March 10, 2021
NEWS ANALYSIS — As the ad-supported VOD market skyrockets, including adoption of a new FAST acronym (free ad-supported streaming television), major media companies are clamoring to get a seat on the bandwagon.
“Not so fast,” would appear to be the advice of Neal Mohan, chief product officer of YouTube, who, in a March 10 blog post following comments given at the IAB leadership event, contends the Google-owned streaming platform already has dominant market share in the AVOD ecosystem.
Mohan says 41% of all ad-supported VOD viewing is currently done on YouTube, a reasonable assessment considering the platform, along with Netflix, literally created the streaming video market.
According to eMarketer, more than 106 million U.S. households are projected to watch streaming content in 2021, surpassing pay-TV. More than 82% of Internet-connected TV reach occurs through five streaming services: Netflix, YouTube, Amazon Prime, Hulu and Disney+, according to Comscore. Only two of the platforms sell ads: Hulu and YouTube.
“All of this makes clear how Internet-connected TV has opened a significant new chapter for video on YouTube and beyond,” Mohan wrote.
The executive claims 70% of YouTube viewers have purchased products advertised on the platform. Last December, more than 120 million people in the U.S. streamed YouTube or YouTube TV on their TV screens.
“There’s another interesting viewing behavior emerging,” Mohan wrote. “A new generation of viewers chooses to watch YouTube primarily on the TV screen: Also in December, over a quarter of logged-in YouTube CTV viewers in the U.S. watched content almost exclusively on the TV screen.”
Google this month will roll out YouTube Shorts, a mobile phone-centric platform that aims to compete with TikTok, enabling creators and artists to shoot snappy videos. Currently, Shorts is available in beta in India. Since the beginning of December, the number of Indian channels using Shorts creation tools has more than tripled, and the platform’s Shorts player is now receiving more than 3.5 billion daily views globally, according to the company.
“In the coming weeks, we’ll begin expanding the beta to the U.S., unlocking our tools to even more creators so they can get started with Shorts,” Mohan wrote.