The following post is part one of Ooyala's exclusive Internet television SWOT analysis for broadcasters, networks, and content providers.
Strengths: How Media Companies Can Conquer Internet TV.
If this growth continues, video plays on mobile devices, connected TVs and gaming consoles, and tablets will reach annual growth rates of 224%, 336%, and 460% respectively. Networks, broadcasters, and content providers are uniquely positioned to profit from the shift to Internet TV.
Here are four reasons why:
1. You have what consumers want. You’re at the nexus of audiences, advertisers, and content. That means you’re uniquely positioned to engage viewers like never before—and command higher ad revenues and bigger market share. Online video can help you create engaging new viewer experiences with tools like content recommendation, ad targeting, and social TV features. The key is to move aggressively so you don’t drop viewers to newer, more agile companies.
Your content can start a virtuous cycle. There will be nearly 90 million tablet users
in 2014, up from 33.7 million in 2011. As shown by Ooyala’s Video Index
, tablet viewers watch more long-form content and stay engaged longer than desktop users. That’s a built-in edge for networks, broadcasters and content providers, who can use their content to build a virtuous cycle: Create or license content for online consumption, which attracts larger audiences, which leads to more revenue, which leads to better online content—and so on.
You have trusted relationships with advertisers: Video advertising is now the fastest-growing segment of online ad spending. It should reach $7 billion by 2015
. As ever, advertisers are eager to associate their brands with high-quality content and the high-spending audiences that watch it. Media companies that have existing relationships with advertisers have a head start. Bonus: armed with online video analytics, you can demonstrate the full value of your audiences to advertisers.
You have trusted relationships with consumers: People want to get closer to their entertainment -- through fan sites, tweeting during shows, and liking shows they love on Facebook. Media companies can stoke this excitement and loyalty through social video, second-screen experiences, pay-per-view specials, and more—all of which means more opportunities to show ads or monetize content directly
At Ooyala, we help top broadcasters, networks and content providers—such as ESPN, Miramax and Tennis Channel—use online video to make their strengths stronger. From driving user engagement to proving the value of audiences to advertisers, our tools will help you keep your edge as Internet TV continues to grow and expand.
Networks are able to profit from the shift to Internet TV, but they also face a number of unique threats from emerging and established companies.