Online Video: The Focus is on “Premium”
Posted on November 14, 2008
Posted by Tom Turnbull
I attended the NewTeeVee Live conference in San Francisco yesterday (and really enjoyed it).
The event presented a mix of big media (e.g., Hulu.com, Fox, ABC, Comcast) and quirky YouTube stars, such as Michael Buckley.
While the Buckleys of the online video world appear to be doing well from a business perspective (and having a lot of fun) the real action is in the world of premium content.
The king of premium, Hulu.com’s CEO, Jason Kilar spoke. Hulu is going gangbusters. Hulu’s latest metrics according to Kilar:
- 12 million unique users per month
- 145 million video streams per month
- 1.5 million embedded players on 60,000 sites
- 115 content partners (it’s not just NBC and Fox)
Additionally, Hulu as tripled Fox’s online show streams.
In addition to building a large audience and presenting an enormous collection of premium content, Hulu is doing some very interesting things with advertisers. For example, Hulu recently ran a Nissan campaign where users were allowed to pick a vehicle of interest, making the advertising relatively more palatable. (On the topic of advertising, most publishers and content owers are still very much focused on pre/mid/post roll video style advertising).
ABC was in attendance too. They clearly represent the other end of the aggressiveness spectrum. They aren’t syndicating content. ABC is the “walled garden” of premium content at this point. It will be interesting to see if ABC changes its strategy if they don’t see their online audience growing as quickly.
YouTube is moving into premium content as well (e.g., CBS partnership). The cat videos simply aren’t paying the bills. Additionally, YouTube will now be allowing premium content owners to promote their videos within the YouTube directory. (As an aside, YouTube claims to be the number two search engine at this point - amazing).
The advertising panel was all focused on practices around video ads presented in premium content.
Premium is now the focus of online video and represents a second wave (or, at least a maturing) of the online video marketplace.
Great stuff NewTeeVee team!
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