi-device continuous play in the coming quarters moving content from a TV to a phone or a tablet there will be more opportunities for cross-device video advertising. Q GLOBAL VIDEO INDEX 7
8 Live Video Viewing Ooyala s data shows that viewer engagement with live content like sports and special events was much stronger than VOD viewing times on the same devices. Growth of Live Video Time Watched: CTV and GC Q CTV + GC 300% THE BOTTOM LINE Live video + big screens = more viewer engagement and more chances to monetize premium streaming content. Live ad insertion is a must-have for increasing revenue for live videos and events. Publishers should also look into repackaging live video as on-demand content, which will maximize the number of overall views and ad displays. 200% 100% Live video viewing on connected TVs and gaming consoles more than doubled in Q3. 0% July August September Q GLOBAL VIDEO INDEX 8
9 Live Video Viewing Video Time Per Play By Device Q Live VOD Minutes Desktop Mobile Tablet CTV&GC Time per Play by Device Q Desktop viewers tuned into Desktop Mobile Tablet CTV + GC live video for an average of 40 minutes. 12 VOD time per play on gaming consoles and connected TVs grew 14% in Q3. Minutes July August September Q GLOBAL VIDEO INDEX 9
10 Viewer Behavior and Engagement by Device We ve previously noted that people watch differently on different devices, and our Q3 data continues to support this statement. Overall engagement metrics for tablets and connected TVs and gaming consoles are consistently higher than other connected screens. This is largely due to the lean-back mentality of these devices offer and warm, comfortable couches. THE BOTTOM LINE Break engagement down by device and content length, and the same engagement patterns emerge. The most engaged viewers are watching on tablets and connected TVs and gaming consoles. Engagement by Device Q % Completion Rate: 25% 50% 75% 100% Playthrough by Device & Video Length Q < 1 min 1 to 3 min 3 to 6 min 6 to10 min > 10 min 80% 60% 60% Frequency 40% 40% 20% 20% 0% Desktop Mobile Tablet CTV & GC 0% Desktop Mobile Tablet CTV & GC Q GLOBAL VIDEO INDEX 10
11 Turning Information Into Insights When you optimize revenue strategies for each viewer, device and location, you get more relevant ads, delivered at the right time on the right screen. This results in more revenue for video publishers. Ooyala uses Big Data and real-time video analytics to help you understand your audience like never before and connect with them in meaningful ways. The result is a more personalized and profitable media experience that benefits viewers and content publishers alike. That is the power of information. That is the power of Ooyala.
12 Appendix: Data Tables Long Form Video Views by Device Q1, Q2, Q Percent of Time Spent Watching Video Q Tablet, Mobile Share of Overall Video Plays Q2, Q Percent of Long Form Video Views by Device Desktop Mobile Tablet CTV&GC % Of All Hours Watched less than 1 Desktop Mobile Tablet CTV&GC 2.35% 3.33% 2.39% 0.19% Tablet, Mobile Share of Overall Video Plays Q2, Q April Mobile Tablet Mobile + Tablet 1.59% 1.69% 3.29% Q Q Q % 41.1% 46% 88.5% 62% 48% 67% 93% 59.9% 47.6% 71.2% 93.8% 1 to 3 3 to 6 6 to % 24.98% 12.83% 1.43% 14.69% 15.15% 8.48% 1.74% 8.03% 8.91% 5.10% 2.85% May June July 1.70% 1.97% 3.67% 1.90% 2.38% 4.29% 2.23% 2.65% 4.88% greater than 10 less than 10 minutes 59.92% 47.64% 71.20% 93.79% 40.08% 52.36% 28.80% 6.21% August Sept 2.28% 2.93% 5.21% 2.21% 3.21% 5.41% 10 to % 16.42% 11.14% 11.67% 30 to % 18.19% 30.57% 41.59% greater than % 13.02% 29.49% 40.52% Growth of Live Video Viewing Time: Connected TVs and Gaming Consoles Q Live Video Time Per Play (Minutes) By Device Q VOD Time Per Play (Seconds) By Device Q Date Jul 2, 2012 Jul 9, 2012 Jul 16, 2012 Jul 23, 2012 Jul 30, 2012 CTV&GC % % % % % Desktop Mobile Tablet CTV&GC VOD Time Per Play (Seconds) Desktop Mobile Tablet CTV & GC Time Per Play Aug 6, % Aug 13, % Aug 20, % Aug 27, % Sep 3, % Sep 10, % Sep 17, % Sep 24, % Q GLOBAL VIDEO INDEX 12
13 Appendix: Data Tables VOD Time Per Play PC, Mobile, Tablet, CTV&GC Q Viewer Engagement by Device PC, Mobile, Tablet, CTV&GC Q Playthrough by Device and Video Length Q Time Per Play (Seconds/ VOD) Jul 2, 2012 Jul 9, 2012 Jul 16, 2012 Jul 23, 2012 Jul 30, 2012 Aug 6, 2012 Aug 13, 2012 Aug 20, 2012 Aug 27, 2012 Sep 3, 2012 Sep 10, 2012 Sep 17, 2012 Sep 24, 2012 Desktop Mobile Tablet CTV&GC Engagement by Device Desktop Mobile Tablet CTV & GC 25% 50% 75% 100% 60.38% 53.36% 48.30% 41.42% 50.18% 43.71% 38.67% 29.28% 68.11% 59.29% 52.38% 40.67% 64.36% 57.94% 53.16% 43.44% Playthrough by Device, Length Desktop Mobile Tablet CTV & GC < 1 min 1-3 min 3-6 min 6-10 min > 10 min 63.98% 52.08% 31.66% 43.37% 26.80% 51.08% 43.86% 32.78% 31.19% 22.34% 71.62% 59.46% 46.98% 46.76% 39.24% 76.93% 73.10% 62.36% 62.32% 35.30% Q GLOBAL VIDEO INDEX 13
14 Appendix: Methodology Methodology DATA SOURCES & SAMPLE SIZE The data sample used in this report covers the third quarter of 2012, from July 1 through September 30. All data was taken from an anonymous cross-section of Ooyala s global customer and partner database an array of broadcasters, studios, cable operators, print publications, online media companies and consumer brands. These firms broadcast video to over 130 different countries from more than 6,000 unique domains. Nearly 200 million unique viewers watch an Ooyala-powered video every month. This data sample is not intended to represent the entire Internet, or all online video viewers. DATA COLLECTION Ooyala s video analytics technology collects all anonymized video data in real time. During playback, Ooyala s video player gathers information continuously and relays it to an analytics module, which then stores the data in a distributed file system, Hadoop. Viewer statistics are then compiled and stored in a Cassandra data cluster, where the information is made readily available for analysis. ANALYSIS & METRICS Ooyala s video analytics module tracks a range of standard variables, such as: Displays, plays and time watched Viewer engagement and video completion rates Sharing by social network Geography (region, state, city, Designated Marketing Areas) Device type (mobile, desktop, tablet, connected TV devices and game consoles) Operating system (Windows, Android, ios) Browser (Safari, Chrome, Firefox, Internet Explorer) Q GLOBAL VIDEO INDEX 14
15 Appendix: Glossary/Disclaimers & Assumptions GLOSSARY Conversion Rate: The ratio of plays to displays. 10 displays with 1 play is a conversion rate of 10%. Completion Rate: The rate at which viewers watch a specified portion of a given video. Sometimes used interchangeably with play-through rate. Display: Each (and any) time a video is loaded in a browser and displayed to the viewer Mobile Devices: All smart phones, including ios, Android, Blackberry, and others. Video Play: Each time a video starts playing. Connected TV Devices & Gaming Consoles: Set-top boxes and OTT devices, including Wii, Playstation, Boxee, Roku, Xbox and Google TV. Tablets: All media tablets, including ios and Android. Disclaimers & Assumptions Data is not aggregated across all videos or providers for vertical data, and only publishers with a meaningful amount of videos watched are included. Publishers with incomplete data for Q3 have been excluded. When selecting items for inclusion in the report, Ooyala s data science team selected metrics that were clear and meaningful. Granular measures were broken down along many categories, which resulted in a large amount of data. Rather than reporting all of this data, the Ooyala team chose to highlight those measures that give a good impression for the data set as a whole. Q GLOBAL VIDEO INDEX 15
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