Online video market to pass $16BN by 2018
Joseph O'Halloran | 13-07-2012
Mass proliferation of broadband, expanding viewership in emerging markets, high-quality premium content and the ability to provide access to content any time, will drive the global online video market to $16.1 billion, says research firm GIA.
The analyst beehives that given its rising popularity, online video could depose conventional TVs as the preferred medium for watching movies and other content, in the long run. This it argues can be attributed primarily to what it describes as a “paradigm shift in consumer preference” towards full-length professional content, away from short clips.
GIA also notes that the market is also witnessing a shift in the content being watched, as an increasing number of viewers are favouring professionally created, long-form content. As a result, the popularity of user generated content (UGC) is being affected, although it still holds ground as the most popular category in the online video market.
Additionally, GIA recognises the introduction of smartphones with bigger screens and tablet PCs is enabling the ubiquity of online videos to increase further, thereby fuelling growth in the market. It notes that pre-rolls have also been witnessing significant growth in the online video market in recent times.
The online video report also points out that the US represents the largest market for online videos, as the market continues to witness significant growth primarily driven by what it calls “a continuous spurt” in the options for viewing videos among online consumers. However, the penetration of online videos in emerging regions, such as the Middle East, Latin America and Asia-Pacific, is projected to outpace the same in developed regions such as Europe and North America. This is mainly attributed to the fact that in western countries, access to online videos via websites of conventional TV networks has been introduced only recently.
GIAexpects the market to witness further growth, thanks in large part to the increasing demand for 3D and HD online videos, and the salient technological changes that are taking place behind the scenes.