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 AccuStream Research.
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.
Event and pay-as-you-go services include Netflix, Hulu, Wal-Mart's Vudu offering, Real Networks' SuperPass 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 Pointroll, Google/DoubleClick, Sizmek.
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.
IP VIDEO ADVERTISING, SUBSCRIPTION, PAID CHANNELS AND SITE VENDORS 2003 - 2018: A $21.8 BILLION MARKETPLACE IN 2015
TRENDING: IP video subscription and paid services have generated 50+% of marketplace revenue since 2012
BUSINESS OPERATIONS: The businesses driving this marketplace are owned by large media companies, whether pure-play internet multinationals, or cross-platform multinationals
IP VIDEO ADVERTISING, SUBSCRIPTION, PAID CHANNEL AND SITE SERVICES COMBINED FORECAST TO GROW BY 16.1% IN 2015
12-YEAR CAGR AT 43.9%
IP MOVIES AND TELEVISION AT $11.1 BILLION IN TOTAL 2015 RECEIPTS; $16.4 BILLION BY 2018
SUBSCRIPTION-BASED IP MOVIE AND TELEVISION REVENUES HAVE A 12-YEAR CAGR OF 84.8%
IP VIDEO ADVERTISING TO DELIVER $10.3 BILLION IN TOTAL 2015 BILLINGS
IP VIDEO SPORTS PPV, SUBSCRIPTION AND PAY-AS-YOU-GO SERVICE OFFERINGS REVENUE GROWTH: 2003 - 2015
IP Sports programming is designed for, and appeals to, mobile audiences and out-of-home users
IP VIDEO SUBSCRIPTION SPORTS LEAGUES 2004 - 2015
Subscriber revenue by service and vendor
IP MOVIES/TV DOWNLOAD AND SUBSCRIPTION SERVICES REVENUE ADVANCED 47.4% IN 2014, 13.8% in 2015
IP Movie, TV Vendor, Services provider and marketplace growth predictions
MOVIES/TV REVENUE HAS CONSISTENTLY INCREASED IN TOTAL MARKET SHARE SINCE 2003
MOVIES/TV A $14.2 MILLION MARKET IN 2004
OUT OF THE GATE QUICKLY: iTUNES VIDEO STORE CAPTURED DOMINANT CATEGORY SHARE IN 2006
MOVIES/TV SUBSCRIPTION AND DOWNLOAD REVENUE BREAKS THROUGH INTO DOUBLE-DIGIT MARKET SHARE IN 2008
MOVIE/TV SUBSCRIPTION AND DOWNLOAD REVENUE CAPTURES A 35.6% OF THE TOTAL MARKET IN 2011
MOVIE/TV PAID SUBSCRIPTIONS AND DOWNLOAD ANNUALIZED REVENUE GROWTH OUTPACES THE MARKET IN 2012
IN-STREAM AND DIGITAL (ALL FORMATS) VIDEO AD BILLINGS FORECAST AT $10.3 BILLION IN 2015
IN-STREAM AD INVENTORY TO GENERATES 46.1% OF TOTAL SPEND IN 2015
Digital Video Ad Spend: Dollars Make Sense 2015 - 2017
In-stream and in-banner video formats are twin pillars of spend, and account for 87.2% of total billings in 2015, though social and brand-direct marketing on the rise
Market mechanisms to clear video inventory have emerged in large numbers to address macro and micro adtech opportunities
Mobile video ad billings forecast at $1.4 billion in 2015, including YouTube and Facebook
DIGITAL VIDEO AD BILLINGS EXHIBIT A HISTORY OF SUSTAINED GROWTH: CAGR of 50.5% (2003 - 2014)
Premium IP video (“live” and on-demand) is sold like television: Inventory expansion frames a $4.8 billion market in 2015
Insertion frequencies rise across the ecosystem: UGC to Premium long-form
PREMIUM PUBLISHERS CONTINUE TO INCREASE IP VIDEO AD LOADS WHEN MONETIZING BEYOND THE LINEAR CLOCK
DIGITAL VIDEO ADVERTISING AVAILS AND MEDIA SPEND OVERVIEW: TOTAL IN-STREAM VIDEO SPEND IMPROVED BY 23.4% IN 2014, NON-DESKTOP BY 261.4%
In-banner video remains a potent execution format online: Ad spend forecast at $4.2 billion in 2015
IN-STREAM AND IN-BANNER VIDEO: BOTH FORMATS COMBINE TO DRIVE VIDEO AD INVENTORY SCALE