TV, Movies Remain Dominant Players in Online Video, ABI Says
While short-form video and user-generated content have gone viral among users and companies, TV and movies remain key players in the online video market, said an ABI Research news release Friday. The industry research firm estimated that by 2019, short-form…
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video revenue will be about $13 billion and the online video market as a whole will reach about $56 billion. Short-form video’s share of the market isn't growing as quickly as other segments, said analyst Michael Inouye in an email. Its popularity leaves “less room for it to grow, unless you expect customers to forgo watching TV shows and movies and simply watch shorts, advertisements and user-generated content, which we don’t believe will happen,” he said. But he said viral videos and ad campaigns won’t be going away. The lines between pay TV and over-the-top video will continue blurring, Inouye said. “Short-form video has already become part of the premium content market,” with viral ads and TV shows producing “webisodes” or behind-the-scenes shorts, he said. Customers still watch TV shows and movies, but increasingly through digital distribution, including TV Everywhere, OTT services and electronic sell-through, he said. Original programming remains a big driver for TV and movies, and long-form videos generate significantly higher revenue per view, he said. “A longer video allows for more advertisements per engagement. Advertising on streamed episodes of a popular TV show is more predictable than signing with a multi-channel network or a particular YouTube celebrity.”