Ooyala Video Consumption Data Shows Broadcasters and Media Companies How to Turn Average Viewers into Power Users

21 September 2016
Q2 2016 Global Video Index analyzes trends in subscriber churn, iOS versus Android consumption, and mobile devices now account for more than half of all online video viewing
 
SANTA CLARA, Calif. -- (September 21, 2016) -- Ooyala, a Telstra subsidiary and a global leader in premium video publishing, production workflow, analytics and monetization, today published its Q2 2016 Global Video Index drawing insights from more than 3.5 billion video analytic events per day from 220 million viewers across the world. The report this quarter profiles power-user engagement across advertising- (AVOD), subscription- (SVOD) and transactional-based (TVOD) business models. The insights can help broadcasters and publishers understand how to turn average viewers into power users by making smarter content decisions and optimizing ad loads, to reduce subscriber churn and maximize revenue.
 
The report shows that mobile devices, for the first time, now account for more than half of all online viewing, and compares video engagement between iOS versus Android users. It also continues a quarterly analysis of the growth of programmatic trading, as well as highlights how subscription services can reduce churn. 
 
The Anatomy of Power Users: AVOD, SVOD and TVOD
The report profiles viewing patterns of the most engaged users across multiple business models as well as varying verticals. The analysis for each business model includes a summary of power users’ frequency of visits, which weekdays see the highest engagement, average time spent per play and principal devices used. The insights show how AVOD, SVOD or TVOD services can approach content and advertising strategies to acquire more power users. This helps ensure they are maximizing impressions across their inventory, as well as creating, or curating, the most lucrative content for their site. Key findings show that for:
 
  • AVOD news sites, power users visit 37% more during the work week than on weekends. They also prefer computers to consume content for longer periods, compared to the average user who uses a mobile phone.
  • AVOD entertainment sites, power users watch 17% more content on Thursdays and Fridays than Monday through Wednesday, and 37% more than on Saturday and Sunday.
  • SVOD entertainment sites 76% of power users visit 2–3 days a week, with peak viewing occurring Friday and Saturday. Mondays see the least traffic from power users.
  • TVOD sites, power users produce the slowest traffic early in the week, but on the weekend stream about 13X more content than during the week. 
 
Mobile Video Trends: iOS vs. Android
For the first time, mobile devices now represent more than half of all online viewing, reaching nearly 51 percent. This is a 15 percent increase from one year ago and a staggering 203 percent from 2014. Smartphones made up 43 percent of all video views, a 10 percent increase from one year ago, while tablets made up the other eight percent, an impressive 51 percent increase from the same time period. 
 
When comparing iOS versus Android, the two mobile operating systems make up 98 percent of all mobile online viewing. For smartphones, specifically, iOS owns 52 percent of video plays while Android captures the remaining 48 percent. However, on tablets, the share of iOS viewing has declined from 91 percent in Q2 2015 to now 65 percent, just one year later. The data shows that mobile remains vital to grow audiences and maximize revenues, and ever more so on tablets as they increasingly show noticeable growth - especially on Android devices. 
 
How to Curb Subscriber Churn
In partnership with subscription payment services company, Vindicia, the report includes insights into how SVOD content providers can reduce churn. Surveying 1,000 American adults, 
the report discusses how SVOD services can create better value perception to keep subscribers longer, as well as increase revenue. Results from the survey include:
  • 74% have at least one OTT SVOD service.
  • 58% use their favorite SVOD service at least 11 hours per week.
  • 39% of customers who churn said it was due to a ‘lack of value’.
  • However, 90% are willing to pay for extra perks like access to discounts and special offers, causing them to stay with the service longer. 
  • 75% said they’re willing to pay as much as $3.99 per month for extra perks.
  • 13% of subscribers who churned cited billing complications as their reason. 
 
“The findings in the report further manifest the utmost importance of having a proper analytics solution that gives granular insight into your video business,” said Ooyala Co-Founder and SVP of Products and Solutions, Belsasar Lepe. “Only with analytics and the insights that they provide are premium content providers able to truly dig in and understand the complexities and nuances of things such as the profile of their specific power users, just how much their audience engages on mobile devices or how to properly combat subscriber churn. It can’t be overlooked, not anymore.”
 
More Q2 2016 Video Index highlights include: 
  • Programmatic continues to gain traction globally as more publishers make more quality content available and as open-market RTB deals continue to grow.
  • CPMs grew across the board, with second-price auctions moving up to $19–$21 CPM.
  • Short-form video (0-5 minutes) dominates share of viewing time on smartphones at 55%.
  • Medium-form video (5-20 minutes) earns 18-20% of viewing time on smartphones, tablets and computers.
  • Long-form video (20 minutes or longer) makes up almost all viewing time on set-top devices (92%) and 46% of tablet time.
 
More Information:
Learn more about Ooyala’s solutions for the biggest challenges in video today. This includes its media logistics solutions for video production, its video suite for OTT delivery, the industry’s first holistic ad platform, as well as analytics via Ooyala IQ for granular insight into any video business. For further industry trends please visit Videomind and follow us @Videomind and @Ooyala.
 
About Ooyala:
Ooyala helps deliver content that connects. A US-based subsidiary of global telecommunications and IT services company Telstra, Ooyala's comprehensive suite of offerings includes one of the world's largest premium video platforms, a leading ad serving and programmatic platform and media logistics solution to improve video production workflows. 
 
Built with superior analytics capabilities for advanced business intelligence and a strong commitment to customers’ success, Ooyala's industry-leading end-to-end solutions help large-scale broadcasters, operators, media companies, enterprises and brands build more engaged and more profitable audiences, and monetize video and TV with personalized, interactive experiences across any screen.
 
ESPN, NBCUniversal, Star India, Sky Sports (U.K.), ITV Studios (U.K.), RTL Group (Germany), M6 (France), TV4 (Sweden), Mediaset (Spain), America Television (Peru), and Media Prima (Malaysia): these are just a few of the hundreds of broadcasters and media companies who choose Ooyala.
 
Headquartered in Silicon Valley, Ooyala has offices in Chennai, Cologne, Dallas, Guadalajara, London, Madrid, New York, Paris, Singapore, Stockholm, Sydney and Tokyo, and sales operations in many other countries across the globe. For more information, visit www.ooyala.com.