!Bus Insider mobile video outlook 2013Presentation Transcript
The MobileVideo BoomMarcelo BallvéEditorial Director, Business Insider IntelligenceOctober 28, 2012
Mobile video audiences haveexploded – 77% increase in two yearsSource: Nielson Cross-Platform Report
Mobile’s share of total video viewsnearly doubled in only 3 monthsSource: Ooyala Global Video Index Report, Q2 2012CombinedTabletsSmartphonesShare ofTV/VideoViewingTime, Globally
So, what’s behind this surge?
First, mobile device sales have explodedin recent yearsPersonal ComputersSmartphonesTablets-100,000,000200,000,000300,000,000400,000,000500,000,000600,000,000700,000,000800,000,000900,000,0001,000,000,0002000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011UnitsGlobal Internet Device SalesSource: Gartner, IDC, Strategy Analy cs, company filings, BI Intelligence es mates
And so has mobile contentconsumption41%27% 26%23%59%53%29% 29%22%9% 10% 9%5%57%53%25%27%20%Books Movies TV Shows Magazines News SocialNetworkingDownloadedMusicSports StreamingRadioMedia Content Accessed Through Mobile DeviceTablet SmartphoneSource: Nielsen Q4 2011 Mobile Connected Device Report
But there’s a lot more to it.
Our viewing habits are driving the boom.
In the U.S.,TV has lost viewers …Audience sizeSource: Nielson Cross-Platform Report
And live ratings have declined
… Amid a tectonic shift toon-demand and on-the-go videoSource: Nielson Cross-Platform Report
PayTV subscriptions also are trendingdownSource: Bernstein Research, BI Intelligence estimatesCableSatelliteTelCoTotal-1000-800-600-400-200020040060080010001Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12SubscriberNet Addi ons(thousands)Pay TV Subscriber Net Addi ons
Online video is real and growing fastNe lixYouTubeHulu$0$1,000$2,000$3,000$4,000$5,0002006 2007 2008 2009 2010 2011TotalDigitalRevenues(millions)Source: Company filings and BI Intelligence es matesDigital Video Revenue, 2006-2011
And mobile (along with Xbox, etc.)is taking view share from PCs91.8%8.2%Q295.9%4.1%PC/Mac Non-PC/MacQ1Source: FreeWheelShare ofVideoViews, Q1 vs. Q2 2012
Major League Baseball’s video breakdownreveals this trend towards mobileConnected devices: game consoles and media playersHow MLB’s “At Bat” video subscribers watch the games:4%2%17%13%9%6%20%25%0%5%10%15%20%25%30%WirelessDevices OnlyWireless andConnectedDevicesWireless andDesktopWireless,ConnectedDevices, andDesktop20112012Source: MLB
There’s another factor …
More widespread usage of 4G LTE 4G LTE is 10x faster than 3G Boosted bandwidth allowsfor quicker uploads andbetter streaming quality Those with 4G LTE are 33%more likely to watch mobilevideo than those without it.(source: comScore)
4G already has 14M customers in the U.S.The ‘BigThree’ LTE MarketsSource: Wireless Intelligence, Q2 20120246810121416Japan Korea USMillionsofLTECustomers
And more carriers are beginning tooffer 4G, and in more marketsNumber of U.S. markets with LTE coverage, by carrierSource: Wireless Intelligence Q2 2012, carriers0 100 200 300 400VerizonAT&TSprintMetroPCS
Let’s dig into mobile videohabits.
30% 29%41%48%0%10%20%30%40%50%60%Q3 2011 Q4 2011 Q1 2012 Q2 2012Percent Of Viewing Time Spent On Videos Over 10 Minutes In LengthSource: OoyalaMyth: Smartphone owners don’t watchlonger videos.They do!
Longer videos are being played across allmobile devices (advertisers like that)Average Minutes Per PlaySource: Ooyala, 20122.32.054.12.9900.511.522.533.544.5Tablets Tablets and SmartphonesMinutesQ1 Q2
Here are smartphones only…Source: Ooyala, 2012Average Minutes Per Play1.81.871.761.781.81.821.841.861.88Q1 Q2Minutes
Tablet users “lean back” and watch videosmore often than smartphone users0%10%20%30%40%50%60%Ever in Month Once to Three Times A Month At Least Once A Week Almost Every Day% of Tablet Audience % Of Smartphone AudienceSource: comScore, April 2012, age 13+
Mobile video audiences tend to beyounger thanTV viewersSource: Nielsen0%10%20%30%40%50%60%Mobile Video Tradi onal TVPercentage Of Audience Who Is 18-34
And they are also diverseSource: Nielsen5:175:125:094:514:334:404:484:555:025:095:165:24HispanicsAsiansAfrican-AmericansWhitesTime Spent on Mobile Video (Hours:Minutes)
LikeTV, mobile video tends to bewatched at night0%1%2%3%4%5%6%7%8%9%10%0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23ShareOfTotalTimeWatchedTime Of DayWhen People Watch Mobile Video, By DeviceTablet Weekday Tablet Weekend Smartphone Weekday Smartphone WeekendSource: Ooyala
Apple devices have a huge lead overGoogle’s Android in mobile video viewsWe are hereSource: Freewheel, Q1 2012iPod/iPod Touch10%Android15%iPhone20%iPad27%Xbox28%
What about mobile video ads?
Mobile ad platforms are seeing explosivegrowth in mobile video ads eMarketer predicts the U.S.mobile video ad market willreach $1.1 billion by 2015 Greystripe, a leading mobile adnetwork, saw a 300% growth inmobile video ad bookings fromQ3 to Q4 in 2011 YuMe, a leading video adnetwork and platform, saw 75%growth in mobile video adimpressions from Q1 to Q2 in2012
Video doubled as a share of executions onOpera’s ad network in just six monthsSource: Opera28%6%35%31%51%13%21%15%0%10%20%30%40%50%60%HTML5 Rich Media Video Standard Ads Expandable BannerJan-12 Jun-12
And there’s plenty of room to grow…00.20.40.60.8184.108.40.206.80 0.2 0.4 0.6 0.8 1 1.2AdsPerViewerPerDayAd Load (Ads Per Video)Source: FreeWheelApp users still only seeing one or two mobile video ads per day
So, the boom will continue…right?
Mobile video already accounts for 59% ofall mobile data usageData26%File sharing9%Video59%VoIP1%Gaming1%M2M4%Source: Cisco 2012Data Usage Share
Hours of HD videostreaming1Social media photoposts= 1,190Web pagesvisited= 400Games/Songsdownloaded= 104Hours ofstreaming music= 14Source: AT&TOne hour of HD mobile video uses14x the data of music streaming!
A continued mobile video surge willdrive mobile data usageSource: Cisco 20120123456782011 2012 2013 2014 2015 2016MillionsofTetrabytes
So, carriers might have a lot to say abouthow quickly mobile video grows Tiered data plans and highdata prices set by carrierscould be a huge drag onmobile video Question of whether costefficiencies are found and ifthose savings will be passedon to consumers
At the same time, there are still a lot ofsmartphones to be sold globallyFeature Phone SalesSmartphone Sales-5001,0001,5002,0002,5002010 2011 2012 2013 2014 2015 2016Global MobilePhone Sales(millions)Global Smartphone Penetra on ForecastWe are here
And many more tablets as wellE-Readers0501001502002503003504004505002010 2011 2012E 2013E 2014E 2015E 2016EUnitsSold(millions)Tablet Sales ForecastWe are here
So the future is definitely mobileFixed FixedFixedMobileMobile05001,0001,5002,0002,5003,0002005 2010 2015ConsumerBroadbandConnec ons(milions)G-20 Internet AccessSource: Boston Consul ng Group, Mary Meeker, Kleiner Perkins, Morgan Stanley Research, Berg Insight
Also, other ‘data-free’solutions may spring up.
Dyle liveTV app doesn’t use dataDyle requires a built-in orattachabledongle/antenna to pick upTV airwavesBacked by majorbroadcasters: Fox, NBC,etc.
Dyle poll finds audiences receptiveto more ‘data free’ mobileTV68%32%0%10%20%30%40%50%60%70%80%Will Watch More TV OnDyleWill Watch Same Amountor Less TV18-54 Year OldsSource: Dyle.TV
The sky is the limit for mobile video… Oct 14#spacejump is proof• Garnered an 8 milliondevice audience• Set aYouTube live streamrecord• Users turned to theirmobile devices to watchon a weekend
Henry BlodgetFounder, CEO & Editor-in-Chief,Business InsiderAlex Cocotas, AnalystMarcelo Ballvé, Editorial DirectorBI Intelligence is a new subscription service from Business Insiderthat provides in-depth insight, data, and analysis of the mobile industry.More info at intelligence.businessinsider.comPeter Lee, InternJosh Luger, Director of Subscription Products