Future Revs: Paid Video Boon To TV Producers
Struggling video and TV producers will be emboldened by the news: Consumers will pay for video content in the coming years. Investment banker UBS and digital researcher eMarketer say that in three years, people paying for online video will make up 77% of the market, with 23% of the market being advertising-supported.
Much of this activity will come from downloading movies and TV shows from Netflix, Blockbuster, Amazon and Apple.
Digital researcher eMarketer says that despite YouTube's dominant advantage over all video sites -- with its 100 million monthly unique visitors -- it still has been difficult for the big video digital area to monetize its traffic. Advertising sales have been slow. YouTube executives recently floated the concept of developing a pay video area.
The key for consumers: increasing demand in expecting video to be instantly available on all digital devices. Consumers will be willing to pay subscription fees for that content, according to the study. But more marketing efforts are needed from pay-video providers to move the market.
In a report called "Paid Video Content: Focus on Movies and TV," Paul Verna, eMarketer senior analyst, says: "For this digital marketplace to evolve into a substantial revenue generator, consumers must be convinced of the value of paying for digital movies. So far, their willingness to pay is up in the air."
He adds: "One of the keys to the growth of paid video content is technology integration. With consumer electronics firms launching a new wave of Internet-enabled TVs and other devices, the next decade will bring about a wholesale shift in the home video experience."
0 comments on "Future Revs: Paid Video Boon To TV Producers".
Leave a Comment
Recent MediaDailyNews Articles
-
Scripps Launches TV Everywhere With TWC June 17, 6:01 p.m.
Scripps Networks has a TV Everywhere deal with Time Warner Cable, allowing viewers access to on-demand ... -
Cannes Lions, Gates Foundation Partner For Global Initiative June 17, 5:51 p.m.
It sounds like a cliché from a beauty pageant, where the contestants talk about the lofty ... -
After TV, Sports Fans Up Coverage On Mobile, Social Nets June 17, 4:27 p.m.
While TV remains the No. 1 platform for sports fans, the second-screen TVs of sports -- ... -
Public Trust In Newspapers Dips Again June 17, 2:19 p.m.
In addition to their well-publicized financial woes, newspapers have a credibility problem, as Americans’ confidence in ... -
Speculation About TWC, Charter Merger Continues June 17, 11:30 a.m.
Strong speculation on Friday about a possible merger between Time Warner Cable and Charter Communications -- ... -
Second-Screening Posts Modest Results In Sports June 17, 7:15 a.m.
Second-screening remains slow out of the gate for sports viewers, according to new research. Results show ... -
Weber Departs AT&T Role Overseeing U-Verse Content June 14, 9:58 p.m.
Jeff Weber, president of content and advertising sales at AT&T, has left the position. Weber oversaw ... -
Univision Expects 15% Upfront Gain, Could See $2.1B June 14, 5:40 p.m.
U.S. English-language broadcast networks continue to suffer under the weight of slightly lower upfront volume overall. ... -
Bauer To Launch 3 New Titles In Fall June 14, 4:21 p.m.
Amid declining ad pages and stagnant or declining circulation, you don’t hear much nowadays about big ... -
S&F Appeals WPP Suit, Sues NDTV June 14, 4 p.m.
The law firm Sabharwal & Finkel, which last month lost its libel suit against WPP CEO ...
If it's stuff they can download and keep - consumers will pay for it (like iTunes, etc.) but they'll still want it for free if it's stuff that they have to watch online. YouTube has 82% of the online market and Hulu about 6% - and you see how much these industry leaders can charge current users.
I know when Google Video first launched it offered a pay/charge model for content creators to earn revenue, it didn't really take off.
But iTunes allowed content creators or rights holder to charge for subscription podcasts and some sites already offer video subscription. I think long term, copyright control from unauthorised piracy, distribution and decreasing budgets will also be a pertinent worry.