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Ooyala’s Q2 2016 Video Index: Mobile, power users rule
Ooyala’s Q2 2016 Video Index: Mobile, power users rule
Wednesday, September 21, 2016

Streaming video is becoming more and more mainstream, with users in virtually every demographic cutting back on traditional TV viewing and replacing it with SVOD, AVOD and TVOD content. And, again across all demographics, users increasingly are watching on mobile devices.

Ooyala’s Q2 2016 Global Video Index, released today, shows that mobile – for the first time ever – made up 51% of all video views; that’s up 204% from just two years ago.

Smartphones, as expected, made up 43% of all views, while views on tablets increased to 8%. Views on smartphones were up 10% from a year ago, while tablets views were up 51%.

iOS or Android?

Despite efforts by other operating systems, iOS and Android remain the joint “king of the mobile hill,” with more than 98% of worldwide market share.

In terms of video plays, Android smartphones holding a 50% to 48% edge over iPhones. iPhones, however, hold a slight edge in terms of time watched, about 52% to 47%.

As far as tablets are concerned, however, the iPad (still) rules. 65% of tablet video plays and 73% of time watched occurred on Apple’s tablets.

That is, however, a big change from just a year ago when iOS-based tablets saw a massive 91% of video views and 93% of time watched.

Power users are different than the rest of us

In Q2, Ooyala looked at the most engaged users across SVOD, AVOD and TVOD business models, examining frequency of visits, busiest days of the week and how they used devices.

Some highlights include:

Power users visit 37% more during the work week than on weekends on ad-supported news sites. They’re also more likely to use computers to consume their content. Less frequent users, meanwhile, are prone to use mobile devices.

Peak traffic on SVOD entertainment sites for power users are Fridays and Saturdays with a significant lull on Mondays; more than three-quarters visit between two and three days a week.

For TVOD power users, traffic is slow early in the week, with weekends seeing 13X more streaming.

The Index also offers insights on how to create more traffic for each business model, especially on how to increase traffic on traditionally slower days. 

It also includes a section on reducing subscriber churn for SVOD services. Working with subscription payment specialist Vindicia, the Index posits that it’s critical to create better value perception to keep subscribers, and suggests that consumers are willing to pay extra for access to discounts and special offers that enhance the viewers experience. In fact, 75% of respondents to a survey said they would pay as much as $3.99 a month for additional perks.

Programmatic ad spending continues to evolve

The Index found that publishers continue to make more quality content available, a move that is increasing programmatic’s traction globally.

CPMs for programmatic advertising also continued to rise in the quarter, with second-price auctions seeing big growth, moving up to $19–$21 CPM.

Using analytics for business insights

The Index is based on the more than 3.5 billion video analytic events per day from 220 million viewers across the world that Ooyala sees.  

“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.”

You can download the free report here.

Stay tuned.                                                                                                      

Follow me on Twitter @JimONeillMedia and on LinkedIn

Jim O'Neill

An award-winning industry expert and futurist who specializes in the convergence of traditional TV and the Internet. My focus includes pay TV, Cloud TV, OTT, multiplatform media delivery, the ecosystem that surrounds it and consumer trends. A frequent speaker at CES, NAB, Digital Hollywood, Park’s Associates Connections events, Streaming Media and Digital Entertainment World, among others. I'm the Editor of Videomind, which in the past year has won awards from Editor & Publisher and Digiday. I'm also the Principal Analyst at Ooyala. I'm based in Michigan. I formerly was an analyst at Parks Associates and editor of FierceOnlineVideo and FierceIPTV. 

You can follow on Twitter @JimONeillMedia and on Linkedin