Aug 06

Four Reasons Why Digital Video Will Win the Decade

Pretty fascinating keynote by YouTube’s CBO, Robert Kyncl. Digital video is a must to connect with clients the future. Starts 2 minutes in.

If you’re interested in finding out how digital video content can help your brand or product drop me a line at:

mag@magshoots.com

Here are a few key points from a follow up interview from ReelSEO.com as well: http://goo.gl/DYMW05

New research we conducted with Nielsen shows that the time 18 to 34 year olds spent on TV fell nine percent last year. Meanwhile, this same audience spent 48% more time on YouTube, with mobile viewing making up the largest source of growth.  And on YouTube, the average time people spend watching video on their mobile device is forty minutes, a gain of 50 percent year-on-year.

I did what a lot of executives do at CES: I made a few predictions.

I said that by 2020, 90 percent of all internet traffic was going to be video traffic.

I talked about Michelle Phan, a young girl who had a makeup channel on YouTube that was drawing a ton of viewers and told you that she would be a major success.

And I also said that by 2020, 75 percent of all video people watched in the US was going to be transmitted through the internet.

So how did I do?

First, internet traffic. Cisco predicts that video will actually reach around 90 percent of global internet traffic by 2019—so a full year ahead of schedule.

Michelle, meanwhile, grew her channel from 2 million to 7 million subscribers, launched a cosmetics line with L’Oreal, starred in a commercial for Dr. Pepper, and raised $100 million for her startup, Ipsy, valuing it at over half-a-billion dollars. So, yes, Michelle is doing quite well.

So, how about the third prediction? That 75 percent of all video will come over the internet by 2020.

Well, let’s take a look at where things stand today.

Right now, watching video—whether on TV or online—is the single most important media activity.

There are only two things we do more than watch video: sleep and work. More than five hours a day are spent watching video, and those hours fuel a $200 Billion economy, with the majority of that money coming from Pay TV subscriptions.

But, according to a brand new study by Nielsen, TV viewing actually peaked in 2009. Prior to that, TV had grown every single year for fifty years.

And more recently, the number of TV subscriptions began to decline as people started cutting the cord. In the second quarter of last year, 600,000 people cut their TV subscriptions, setting an industry record.

At the same time, digital video is exploding. Already the youngest millennials are watching more digital video than TV.

In fact, it has now overtaken social media as their top online activity.

All told, the amount of time people spend watching digital video is about an hour and fifteen minutes a day and is growing around 25 percent a year.

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