Digital Video Players Up The 'Premium Video' Game

Lure of “premium video” has Twitter looking to step up its game -- at least when it comes to live streaming via its Periscope app.

Periscope Producer is a new tool for wannabe TV producers looking to move up from using simple a smartphone camera and Twitter built-in software. Facebook Live is also in the game here.

Both Facebook and Twitter want to offer up better quality live programming -- content one might see on a TV network -- all to put live streaming content on the same quality level with one specific financial target: sharply rising digital video advertising revenues.

By the end of this year, digital video advertising revenue is expected to near $10 billion -- up nearly 30% from a year ago, according to eMarketer. But that is only part of the story.

Traditional TV-based media companies know that premium video -- TV programs/movies and other content can command hefty cost per thousand and high unit pricing -- over other digital video content.



Twitter, Facebook and Google’s YouTube want to be on the same level of movie studios and traditional TV networks which have that quality stamp of approval from savvy media consumers.

For around two years now, Google Preferred has been culling top video stars/content from YouTube into big TV-like advertising packages for traditional media buyers of broadcast and cable networks TV programming.

Google has already made some slight, though significant gains in this area. For its part, Google has been playing the scarcity game of sorts  -- a traditional TV networks selling tactic of limiting inventory in the hopes of driving up demand -- and pricing.

Google Preferred is not just an attempt to get on the same level as TV networks, but perhaps more importantly, an effort to separate itself from lessor digital video media content.

What’s the prize? UBS media analyst Doug Mitchelson says digital video advertisingfor traditional TV companies is projected to get to $2.1 billion in 2016 -- up from $1.5 billion in 2015.

Factoring this against eMarketer’s total $10 billion mark will tell you which side of the digital video ledger the likes of Google, Facebook and Twitter want to be on.

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