The media industry is investing aggressively in online video initiatives and seizing new monetization opportunities, a study of the online video market by Brightcove and TubeMogul has discovered.
Newspapers and magazines are driving growth in video publishing activity online. Newspapers did two billion video player loads across their websites in the first quarter of this year, up 37 per cent from the same period last year. Magazines did 1.2 billion player loads, up 70 per cent.
Surge in stream growth is led by broadcast networks and web media brands. Broadcast networks, with 700 million streams a quarter, grew by over 40 per cent in the first quarter of 2010 compared to the same period last year. Web media brands clocked a 300 per cent growth across the same period.
Media companies have been ramping up video production for online distribution. In the first quarter of 2010, video uploads were up 190 percent (359,256 videos) for newspapers, 60 per cent for magazines (43,554 videos), 64 percent for music labels (24,538 videos), and 62 per cent for radio (5,730).
According to the study, newspapers are the best at getting viewers to watch an entire video at 41 per cent of their audience finishing watching to the end of the videos, followed by magazine publishers at 39 per cent, broadcasters at 38 per cent and music labels at 29 per cent.
Broadcast networks have garnered the most time viewed per video stream. Online video content from these averaged 2:53 minutes watched per stream, followed by music labels at 1:50 minutes and newspaper publishers with 1:41 minutes per stream.
The study found that Twitter referrals generate the highest level of engagement for broadcast networks (1:52 min), magazine publishers (1:23 min), and music labels (2:33 min). The exception is newspaper publishers, which see the highest level of engagement from viewers who find their content via Yahoo! (1:20 min).
Increasing engagement is the top reason media companies gave for adding video to their websites (76 percent) followed by strengthening their brand (60 percent), and increasing site visitors (55 percent). Surprisingly, increasing advertising inventory ranked fourth in the list of top reasons for using online video (33 percent).
Over half of media companies plan to rollout ad-supported mobile video in the next 6-12 months and add sponsorships to their online video monetization strategy in 2010.