DMI: Day 2 - Steve Mitgang, Veoh

8:47 - Mike Gordon on stage, welcoming everyone back for Day 2. Walking through agenda.

8:50 - Mitgang on stage: We are at the precipice of being able to create value.

8:55 - The Internet is the 4th act and the consumer is leading the resolution. Average viewer watches 56 minutes a week. The “:Kleenex” of video has been defined as YouTube, butits not just snacking.

8:53 - Four acts:  (1) Search — “The Web”; (2) Desktop search — “My Web”; (3) Communities — “Our Web”; (4) Site, Sound, Motion — “Media Web”

8:55 - Online video serves up a market of engaged viewers who pay more attention and are more receiptive to ads. Mitgang is going to walk through a survey Veoh did with Forrester Research. So lots of stats to follow…

8:57 - Engaged consumers - make up only 36% of all online viewer consumers, but watch 74% of videos. They spend 2.5 hours a week watching 6.1 different types of videos.

9:01 - “Passive engagement” - the stuff they are watching isn’t going to make or break them. So its not about search, its about browsing and finding something interesting. Since there’s engagement, they pay more attention. 37% say they pay more attention to online video.

9:04 - The Pyramid of Online Viewing

9:08 - Watchers - beyond showing up to view, this segment is less connected to the experience than the rest

9:08 - Controllers - >go on to exercise much more control over their online video experiences

9:09 - Connectors - They don’t just watch online video, they rejoice in it. Account for 20% of all online views.

9:10 - Since connectors are more engaged in the video, they also seem to be more cognizant that someone is funding the video. They act as ads more often. 48% of connectors notice a product or brand advertising, and 12% of them click on an ad, as opposed to only 34% of watchers and controllers.

9:13 - This is a highly empassioned group of people. If we abuse the opportunity we will lose it. So we have to be really smart as advertisers to use it.

9:14 - How does long form engage viewers? It attracts the most sophisticated engaged viewers, and it generated unique levels of enagement.

9:16 - Veoh has 35% more  connectors and controllers than any other video site. That’s because we have more long-form video than anyone else, which is why they come here. We see a spike right before a new episode airs on broadcast channels, we think that’s about catchup. We see one right after, to find out what they missed. This really is becoming your DVR.

9:20 - We have to prepare for these viewers. We advise networks and studios to get more content online. Advertisers should not repurpose as it doesn’t take advantage of the medium. Give it depth and dimension. An active mindset = greater action so deliver the message to a participant, not a recipient.

9:24 - Thank you. Time for Q+A.

9:25 - Are you seeing bilingualism carrying out in the web?

9:25 - The trends we are seeign are everywhere, but its all about size of the audience. By  localizing service and marketing message we believe we can get growth - maybe another 10% or 15%.

9:27 - How do you negotiate license agreements and have the pricing be condusive for the Internet, when the networks are used to working with the finances of cable MSOs?

9:28 - All of them are different, but they all want partners to help them figure this out. No term wasn’t something that we couldn’t deal with.

9:29 - How much of the content is web-only? What about the gaming sector?

9:29 - Eisner, or our board, believes there will be web-only hits. I just don’t believe that we can program or predict them. In terms of gaming, there are people that have uploaded their attack scenes or sequences which are watched a lot. I have to believe that since these users are passionate, that there’s an opportunity there.

9:30 - How do you classify genres of videos (beyond long- or short-form)?

9:32 - We see nothing dominating. Skew towards animation, but after that, music videos, gaming, comedy, news, sports. None of it is “mainstream” stuff because, well, that stuff is available mainstream.

Tags: DM Innovation Forum

This entry was posted on Friday, October 17th, 2008 at 8:47 am and is filed under Content Delivery Network. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.