From the printing press to the blog, from the record player to the iPod, and from the stage to the home theater, the way content has been produced, distributed and consumed in the world is constantly evolving.
The digital age has brought with it great change and great challenges; to some it brings the goal of global content distribution closer. For others it represents a loss of control and maybe the loss of a business model. As this era accelerates – as content moves from controlled to distributed, as we migrate from a single platform delivery model to multi-platform delivery, as the world changes around us – we need to ask ourselves: can and will we adapt to this new paradigm? Are we the drivers of change, or will change drive us?
For those of you wary of this new, decentralized distribution model, understand that the technology exists to give you the control you need. And by opening your content to digital distribution, as so many content providers have already done, you gain unprecedented reach and scope to touch new audiences around the world, anywhere and anytime. If you embrace this opportunity, you will evolve your business model and find new channels and opportunities to deepen engagement, discover new viewers and find new, substantial revenue opportunities.
Ultimately, we all need to embark on this journey together. We cannot retreat from technological advances. Even if YouTube didn’t exist, other platforms would surely be driving this change.
The truth is that the long-anticipated convergence of TV and the computer is happening faster than anybody predicted. It’s happening now. Let’s look at just a few data points on this:
– Around 10 billion videos are viewed monthly online in the U.S. alone
– On YouTube 13 hours of content are uploaded every minute
– The number of people consuming video on their PCs is higher than ever before
– In France over 120 million hours of video content is watched per month while over 3 million mobile phone subscribers use their phone to view a video
So online video is here to stay and evolving faster and in more dynamic ways than anyone imagined, even a few years ago. As for the business questions: the market potential of online video distribution may be in its early stages, but it’s here and growing fast.
– The online video advertising market is set to be worth over a billion dollars by 2010, will reach over $3 billion by 2012, and over $5 billion by 2013
People want solutions for searching, discovering, watching, and interacting with video. And you, as content providers, are looking for new audiences and new revenue channels. Given these demands, how can we take advantage of this massive market opportunity?
Let’s recognize that video captures the visceral, dynamic quality in life and shares it with the world. This has driven YouTube’s exponential growth in the last two years. Again, 13 hours of video are uploaded to YouTube every minute. That’s the equivalent of Hollywood releasing more than 57,000 full-length movies every week. Hundreds of millions of people come to YouTube every month to search, discover and share this content with their friends.
For you, the content owners, online video provides big opportunities across the 4 Rs: Reach, Research, Revenue, and Rights Management
First, online video provides massive and targeted reach to hundreds of millions of viewers. And we’re making those videos and communities even easier to discover. Online video also provides content owners with an opportunity to extend their brand, reach new consumers, and tap new revenue opportunities, which I’ll discuss later. For this group, online video provides the benefit of longer viewer engagement with greater frequency across multiple channels.
In August of this year the International Olympic Committee launched nine Channels on YouTube. Through our platform, the IOC offered this year’s Summer Olympic Games to a truly global audience across 78 territories in Asia, Africa and the Middle East for the first time in Olympic history. Hundreds of millions of people around the world were able to engage and experience the Olympics online, many of whom never had never had the opportunity to see the Games on their televisions. All of this took place while NBC, the broadcaster that owned the rights to the Olympics in the US, effectively used our Video ID technology to monitor and quickly block copyrighted Olympic content uploaded to the site.
Second, research provides a new breed of analytic tools that dive into who, why and where your content is being watched.
The products and features being developed by online video providers continue to evolve. For example, the American rock bank Weezer launched their music video “Pork and Beans” on YouTube resulting in over 4 million views in just two days. Using our sophisticated analytics tool, the band was able to then get an in-depth look at the video’s views. This data provided an online focus group of sorts, enabling them to prepare more effective and powerful marketing campaigns. It even helped Weezer understand where their videos were being watched and then plan their upcoming tour.
And third, global distribution and analytics tools give advertisers and content owners fresh channels of revenue on new and existing forms of content. Advertisers want simplicity with reach. Online video does this by combining reach beyond TV, with the targeting, reporting and accountability of sophisticated online advertising tools and analytics. Online video began as a playground for advertisers where they could test ideas, drive brand awareness and create consumer engagement through clever viral video campaigns. In the current economic climate, this platform also provides advertisers with an affordable distribution channel and metrics to help gauge the success of a campaign and drive engagement numbers up.
The European Commissioner for information, society and media, Vivian Reding, recently hailed YouTube as a great example of how content producers and service providers can work to benefit each other through our Video Identification technology, saying: “The Youtube platform tells the rights owner if his content has been uploaded to Youtube. He then has a choice: leave it up as it is, add advertising – thus monetizing the content- or requesting that the content be taken down.” I couldn’t have said it better myself. And we will remain committed to introducing these types of protections tools in the future.
Ultimately, the online video experience is about empowerment. Consumers of online video are empowered to be their own content programmers, consuming the relevant mix of mass, niche and personal media they demand. Advertisers are empowered through data to better understand and engage with their audiences. And content owners are empowered, through sophisticated identification tools, to control their content and make smart business decisions with their content.
The proliferation of content will continue exponentially. And as methods for uploading, aggregating, personalizing and distributing digital content develop, content owners will find new challenges and business opportunities. Spurred by technological innovation, people are already looking beyond their laptops to upload, customize and distribute content from and to any device.
Video content delivered to mobile devices will open consumers, advertisers and content creators to a world of opportunity. Everything from movie watching and sharing to hyper-targeting and dynamic, interactive, location-relevant ads are emerging within the mobile market. As the Web grows, so will videos’ presence in it. Accelerated by the power of embeddable video, developers will find new, innovative ways to push the boundaries of how ads are served and watched online. And the jump from the desktop to the TV, or the phone to the TV, or the camera to the TV, will all become seamless.
Gaining control of online video content and discovering effective business models are vital not only for our growth, but for our common survival. Online video is already fully integrated into the fabric of the Web – its presence is universal, inspiring and empowering to all that embrace it. In the very near future, the distribution of online video will soon cease to be seen as a threat, but rather as a fundamental distribution solution that can be personalized on desktops, phones and tv’s alike.
Where we are today is not the YouTube era. It is not the digital content era, or the multi-platform era. Where we are today is an extension of the work you have all done, built on the shoulders of CBS, RCA and the other innovators who came before us. There is no old media. There is no new media. There is one media with one common purpose: to inform, move and inspire the world through information, art and entertainment. Together, we can find a solution that will benefit everyone in this ecosystem, from consumers to advertisers to the content owners alike.
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