Video is the Collingwood Football Club of the digital world. It has potential, sure, but right now is a complete pain in the arse and under performing for all involved.
We are told people are watching video online and it’s a true statement, they are … to an extent. It’s not really massive but it’s there and growing.
Some think video will save online – as it offers the hope of large CPMs and a product that can be flogged to TV buyers.
This isn’t much more than a myth combined with wishful thinking.
Stacked next to TV (FTA and Sub) video CPMs online are exponentially more expensive.
Add to this very minimal data around consumption. Ask who is watching these videos and you’ll generally get some very flimsy data around demographics usually taken from the topline site numbers.
Ask what content appeals to what audiences and the info is even less detailed.
The way I look at it, Pay TV is online videos biggest competitor and it’s knocking it the f*ck out.
It offers similar benefits, namely
– niche content
– less ads
– quality content
– the ability to reach those who don’t watch much FTA
– significant audience growth
It’s also about 5 times cheaper.
If we want video to start to get real takeup we need to price it more in line with Pay TV. The two aren’t that different if you take off your digital blinkers.