FreeWheel: Q4–2018 Video Monetization Report

Key findings according to FreeWheel:
1) 52%
of advertisers and agencies currently combine the buying of digital and linear TV and 91% will do so by 2021

2) 74% of advertisers and agencies say it is important or extremely important to have integrated TV and digital video data and technology

Ad views vs. video views:
Video views — ↑ 20%
Ad views — ↑ 19%
Ad load — ↓ 1%

Share by format:
Full episodes (>5m) — 61%
Live — 29%
Clips (<5m) — 10%

YoY growth by format:
Live — ↑ 51%
Full episodes (>5m) — ↑ 16%
Clips (<5m) — ↓ 14%

Share by device:
CTV/OTT — 42%
Smartphone — 20%
STB VOD — 16%
Desktop — 14%
Tablet — 8%

YoY growth by device:
CTV/OTT — ↑ 45%
Smartphone — ↑ 43%
Tablet — ↑ 14%
STB VOD — ↓ 4%
Desktop — ↓ 18%

More: Study: Lines Blurring Between Linear TV, Digital Viewing

How 5G wireless will change pay-TV industry virtually overnight

Fifth generation wireless is coming with speeds 10–100X faster than we have today.

What this means for the pay-TV industry: More competition. Cable companies are going into wireless (see Comcast) and wireless companies are going into pay-TV (see AT&T).

Big threat: If a wireless company like Verizon is able to offer fast home broadband delivered via mobile, then the number of home broadband options jumps from 1–2 to 4–5 overnight.

Remember: The majority of profit for pay-TV providers comes from selling broadband rather than the actual pay-TV service.

Flashback: T-Mobile Is Buying Layer3 And 5G Is The Reason

Watch: How it works: 5G

More #1: 5G To Drive $1.3 Trillion Media, Entertainment Revenue By 2028: Intel Study

More #2: TVs new supporting role to connectivity

Verizon Is Shutting Down Go90, Its Ill-Fated Mobile Video Service

Verizon is shutting down its ad-supported streaming service (Go90).

Go90 launched 3 years ago and peaked at ≈17M unique viewers per month.

Why this matters: The promise of Go90 was combining Verizon’s subscriber data with ad-supported video content delivered OTT. Verizon is retreating at the exact time when their #1 rival (AT&T) is making big moves in this area.

Flashback #1: Verizon Expands Deal for NBA Games

Flashback #2: In New NFL Deal, Verizon Trades Mobile Exclusivity for Rights on Yahoo

Verizon agreed to pay $2.25B over 5 years to expand its ability to live stream NFL games beyond Verizon mobile phones.

Which properties can Verizon live stream on?
1) Yahoo
2) Yahoo Sports
3) Go90
4) NFL Mobile app

Fun jab: T-Mobile CEO (John Legere) took a shot at Verizon on Twitter.

More #1: If Verizon’s recent media deals are any guide, it may be a while before AT&T reaps the benefits of buying Time Warner for ads

More #2: Go90 promised to reinvent the TV ad model. Insteadit’s shutting down

More #3: Some advertisers are cooling on Oath and losing faith in Tim Armstrong’s vision

FCC Reverses Obama-Era Limits on TV Stations’ Owners

Background — Previously stations groups operated under a regulation that capped them at 39% national audience share. This change should drive further consolidation.

Chart — I posted this on Twitter that showed the potential cap by broadcast group.

Immediate impact — More revenue opportunities for advertising as they are able to add more national brands as customers (larger footprint).

Long term impact — Improved economies of scale. Think combining local news (sports, etc.) for many markets into a national/regional product. Another idea would be further investments in data/tech such as user registrations to build out a direct relationship with consumers. Both moves make more sense when you have a larger footprint. Think Comcast and the X1 platform in the cable space. 

The 2017 U.S. Mobile App Report

A recent report from ComScore found that smartphone apps alone capture more than half of digital media time spent.

Top 10 apps:
Facebook — 81%
YouTube — 71%
Facebook Messenger — 68%
Google Search — 61%
Google Maps — 57%
Instagram — 50%
Snapchat — 50%
Google Play — 47%
GMail — 44%
Pandora — 41%

Share of Top 10 apps:
Google — 5
Facebook — 3
Snapchat — 1
Pandora — 1

Simple math. Increasing share of time spent on mobile = more ad opportunities for companies with top apps = increasing market share for Facebook/Google

Top 10 apps by age group:

Something fun. 55+ year-olds are 5X as likely to only use two hands with their smartphone. A big shout out to Granny Screenswho is holding her phone with two hands while reading this!