Accustream Research’s new report — “Digital Video Viewing Hours 2016: Audiences Choose and Disrupters Rule” — suggests that one of the most valuable outcomes for any producer/programmer seeking brand loyalty is to rotate in and around the orbits of internet giants, from Netflix, Facebook, Instagram and Amazon, to Google/YouTube.
“A key to this stage of the medium’s leap to recognition is a hefty slice of viewing audiences embrace the internet for video entertainment — despite shortcomings (i.e.; library depth/choice, fragmented device compatibility, ad insertion bottlenecks, balky navigation and connectivity issues)—because it delivers better value per dollar,” reads a provided report summary.
Bottom line: against the backdrop of declining multi-channel TV subscribers, the internet matches up well against linear TV counterparts, whether on price, ability to produce hit programming and offer slimmed down, customized programming packages that target more precisely viewer preferences to pay for what they actually use.
Internet pure-plays Netflix and YouTube, combined, capture a 53.7 percent share of viewing hours. Cross-platform programmer Hulu grabs a 4.8 percent share.
“Internet-centric social audience platforms Facebook, Instagram, Snapchat and Twitter roll up another 24.7 percent share, with the remainder divvied up across some 200 internet sites, broadcast, cable TV and print brand extensions online,” notes the report.
Aligning all internet TV-like (i.e.; with long-form content) services, destinations and channels generated 50.7 billion hours of viewing in 2016, while social media added another 29.7 billion hours of combined viewing.
The report offers advice for marketers: “when factoring in user activity and volume associated with social video delivery, monetization models must account for short-form nature of social platform UGC content that nevertheless drives big viewing share in the aggregate.”
Ad-supported hours equal 54 percent of the total, while subscription makes up a 46 percent share.
“That ratio could change over the next couple of years, perhaps significantly, if YouTube’s planned YouTube TV subscription video service (i.e.; live streaming TV) gets off the ground and offers an appealing option,” Accustream contends.
Currently, YouTube is the largest ad-supported programmer in digital video, with a weighty 45.6 percent of total ad-supported viewing hours.