The IP video program marketplace is a sprawling collection of non-linear contributory channels feeding into, and intermingling with broadcast television, and likewise supported by a wide-ranging mix of advertising, subscription, paid channels, events and services on course to yield $21.8 billion in 2015 combined receipts.
Leveraging off three successive years of high double-digit annual increases, the IP video marketplace is currently forecast to settle into a more moderate growth pattern of 16.1% in 2015, poised to produce a 2003 – 2018 CAGR of 37.5%.
IP video subscription, paid channel and event services have scored 50+% of marketplace revenue since 2012, according to the industry trade resource IP Video Marketplace Monetization 2015 – 2018: Ad Spend, Subscription, Paid Channels and Event Programming Receipts, produced by Publisher.
IP video advertising (all formats, including pre-roll/in-stream, in-banner, authenticated sign-in, VOD impressions delivered through a set-top box, viral and earned views) is projected to produce 48% of marketplace revenue, with sports packages delivering low single-digit share through 2018.
Subscription movies and television dominate the IP video pay-as-you-go marketplace counting revenues encompassing international and domestic operations by the extensive group of companies, vendors, stores, sites and services analyzed.
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Event and pay-as-you-go services include Netflix, Hulu, Wal-Mart’s Vudu offering, Real Networks’ Superposes service (including an annual arrangement with CBS for Big Brother), the WWE broadband streaming channel, professional sports leagues, movie and television rentals and paid downloads effected through iTunes Video.
Going forward, we believe subscriber satisfaction at this point in the market’s evolution, is less likely to be tied to improved bit rates (often used as a marketing tactic –i.e. very highest quality files as a compelling point of services differentiation) but rather turns on library size, aggressive pricing and content accessibility across devices
Hundreds of sites monetized with in-stream/in-banner inventory in this trade research include annual views, insertion frequencies, available inventory, sell-out rates, CPMs and media spend.
Additionally, in-banner impressions are broken out by platform, including Point roll, Google/DoubleClick, Size.
Video adtech solutions include networks, RTBs, programmatic system inventory (non-duplicated), sold inventory and spend. Digital video sales are included by vendor, service and programmer.
Analysis reveals IP video advertising to be running at a 15-year CAGR of 40.6%, and IP video subscription estimated over the same period to produce a CAGR of 35.4%. For year-end 2018, we are forecasting a total marketplace revenue figure at $32.9 billion.
Publisher produces investment grade industry and trade research bridging digital video, internet music radio, download entertainment, digital video/audio advertising/spend, video and mobile adtech platform revenue and M & A valuations, ecosystem trade surveys and support, CDN and integrated media optimization software, ecosystem integrator services, and conducts Avail Play advertising and audience experience, digital diary and video impression monitoring services on-demand.
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