Online video consumption hits new heights, research finds
November 22nd, 2011
According to new research, the consumption of both free and paid-for online video is tipped to smash the 770 billion views ceiling in the UK, USA, France and Germany this year.
The report into online video usage was carried out by Futuresource Consulting and found that views have increased from the 640 billion views that were recorded last year to the 770 billion recorded in 2011.
The reasons behind the dramatic growth in online video views have been named as improvements in the ease of use, accessibility and availability of online video.
Senior Analyst at Futuresource Consulting, Mai Hoang, told Advanced Television, “Total online video views are on track to grow by 20 per cent and paid-for online video revenues will reach in excess of $3 billion this year.
“Online purchase and rental transactions are playing a part, but the majority of this revenue is coming out of the USA, predominantly through streaming subscription service Netflix. By 2015, paid-for online video spend is forecast to hit close to $7 billion across the four countries,” Hoang went on to say.
Whilst the number of views of paid-for online video is climbing sharply across all four countries, the market remains far smaller than the free online video sector. Free films, on-demand television programmes and other free videos are continuing to dominate the online video arena for now.
According to the Futuresource report, the paid-for online video sector across Europe looks set to be boosted by the introduction of several new regional streaming services, which could be led and managed by online giants such as Apple, Netflix and YouTube.
The report also focused on the huge potential that online video has for companies across the globe. Hoang said, “Brands have only recently started to harness the full potential of online video, with ad-funded revenues expected to grow by 50 per cent in 2011 as advertisers continue to develop and refine content specifically for the online environment, rather than repurposing content originally destined for television. At the same time, consumers become more receptive as ads are effectively targeted.”
Another factor that has contributed towards this dramatic rise in the usage of online video by web users is the proliferation of mobile devices on which the videos can be accessed, any place and any time.
With sales of smartphones tipped to exceed 450 million units across the globe this year, a 'significant content distribution platform' is being created, which is 'rapidly becoming an essential part of service providers’ multi-platform strategies.'
“With tablets showing even more impressive growth and evolution, content holders, broadcasters and hardware manufacturers are increasingly interested in the relatively untapped growth potential in the online video market for these devices," Hoang went on to say.