1、GLOBAL VIDEO INDEX Q2 2016 2 OOYALA GLOBAL VIDEO INDEX Q2 2016 POINT OF VIEW 4 ANATOMY OF A POWER USER 8 VIDEO ADVERTISING TRENDS 14 THE IMPACT OF CHURN ON SVOD SERVICES16 TABLET AND SMARTPHONE VIDEO TRENDS 20 iOS OR ANDROID? 24 ENGAGEMENT PATTERNS BY DEVICE TYPE 26 ABOUT OOYALAS GLOBAL VIDEO INDEX

2、28 TABLE OF CONTENTS OOYALA GLOBAL VIDEO INDEX Q2 2016 3 Count this as one giant “congratulations,” a slap on the back. Get yourself a cup of coffee on the house. Whether youre a broadcaster, OTT provider, or a content owner going over the top direct to consumers, youve earned (at the very least) a

3、big smiley face. Why? Your customers by and large are happy with you. A recent survey from U.S. researcher J.D. Power found that customers of subscription video on- demand services are far more satisfied with their services than pay-TV subscribers much, much more. The survey found SVOD users gave st

4、reaming companies an average 823 points (on a 1,000-point scale) for performance and reliability, content, cost of service, ease of use, communication, and customer service. Compare that to the most recent J.D. Power study of pay-TV customers. Last September, the organization found that customers ra

5、ted their pay-TV service at 723, an improvement of 12 points from the previous year, but still, well, meh. Another survey, from the University of Michigans Ross Business School, the American Customer Satisfaction Index, delivers an even more sour view of pay TV, giving the industry a 65 (out of 100)

6、, which ranks it below airlines, municipal utility companies and health insurers. And consumers arent just taking a grin-and- bear-it approach. In Q2, U.S. pay-TV providers lost 812,000 subscribers, their worst quarter ever. But OTT providers and content owners are seeing just the opposite. CBS All

7、Access and Showtime each have more than 1 million subs, Sling TV is nearing that number, while Netflix and Amazon battle it out on a global scale with tens of millions of subscribers. Worldwide, the streaming industry is seeing phenomenal growth, both in the number of subscribers and in the number o

8、f services that are rolling out. Its a heady time to be a streamer. But, as the industry becomes more crowded, the low-hanging fruit a higher reach, delivering quality and reliability will become more critical; knowing your audience, even more so. This quarters Video Index delivers deep insights tha

9、t only Ooyala can provide about the business of streaming, looking at power AVOD, SVOD and TVOD users. Power users visit your platform most often, watch the most video and watch on devices that are often different than those watched by less-engaged customers. AMONG OUR POWER USER FINDINGS: On an AVO

10、D news site, for example, users visit 37% more during the workweek than on weekends and use computers to consume content for longer periods, compared to the average user who uses a mobile phone. Visitors to an AVOD entertainment platform on Thursdays and Fridays watch 17% more content than they do M

11、onday to Wednesday, and 37% more than they do on Saturday and Sunday. 4 OOYALA GLOBAL VIDEO INDEX Q2 2016 POINT OF VIEW JIM ONEILL, PRINCIPAL ANALYST time watched soars some 76% more than the MondayFriday average. The fewest views occur on Saturday, followed by Sunday. Time per play: It makes sense

12、that for news publishers, viewers are likely to stay for shorter time periods, sampling news and video at multiple times during the day: 72% of time per play among power users was for sessions shorter than 9 minutes in length. 19% of time per play was between 9 and 18 minutes. The remaining 9% was f

13、or sessions lasting between 18 and 36 minutes. On an average day, power users spend as much as 36 minutes a day watching video on the platform; but the vast majority, 75%, stay as long as 18 minutes. Neither number is unusual in that users are returning multiple times to catch up on news and sports.

14、 Principal devices used: PCs were the devices of choice for power users catching up on the news as more than 90% of them eschewed mobile devices; 10% of power users, split evenly, used smartphones and tablets. Among the larger population of users, interestingly, about 70% consumed content on mobile

15、phones, 20% with computers and 10% with tablets. OOYALA GLOBAL VIDEO INDEX Q2 2016 9 AVERAGE DAYS VISITED AVERAGE TIME PER PLAY 9.97 8.4 minutes AVERAGE TIME WATCHED PER DAY 16.2 minutes AVOD NEWS PLATFORM POWER USERS AVOD ENTERTAINMENT PLATFORM Top-line view: Consuming AVOD entertainment programmin

16、g is all about mobility for power users, with about 90% of them using either mobile phones (48%) or tablets (42%) to consume content. Thats true for the general audience as well, as more than 60% of average users watch on mobile devices. So make sure content both entertainment and ads appears correc

17、tly for each device. Search and recommendation should be consistent with a solid interface. It also may be a good time to experiment with some vertical content and ad formats, as research shows increased engagement, especially among younger users who are mobile-dependent. As only 16% of this audienc

18、e visits more than 14 times a month, consider holding back some top-performing content for those days of the week where traffic is slower, especially weekends which are noticeably slow, to try and add views. Fridays are exceptional for AVOD entertainment traffic; consider applying a premium to Frida

19、y CPMs to leverage the popularity of Friday content. Frequency of visits: 64% of power users visit between seven and 10 days a month. About 20% return between 11 and 14 days a month. Some 16% of viewers return more often, some every day. Days of the week: Viewers here are most engaged on Thursdays a

20、nd Fridays, when we see a spike of both the number of plays and of time watched: Plays are 17% higher than the workweek and 37% higher than SaturdaySunday. Sunday sees the fewest plays and time watched of any day. Time watched on Thursday and Friday is 13% higher than the average for Monday Friday a

21、nd 78% higher than Saturday Sunday. Friday is the biggest viewing day, with more plays and more time watched than any other day of the week. Time per play: 62% of sessions were 45 minutes long. About 25% of time/play was 60 minutes. The remainder of plays were more than 1 hour. 73% of power users sp

22、end as much as 156 minutes a day on the platform, with the remaining 27% spending more time. Most power users, about 59%, spend between 45 minutes and 120 minutes on the site. 41% of users spend between 121 minutes and a whopping 448 minutes watching video on the platform. Principal devices used: Fo

23、r catching up on general entertainment and watching some news and sports, power users relied almost exclusively on mobile devices, with more than 45% using smartphones and nearly as many choosing tablets. PCs made up just 10% of devices used by power users. Among average users, smartphones were the

24、device of choice of 55% of users, computers just more than 35% and the remainder, about 10%, tablets. ANATOMY OF A POWER USER 10 OOYALA GLOBAL VIDEO INDEX Q2 2016 AVERAGE DAYS VISITED AVERAGE TIME PER PLAY 11.05 51.6 minutes AVERAGE TIME WATCHED PER DAY 133.8 minutes AVOD ENTERTAINMENT PLATFORM POWE

25、R USERS OOYALA GLOBAL VIDEO INDEX Q2 2016 11 THE POWER SVOD/ TVOD USER Our sample of SVOD and TVOD power users came from general-interest entertainment sites that offer either: Subscription-based TV titles and the ability to watch current TV in catch-up mode A wider variety of movies, catalog TV tit

26、les and box sets for purchase and limited- time rental. SVOD ENTERTAINMENT PLATFORM Top-line view: Traffic is consistent across the week, although Sundays and early in the week have fewer visits. That viewing profile may be due to “tentpole” linear programming and then catch-up viewing during the ne

27、xt 2472 hours; that viewing, in turn, may fuel discovery of more content by viewers eager to consume similar content. Leveraging that early uptake with recommendations could help drive more viewing. Meanwhile, only 23% of power users visit more than 14 days a month. Nearly all power users use a comp

28、uter (97%) to view content, compared to just 65% of all users. Consider debuting some premium content early in the week to pull more traffic to those days. Also, make sure access on tablets, mobile phones and set-top devices is easy and consistent. Expanding viewership across devices could add to su

29、bscription numbers. Frequency of visits: 71% of power users visit seven to 12 days a month. About 15% return between 13 and 16 days a month. Days of activity rarely exceed 24 days a month. Days of the week: Users are active on the site most heavily between Tuesday and Saturday, with only a modest fa

30、ll-off of engagement on Sunday and Monday. The strongest viewing, in terms of time watched, occurs Wednesday through Saturday, when subscribers stay about 10% longer than the full-week average. Time watched peaks on Friday and Saturday, when viewers spend 20% more time watching than the rest of the

31、week. Viewing on Sunday and Monday is off nearly 17% from the rest of the week. The number of plays for power users stays fairly steady throughout the week, with just a small decrease on Mondays, the least active day of the week. Time per play: As expected, time per play among SVOD subscribers who u

32、se the platform to watch longer content and/or to binge watch was nearly twice that of AVOD users: 70% of sessions were between 120 minutes and 150 minutes. About 20% of sessions were between 150 minutes and 180 minutes. 10% of sessions were in excess of 180 minutes. When these power users visit the

33、 platform, nearly 91% of them spend between 120 minutes and a whopping 390 minutes viewing content throughout the day. About 9% spend between 391 and 504 minutes a day watching video when they visit. Principal devices used: Power SVOD users consuming catch-up TV and general episodic TV used PCs more

34、 than 90% of the time, with tablet devices showing up about 5% of the time and, surprisingly, smartphones nearly non-existent. Among all users, however, smartphones were used nearly 30% of the time, behind computers (more than 60%), but ahead of tablets (just less than 10%). AVERAGE DAYS VISITED AVE

35、RAGE TIME PER PLAY 11.41 145.2 minutes AVERAGE TIME WATCHED PER DAY 276 minutes SVOD ENTERTAINMENT PLATFORM POWER USERS TVOD ENTERTAINMENT PLATFORM Top-line view: For transactional video on-demand (TVOD) services, its not so much about how many subscribers you have (although a healthy cache of credi

36、t cards on record makes for more potential customers in the long term), but more about how easy it is to use the platform for rentals, how many devices it works on and how easy it is to find and rent content. TVOD power users visited the platform most often on weekends. To expand viewing to other da

37、ys of the week, consider making special offers to power users like discounts and access to special content on weekdays only. Studies show that SVOD users are willing to spend to receive these perks; TVOD users likely will as well. To create a more diverse universe of devices that are being used, dis

38、count codes or BOGO offers on content watched on mobile devices, for example, could be a regular staple. To capitalize on already heavy weekend usage, emails with suggestions on “what to watch this weekend” could drive additional consumption. As one Ooyala customer found, emails sent out 24 hours ah

39、ead of assumed consumption tend to be effective because thats how long it takes some viewers to decide to watch a film. Frequency of visits: 71% of power users visit between 8 and 10 days a month. About 15% return to the platform between 11 and 12 days a month. Few return more than 17 days a month.

40、Days of the week: Its clear that in the minds of many consumers TVOD services are replacing the weekly trip to the video store/kiosk. TVOD users showed a strong affinity for weekend time watched and plays, with weekends registering 13X more of both. Tuesday through Thursday time watched and playing

41、time are minimal. Time per play: Time per play on the TVOD site also was longer than AVOD samples, but less than SVOD power users: 70% of sessions were between 72 minutes and 90 minutes. Nearly a quarter (24%) of sessions stretched 91 minutes to 120 minutes. The remaining 6% were between 121 minutes

42、 and 165 minutes. Like the SVOD power users, TVOD users tend to binge. More than 90% of power users spend 120 to 300 minutes viewing content on the days they visit the site. Just 4% spend 90 minutes or less viewing content and 6% watch more than 300 minutes. THE BOTTOM LINE There are significantly d

43、ifferent profiles among AVOD, SVOD and TVOD power users; even different traits within the AVOD power-user community. That means content owners will have to adapt business tactics to the distribution strategy they choose. SVOD and TVOD platforms that feature long- form content like episodic TV and mo

44、vies experience extremely heavy traffic for extended periods of time, suggesting rampant binging by their subscribers who consume large amounts of content at a sitting. That means theyll need to make sure to cycle new content in regularly for their audience, or risk losing them. The cost of content

45、will mean providers may have to be flexible in their subscription rates, setting them high enough to offset the cost of content, but not so high that theyll drive users away or fail to attract them in the first place. For AVOD sites, meanwhile, understanding what ad loads users will accept will be c

46、rucial, as will the ability to offer fresh ads rather than repeatedly showing the same one over and over. Both news publishers and general entertainment providers will need to produce or contract for new content that can keep viewers engaged. Both could also consider premium sites without ads, la Hu

47、lu and CBS All Access, which both could launch ad-free sites later this year. ANATOMY OF A POWER USER 12 OOYALA GLOBAL VIDEO INDEX Q2 2016 AVERAGE DAYS VISITED AVERAGE TIME PER PLAY 8.93 88.8 minutes AVERAGE TIME WATCHED PER DAY 188.4 minutes TVOD ENTERTAINMENT PLATFORM POWER USERS OOYALA GLOBAL VID

48、EO INDEX Q2 2016 13 How viewers watch television isnt the only thing thats changing brands increasingly are going online to reach consumers, especially younger ones, who have trended away from traditional TV viewing. Magna Global, for example, in May announced plans to move $250 million in tradition

49、al linear TV spending to online video. Why? Traditional TV just isnt being watched as much. Its being replaced by online video. “In the past, we werent taking a bite out of linear budgets for a number of reasons,” said David Cohen, US president of Magna Global. “But really, over the last six months, weve been trying to knock down those barriers in earnest. We realize this is a marathon, not a sprint, so as time goes on we recognize that there will need to be new opportunities we include.” The mig