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Short-form vid revenue to approach $13b by 2019

Short-form video revenue potential to approach $13b by 2019

Short-form video revenue potential to approach $13b by 2019

The revenue potential for short-form video is expected to approach US$13 billion by 2019, carrying a 6 year CAGR of 18.5%, according to ABI Research’s OTT and Multiscreen Services Market Research.

Increasingly, says ABI Research, companies are using viral ads to extend brands and reach a wider breadth of customers than traditional media channels. Professionally generated short-form content also allows consumers to view video (e.g. news) in bite-sized manageable chunks.

In the greater context of the online video market, which includes OTT content (mid- and long-form content) and short-form video, the latter’s share of the market is expected to decline, but this is attributable to stronger revenue growth opportunity from OTT services like Netflix, Hulu, and VUDU, which often generates more revenue per play. Overall the online video market is expected to reach over US$56 billion by 2019, with a 6 year CAGR of 23.1%.

Senior Analyst Michael Inouye comments: “Subscription services such as Netflix continue to headline the market, but EST in North America is starting to gain momentum. While initiatives like UltraViolet continue to make progress many still view the market from a service-centric point of view, leaving opportunities for companies to try differentiation strategies to win consumers. The landscape for video is shifting, but so far it continues to move at a steady pace, rather than in seismic shifts.”

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