How VoD is becoming the video consumption method of choice across the world

The Demographics and Technology Adoption section of our Internet Statistics Compendium saw some fascinating video-related data hit its pages in this month’s update.

As usual, we have collected the best bits from our own in-house research, as well as trends we’ve published in collaboration with other research houses and the most insightful freely available digital stats from around the web.

The ultimate NewFronts roundup

Every year, companies gather in New York to pitch advertisers on their latest and greatest digital offerings in digital media’s response to television upfronts.

Here are some of the highlights from this year’s NewFronts which occurred between April 27 and May 7…

Facebook’s portal problem

Apparently the next CEO of Yahoo will not be current Hulu CEO Jason Kilar. He reportedly isn’t interested in the job, and one of the reasons may be that he has a new friend in Facebook.

According to the New York Post, Facebook CEO Mark Zuckerberg is considering Kilar for a senior role at the world’s largest social network. His job: get Big Media to ‘like’ Facebook.

Can Google take on cable with paid YouTube subscriptions?

Google’s acquisition of YouTube may prove to be one of the savviest in internet history. Although some believed it appeared rich at the time, ask any of the companies that could have purchased Facebook for $1bn-plus less than a decade ago, and they’d probably tell you that sometimes, eleven figures is cheap.

But a big part of the reason YouTube has been so successful following its acquisition by Google is that the search giant continues to invest heavily in its development. The company is working with Hollywood to produce original content, and has made great strides over the years in inking licensing pacts with content creators.

Hulu to advertisers: pay only for completed video ad views

The internet has arguably been the most exciting new development for advertisers in the past 50 years, but that doesn’t mean that online advertising is without its problems.

Arguably, one of the biggest problems is a misalignment of the interests of media buyers and media sellers, with the latter often not appearing to care much about the value the former receives.

Are pre-roll pains now a solved problem?

When online video was still nascent, there was a general sense that the advertising models underpinning television would one day be a thing of the past.

But despite the online video boom and the rise of powerful digital distribution platforms like YouTube and Hulu, advertising in online video still looks a lot like advertising on television. Case in point: the pre-roll.

Major online video players schedule their own upfront

According to some in the tech startup community, television is dead, or should be.

Instead of striking fear in the hearts of executives at the major television networks, it probably brings a smile to their faces. After all, year after year they count billions of dollars in revenues from upfronts as it rolls in.

Hulu delays promote piracy: report

Most major media companies have accepted that digital is here to stay, and many are embracing digital, recognizing that it could some day soon be their most important channel.

But that doesn’t mean that they have stopped making poor digital decisions.

Online video usage up significantly: report

Online video may have a long way to go before it dethrones the
television in the United States, but its rapid rise shows no signs of
slowing down.

According to Nielsen, home and work online video usage rose a whopping
45% in January 2011 as compared to January 2010. Perhaps the most
impressive fact: this growth isn’t being driven by new users. The number
of unique viewers only increased by slightly more than 3%, meaning that
those who are already consuming video online are consuming more of it.

Will viewers really deal with seeing more ads in online video shows?

The more ads, the better. That seems to be the strategy for boosting online
ad revenue for publishers of all kinds. First, the Online Publishers
Association (OPA) decided that making ads bigger and bolder was one way
to help boost publishers’ dwindling CPMs. Now, the TV networks are
concluding that loading their online video shows with more ads is the
best way to increase digital revenue.

It seems to fly in the face of common sense – after all, consumers have
flocked to DVR because they can skip all of the ads hurled at them on
broadcast TV or cable. Meanwhile, with shorter attention spans on the
web, won’t more ads just make online viewers tune out? Research from the
networks says no.

Hulu screengrab

Hulu’s voodoo: Optimized online video ads lead to double the revenue in 2010

Hulu screengrabHulu has finally shed light on how much money it’s bringing in. At the
NewTeeVee Live event, CEO Jason Kilar said Hulu would close out 2010
with over $240 million in revenue. That’s double the $108 million it
made last year, and a nice benchmark for comparison to online video
platforms across the board. 

It’s very strong growth, particularly when gauged against the overall
US online video ad market. eMarketer predicts advertisers
will spend roughly $1.5 billion on online video ads in 2010. Hulu’s $240
million equates to a roughly 16% share of that market. So how has the
company attracted so much demand?