Video Online Developments

E Marketer, the research firm, says online video advertising spending in the US alone will increase from $410m (£205m) now to £2.9bn in 2010. This year it is set to grow by 89%

Its shaping up with it’s own specialist content and distribution and ad serving sectors, from traditional and new media owners across all media platforms. The eco system includes:

• Early innovators like YouTube, MySpace, Facebook, Bebo, well placed to succeed, but perhaps a new player will come along to trump them.
• New entrants like Joost, Jump, Veoh, Jalippo, too many new players coming through to mention them all, are launching soon. These global innovators challenge traditional national broadcasting structures. Some do have geographic rights restrictions with their strategic traditional content partners naturally protecting their existing interests. Consumers decided against early walled access online services once open, free choice became available. If the video content is compelling and exclusive, rights restrictions might not be a barrier to commercial development for them, perhaps they will subscribe.

Those with vested interests are watching developments closely but they have key partnerships with traditional media owners to weigh up as well.

Narrowstep, a video online streaming and content business, also Agents to international Artists and Actors, have set up their independent video online venture.

Video online provides all independent production companies with the potential to go direct to consumers, but no one seems to be in any rush at the moment, they are firmly aligned to traditional broadcasting establishments.

The democratic, free access the internet provides for new user innovation channels to stand alone will be fascinating to watch. Early entrants are progressing and gaining key commercial insights on video online, and developing advertiser and consumer relationships

International sports rights holders could use video online to control their global development. In the UK major internationally supported soccer/football clubs are being acquired. But what will this mean for their strategic broadcasting partners? Perhaps they will continue to rely on them to provide the production, broadcasting and advertising expertise, and continue to focus on their core activities in sport. Video online has opened up opportunities for sports rights holders for improved commercial activities.

Specialist free ad streaming and hosting companies like Brightcove, Videoegg, etc. who offer worldwide syndication opportunities ( providing the opportunity for rapid online brand building) are already establishing themselves as powerful content players, with key insight into consumer preference on video online advertising formats. Advertising agencies understandably will want to get close to these so that they can maintain their direct client relationships and maintain their fees.

So, this autumn 2008 commercial development of the video online market is ramping up rapidly, and 2009 will be an exciting year. Luca Media can help both existing and new players from its understanding of commercial and operational issues in this sector. Please get in touch to discuss further, or join in a dialogue on this issue on my blog.