Welcome to our new Video Insider newsletter, a morning email with the top news and analysis on the digital video industry, produced by BI Intelligence.
SUPER BOWL BRINGS BIG DEMAND FOR ONLINE VIDEO ADS:The Super Bowl is driving a massive increase in demand for online video ads in the days before and after the championship game. To ensure that their advertisements reach the largest audience possible, companies that often spend millions to air commercials during the Super Bowl are now in a rush to buy up online video ad spots. As a result, spending on online video ads has already jumped to three times its normal level in the hours after the Super Bowl. “It’s great for publishers because it’s driving up CPMs,” said Troels Smit, a vice president at LiveRail, during an interview with StreamingMedia.com. The expectation is that this trend will carry through to the Winter Olympics in February. (StreamingMedia.com)
PAY-TV SUBSCRIBERS WILL EXCEED 1.1 BILLION IN 2019: Pay-TV subscriptions reached 903.3 million in 2013 globally, and are expected to top over 1.1 billion by 2019, according to a new report by ABI Research. The report included satellite, cable, and telco TV in its analysis. IPTV, or TV delivered over the Internet instead of via cable or satellite, was a major driver of this growth, increasing by 18.5% from the previous year to 92 million subscriptions by the end of 2013. IPTV subscriptions are expected to reach 161 million in 2019. Cable TV, on the other hand, exhibited the slowest growth in 2013 among the different Pay-TV platforms, growing by only 3% from the previous year. Cable TV subscriptions actually declined by 1% to 1.5% in Western Europe and North America. (ABI Research)
CHARTER MOBILIZES FOR TIME WARNER TAKEOVER:Charter Communications has hired Innisfree, an M&A firm that specialises in unsolicited acquisitions. The move is the latest escalation in Charter’s campaign to acquire rival Time Warner Cable, following a failed $US37.3 billion takeover bid. Charter will likely engage in a proxy fight to win control over Time Warner’s board of directors. For its part, Innisfree will aid Charter in persuading Time Warner’s shareholders to vote in a new crop of directors that will be favourable to the deal. (Reuters)
WELCOME, VIDEO INSIDERS:The Video Insider newsletter covers the day’s most important topics in digital video, as well as news exclusives of interest to industry insiders. We look forward to the newsletter becoming an important part of your morning routine.
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TV, ONLINE AD SPEND UP WORLDWIDE: Global spending on advertising was up during the first three quarters of 2013, according to a report by Nielson. Television remained the most popular venue for advertisements, accounting for over 57% of all global ad spending, and growing by 4.3%. Display Internet ads comprised a much smaller share of ad spending, at only 4.5%. Nonetheless, the format exhibited explosive growth, increasing by over 32%. Latin America and Asia Pacific achieved the highest growth in advertising spending during the time period, growing by 13% and 7%, respectively. Ad spending in Europe continued to decline during the third quarter of 2013, decreasing by nearly 4%. (Nielsen)
NETFLIX SHOULD FOCUS ON AMAZON, NOT HBO: During Netflix’s fourth quarter earnings call, CEO Reed Hastings upped the war of words against HBO. However, Hastings may be better served to focus his attention on Amazon Prime, according to Business Insider’s Ryan Bushey. Amazon’s decision to release original content on a schedule closer to the traditional TV broadcast setup, its attention to viewer feedback during the creative process, and its strong relationship with content providers, such as CBS, may provide the company with several key long-term advantages over Netflix. (Business Insider)
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