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VIDEO INDEX
REPORT
Q4 2011
TABLE OF CONTENTS

EXECUTIVE SUMMARY .................................................................... 3

VIEWER BEHAVIOR & ENGAGEMENT ............................................. 4
Engagement ........................................................................................ 5
Social Media ........................................................................................ 6

SCREENS, DEVICES & PLATFORMS ............................................... 7
Tablets & Mobile Devices..................................................................... 8
Connected TV Devices & Gaming Consoles ....................................... 9
Video Trends: Google TV .....................................................................10
iOS vs. Android ..................................................................................11

THE BIG NUMBER: IP TELEVISION ................................................12

GLOBAL AUDIENCES.......................................................................13
Bit Rate & Connection Speed ............................................................14
Emerging Media Markets ...................................................................15

APPENDIX .........................................................................................16
Data Tables .........................................................................................16
Methodology ..................................................................................... 21
Glossary ............................................................................................ 22
Metrics & Definitions ......................................................................... 22
Disclaimers & Assumptions ............................................................... 23




                                                                                                           Q4 2011 VIDEO INDEX REPORT   2
EXECUTIVE SUMMARY
Ooyala’s advanced technologies give video publishers the power to deliver engaging viewing
experiences on all devices and screens. Our Big Data architecture and industry-leading analytics
provide key insights into how people watch video everywhere.

Ooyala’s data set is truly global. Nearly half of all our video plays occur outside the United
States. We handle more than 1 billion analytics pings per day and measure the anonymized
viewing habits of more than 100 million unique users every month. Ooyala applies these insights
to help publishers grow their audiences and earn more revenue with online video.

This report builds on findings from our analysis of Q3 2011. Our key Q4 findings include:

• Video plays on tablets, mobile devices and connected TVs nearly doubled in
  the fourth quarter. Expect this trend to continue throughout 2012 and beyond.

• Big screens are for big content. Videos longer than 10 minutes accounted for more than
  half the hours played on connected TV devices & gaming consoles (CTV&GC).

• Both iPhone and Android grew rapidly in terms of mobile video plays and hours watched.
  The mid-October release of the iPhone 4S fueled iOS growth.

• Facebook continues to beat Twitter in video sharing. According to Ooyala data, for every
  video shared via Twitter in Q4, more than 10 were shared on Facebook.

• Compared to desktop viewers, people who watched on connected TV devices and
  gaming consoles were 70% more likely to watch three-quarters of a video—a good gauge
  of viewer engagement.

• As we previously reported, tablet viewers were the most engaged in Q3. In Q4, they remained
  a remarkably attentive audience: they were 45% more likely to complete three-quarters of a
  video than viewers who watched on a desktop.

• I want my GTV. Google TV showed impressive growth throughout the fourth quarter.
  Total video plays grew by 91%.

• Home for the holidays. Video plays on tablets and mobile devices were up in a big way
  at the end of December. While it was part of a larger trend of rapid device growth, this
  increase in mobile video viewing was likely an effect of the end-of-year festivities.
  The one-two punch of newly-gifted gadgets and time spent away from the office likely
  resulted in more online videos played on more devices.

Questions or comments? Email videoindex@ooyala.com.




                                                                                   Q4 2011 VIDEO INDEX REPORT   3
VIEWER BEHAVIOR & ENGAGEMENT
Ooyala’s video analytics technology                    Our data suggests that viewers are watching
measures viewer engagement in real time.               more videos online—they’re clicking “play” at
We analyze conversion rates (the ratio                 a higher rate and watching longer per video
of video displays to video plays), video               play. The average conversion rate across all
completion rates, social sharing events and            devices, for instance, increased from 35.1%
a bevy of other key metrics and variables.             in Q3 to 39.6% in Q4. Moreover, viewers in
When combined with data delineating device             Q4 watched longer on all devices, as shown
type and geography, these metrics increase             in this chart.
our understanding of viewer behavior.


                            QOQ GROWTH IN TIME WATCHED PER PLAY, Q4 2011

                    22.0%




                    16.5%




                    11.0%




                     5.5%




                       0%
                                Desktop       Mobile         Tablet        CTV&GC




   KEY INSIGHTS

   Q4 viewers were            People are watching      Q4 data suggests that
   more than twice as         longer on their          copying and pasting
   likely to complete a       tablets: they watched    a video URL is a
   video when watching        21.9% longer per         more common way of
   on a connected TV          video in Q4 than in      sharing than Tweeting.
   device than when           Q3.
   watching on a
   desktop.




                                                                                    Q4 2011 VIDEO INDEX REPORT   4
VIEWER BEHAVIOR & ENGAGEMENT




ENGAGEMENT                                                      VIEWER ENGAGEMENT BY DEVICE, Q4 2011

Device type heavily influences
                                                         80%                                                                         CTV & GC
viewer engagement. Viewers
                                                                                                                                     Tablet
watching on connected TV devices                                                                                                     Desktop
and game consoles (CTV&GC)                                                                                                           Mobile
                                                         60%
in Q4 were the most engaged
of all, completing videos at a



                                         % of audience
rate of 47%. Tablet viewers, who
completed videos 38% of the                              40%

time, were a close second. In
Q3, desktops had the lowest
engagement rates of all devices                          20%
types, but in Q4 viewers were
least engaged when watching on
mobile devices.                                           0%
                                                         Watched 1/4             Watched half      Watched 3/4     Completed video


THE BOTTOM LINE:
Viewers watch differently on different
devices. Video publishers need
to measure and understand these
differences in order to create viewing
experiences that engage viewers
                                                                VIEWERS WHO COMPLETED 3/4 OF VIDEO LONGER THAN
effectively.
                                                                10 MINUTES IN LENGTH, Q4 2011
                                                         40%




                                                         30%
                                         % of audience




                                                         20%




                                                         10%




                                                          0%
                                                                       Desktop            Mobile     Tablet      CTV&GC




                                                                                                                  Q4 2011 VIDEO INDEX REPORT    5
VIEWER BEHAVIOR & ENGAGEMENT




             SOCIAL MEDIA
             As in Q3, data from Q4 indicates that the world’s biggest social network is winning
             the battle for viewers’ attention. For every one video shared via Twitter during the
             quarter, more than 10 videos were shared on Facebook.

             Not only that, Twitter was outpaced by a more traditional means of sharing: In Q4,
             users shared more videos by copying and pasting a URL than by tweeting.



                             VIDEO SHARING VIA SOCIAL MEDIA, Q4 2011

                        15                                                                           Facebook/Twitter
                                                                                                     URL Copy/Twitter



                        10




                         5




                             OCT                    NOV                    DEC
                        0




                             THE BOTTOM LINE: Some social networks are more conducive to
                             video sharing than others. To implement a successful social video
                             or social TV strategy, publishers need: 1: tools to target the social
                             networks most relevant to their audience, and 2: analytics
                             to measure and track content sharing trends.




                                                                                                                Q4 2011 VIDEO INDEX REPORT   6
SCREENS,
                                           QOQ GROWTH IN TIME WATCHED PER PLAY, Q4 2011

                                   200%




DEVICES &
PLATFORMS
                                   100%




The headline story in Q4,            0%

and for much of 2011, was
the phenomenal growth
of video played on non-                    OCT                NOV               DEC
                                   -100%
desktop devices, such
as tablets, smartphones,
gaming consoles and
connected TV devices.
The share of non-desktop                   GROWTH IN SHARE OF PLAYS BY DEVICE, Q4 2011
video plays more than              200%                                                                     CTV & GC

doubled in Q4.                                                                                              Tablet
                                                                                                            Mobile


                                   100%




                                     0%




                                            OCT                     NOV               DEC
                                   -100%




   KEY INSIGHTS

   In Q4, viewers           People watched             Google TV notched
   watched more videos      four times as              impressive growth in
   on mobile devices,       many long videos           Q4: Its share of video
   but on average           as short videos            plays increased by an
   stayed engaged           when watching              impressive 91% during
   longer when viewing      on connected TV            the quarter.
   on tablets.              devices and gaming
                            consoles.




                                                                                         Q4 2011 VIDEO INDEX REPORT    7
SCREENS, DEVICES & PLATFORMS




TABLETS                            TOTAL VIDEO PLAYS, Q4 2011
& MOBILE DEVICES
Device type heavily influences                                                     Tablet
viewer engagement. Viewers                                                        Mobile
watching on connected TV devices
and game consoles (CTV&GC)
in Q4 were the most engaged
of all, completing videos at a           40%
rate of 47%. Tablet viewers, who
completed videos 38% of the
time, were a close second. In                                   60%
Q3, desktops had the lowest
engagement rates of all devices
types, but in Q4 viewers were
least engaged when watching on
mobile devices.




                                   TOTAL HOURS WATCHED, Q4 2011


                                                                                  Tablet
                                                                                  Mobile




                                        47%
                                                                53%




                                                                  Q4 2011 VIDEO INDEX REPORT   8
SCREENS, DEVICES & PLATFORMS




                                        CONNECTED TV DEVICES & GAMING CONSOLES (CTV&GC)
                                        Recent data confirms what we published in Q3 of 2011: People watch more long-form
                                        content on their big screens than on any other device. The connected couch potato is
                                        logging on and “leaning back” with his or her favorite movies and TV shows.

                                        A couple of noteworthy findings:

                                        • Long-form videos accounted for 57% of the hours watched on a connected
                                          TV device or game console; short videos accounted for 19%.1

                                        • Viewers using a connected TV device or gaming system watched 288% longer
                                          per play on average than desktop viewers.



                         TIME WATCHED BY VIDEO LENGTH & DEVICE, Q4 2011
                                                                                                                       Online video isn’t “early
                         100%
                                                                                                                       adopter” territory anymore.
                                                                                                          >10 min
                                                                                                                       It’s clear that more and more
                                                                                                          6-10 min
                                                                                                          3-6 min
                                                                                                                       people are firing up Netflix,
                                                                                                          1-3 min      Roku, Boxee or XBox to watch
                             75%
                                                                                                          <1 min       long-form content on the big
% of all hours watched




                                                                                                                       screen. They’re also watching
                                                                                                                       more long-form videos on
                             50%                                                                                       their iPads, Kindle Fires
                                                                                                                       and Android tablets.


                             25%
                                                                                                                       Our research confirms that
                                                                                                                       people use different devices
                                                                                                                       in different ways. Context
                                                                                                                       matters for viewers, video
                              0%
                                      Desktop              Mobile              Tablet            CTV&GC                publishers and advertisers.
                                                                                                                       While shorter clips dominate
                                                                                                                       smaller screens and desktops,
                                                                                                                       the larger viewing area
                         THE BOTTOM LINE: Compared to desktops and laptops, which                                      (and fewer distractions)
                         have keyboards and let users open multiple windows, tablets
                                                                                                                       of tablets and connected TV
                         and connected TVs have few distractions. And compared to
                                                                                                                       devices encourage viewers
                         mobile devices, they offer larger screens. These factors may help
                         explain why tablets and connected TV devices have high viewer                                 to watch longer.
                         engagement rates.




                         1
                           Long videos are defined as those that are longer than 10 minutes in
                         length; short videos are three minutes or shorter.



                                                                                                                          Q4 2011 VIDEO INDEX REPORT   9
SCREENS, DEVICES & PLATFORMS




             VIDEO TRENDS: GOOGLE TV
             While still small when compared to all online video watched in Q4, Google TV’s share
             of video plays increased by an impressive 91% during the quarter. After a series of
             false starts, Google TV may finally be gaining broader traction with consumers.




                             GOOGLE TV: GROWTH IN SHARE OF VIDEO PLAYS, Q4 2011


                     100%




                      50%




                       0%




                      -50%



                               OCT                NOV                          DEC
                     -100%


                                                   Ratio of plays compared to 10/1




                                                                                                Q4 2011 VIDEO INDEX REPORT 10
SCREENS, DEVICES & PLATFORMS




IOS VS. ANDROID                            IOS VS. ANDROID RELATIVE SHARE OF PLAYS, Q4 2011
Both iOS and Android are
                                  40%
growing rapidly in terms of
mobile video consumption.         30%
Growth in the iPhone’s share
of total video plays outpaced     20%
that of Android for much
of the quarter, a trend that is   10%
partly explained by the release
of the iPhone 4S on October       0%
14. Note the uptick in iPhone’s
share in subsequent weeks.        10%


THE BOTTOM LINE:                  20%
Video consumption on iOS
and Android mobile devices        30%
is exploding. Publishers must
deliver high-quality viewing      40%
                                           Oct 3     Oct 17     Oct 31     Nov 14     Nov 28     Dec 12       Dec 26
experiences to both platforms.




                                           IOS VS. ANDROID GROWTH SHARE OF PLAYS, Q4 2011


                                   200%                                                                         IPhone
                                                                                                                Android




                                   100%




                                     0%




                                           OCT                  NOV                  DEC
                                   -100%




                                                                                               Q4 2011 VIDEO INDEX REPORT 11
THE BIG NUMBER: IP TELEVISION
         336%. 460%.
                                                     Note that these estimates pertain to
224%.                                                publishers in Ooyala’s TV industry segment,
                                                     which includes broadcasters, networks and
That’s annualized growth projections in              studios. All our analyses of this segment
the share of video plays on mobile devices,          indicate strong growth trends. As more
connected TVs and gaming consoles, and               broadcast-quality and original TV content
tablets—if their growth rate in Q4 continues.        becomes available online, expect an
                                                     increasing number of viewers to watch their
                                                     favorite shows on tablets, smartphones,
                                                     Rokus and Xboxes.


                           GROWTH IN SHARE OF VIDEO PLAYS, Q4 2011
              200%
                                                                                  Tablet
                                                                                  CTV&GC
                                                                                  Mobile


              100%




               0%




                     OCT                  NOV                  DEC
             -100%




                                                                                Q4 2011 VIDEO INDEX REPORT 12
GLOBAL AUDIENCES
       Ooyala’s data set covers video plays across                               The growth in online video exhibited during
       more than 5,000 domains in more than                                      Q4 is reflective of a global trend: Viewers
       130 countries. On a monthly basis, more                                   are buying more devices, everywhere, and
       than 100 million viewers watch video                                      watching more online video than ever before.
       on an Ooyala-powered site.                                                Various analysts project that worldwide
                                                                                 by 2015 there will be 500 million connected
                                                                                 TVs,2 1 billion smartphones3 and 325 million
                                                                                 tablets.4 These new screens make up a global
                                                                                 audience of 1.2 billion viewers.5




             KEY INSIGHTS

             Connection speeds, as measured by                              Emerging economies are recording
             Ooyala’s video technology, vary by                             remarkable growth in online video
             region, with relatively high bit rates in                      consumption on mobiles, tablets
             much of North America, Europe and                              and connected TV devices
             parts of Asia, such as South Korea.                            and gaming consoles.




2
    “Connected TV Shipments to Exceed 138 Million Units in 2015, Putting Total Worldwide at 500 Million,” via Display Research, July 5, 2011.

3
    “Worldwide Smartphone Market Expected to Grow 55% in 2011 and Approach Shipments of One Billion in 2015,” via IDC, June 9, 2011.

4
    “Gartner Says Apple Will Have a Free Run in Tablet Market Holiday Season as Competitors Continue to Lag,” via Gartner, September 11, 2011.

5
    “More than 200 Billion Online Videos Viewed Globally in October,” via comScore, October 2011.


                                                                                                                            Q4 2011 VIDEO INDEX REPORT 13
GLOBAL AUDIENCES




                BIT RATE & CONNECTION SPEED
                When Ooyala’s video player loads, it gauges a number of variables, including CPU
                status, network connection speed and available encodings. Accordingly, Ooyala’s
                technology delivers the appropriate video encoding to ensure optimal playback.6
                The resulting data paints an interesting picture of prevailing network speeds
                throughout the world, as shown in the map below.




AVG. BITRATE FOR DESKTOP PLAYS, Q4 2011

 Desktop bit rate (kbps):               Mobile bit rate (kbps):               Tablet bit rate (kbps):        CTV&GC bit rate (kbps):
 1. United States      1,748            1. Greece             1,617           1. Ukraine             1,789   1. Italy             2,000
 2. Taiwan             1,610            2. Germany            1,361           2. Sweden              1,496   2. New Zealand       1,947
 3. Rep. of Korea      1,574            3. Russia             1,289           3. Netherlands         1,408   3. Japan             1,885
 4. Sweden             1,506            4. Austria            1,237           4. Israel              1,405   4. Ireland           1,855
 5. Germany            1,486            5. Sweden             1,232           5. Russia              1,271   5. Taiwan            1,792
 6. Netherlands        1,484            6. Belgium            1,224           6. Argentina           1,187   6. United Kingdom 1,660
 7. Belgium            1,465            7. Norway             1,219           7. United Kingdom 1,187        7. Israel            1,616
 8. Canada             1,395            8. Italy              1,162           8. Switzerland         1,143   8. Canada            1,587
 9. Italy              1,380            9. Ukraine            1,134           9. United States       1,005   9. Brazil            1,555
 10. Switzerland       1,365            10. France            1,083           10. Greece             993     10. United States    1,502



 6
  The bit-rate numbers included in this report reflect more variables than available bandwidth. Ooyala’s
 technology gauges CPU status, screen size, and network capacity and availability before selecting the
 appropriate video encoding to minimize buffering and ensure high-quality playback. Because more variables
 are included, Ooyala’s measure of average bit rate is likely to diverge somewhat from industry estimates
 for average bandwidth rates by country.


                                                                                                                Q4 2011 VIDEO INDEX REPORT 14
SCREENS, DEVICES & PLATFORMS




EMERGING                                                    EMERGING MARKETS: GROWTH IN SHARE OF PLAYS, Q4 2011

MEDIA MARKETS                                       300%                                                                 CTV & GC
Growth in online video plays                                                                                             Tablet
and time watched wasn’t limited                                                                                          Mobile
to developed markets like the                       200%

U.S. and Europe. High-growth
economies like Brazil, China,
                                                    100%
Russia and India also grew
strongly throughout the quarter.
Connected TV devices and gaming                       0%
consoles led in terms of total
video plays and time watched
                                                            OCT                     NOV          DEC
during much of the quarter, though                  -100%
mobile devices and tablets also
notched explosive growth. Each
device’s share of total online
video plays more than doubled in
a single quarter, reflecting robust
annualized growth rates of around
1,000%. 7                                                   EMERGING MARKETS: GROWTH IN SHARE OF TIME WATCHED, Q4 2011

                                                    200%                                                                 CTV & GC
THE BOTTOM LINE:
                                                                                                                         Tablet
While slow connection speeds may
                                                                                                                         Mobile
pose constraints to growth in some
emerging markets, viewers’ appetite
for new devices and online video is                 100%
creating record growth the world over.



                                                      0%




                                                            OCT                     NOV          DEC
                                                    -100%




7
 It’s important to note that the December vacation effect may be skewing these growth numbers.
Stay tuned for the Q1 Video Index to see if this growth is part of larger trend.


                                                                                                        Q4 2011 VIDEO INDEX REPORT 15
APPENDIX
DATA TABLES
GLOBAL CONVERSION RATE (PLAYS/DISPLAYS)

              Conversion      Mobile        Tablet        CTV&GC
  Week of        Rate       Conversion    Conversion     Conversion
               Desktop         Rate          Rate           Rate
Oct 3, 2011 39.89%         41.11%        16.89%         40.41%
Oct 10, 2011 40.08%        42.14%        17.30%         47.19%
Oct 17, 2011 41.53%        41.94%        17.66%         56.30%
Oct 24, 2011 42.05%        43.42%        17.88%         54.42%
Oct 31, 2011 36.58%        41.98%        18.33%         36.23%
Nov 7, 2011 36.80%         42.59%        18.43%         52.05%
Nov 14, 2011 40.72%        43.01%        18.37%         59.30%
Nov 21, 2011 36.19%        41.22%        17.64%         49.55%
Nov 28, 2011 39.33%        42.94%        18.13%         57.91%
Dec 5, 2011 40.97%         44.35%        19.72%         56.42%
Dec 12, 2011 41.07%        44.53%        19.28%         47.75%
Dec 19, 2011 42.86%        41.92%        18.82%         54.16%
Dec 26, 2011 43.89%        41.97%        19.48%         53.33%



VIEWER ENGAGEMENT, BY DEVICE

               Desktop        Mobile        Tablet        CTV&GC
Watched 1/4          55%           49%            62%          63%
Watched half         48%           42%            54%          57%
Watched 3/4          43%           37%            48%          53%
Completed            38%           28%            38%          47%
Video




                                                                      Q4 2011 VIDEO INDEX REPORT 16
GROWTH IN SHARE OF NON-DESKTOP VIDEO PLAYS

                                                                      Ratio of
                                                         Ratio of
              Growth in       Growth in    Growth in                Tablet/Mobile
  Week of                                             Tablet/Mobile
             Tablet Share    Mobile Share CTVGC Share                  (Time
                                                      (Video Plays)
                                                                      Watched)
Oct 3, 2011 1.00             1.00        1.00          0.63         0.84
Oct 10, 2011 1.05            1.06        1.08          0.62         0.85
Oct 17, 2011 1.26            1.13        1.06          0.70         0.92
Oct 24, 2011 1.20            1.24        0.93          0.60         0.84
Oct 31, 2011 1.41            1.37        1.09          0.64         0.85
Nov 7, 2011 1.37             1.19        1.06          0.72         0.92
Nov 14, 2011 1.37            1.20        1.10          0.72         0.90
Nov 21, 2011 1.67            1.48        1.43          0.70         0.93
Nov 28, 2011 1.48            1.44        1.43          0.64         0.81
Dec 5, 2011 1.53             1.42        1.57          0.68         0.88
Dec 12, 2011 1.48            1.39        1.40          0.67         0.81
Dec 19, 2011 1.75            1.56        1.54          0.70         0.90
Dec 26, 2011 2.32            1.94        1.96          0.75         0.97



VIEWERS WHO WATCHED 3/4 OF A VIDEO

   Device     % watched
             3/4 of 10 min
                + video
Desktop     20%
Mobile      18%
Tablet      29%
CTV&GC      34%




                                                                       Q4 2011 VIDEO INDEX REPORT 17
TOTAL TIME WATCHED, BY VIDEO LENGTH & DEVICE

                  Desktop        Mobile           Tablet          CTV&GC
<1 min                  10%               6%               6%           4%
1-3 min                29%             30%             26%             15%
3-6 min                26%             23%             22%             15%
6-10 min               10%             12%             11%             9%
>10 min                25%             29%             36%             57%




ANDROID VS. IOS


                              Time Watched    iPhone        Android
             iPhone Plays/
                                 iPhone/    Growth in      Growth in
   Week of      Android
                                 Android   Share of Total Share of Total
              Mobile Plays
                                  Mobile       Plays         Plays

Oct 3, 2011 0.72              0.79             1.00             1.00
Oct 10, 2011 0.81             0.83             1.12             0.99
Oct 17, 2011 0.97             0.94             1.34             0.99
Oct 24, 2011 1.33             1.22             1.71             0.92
Oct 31, 2011 1.36             1.26             1.94             1.02
Nov 7, 2011 1.00              0.99             1.51             1.08
Nov 14, 2011 1.06             1.01             1.58             1.07
Nov 21, 2011 1.20             1.03             2.01             1.21
Nov 28, 2011 1.21             1.11             1.98             1.17
Dec 5, 2011 1.03              1.00             1.84             1.28
Dec 12, 2011 0.98             1.07             1.72             1.26
Dec 19, 2011 1.33             1.25             2.21             1.19
Dec 26, 2011 1.14             1.05             2.56             1.61




                                                                             Q4 2011 VIDEO INDEX REPORT 18
NETWORKS, BROADCASTERS & STUDIOS: GROWTH IN SHARE OF NON-DESKTOP PLAYS

Date         Mobile             Tablet   CTV&GC
Oct 3, 2011 1.00                1.00     1.00
Oct 10, 2011 1.06               1.17     1.15
Oct 17, 2011 1.08               1.21     1.02
Oct 24, 2011 1.08               1.27     0.97
Oct 31, 2011 1.35               1.52     1.16
Nov 7, 2011 1.14                1.53     1.09
Nov 14, 2011 1.13               1.49     1.12
Nov 21, 2011 1.40               1.80     1.37
Nov 28, 2011 1.33               1.54     1.50
Dec 5, 2011 1.36                1.59     1.60
Dec 12, 2011 1.34               1.51     1.46
Dec 19, 2011 1.37               1.67     1.58
Dec 26, 2011 1.57               2.15     1.84



GOOGLE TV


               Ratio of plays
  Week of      compared to
                    10/3
Oct 3, 2011              1.00
Oct 10, 2011             1.08
Oct 17, 2011             1.09
Oct 24, 2011             0.94
Oct 31, 2011             1.10
Nov 7, 2011              1.09
Nov 14, 2011             1.10
Nov 21, 2011             1.44
Nov 28, 2011             1.50
Dec 5, 2011              1.65
Dec 12, 2011             1.45
Dec 19, 2011             1.57
Dec 26, 2011             1.91




                                                                  Q4 2011 VIDEO INDEX REPORT 19
EMERGING MARKETS: GROWTH IN TOTAL SHARE, BY DEVICE


                                                                                          CTV&GC
                                              CTV&GC      Mobile Time    Tablet Time
  Week of      Mobile Plays   Tablet Plays                                                 TIme
                                               Plays       Watched        Watched
                                                                                          Watched
Oct 3, 2011            1.00            1.00        1.00           1.00           1.00           1.00
Oct 10, 2011           1.02            0.89        0.80           0.94           0.96           0.83
Oct 17, 2011           1.02            1.09        1.44           0.92           1.23           1.32
Oct 24, 2011           0.90            0.96        0.91           0.91           1.22           1.10
Oct 31, 2011           0.97            1.00        1.01           0.93           1.22           1.10
Nov 7, 2011            0.98            0.58        1.92           0.84           0.70           2.17
Nov 14, 2011           0.93            0.70        1.56           0.83           0.85           1.37
Nov 21, 2011           1.01            0.99        1.59           0.85           1.00           1.56
Nov 28, 2011           1.34            1.37        1.84           1.06           1.47           2.06
Dec 5, 2011            1.17            1.18        2.18           0.94           1.22           2.18
Dec 12, 2011           1.96            1.74        1.80           1.77           1.91           1.76
Dec 19, 2011           2.23            1.93        3.17           1.71           1.70           2.88
Dec 26, 2011           2.43            2.45        2.42           1.82           2.21           2.16




                                                                                 Q4 2011 VIDEO INDEX REPORT 20
METHODOLOGY
DATA SOURCES & SAMPLE SIZE

The data sample used in this report covers the fourth quarter of 2011, from October 1 through
December 31. All data was taken from an anonymous cross-section of Ooyala’s global customer
and partner database—an array of broadcasters, studios, cable operators, print publications,
online media companies and consumer brands. These firms broadcast video to over 100
different countries from more than 5,000 unique domains. More than 100 million unique viewers
watch an Ooyala-powered video every month.

This data sample is not intended to represent the entire Internet or all online video viewers.

DATA COLLECTION

Ooyala’s video analytics technology collects all anonymized video data in real time. During
playback, Ooyala’s video player continuously gathers information and relays it to an analytics
module, which then stores the data in a distributed file system, Hadoop. Viewer statistics are
then complied and stored in a Cassandra data cluster, where the information is made readily
available for analysis.

ANALYSIS & METRICS

• Ooyala’s video analytics module tracks a range of standard variables, such as:

• Displays, plays and time watched

• Viewer engagement and video completion rates

• Sharing by social network

• Geography (region, state, city, Designated Marketing Areas)

• Device type (mobile, desktop, tablet, connected TV devices & game consoles)

• Operating system (Windows, Android, iOS)

• Browser (Safari, Chrome, Firefox, Internet Explorer)

For more details on specific metrics and measures, please see the Metrics & Definitions section
in the appendix.




                                                                                       Q4 2011 VIDEO INDEX REPORT 21
GLOSSARY
Conversion Rate: The ratio of plays to displays. 10 displays with 1 play is a conversion rate of
10%.

Completion Rate: The rate at which viewers watch a specified portion of a given video.
Sometimes used interchangeably with “play-through rate.”

Display: Each (and any) time a video is loaded in a browser and displayed to the viewer

Mobile Devices: All smart phones, including iOS, Android, Blackberry and others.

Video Play: Each time a video starts playing.

Connected TV Devices & Gaming Consoles: Set-top-boxes and OTT devices, including Wii,
Playstation, Boxee, Roku, Xbox and Google TV.

Tablets: All media tablets, including iOS and Android.



METRICS & DEFINITIONS
v ) an online video
p ) a publisher that owns many videos
v ! p ) a video owned by a publisher p
S ) is a set of publishers (e.g., the TV vertical)
p ! S ) p is a member of set S
"(v) ) a metric " (e.g., number of plays in Q3) evaluated over video v
        P
"S =       "p ) "S is the sum of "p for all publishers p in set S
           p!S

r(v) = "1(v)="2(v) ) r(v) is the ratio of two metrics "1(v); "2(v)
rp; rS ) the same ratios over a single publisher p or set of publishers S
       P        P
rp = ( "1(v))=( "2(v))
         v!p            v!p

         PP                   PP
rS = (             "1(v))=(             "2(v))
         p!S v!p              p!S v!p

         P                        P
#p = (          #(v) ! w(v))=(           w(v)) ) a weighted sum.
          v!p                      v!p

For instance, the average length of a video played weighted by the number of plays for each
video, #(v) would be the length of video, and the weight w(v) is the number of plays. Since #p is
a ratio, it would also be possible to determine #S for a set of publishers using the rule above.


Examples
Engagement is a ratio r(v) = "1(v)="2(v) where "1 is the number of times the video was
watched some percentage of the way through (25, 50, 75, 100) and "2 is the number of times it
was played.

Some metrics are more complex. For instance, " may be the number of times a video that was
of length greater than 10 minutes was watched on a tablet device. Only videos that are longer 10
minutes contribute to this total.

                                                                                                Q4 2011 VIDEO INDEX REPORT 22
DISCLAIMERS & ASSUMPTIONS
Data is not aggregated across all videos or providers for vertical data, and only publishers with
a meaningful amount of videos watched are included. Publishers with incomplete data for Q4
have been excluded.

When selecting items for inclusion in the report, Ooyala’s data science team selected metrics
that were clear and meaningful. Granular measures were broken down along many categories,
which resulted in a large amount of data. Rather than reporting all of this data, the Ooyala team
chose to highlight those measures that give a good impression for the data set as a whole.




                                                                                      Q4 2011 VIDEO INDEX REPORT 23

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Ooyala Video Index Report -2011-Q4

  • 2. TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................... 3 VIEWER BEHAVIOR & ENGAGEMENT ............................................. 4 Engagement ........................................................................................ 5 Social Media ........................................................................................ 6 SCREENS, DEVICES & PLATFORMS ............................................... 7 Tablets & Mobile Devices..................................................................... 8 Connected TV Devices & Gaming Consoles ....................................... 9 Video Trends: Google TV .....................................................................10 iOS vs. Android ..................................................................................11 THE BIG NUMBER: IP TELEVISION ................................................12 GLOBAL AUDIENCES.......................................................................13 Bit Rate & Connection Speed ............................................................14 Emerging Media Markets ...................................................................15 APPENDIX .........................................................................................16 Data Tables .........................................................................................16 Methodology ..................................................................................... 21 Glossary ............................................................................................ 22 Metrics & Definitions ......................................................................... 22 Disclaimers & Assumptions ............................................................... 23 Q4 2011 VIDEO INDEX REPORT 2
  • 3. EXECUTIVE SUMMARY Ooyala’s advanced technologies give video publishers the power to deliver engaging viewing experiences on all devices and screens. Our Big Data architecture and industry-leading analytics provide key insights into how people watch video everywhere. Ooyala’s data set is truly global. Nearly half of all our video plays occur outside the United States. We handle more than 1 billion analytics pings per day and measure the anonymized viewing habits of more than 100 million unique users every month. Ooyala applies these insights to help publishers grow their audiences and earn more revenue with online video. This report builds on findings from our analysis of Q3 2011. Our key Q4 findings include: • Video plays on tablets, mobile devices and connected TVs nearly doubled in the fourth quarter. Expect this trend to continue throughout 2012 and beyond. • Big screens are for big content. Videos longer than 10 minutes accounted for more than half the hours played on connected TV devices & gaming consoles (CTV&GC). • Both iPhone and Android grew rapidly in terms of mobile video plays and hours watched. The mid-October release of the iPhone 4S fueled iOS growth. • Facebook continues to beat Twitter in video sharing. According to Ooyala data, for every video shared via Twitter in Q4, more than 10 were shared on Facebook. • Compared to desktop viewers, people who watched on connected TV devices and gaming consoles were 70% more likely to watch three-quarters of a video—a good gauge of viewer engagement. • As we previously reported, tablet viewers were the most engaged in Q3. In Q4, they remained a remarkably attentive audience: they were 45% more likely to complete three-quarters of a video than viewers who watched on a desktop. • I want my GTV. Google TV showed impressive growth throughout the fourth quarter. Total video plays grew by 91%. • Home for the holidays. Video plays on tablets and mobile devices were up in a big way at the end of December. While it was part of a larger trend of rapid device growth, this increase in mobile video viewing was likely an effect of the end-of-year festivities. The one-two punch of newly-gifted gadgets and time spent away from the office likely resulted in more online videos played on more devices. Questions or comments? Email videoindex@ooyala.com. Q4 2011 VIDEO INDEX REPORT 3
  • 4. VIEWER BEHAVIOR & ENGAGEMENT Ooyala’s video analytics technology Our data suggests that viewers are watching measures viewer engagement in real time. more videos online—they’re clicking “play” at We analyze conversion rates (the ratio a higher rate and watching longer per video of video displays to video plays), video play. The average conversion rate across all completion rates, social sharing events and devices, for instance, increased from 35.1% a bevy of other key metrics and variables. in Q3 to 39.6% in Q4. Moreover, viewers in When combined with data delineating device Q4 watched longer on all devices, as shown type and geography, these metrics increase in this chart. our understanding of viewer behavior. QOQ GROWTH IN TIME WATCHED PER PLAY, Q4 2011 22.0% 16.5% 11.0% 5.5% 0% Desktop Mobile Tablet CTV&GC KEY INSIGHTS Q4 viewers were People are watching Q4 data suggests that more than twice as longer on their copying and pasting likely to complete a tablets: they watched a video URL is a video when watching 21.9% longer per more common way of on a connected TV video in Q4 than in sharing than Tweeting. device than when Q3. watching on a desktop. Q4 2011 VIDEO INDEX REPORT 4
  • 5. VIEWER BEHAVIOR & ENGAGEMENT ENGAGEMENT VIEWER ENGAGEMENT BY DEVICE, Q4 2011 Device type heavily influences 80% CTV & GC viewer engagement. Viewers Tablet watching on connected TV devices Desktop and game consoles (CTV&GC) Mobile 60% in Q4 were the most engaged of all, completing videos at a % of audience rate of 47%. Tablet viewers, who completed videos 38% of the 40% time, were a close second. In Q3, desktops had the lowest engagement rates of all devices 20% types, but in Q4 viewers were least engaged when watching on mobile devices. 0% Watched 1/4 Watched half Watched 3/4 Completed video THE BOTTOM LINE: Viewers watch differently on different devices. Video publishers need to measure and understand these differences in order to create viewing experiences that engage viewers VIEWERS WHO COMPLETED 3/4 OF VIDEO LONGER THAN effectively. 10 MINUTES IN LENGTH, Q4 2011 40% 30% % of audience 20% 10% 0% Desktop Mobile Tablet CTV&GC Q4 2011 VIDEO INDEX REPORT 5
  • 6. VIEWER BEHAVIOR & ENGAGEMENT SOCIAL MEDIA As in Q3, data from Q4 indicates that the world’s biggest social network is winning the battle for viewers’ attention. For every one video shared via Twitter during the quarter, more than 10 videos were shared on Facebook. Not only that, Twitter was outpaced by a more traditional means of sharing: In Q4, users shared more videos by copying and pasting a URL than by tweeting. VIDEO SHARING VIA SOCIAL MEDIA, Q4 2011 15 Facebook/Twitter URL Copy/Twitter 10 5 OCT NOV DEC 0 THE BOTTOM LINE: Some social networks are more conducive to video sharing than others. To implement a successful social video or social TV strategy, publishers need: 1: tools to target the social networks most relevant to their audience, and 2: analytics to measure and track content sharing trends. Q4 2011 VIDEO INDEX REPORT 6
  • 7. SCREENS, QOQ GROWTH IN TIME WATCHED PER PLAY, Q4 2011 200% DEVICES & PLATFORMS 100% The headline story in Q4, 0% and for much of 2011, was the phenomenal growth of video played on non- OCT NOV DEC -100% desktop devices, such as tablets, smartphones, gaming consoles and connected TV devices. The share of non-desktop GROWTH IN SHARE OF PLAYS BY DEVICE, Q4 2011 video plays more than 200% CTV & GC doubled in Q4. Tablet Mobile 100% 0% OCT NOV DEC -100% KEY INSIGHTS In Q4, viewers People watched Google TV notched watched more videos four times as impressive growth in on mobile devices, many long videos Q4: Its share of video but on average as short videos plays increased by an stayed engaged when watching impressive 91% during longer when viewing on connected TV the quarter. on tablets. devices and gaming consoles. Q4 2011 VIDEO INDEX REPORT 7
  • 8. SCREENS, DEVICES & PLATFORMS TABLETS TOTAL VIDEO PLAYS, Q4 2011 & MOBILE DEVICES Device type heavily influences Tablet viewer engagement. Viewers Mobile watching on connected TV devices and game consoles (CTV&GC) in Q4 were the most engaged of all, completing videos at a 40% rate of 47%. Tablet viewers, who completed videos 38% of the time, were a close second. In 60% Q3, desktops had the lowest engagement rates of all devices types, but in Q4 viewers were least engaged when watching on mobile devices. TOTAL HOURS WATCHED, Q4 2011 Tablet Mobile 47% 53% Q4 2011 VIDEO INDEX REPORT 8
  • 9. SCREENS, DEVICES & PLATFORMS CONNECTED TV DEVICES & GAMING CONSOLES (CTV&GC) Recent data confirms what we published in Q3 of 2011: People watch more long-form content on their big screens than on any other device. The connected couch potato is logging on and “leaning back” with his or her favorite movies and TV shows. A couple of noteworthy findings: • Long-form videos accounted for 57% of the hours watched on a connected TV device or game console; short videos accounted for 19%.1 • Viewers using a connected TV device or gaming system watched 288% longer per play on average than desktop viewers. TIME WATCHED BY VIDEO LENGTH & DEVICE, Q4 2011 Online video isn’t “early 100% adopter” territory anymore. >10 min It’s clear that more and more 6-10 min 3-6 min people are firing up Netflix, 1-3 min Roku, Boxee or XBox to watch 75% <1 min long-form content on the big % of all hours watched screen. They’re also watching more long-form videos on 50% their iPads, Kindle Fires and Android tablets. 25% Our research confirms that people use different devices in different ways. Context matters for viewers, video 0% Desktop Mobile Tablet CTV&GC publishers and advertisers. While shorter clips dominate smaller screens and desktops, the larger viewing area THE BOTTOM LINE: Compared to desktops and laptops, which (and fewer distractions) have keyboards and let users open multiple windows, tablets of tablets and connected TV and connected TVs have few distractions. And compared to devices encourage viewers mobile devices, they offer larger screens. These factors may help explain why tablets and connected TV devices have high viewer to watch longer. engagement rates. 1 Long videos are defined as those that are longer than 10 minutes in length; short videos are three minutes or shorter. Q4 2011 VIDEO INDEX REPORT 9
  • 10. SCREENS, DEVICES & PLATFORMS VIDEO TRENDS: GOOGLE TV While still small when compared to all online video watched in Q4, Google TV’s share of video plays increased by an impressive 91% during the quarter. After a series of false starts, Google TV may finally be gaining broader traction with consumers. GOOGLE TV: GROWTH IN SHARE OF VIDEO PLAYS, Q4 2011 100% 50% 0% -50% OCT NOV DEC -100% Ratio of plays compared to 10/1 Q4 2011 VIDEO INDEX REPORT 10
  • 11. SCREENS, DEVICES & PLATFORMS IOS VS. ANDROID IOS VS. ANDROID RELATIVE SHARE OF PLAYS, Q4 2011 Both iOS and Android are 40% growing rapidly in terms of mobile video consumption. 30% Growth in the iPhone’s share of total video plays outpaced 20% that of Android for much of the quarter, a trend that is 10% partly explained by the release of the iPhone 4S on October 0% 14. Note the uptick in iPhone’s share in subsequent weeks. 10% THE BOTTOM LINE: 20% Video consumption on iOS and Android mobile devices 30% is exploding. Publishers must deliver high-quality viewing 40% Oct 3 Oct 17 Oct 31 Nov 14 Nov 28 Dec 12 Dec 26 experiences to both platforms. IOS VS. ANDROID GROWTH SHARE OF PLAYS, Q4 2011 200% IPhone Android 100% 0% OCT NOV DEC -100% Q4 2011 VIDEO INDEX REPORT 11
  • 12. THE BIG NUMBER: IP TELEVISION 336%. 460%. Note that these estimates pertain to 224%. publishers in Ooyala’s TV industry segment, which includes broadcasters, networks and That’s annualized growth projections in studios. All our analyses of this segment the share of video plays on mobile devices, indicate strong growth trends. As more connected TVs and gaming consoles, and broadcast-quality and original TV content tablets—if their growth rate in Q4 continues. becomes available online, expect an increasing number of viewers to watch their favorite shows on tablets, smartphones, Rokus and Xboxes. GROWTH IN SHARE OF VIDEO PLAYS, Q4 2011 200% Tablet CTV&GC Mobile 100% 0% OCT NOV DEC -100% Q4 2011 VIDEO INDEX REPORT 12
  • 13. GLOBAL AUDIENCES Ooyala’s data set covers video plays across The growth in online video exhibited during more than 5,000 domains in more than Q4 is reflective of a global trend: Viewers 130 countries. On a monthly basis, more are buying more devices, everywhere, and than 100 million viewers watch video watching more online video than ever before. on an Ooyala-powered site. Various analysts project that worldwide by 2015 there will be 500 million connected TVs,2 1 billion smartphones3 and 325 million tablets.4 These new screens make up a global audience of 1.2 billion viewers.5 KEY INSIGHTS Connection speeds, as measured by Emerging economies are recording Ooyala’s video technology, vary by remarkable growth in online video region, with relatively high bit rates in consumption on mobiles, tablets much of North America, Europe and and connected TV devices parts of Asia, such as South Korea. and gaming consoles. 2 “Connected TV Shipments to Exceed 138 Million Units in 2015, Putting Total Worldwide at 500 Million,” via Display Research, July 5, 2011. 3 “Worldwide Smartphone Market Expected to Grow 55% in 2011 and Approach Shipments of One Billion in 2015,” via IDC, June 9, 2011. 4 “Gartner Says Apple Will Have a Free Run in Tablet Market Holiday Season as Competitors Continue to Lag,” via Gartner, September 11, 2011. 5 “More than 200 Billion Online Videos Viewed Globally in October,” via comScore, October 2011. Q4 2011 VIDEO INDEX REPORT 13
  • 14. GLOBAL AUDIENCES BIT RATE & CONNECTION SPEED When Ooyala’s video player loads, it gauges a number of variables, including CPU status, network connection speed and available encodings. Accordingly, Ooyala’s technology delivers the appropriate video encoding to ensure optimal playback.6 The resulting data paints an interesting picture of prevailing network speeds throughout the world, as shown in the map below. AVG. BITRATE FOR DESKTOP PLAYS, Q4 2011 Desktop bit rate (kbps): Mobile bit rate (kbps): Tablet bit rate (kbps): CTV&GC bit rate (kbps): 1. United States 1,748 1. Greece 1,617 1. Ukraine 1,789 1. Italy 2,000 2. Taiwan 1,610 2. Germany 1,361 2. Sweden 1,496 2. New Zealand 1,947 3. Rep. of Korea 1,574 3. Russia 1,289 3. Netherlands 1,408 3. Japan 1,885 4. Sweden 1,506 4. Austria 1,237 4. Israel 1,405 4. Ireland 1,855 5. Germany 1,486 5. Sweden 1,232 5. Russia 1,271 5. Taiwan 1,792 6. Netherlands 1,484 6. Belgium 1,224 6. Argentina 1,187 6. United Kingdom 1,660 7. Belgium 1,465 7. Norway 1,219 7. United Kingdom 1,187 7. Israel 1,616 8. Canada 1,395 8. Italy 1,162 8. Switzerland 1,143 8. Canada 1,587 9. Italy 1,380 9. Ukraine 1,134 9. United States 1,005 9. Brazil 1,555 10. Switzerland 1,365 10. France 1,083 10. Greece 993 10. United States 1,502 6 The bit-rate numbers included in this report reflect more variables than available bandwidth. Ooyala’s technology gauges CPU status, screen size, and network capacity and availability before selecting the appropriate video encoding to minimize buffering and ensure high-quality playback. Because more variables are included, Ooyala’s measure of average bit rate is likely to diverge somewhat from industry estimates for average bandwidth rates by country. Q4 2011 VIDEO INDEX REPORT 14
  • 15. SCREENS, DEVICES & PLATFORMS EMERGING EMERGING MARKETS: GROWTH IN SHARE OF PLAYS, Q4 2011 MEDIA MARKETS 300% CTV & GC Growth in online video plays Tablet and time watched wasn’t limited Mobile to developed markets like the 200% U.S. and Europe. High-growth economies like Brazil, China, 100% Russia and India also grew strongly throughout the quarter. Connected TV devices and gaming 0% consoles led in terms of total video plays and time watched OCT NOV DEC during much of the quarter, though -100% mobile devices and tablets also notched explosive growth. Each device’s share of total online video plays more than doubled in a single quarter, reflecting robust annualized growth rates of around 1,000%. 7 EMERGING MARKETS: GROWTH IN SHARE OF TIME WATCHED, Q4 2011 200% CTV & GC THE BOTTOM LINE: Tablet While slow connection speeds may Mobile pose constraints to growth in some emerging markets, viewers’ appetite for new devices and online video is 100% creating record growth the world over. 0% OCT NOV DEC -100% 7 It’s important to note that the December vacation effect may be skewing these growth numbers. Stay tuned for the Q1 Video Index to see if this growth is part of larger trend. Q4 2011 VIDEO INDEX REPORT 15
  • 16. APPENDIX DATA TABLES GLOBAL CONVERSION RATE (PLAYS/DISPLAYS) Conversion Mobile Tablet CTV&GC Week of Rate Conversion Conversion Conversion Desktop Rate Rate Rate Oct 3, 2011 39.89% 41.11% 16.89% 40.41% Oct 10, 2011 40.08% 42.14% 17.30% 47.19% Oct 17, 2011 41.53% 41.94% 17.66% 56.30% Oct 24, 2011 42.05% 43.42% 17.88% 54.42% Oct 31, 2011 36.58% 41.98% 18.33% 36.23% Nov 7, 2011 36.80% 42.59% 18.43% 52.05% Nov 14, 2011 40.72% 43.01% 18.37% 59.30% Nov 21, 2011 36.19% 41.22% 17.64% 49.55% Nov 28, 2011 39.33% 42.94% 18.13% 57.91% Dec 5, 2011 40.97% 44.35% 19.72% 56.42% Dec 12, 2011 41.07% 44.53% 19.28% 47.75% Dec 19, 2011 42.86% 41.92% 18.82% 54.16% Dec 26, 2011 43.89% 41.97% 19.48% 53.33% VIEWER ENGAGEMENT, BY DEVICE Desktop Mobile Tablet CTV&GC Watched 1/4 55% 49% 62% 63% Watched half 48% 42% 54% 57% Watched 3/4 43% 37% 48% 53% Completed 38% 28% 38% 47% Video Q4 2011 VIDEO INDEX REPORT 16
  • 17. GROWTH IN SHARE OF NON-DESKTOP VIDEO PLAYS Ratio of Ratio of Growth in Growth in Growth in Tablet/Mobile Week of Tablet/Mobile Tablet Share Mobile Share CTVGC Share (Time (Video Plays) Watched) Oct 3, 2011 1.00 1.00 1.00 0.63 0.84 Oct 10, 2011 1.05 1.06 1.08 0.62 0.85 Oct 17, 2011 1.26 1.13 1.06 0.70 0.92 Oct 24, 2011 1.20 1.24 0.93 0.60 0.84 Oct 31, 2011 1.41 1.37 1.09 0.64 0.85 Nov 7, 2011 1.37 1.19 1.06 0.72 0.92 Nov 14, 2011 1.37 1.20 1.10 0.72 0.90 Nov 21, 2011 1.67 1.48 1.43 0.70 0.93 Nov 28, 2011 1.48 1.44 1.43 0.64 0.81 Dec 5, 2011 1.53 1.42 1.57 0.68 0.88 Dec 12, 2011 1.48 1.39 1.40 0.67 0.81 Dec 19, 2011 1.75 1.56 1.54 0.70 0.90 Dec 26, 2011 2.32 1.94 1.96 0.75 0.97 VIEWERS WHO WATCHED 3/4 OF A VIDEO Device % watched 3/4 of 10 min + video Desktop 20% Mobile 18% Tablet 29% CTV&GC 34% Q4 2011 VIDEO INDEX REPORT 17
  • 18. TOTAL TIME WATCHED, BY VIDEO LENGTH & DEVICE Desktop Mobile Tablet CTV&GC <1 min 10% 6% 6% 4% 1-3 min 29% 30% 26% 15% 3-6 min 26% 23% 22% 15% 6-10 min 10% 12% 11% 9% >10 min 25% 29% 36% 57% ANDROID VS. IOS Time Watched iPhone Android iPhone Plays/ iPhone/ Growth in Growth in Week of Android Android Share of Total Share of Total Mobile Plays Mobile Plays Plays Oct 3, 2011 0.72 0.79 1.00 1.00 Oct 10, 2011 0.81 0.83 1.12 0.99 Oct 17, 2011 0.97 0.94 1.34 0.99 Oct 24, 2011 1.33 1.22 1.71 0.92 Oct 31, 2011 1.36 1.26 1.94 1.02 Nov 7, 2011 1.00 0.99 1.51 1.08 Nov 14, 2011 1.06 1.01 1.58 1.07 Nov 21, 2011 1.20 1.03 2.01 1.21 Nov 28, 2011 1.21 1.11 1.98 1.17 Dec 5, 2011 1.03 1.00 1.84 1.28 Dec 12, 2011 0.98 1.07 1.72 1.26 Dec 19, 2011 1.33 1.25 2.21 1.19 Dec 26, 2011 1.14 1.05 2.56 1.61 Q4 2011 VIDEO INDEX REPORT 18
  • 19. NETWORKS, BROADCASTERS & STUDIOS: GROWTH IN SHARE OF NON-DESKTOP PLAYS Date Mobile Tablet CTV&GC Oct 3, 2011 1.00 1.00 1.00 Oct 10, 2011 1.06 1.17 1.15 Oct 17, 2011 1.08 1.21 1.02 Oct 24, 2011 1.08 1.27 0.97 Oct 31, 2011 1.35 1.52 1.16 Nov 7, 2011 1.14 1.53 1.09 Nov 14, 2011 1.13 1.49 1.12 Nov 21, 2011 1.40 1.80 1.37 Nov 28, 2011 1.33 1.54 1.50 Dec 5, 2011 1.36 1.59 1.60 Dec 12, 2011 1.34 1.51 1.46 Dec 19, 2011 1.37 1.67 1.58 Dec 26, 2011 1.57 2.15 1.84 GOOGLE TV Ratio of plays Week of compared to 10/3 Oct 3, 2011 1.00 Oct 10, 2011 1.08 Oct 17, 2011 1.09 Oct 24, 2011 0.94 Oct 31, 2011 1.10 Nov 7, 2011 1.09 Nov 14, 2011 1.10 Nov 21, 2011 1.44 Nov 28, 2011 1.50 Dec 5, 2011 1.65 Dec 12, 2011 1.45 Dec 19, 2011 1.57 Dec 26, 2011 1.91 Q4 2011 VIDEO INDEX REPORT 19
  • 20. EMERGING MARKETS: GROWTH IN TOTAL SHARE, BY DEVICE CTV&GC CTV&GC Mobile Time Tablet Time Week of Mobile Plays Tablet Plays TIme Plays Watched Watched Watched Oct 3, 2011 1.00 1.00 1.00 1.00 1.00 1.00 Oct 10, 2011 1.02 0.89 0.80 0.94 0.96 0.83 Oct 17, 2011 1.02 1.09 1.44 0.92 1.23 1.32 Oct 24, 2011 0.90 0.96 0.91 0.91 1.22 1.10 Oct 31, 2011 0.97 1.00 1.01 0.93 1.22 1.10 Nov 7, 2011 0.98 0.58 1.92 0.84 0.70 2.17 Nov 14, 2011 0.93 0.70 1.56 0.83 0.85 1.37 Nov 21, 2011 1.01 0.99 1.59 0.85 1.00 1.56 Nov 28, 2011 1.34 1.37 1.84 1.06 1.47 2.06 Dec 5, 2011 1.17 1.18 2.18 0.94 1.22 2.18 Dec 12, 2011 1.96 1.74 1.80 1.77 1.91 1.76 Dec 19, 2011 2.23 1.93 3.17 1.71 1.70 2.88 Dec 26, 2011 2.43 2.45 2.42 1.82 2.21 2.16 Q4 2011 VIDEO INDEX REPORT 20
  • 21. METHODOLOGY DATA SOURCES & SAMPLE SIZE The data sample used in this report covers the fourth quarter of 2011, from October 1 through December 31. All data was taken from an anonymous cross-section of Ooyala’s global customer and partner database—an array of broadcasters, studios, cable operators, print publications, online media companies and consumer brands. These firms broadcast video to over 100 different countries from more than 5,000 unique domains. More than 100 million unique viewers watch an Ooyala-powered video every month. This data sample is not intended to represent the entire Internet or all online video viewers. DATA COLLECTION Ooyala’s video analytics technology collects all anonymized video data in real time. During playback, Ooyala’s video player continuously gathers information and relays it to an analytics module, which then stores the data in a distributed file system, Hadoop. Viewer statistics are then complied and stored in a Cassandra data cluster, where the information is made readily available for analysis. ANALYSIS & METRICS • Ooyala’s video analytics module tracks a range of standard variables, such as: • Displays, plays and time watched • Viewer engagement and video completion rates • Sharing by social network • Geography (region, state, city, Designated Marketing Areas) • Device type (mobile, desktop, tablet, connected TV devices & game consoles) • Operating system (Windows, Android, iOS) • Browser (Safari, Chrome, Firefox, Internet Explorer) For more details on specific metrics and measures, please see the Metrics & Definitions section in the appendix. Q4 2011 VIDEO INDEX REPORT 21
  • 22. GLOSSARY Conversion Rate: The ratio of plays to displays. 10 displays with 1 play is a conversion rate of 10%. Completion Rate: The rate at which viewers watch a specified portion of a given video. Sometimes used interchangeably with “play-through rate.” Display: Each (and any) time a video is loaded in a browser and displayed to the viewer Mobile Devices: All smart phones, including iOS, Android, Blackberry and others. Video Play: Each time a video starts playing. Connected TV Devices & Gaming Consoles: Set-top-boxes and OTT devices, including Wii, Playstation, Boxee, Roku, Xbox and Google TV. Tablets: All media tablets, including iOS and Android. METRICS & DEFINITIONS v ) an online video p ) a publisher that owns many videos v ! p ) a video owned by a publisher p S ) is a set of publishers (e.g., the TV vertical) p ! S ) p is a member of set S "(v) ) a metric " (e.g., number of plays in Q3) evaluated over video v P "S = "p ) "S is the sum of "p for all publishers p in set S p!S r(v) = "1(v)="2(v) ) r(v) is the ratio of two metrics "1(v); "2(v) rp; rS ) the same ratios over a single publisher p or set of publishers S P P rp = ( "1(v))=( "2(v)) v!p v!p PP PP rS = ( "1(v))=( "2(v)) p!S v!p p!S v!p P P #p = ( #(v) ! w(v))=( w(v)) ) a weighted sum. v!p v!p For instance, the average length of a video played weighted by the number of plays for each video, #(v) would be the length of video, and the weight w(v) is the number of plays. Since #p is a ratio, it would also be possible to determine #S for a set of publishers using the rule above. Examples Engagement is a ratio r(v) = "1(v)="2(v) where "1 is the number of times the video was watched some percentage of the way through (25, 50, 75, 100) and "2 is the number of times it was played. Some metrics are more complex. For instance, " may be the number of times a video that was of length greater than 10 minutes was watched on a tablet device. Only videos that are longer 10 minutes contribute to this total. Q4 2011 VIDEO INDEX REPORT 22
  • 23. DISCLAIMERS & ASSUMPTIONS Data is not aggregated across all videos or providers for vertical data, and only publishers with a meaningful amount of videos watched are included. Publishers with incomplete data for Q4 have been excluded. When selecting items for inclusion in the report, Ooyala’s data science team selected metrics that were clear and meaningful. Granular measures were broken down along many categories, which resulted in a large amount of data. Rather than reporting all of this data, the Ooyala team chose to highlight those measures that give a good impression for the data set as a whole. Q4 2011 VIDEO INDEX REPORT 23