Digital Video Viewing Hours 2016: Audiences Choose and Disrupters Rule

  • ID: 4234618
  • Report
  • 50 pages
  • AccuStream iMedia Research
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Analysis of 85 Billion Digital Video Viewing Hours across Platforms in 2016: Audiences Choose and Disrupters Rule

FEATURED COMPANIES

  • Amazon
  • Apple
  • Facebook
  • Google
  • Instagram
  • Netflix
  • MORE

Digital video clocked in at 85.6 billion total viewing hours in 2016, yielding a14.6% time spent equivalency to its 24/7 linear counterpart.

On a going forward basis, the researcher will shift its digital video viewing analytics focus to increments/aggregates of time.

Digital viewing hour tallies exclude OTT device access (i.e.; Apple TV, Amazon Fire TV, Google’s Chromecast device, Roku and Sling), as well as estimated duplicated/syndicated usage generated by media brands hosted primarily on Facebook, Twitter, YouTube or other audience platforms.

Digital video viewing access hours enabled by OTT platforms are, however, also accounted for inside this research study and form an integral component to the multiple data-driven market share analytics models contained.

This research report, Digital Video Viewing Hours 2016: Audiences Choose and Disrupters Rule, indicates one of the most valuable outcomes for any producer/programmer today, brand loyalty, is rotating 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.

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.

There may be a recurring generational wave of acceptance regarding internet as a primary viewing platform, however.

As younger audiences age and raise families, their entertainment choices may also evolve toward--or at least include--linear TV take-up, assuming a wholesale paradigm shift in way video programming is offered, priced and delivered doesn’t of necessity take hold over the next decade.

Internet pure-plays Netflix and YouTube, combined, capture a 53.7% share of viewing hours. By contrast, cross-platform programmer Hulu owns a 4.8% share.

Internet-centric social audience platforms Facebook, Instagram, Snapchat and Twitter roll up another 24.7% share, with the remainder divvied up across some 200 internet sites, broadcast, cable TV and print brand extensions online.

Analyzed another way, 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.

While relevant advertiser concerns about what constitutes a “view,” or length of view (occurring anywhere from 3 seconds to hours), measurement in and buying against hours offers technology vendors (from media players to integrated viewing platforms) along with producers, publishers and advertising brands an opportunity to recast their solutions and unify their monetization formulae.

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.  

Ongoing advertiser concerns over objectionable content also remain across platforms, though the current share strength seen on social/audience services by has compelled publishers to migrate their digital presence inside those environments.

Moreover, there are examples of publishers reducing destination-based brand building, and moving toward a syndication model where audience platforms form a primary point of ad-supported access for content outside of authenticated sign-in.

Ad-supported hours equal 54% of the total, while subscription makes up a 46% 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.

YouTube is the largest ad-supported programmer in digital video, with a weighty 45.6% of total ad-supported viewing hours.

This research package includes a full year 2016 database listing of sites, destinations, services, devices, total video views, minutes/hours of viewing, accesses by device type (desktop, mobile/tablet/OTT box).

Also included in the annual percentage share of viewing hours by each service, site, destination and channel; those that are ad-supported, subscription based, internet only and cross-platform in nature.

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FEATURED COMPANIES

  • Amazon
  • Apple
  • Facebook
  • Google
  • Instagram
  • Netflix
  • MORE

EXECUTIVE SUMMARY   

DIGITAL VIDEO VIEWING HOUR DISTRUPTERS: MARKETSHARE TILTS HEAVILY TOWARD THE INTERNET GIANTS 2016   
Netflix and YouTube account for a combined 53.8% share of viewing hours across all platforms   
Internet-centric publishers locked in 89.6% viewing share in 2016   
Four of the top 10 digital video publishers are social media platforms delivering video across all devices, including Facebook, Instagram, Snapchat and Twitter   

DIGITAL VIDEO DISRUPTER SERVICES AND COMPLEMENTARY TECH DEVICES DRIVE THE MARKET IN HOURS VIEWED   
Online TV/Movie services capture 59% of total hours   
Made-for-the-medium content successes ease concerns over library depth and major studio licensing deals/costs   
Internet media upstarts command a large swath of the marketplace and possess very strong balance sheets; they are in it to win it   
Social media cracks into the digital video viewing hour market with a desirable and exploitable 19.4% share   
Analysis shows access through OTT boxes such as Apple TV, Roku, Chromecast devices/casting apps and Fire TV connected audiences to 51 billion hours of content in 2016   
A Deeper Analytics Dive: Excluding OTT boxes and duplicate hours: A 14.6% comparable piece of linear viewing in 2016   
Non-linear video viewing analysis shows TV/Movie and social media dominance in multiple database utilization scenarios   

AD-SUPPORTED HOURS TOTAL 54% OF 2016 DIGITAL VIDEO VIEWING ONLINE   

SUBSCRIPTION HOURS TOTAL 46%, AND POISED TO GROW AS MORE FLEXIBLE RATE PACKAGES AND PROVIDERS BRING SERVICES TO MARKET   
Netflix and YouTube are the twin pillars of digital video viewing hours, one subscription and the other ad supported   
Facebook and Instagram are evolving toward more video centric programming; expect both ad-supported and pay-as-you go services rollout over the next several years   

SECTION ONE

DIGITAL VIDEO VIEWING HOURS 2016: LONG-FORM CONTENT DOMINANT

LINEAR TV AND DIGITAL VIDEO VIEWING: COMPARATIVE AUDIENCE CONSUMPTION STATISTICS 2016   
Internet era upstart media firms are the big players and current leaders in digital video share   
Digital viewing hour share 2016: TV, Movies and Social Media set the pace   
Online TV, movies and social media capture a combined 81.7% hourly viewing share   
Broadcast/cable brand extensions own a 4.3% share   

DIGITAL VIDEO VIEWS, HOURS, AVERAGE MONTHLY USERS BY PLATFORM 2016: COMPLETE DATABASE   

SECTION TWO

INTERNET TV: A MARKETPLACE CREATED AND DOMINATED BY MEDIA BRANDS NETFLIX, YOUTUBE AND HULU ACTIVATING EYEBALLS:  AUDIENCES SAY THE INTERNET DOES IT BETTER   
Video services and platforms native to the internet channel (including socials) dominate viewing hours   

EXCLUDING OTT DEVICES, INTERNET TV HOURS CAPTURE A 59.3% VIEWING SHARE IN 2016   
Total non-duplicated digital video viewing hours at 85.6 billion in ’16 (excluding OTT access)   
Toward a new video advertising model that unifies ad opportunities inside more sophisticated player environments   

YOUTUBE IS A POWERFUL VIDEO PROGRAMMER THAT DELIVERS A GREAT VIEWING EXPERIENCE ACROSS PLATFORMS   

YOUTUBE EXPLOITS AN INTERNET VERSION OF TRADITIONAL 24/7 TV ADVERTISING: PRE-ROLL FORMATS EVOLVE   

DIGITAL VIDEO HOURLY DATABASE BY PUBLISHER AND CONTENT CATEGORY: 2016   

SECTION THREE   

AD-SUPPORTED HOURS TOTAL 54% OF 2016 DIGITAL VIDEO VIEWING ONLINE   
SUBSCRIPTION HOURS TOTAL 46%, AND POISED TO GROW AS MORE FLEXIBLE RATE PACKAGES AND PROVIDERS BRING SERVICES TO MARKET   
DIGITAL VIDEO VIEWING HOURS:  COMPLETE AD-SUPPORTED AND SUBSCRIPTION COMPARATIVE ANALYTICS DATABASE 2016   

SECTION FOUR   

DIGITAL VIDEO VIEWING HOUR MARKETSHARE TILTS HEAVILY TOWARD THE INTERNET GIANTS 2016   
Netflix and YouTube account for a combined 53.8% share of viewing hours across all platforms   
Internet-centric publishers locked in 89.6% viewing share in 2016   
Four of the top 10 digital video publishers are social media platforms delivering video across all devices, including Facebook, Instagram, Snapchat and Twitter   

DIGITAL VIDEO VIEWING HOUR RANKING 2016: PUBLISHER, VIEWS, HOURS AND PLATFORM FOCUS   

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  • Amazon
  • Apple
  • Facebook
  • Google
  • Instagram
  • Netflix
  • Roku Inc.
  • Sling
  • Twitter
  • YouTube
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