Report: Netflix to Generate 31% of All 2021 U.S. SVOD Revenue

Netflix’s market share in the U.S. may be declining with the addition of services such as HBO Max, Peacock and Discovery+, but the SVOD pioneer is still on track to generate a third of the market’s revenue in 2021.

In its quarterly report, Brightcove June 16 disclosed that 30.8% of all domestic OTT subscription revenue will go to Netflix. Disney+ (which includes ESPN+ and Hulu) will account for 25.9% of SVOD revenue, with Google-owned YouTube accounting for 13.2%. Just two years ago, Netflix’s share of domestic SVOD revenue topped 44.4%.

Brightcove expects total U.S. SVOD revenue to rise through the end 2024, reaching $122.9 billion. This year, domestic video subscription revenue will increase 3.6% to $119.7 billion.

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As has been previously documented, streaming video flourished during the pandemic — driven by larger percentages of the population homebound due to government-mandated curfews. Additionally, Brightcove contends the pandemic reduced people’s disposable income, which it said led to a record year in pay-TV cord-cutting.

Prior to the pandemic, the growth of domestic SVOD revenue had been slowing. But in 2020, revenue rose by 41.2% from 2019, up from 34.5% in 2019.

“We expect that this year, SVOD revenues will increase by 29.9% to $38.15 billion,” read the report.

South By Southwest Confab Going Virtual Only

The annual South By Southwest Conference and Festivals Feb. 1 announced that Brightcove has been chosen as the official video partner for the all-digital event, which, for the first time, will be completely virtual and streamed to attendees around the globe March 16 to 20.

In past years, Austin, Texas-based SXSW showcased Netflix, Amazon Prime Video, WarnerMedia and other Hollywood studios showcasing new content, including home entertainment. The event also provided an opportunity for local businesses, venues, theaters, vendors, production companies, service industry staff, and other partners that relied on the increased business that 400,000 attendees generated.

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SXSW Online said it would bring together “creative thinkers” from all facets of the entertainment, media, and technology industries through a diverse combination of pre-recorded and live programming, providing up to 650 hours of content to online attendees. SXSW Online will span five different channels, emulating SXSW stages from years past, and give attendees the ability to switch channels for different content in real-time, one major benefit of at-home streaming.

“This has been such a time of change and we, like the entire world, are reshaping our perspective on how we connect with attendees,” Roland Swenson, CEO and co-founder of SXSW, said in a statement. “Given the obstacles faced in 2020 and beyond, there has never been a more critical time to come together to address some of the most important societal issues and challenges that lie ahead.

“We’re excited to work with Brightcove to bring everyone a seamless digital experience at SXSW Online this March. As a leader in the video industry, Brightcove will help us meet our goals while expanding the reach and capacity of SXSW’s programming.”


Brightcove: Global Video Consumption Up 40% in Q2

The coronavirus pandemic has proven a juggernaut for video consumption in the home. New data from Brightcove finds a 160% increase in views on connected televisions in the second quarter (ended June 30), and a 67% increase in video consumption. April produced a 75% increase in year-over-year video starts; 47% increase in smartphone video views and 64% increase in video views in North America.

“The COVID-19 pandemic has provided a roller coaster ride for all of us,” read the report.

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Brightcove found that in prior years without a pandemic, the second and third fiscal quarters typically saw slow (or no) growth in video consumption as consumers gravitate outdoors for vacations, outdoor sports, travel and increased leisure time. Indeed, this year saw month-over-month video declines with May down 15% from April and June off 10% from May.

“But, even without significant live sports to watch, video consumption grew year-over-year in every period measured,” read the report. “Study after study has shown consumers turning away from traditional TV to embrace streaming content.”

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The number of videos consumed in Q2 globally, as well as the amount of time spent watching videos, increased substantially, even as rules keeping people at home were relaxed, according to Brightcove.

“That’s not a trend we’re likely to see falter in Q3, as more people have turned to viewing subscription and ad-supported streaming video,” read the report.

Indeed, video views every month in Q2 were solid, with April seeing content views more than double as COVID-19’s threat kept consumers indoors. Even as cities opened up, May and June video consumption numbers increased year-over-year, although they were unable to compete with April’s surge during the early days of the pandemic.

Connected TVs, meanwhile, saw huge growth, but remained a sliver of the market. That’s likely to change moving forward, according to Brightcove, especially for longer content. With numbers up on every device, the report contends content owners will need to consider all devices as primary screens — at least for now.

“But that’s no surprise,” read the report. “Video consumption almost always slips as we enter warmer months.”

Study: Android Bridging Apple iOS Divide

Apple’s operating system, iOS, had dominated mobile video market share for years due in large part to the success of the iPhone and iPad tablet.

That supremacy is now in question as longtime rival Android ratchets up market share, according to new data from Brightcove.

The Boston–based software company found that while the market share of videos played on Android phones and tablets topped 64% in the second quarter (ended June 30) — up from 56% a year ago, Apple iOS saw its share slip to 36% from 44%.

Indeed, consumption of video on Android phones reached 68% in Q2, up from 59% a year ago. Smartphone share for iOS declined to 32% from 41% 12 months earlier.

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Video plays on tablets remained flat, with iOS still dominant at 60% (down from 61% a year ago) and Android tablet plays at 40%, compared to 39% in Q2 2018.

Brightcove found viewers are more likely to watch a video to completion on a tablet (44% of the time) compared to a smartphone (35% of the time). They’re also slightly more likely to consume a video in its entirety on an iOS device than an Android device.

The average minutes spent watching video on iPhones and Android phones increased over the past year.

The report found that Android use increased 6% to 16.8 minutes, while iPhone use increased 20% to 22.3 minutes. Android maintains the lead in total video consumption at 62%.

With tablets, iOS maintains its advantage in average minutes watched and share of time watched overall. Both due to the continued strength of the iPad in the market compared to other tablets, according to the report.

iPad viewers watched an average of 23.8 minutes, up from 23.4 minutes a year ago. For Android tablets, the average was 21 minutes, slipping from 23.9 minutes a year earlier. iPad video consumption is double compared to Android tablets.

“Over the past several years, tablets have become a smaller segment of the [mobile video] market, although they still see significant use and shouldn’t be ignored,” read the report.

Report: Long-Form Mobile Video Viewership Surges as iOS Use Declines

Consumption of short-form video on mobile and connected devices in the home is being challenged by long-form video, according to new data from the Q2 Brightcove Global Video Index, analyzing how viewers are watching video content, which devices they are using, and what types of content they are consuming across these various devices.

Long-form video (21-40 minutes) and ultra-long-form video (41+ minutes) saw faster growth in the share of “time watched” on every device, from connected TVs to smartphones.

Ultra-long-form content took the highest total share of “time watched” across all devices, despite short-form video (0-5 minutes) having the highest number of assets published.

The report found that 53% of global video views begin on mobile devices, smartphones, and tablets, taking away share from traditional desktop computers. Smartphones saw the highest growth, to 45% from 38% only one year ago.

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In emerging markets, especially Asia Pacific, mobile is king, where 84% of all video consumption is on mobile phones, and with Japan/Korea at 58%.

In the Middle East and Africa, smartphone use tops 57%. In every region but U.S. and Canada, mobile devices took share away from desktop computers.

The report found that the increasing quality of delivery to mobile devices, cheaper data plans, and more affordable Android smartphones from China has had a significant impact on how content is consumed.

“Leveraging mobile video continues to be crucial for OTT providers, as they look to not only reach younger viewers — who traditionally have been mobile first — but also older viewers who have discovered that mobile video is a convenient way to consume content outside the home,” Jim O’Neill, principal analyst, Brightcove, said in a statement.

O’Neill said the amount of content being consumed on mobile devices has more than doubled over the past year. He cites the fact content owners and distributors are making premium content available to consumers on any device.

“This growth will continue as more content — especially high-value sports content — becomes more prevalent and easily accessible on mobile devices,” O’Neill said.

“Mobile is no longer dominated by snackable content — instead, it provides a multi-course meal to consumers,” O’Neill said, “At the International Broadcasting Conference (IBC) earlier this month, the discussion has changed from what’s included broadly in the content mix to delivering content direct-to-consumers with more personalization and fewer limitations.”

Separately, Brightcove said the dominance of iOS on mobile devices has eroded in the past year with video viewed on Android devices now more prevalent.

Globally, Android smartphone share has increased to 68% from 59% one year ago, with Apple iOS remaining dominant for tablet plays.

Android use is highest in Asia Pacific, where 92% of video plays are on Android phones and tablets. Europe is the next highest with 70% of video plays on Android devices. Only Japan/Korea continues to see growth in iOS.


Brightcove: 58% of Consumers Stream Video at Least Once a Week

We live in an over-the-top video world.

New data from Brightcove, the Boston-based cloud services company, has released global consumer consumption preferences across generations when it comes to live and on-demand streaming video content.

The company found that 58% of consumers stream content at least once a week via a smart TV or external streaming device, 51% on a mobile device, and 50% on a computer or laptop.

As expected, millennials (19 to 36 years old) spearhead streaming video habits across all categories at 72%, 73%, and 65%, respectively.

The results are based on a commissioned YouGov online survey of 10,502 adults from the United States, U.K., France, Spain, Australia, Germany, Canada, and UAE between Sept. 5th and Sept. 27.

When analyzing all consumers’ (aged 18+) online video habits and preferences, the report found the most influential factor for consumers who are considering a new streaming service is cost (53%), followed by personal viewing interests, i.e. content (31%).

The top five reasons consumers will try out a new streaming service include a free trial (42%), a particular show (38%) exclusive content (29%), cross-device capability (28%), and user experience (26%).

TV is still the top device to consume content on (other options include mobile and computers) for regularly scheduled news (68%), regular season sports (69%), breaking news (54%), special sports events, including title fights and championship games (66%), concerts (53%), and fashion shows (45%).

Advertisements and technical issues are the key spoilers for live streaming experiences, with too many ads (37%) and poor image or video quality (35%) being the top reasons for respondents having abandoned a live stream, followed by buffering (33%) and the live stream crashing (32%).

“Across all generations, consuming online video is now an integral part of our daily entertainment routines,” Sara Larsen, CMO, Brightcove, said in a statement. “Today, we’re seeing technology-savvy consumers stepping into decision making roles, making it even more critical to understand the motivations behind these decisions.”

When analyzing millennial video streaming preferences, Brightcove found that 44% describe themselves as “browsers” when looking for something to watch, while 26% think of themselves as decisive.

Millennials feel far more satisfied consuming content through streaming service providers: 68% feel streaming service providers continually provide content they want to watch, compared to 55% who feel the same of broadcast networks and 53% for cable networks.

Notably, just 11% of millennials would embrace a subscription-based model to consume sports content, and only 24% would embrace an ad-based model. Finally, 63% of millennials share their streaming logins with at least one other person.

“Today’s reality is every generation is consuming online video more than ever, so we want to ensure our customers have the knowledge and data needed to reach massive cross-generational audiences in a way that allows them to better connect with their viewers,” said Larsen.

Tribeca Film Festival Expands Brightcove Video Platform for Global Audience

The Tribeca Film Festival April 26 announced it is expanding Brightcove’s video platform for online viewers worldwide to 2018 Festival through April 29.

The independent film festival launched in 2002 by actor Robert De Niro and others, extended the core Brightcove platform and website by incorporating emotive, engaging, video experiences around trailers, festival programs, and film guides.

Tribeca relies on video content to extend brand visibility, increase viewership, drive ticket sales and boost partnership and sponsorship opportunities. With the Brightcove platform, Tribeca is able to deliver on all these objectives across its target audiences, according to David Speer, operations manager of the festival.

“At Tribeca, our goal is to be able to showcase and provide access to the independent film culture for audiences, wherever they may be,” Speer said in a statement. “With Brightcove, we have been able to deliver an exceptional experience for our viewers to not only watch on demand clips and highlights on our website but also view trailers of our festival films and other full features and shorts to press and industry members. We continue to be impressed with the technology from Brightcove that allows us to continuously reach a wide-ranging audience, while ensuring a premium end-user experience.”

The festival also partners with Lionsgate for Tribeca Short List, an over-the-top video subscription service featuring curated movies hosted by actors, directors and producers.