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2012/12/19

| 12.19.12 | Cisco sees online video going mainstream; AOL tracks online ads

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FierceOnlineVideo

December 19, 2012

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This week's sponsor:
Globalstar
Akamai

Today's Top Stories:
1. Online video going mainstream, says Cisco study
2. AOL: Short-form video content advertising most effective
3. Tablets, smartphones to push wireline networks to 'absolute limits'
4. Hulu Plus hits 3M subscriber mark
5. Media center in the cloud player Plizy raises $4 million in funding

Spotlight:
Honda Civic drives viewers to YouTube

Also Noted:
Redbox Instant signs Epix; Boston Globe, WBZ an online video combo Much more...

News From The Fierce Network:
1. Year-in-Review 2012: Second screen opens door for all kinds of IP video plays
2. Yale unlocking campus-wide IPTV service
3. TiVo launches Spotify app on Premiere DVR
4. More headlines...

Industry Voices:
Breaking out the business case for software defined networking
By Michael Kennedy

Though much has been said and written about SDN (software defined networking), little has been said about its business case. We know at a high level that the service provider board members of the Open Networking Foundation including Deutsche Telekom, Facebook, Google, and Verizon view SDN as a means to reduce their costs and increase service delivery velocity. A more detailed view of the SDN business case can be developed by digging into the cost structures of these large service providers. Read more

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This week's sponsor is Globalstar.
Webinar: Globalstar's New "Wi-Fi" Super Highway
Tuesday, January 22nd, 11:00 am EST/ 8:00 am PST

This webinar will discuss the innovative technology, public benefits, and regulatory outlook of providing a new 22 MHz channel under the existing 802.11 IEEE standard. Join to learn technical aspects of TLPS deployment and the outlook for near-term relief from the FCC. Register Now!

Webinars

> Globalstar's New "Wi-Fi" Super Highway - Tuesday, January 22nd, 11:00am EST/8:00 am PST

Events

> Fierce Innovation Awards 2012 Live Announcement of this Year's Winners - Now Available On-Demand

Marketplace

> Shifting Performance Strategies and Solutions for Mobile and Web Experience
> eBook: Future of Multiscreen Programming
> Research: M-commerce in the UK 2012 | Verdict Channel Reports
> Research: Software: Global Industry Guide
> Research: Enterprise Applications Market Forecast in the US to 2014

Jobs

> Public Safety DAS Engineer - Houston, TX - Connectivity Wireless Solutions
> Field Technician I Job - Portland, OR, USA – Yoh
> FSO Telecom Field Technician I Job - New Orleans, LA, USA – Yoh
> Telecommunications Field Technician Job - Spokane, WA, USA – Yoh
> Telecommunications Project Controls Analyst Job - Bellevue, WA, USA – Yoh
> Director, Business Operations, Marketing and Sales Analytics – Atlanta GA – Cox Communications
> Senior Manager, Business Operations, Sales and Marketing Analytics– Atlanta GA – Cox Communications
> Senior Analyst, Business Operations, Analytics– Atlanta GA – Cox Communications
> Manager, Business Operations, Analytics– Atlanta GA – Cox Communications
> Analyst I, Business Operations, Analytics– Atlanta GA – Cox Communications

This week's sponsor is Akamai.

"Shifting Performance Strategies and Solutions for Mobile and Web Delivery" Discover ways to improve web and mobile performance with less cost and complexity in this new independent study commissioned by Forrester Consulting. Download Now.

Today's Top Stories

1. Online video going mainstream, says Cisco study

By Jim Barthold Comment | Forward | Twitter | Facebook | LinkedIn

In 2012, watching online video became more than just a hobby for cutting-edge Internet enthusiasts, found a survey performed by the Cisco (Nasdaq: CSCO) Internet Business Solutions Group (IBSG) studying the "trends and behaviors" of 1,152 video consumers in the United States.

Image source: Cisco blogs

Among the study's findings, "70 percent of U.S. broadband users are watching professionally produced Internet video every week with an average viewing time of more than 100 minutes per week," Chris Osika, senior director, U.S. Service Provider at IBSG, said in a blog.

Of course, that's the mainstream audience. The more cutting edge group of 18- to 24-year-olds came in at 94 percent.

"Overall, streaming video is ahead of downloading and about even with DVDs and Blu-ray discs," Osika continued.

Broadcast television, still more easily accessible than online video, still rules the roost, but the report noted it's probably losing ground since about 48 percent of consumers increased their streaming of "professionally produced video content" in the past two years. Average Internet viewing of professionally produced content, both streamed and downloaded, consumed 13.8 percent of viewing time, the study revealed.

Online video continues to provide the attraction of something for nothing, as free and ad supported sites such as TV network Web sites and Hulu brought in more than 40 percent of the viewers, while a for-fee play like Hulu Plus grabbed only 9 percent.

Possibly the most important trend of the study was the least surprising.

"More consumers have increased their consumption of Internet video on the tablet in the last two years than on any other video-capable device," Osika wrote. "Consumers who favor the integrated experience--merging television and the Internet via a set-top boxes--spend the most time watching Web video."

For more:
- Cisco offered this blog by Chris Osika
- the blog highlights this report

Related articles:
Tablets, smartphones to push wireline networks to 'absolute limits'
Hulu Plus hits 3M subscriber mark
Report: OTT fuels cable's ongoing subscriber losses

Read more about: Streaming Video
back to top


2. AOL: Short-form video content advertising most effective

By Jim Barthold Comment | Forward | Twitter | Facebook | LinkedIn

Consumers may not like them, but advertisements inserted in short-form video content have a better chance of being remembered than those in long form, research from AOL suggests.

The study conducted by Qualvu for AOL contradicted earlier research with its insights on how consumers perceive ads within online video content.

"Short-form produced a 25 percent higher brand recall and a 42 percent higher purchase intent for the featured product or service," according to one finding called out in an AOL press release.

Part of the reason for the success of short-form video ads versus long-form is just consumer behavior. The research found that long-form ads were seen as interruptive so viewers generally ignored them completely by walking away or doing something else while they were on, demonstrating the same "annoyance behavior" that happens when viewers watch TV without a DVR, the news release said.

Not surprisingly, the research also said consumers would like more humorous ads and 67 percent are willing to answer a question if it makes the ad more personal and enjoyable.

Finally, in an observation that demonstrates the changing online video space, the research said "consumers understand the exchange of free content for advertising" but, unlike with "free" television, they "want to make sure their time tradeoff of watching ads also benefits them." This new demand, a result no doubt of the interactive nature of the Internet, leads to coupons, contents and links as the "most positive forms of engagement," the report concluded.

"Consumption habits are evolving rapidly and we're seeing consumers display many of the same ad avoidance tendencies online than they do with TV," Ran Harnevo, senior vice president of The AOL On Network, said in the press release.

For more:
- AOL issues this press release

Related articles:
Online video will take 'significant market share' away from traditional broadcast in 2013
Time Inc. centralizes digital video business

Read more about: short-form content
back to top


3. Tablets, smartphones to push wireline networks to 'absolute limits'

By Jim Barthold Comment | Forward | Twitter | Facebook | LinkedIn

As the holiday season winds down and consumers begin using yet another batch of video-enabled devices, the world's wireline networks will be pushed even closer to their finite edge, new research from Alcatel-Lucent (NYSE: ALU) Bell Labs says.

"By 2020 consumers in the United States alone will access seven hours of video each day--as opposed to 4.8 hours today--and will increasingly consume the additional video on tablets, both at home and on the go," an ALU news release said.

Additionally, 70 percent of these same consumers will switch their viewing from broadcast to video-on-demand, as opposed to 33 percent who follow this trend today, the research noted.

While this might seem like bad news for service providers who will see the limits of their networks stretched like shirts after a holiday dinner, it's good news for a vendor like Alcatel-Lucent. And, said Marcus Weldon, Alcatel-Lucent's CTO, it doesn't necessarily have to be bad news for anyone.

"Delivery of video from the cloud and from content delivery networks to tablets, TVs and smartphones--with guaranteed quality--presents an exciting new revenue opportunity for communications service providers, but only if they are prepared to take advantage of it," Weldon cautioned in the news release. "Left unmanaged, the rapid growth in video traffic can turn into a deluge and spell disaster."

Weldon said the Bell Labs research indicates that the IP edge of both wireline and wireless networks "offers the greatest opportunity to improve network performance [and] presents the greatest source of risk if not managed appropriately."

The research also pointed out that it is not only the new devices which will impact video traffic but also the increased adoption of new ways of viewing that content--such as HD VOD--that will cause peak hour traffic at the edge of IP networks to growth 2.5 times faster than the amount of traffic on broadband connections reaching the homes.

"This challenge will need to be addressed comprehensively if communications service providers are to maintain their ability to deliver high quality residential multimedia services to customers," the news release concluded.

For more:
- Alcatel-Lucent Bell Labs issued this press release

Related articles:
Alcatel-Lucent panelists see online video as bonus, not threat
Rumor mill: AT&T gears up to order 100,000 small cells

Read more about: Bell Labs
back to top


4. Hulu Plus hits 3M subscriber mark

By Mariko Hewer Comment | Forward | Twitter | Facebook | LinkedIn

Hulu announced it will close 2012 with more than 3 million paying Hulu Plus subscribers, a huge coup for the company that also offers a version of the same service, albeit with less content, for free.

In a Hulu blog, Jason Kilar, CEO of the company, also announced the company would finish the year with $695 million in revenue, a more than 65 percent increase over 2011.

The online video streaming service, which exited beta testing and launched in November 2010, has managed to hit the 3 million subscriber mark despite stiff competition from other streaming services like Netflix (Nasdaq: NFLX), Amazon (Nasdaq: AMZN) Prime and HBO Go.

"We're so thankful to our customers and for the trust they place in us each day," wrote Kilar, adding Hulu is "doubly fortunate in that we are at the crest of two massive waves that we believe will persist for the long term: the rise of online video advertising and the rise of online video subscription services."

The Verge noted some of Hulu's recent increase in subscribers can be attributed to its deployment on the Apple (Nasdaq: AAPL) TV and Wii U as well as a 40 percent increase in the amount of content available on the site.

Mashable, on the other hand, examined the business side of Hulu by noting that, although Kilar hadn't specified what contributed to the company's revenue accumulation, "the suggestion is that this increase is due both to the growing number of subscribers and the company's growing number of advertising partnerships." According to the story, Hulu ran ads from more than 1,000 advertisers this year.

For more:
- check out Kilar's blog post
- see the story in The Verge
- read the Mashable story

Related articles:
Hulu bulks up on CBS content in non-exclusive, multi-year deal
Hulu viewership declines in visitors and viewing hours
Hulu partners buy out Providence stake for estimated $200M

Read more about: Wii, Apple Tv
back to top


5. Media center in the cloud player Plizy raises $4 million in funding

By Jim Barthold Comment | Forward | Twitter | Facebook | LinkedIn

Online media center in the cloud company Plizy received an early holiday gift when Atlas Venture poured $4 million into its coffers as part of a Series A round of funding.

According to a Plizy press release, the new round of funding allows the company to focus on "expanding its audience, aggregating more content from providers such as Cinemax, Snagfilm and Starz, and build out its offerings across multiple platforms, specifically Android and iOS."

The Plizy application lets users find relevant online videos based on an individual interest graph. It was first launched in May 2011 and last month added version 2.0 with a new website and iPad app helping users find videos and TV shows along with offering content discovery and sharing with deeper personalization, the company said.

"As video content is fragmented across many sites there is no easy way for consumers to get access to the content they want," Jonathan Benassaya, Plizy's founder-CEO, said in the news release. "Plizy offers a unique service for consumers to seamlessly search, organize, watch and share any movie, TV show or video online."

In addition to the funding, PayPal President David Marcus and Fred Destin, a partner in the technology group at Atlas Venture, have both been named to Plizy's board of directors.

Destin will be aboard to watch how the money is spent, although a quote provided in the news release indicates he will also take a proactive role in the company.

"Video is both extremely exciting from a content standpoint and completely broken from a user perspective," Destin said in the statement. "We're going to solve that with Plizy by centralizing all content in one place for easy viewing and discovery on any device."

For more:
- Plizy issued this press release

Related articles:
Third wave of UC will incorporate social media, predict Gartner analysts
ABI: Pay-TV operators have hard time working with new breed of connected devices

Read more about: cloud, online video
back to top


Also Noted

TODAY'S SPOTLIGHT... Honda Civic drives viewers to YouTube

The people in the U.K. are apparently fascinated with the Honda Civic--or, conversely, Honda has found a way to really draw attention to its car in the U.K. Either way, an advertisement for the Honda Civic topped the list of most watched automotive videos on YouTube in the U.K. in 2012. The result is something of a surprise in a market where luxury car makers like BMW (which came in third on the list) and Mercedes (10th) were supposed to be making the biggest splash. Read more

More news from around the World Wide Web...

> Redbox Instant by Verizon will use Epix content as part of its Netflix-challenging streaming video launch. Story

> The Boston Globe and TV station WBZ are partnering to provide breaking news and video on TV, in print and online. Story

> New research from IDATE suggests European pay TV operators should be worried because cord cutting is set to arrive there big time in 2013. Story

> Almost a quarter of online brands now embrace online video advertising with 11 percent going exclusively online, Kantar Media says. Story

> Swedish online licensed video service Viaplay is now available to Russian Internet users and owners of Apple mobile products. Story

> Figuring it's never too early to plan an event, Genband said its Perspectives13 Customer and Partner Summit will be held April 29 to May 2, 2013. Press release

IPTV News

> The increasing influence of online video providers and over-the-top content will lead more IPTV service providers to make it part of their overall offerings, according to the year's top story as determined by FierceIPTV. Story

Cable News

> DirecTV has added more than 30 networks to its DirecTV Everywhere platform, including programming from Showtime, A&E Networks and Viacom's Comedy Central and Nickelodeon. Story

And finally… this is the last issue of FierceOnlineVideo for 2012. Look in your mailbox Jan. 2 for the first edition of the new year. Have a nice holiday and enjoy the break.

News From The Fierce Network:

> Nielsen agrees to buy Arbitron for $1.26 billion Post
> Hellas Online joins the VDSL club Post

Webinars

> Globalstar's New "Wi-Fi" Super Highway - Tuesday, January 22nd, 11:00am EST/8:00 am PST

This webinar will discuss the innovative technology, public benefits, and regulatory outlook of providing a new 22 MHz channel under the existing 802.11 IEEE standard. Join to learn technical aspects of TLPS deployment and the outlook for near-term relief from the FCC. Register Now!

Events

> Fierce Innovation Awards 2012 Live Announcement of this Year's Winners - Now Available On-Demand

Please join Jason Nelson, Publisher of FierceWireless, FierceTelecom, and FierceCable as we announce the winners of the Fierce Innovation Awards 2012. Click here to RSVP today.

Marketplace

> Shifting Performance Strategies and Solutions for Mobile and Web Experience

Achieving reliable performance that meets web and mobile user expectations is critical to business success. If your company's web and mobile applications are either poorly designed or poorly implemented, the result can be slow responses or unavailable sites that jeopardize potential transactions and damage your company's brand. Discover ways to drive web and mobile responsiveness and learn which emerging performance-enhancement techniques show the greatest promise in this On-Demand webinar. Download Now.

> eBook: Future of Multiscreen Programming

This eBook from FierceCable will examine multiscreen programming hardware and software solutions being deployed by major cable MSOs, and take a look at some of the advanced services distributors can offer subscribers. Download for free today.

> Research: M-commerce in the UK 2012 | Verdict Channel Reports

M-commerce has expanded rapidly in 2011 and 2012, as both retailers and consumers continue to adapt to the potential of mobile devices. Not only are more people making purchases, but also more apps and mobile optimised websites have furthered the possible uses of mobile devices for shoppers. Download Now.

> Research: Software: Global Industry Guide

Software: Global Industry Guide is an essential resource for top-level data and analysis covering the Software industry. It includes detailed data on market size and segmentation, textual analysis of the key trends and competitive landscape, and profiles of the leading companies. This incisive report provides expert analysis on a global, regional and country basis. Download Now.

> Research: Enterprise Applications Market Forecast in the US to 2014

Enterprise Applications Market Forecast in the US to 2014 is a comprehensive resource for the market split by technology (ERP, product lifecycle management, customer relationship management [CRM], human resources [HR] and payroll, financial, supply chain management [SCM], and commerce applications). This Databook also provides data split by nine industry verticals. Download Now.

Jobs

> Public Safety DAS Engineer - Houston, TX - Connectivity Wireless Solutions

Connectivity Wireless Solutions delivers best in class consulting, engineering, project management, installation, and staffing services to wireless carrier and enterprise customers. The Public Safety DAS Engineer is tasked with collecting and analyzing RF data typically with tools such as test phones and needs analysis equipment such as ZK Celltest and spectrum analyzers. Learn More!

> Field Technician I Job - Portland, OR, USA – Yoh

Yoh has a contract opportunity for a Field Technician I to join our client in Portland, OR. Responsibilities include developing proficiency in primary skills of customer relations, basic electricity, basic electronics, basic telephony, radio principles for CDMA and iDEN, and basic principles of digital transmission, fiber communication, data communication, telephony terminology, industry standards, and on-line network control/maintenance systems. Two to five (2-5) years of basic microwave experience required...Learn more.

> FSO Telecom Field Technician I Job - New Orleans, LA, USA – Yoh

Yoh has a contract opportunity for a FSO Telecom Field Technician to join our client in Knoxville, TN. Responsibilties include developing proficiency in primary skills of customer relations, basic electricity, basic electronics, basic telephony, radio principles for CDMA and iDEN, and basic principles of digital transmission, fiber communication, data communication, telephony terminology, industry standards, and on-line network control / maintenance systems. Travel required...Learn more.

> Telecommunications Field Technician Job - Spokane, WA, USA – Yoh

Yoh has a six (6) plus month contract opportunity for a Telecommunications Field Technician to join our client in Spokane, WA. This role requires reliable transportation, and successful background, driving record and drug test prior to employment. Ability to lift and carry up to 50 lbs. is required...Learn more.

> Telecommunications Project Controls Analyst Job - Bellevue, WA, USA – Yoh

Yoh has a five (5) plus month contract opportunity for a Telecommunications Core Project Controls Analyst to join our client Bellevue, WA. Resonsonibilties include to assist with Core Network Order Fulfillment (CNOF) by working directly with Supply Chain, Warehouse, Shipping and Procurement departments, as well as Ericsson organizations. Candidate must have five (5) plus years of relevant experience...Learn more.

> Director, Business Operations, Marketing and Sales Analytics – Atlanta GA – Cox Communications

Responsibilities include to direct and develop a modeling and analysis function and team to quantify impact of key sales, marketing and customer programs and initiatives by channel, leading to revenue growth and improved program effectiveness. BS/BA in quantitative field strongly desired...Learn more.

> Senior Manager, Business Operations, Sales and Marketing Analytics– Atlanta GA – Cox Communications

This role will partner with functional owners on complex Marketing and Sales initiatives that can have impact across the organization. This leader will also work to build capability development (analytical tools and platforms, etc.) and may oversee or manage the work of other manager level incumbents. BS/BA in quantitative field strongly desired...Learn more.

> Senior Analyst, Business Operations, Analytics– Atlanta GA – Cox Communications

Responsibilities include providing advanced quantitative support for the development of a business driver framework to understand and quantify the causal impact of key structural, marketing, sales and product decisions on business metrics such as revenue, products and customers. 2+ years of experience using SAS for modeling and analysis required...Learn more.

> Manager, Business Operations, Analytics– Atlanta GA – Cox Communications

Responsibilities include managing the development of a business driver framework to understand and quantify the causal impact of key structural, marketing, sales and product decisions on business metrics such as revenue, products and customers and use findings to influence business planning, investments and strategy. Experience with Econometric modeling and Machine Learning methodology preferred...Learn more.

> Analyst I, Business Operations, Analytics– Atlanta GA – Cox Communications

Responsibilities include providing quantitative support for the development of a business driver framework to understand and quantify the causal impact of key structural, marketing, sales and product decisions on business metrics such as revenue, products and customers. Marketing Mix optimization experience in telecom, CPG, retail, financial services, or Consulting preferred...Learn more.


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