Q4 2016 Digital Video Trends: Monetization, Audience, Platforms and Content - eMarketer

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Q4 2016 Digital Video Trends: Monetization, Audience, Platforms and Content

eMarketer Report

By: eMarketer

Published: December 02, 2016

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

This is the latest installment in an ongoing series of quarterly video ecosystem overviews focusing on monetization, audience, platforms and content. Our goal is to provide a summary of key developments each quarter on a need-to-know basis.

  • The US digital video market remains a tale of two monetization mechanisms: advertising and subscriptions. YouTube and Facebook, among others, solidified the case for video advertising in Q3 2016, while some services, notably Vimeo, Hulu and Amazon, doubled down on subscription-based approaches.
  • Connected TV users in the US jumped by more than 20% this year. However, as the format continues to approach saturation, growth rates will level off to single digits starting next year. Smart TV usage also increased significantly in 2016 and will remain a strong growth category.
  • Game consoles are the most popular devices for streaming videos on connected TVs and will stay there through the end of the decade. However, smart TVs will gradually close the gap, and specific devices like Amazon Fire TV, Google Chromecast and Roku will continue to gain momentum. Content platforms are led by YouTube, followed by Netflix and Amazon, both of which will keep surging over the next few years. Hulu will take a hit because of its recent decision to forgo free access in favor of paid content.
  • The proposed merger between AT&T and Time Warner proved once again that content is king. Netflix and Amazon led among digital services for content expenditures in 2016, with outlays that put them on par with top TV and premium cable networks.

"The number of connected TV users climbed 20.6% in 2016, accounting for 56.1% of the US population. By 2020, users will reach 202.1 million, confirming that watching digital video on connected TVs is a mainstream activity."

Table of Contents

Monetization

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Audience

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Platforms

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Content

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33 charts are included in the full report:

Q4 2016 Digital Video Trends: Monetization, Audience, Platforms and Content

US Connected TV Users and Penetration, 2015-2020 (millions, % of population and % of internet users)

Monetization

Video-on-Demand (VOD) Revenues Worldwide, by Region, 2016 (billions)

US TV Viewers' Preferred Method of Watching and Paying for TV Shows Digitally, Aug 2016 (% of total)

Advertising

US Programmatic Digital Video Ad Spending, 2014-2018 (billions, % change and % of total digital video ad spending)

YouTube Net US Video Ad Revenues, 2015-2018 (billions, % change and % of total video ad revenues)

US Digital Video Ad Benchmarks: Ad View Share, by Device/Channel, Q2 2016 (% of total ads served by FreeWheel)

Change in Number of Ads* Seen per Episode on Select TV/Video Services According to US TV Viewers, Aug 2016 (% of respondents)

Level of Confidence in ROI from Recent Digital Video Ad Purchases According to US Ad Agency Professionals, Nov 2015 & Aug 2016 (% of respondents)

Importance of Extending Video Buys into Premium Digital Video from Cable/Broadcast Networks According to US Ad Agency Professionals, July 2015 & Aug 2016 (% of respondents)

Difference Between Facebook and YouTube Video Ad ROI According to US Marketers, Sep 2015, Feb 2016 & Sep 2016 (% of respondents)

Subscriptions

Netflix Streaming vs. DVD Revenues Worldwide, US vs. Rest of World, Q1 2013-Q3 2016 (millions)

Netflix Streaming vs. DVD Subscriptions Worldwide, US vs. Rest of World, Q2 2013-Q3 2016 (millions)

Audience

US Connected TV Users and Penetration, 2015-2020 (millions, % of population and % of internet users)

US Smart TV Users and Penetration, 2015-2020 (millions, % of population and % of internet users)

US Over-the-Top (OTT) Video Service Users, 2015-2020

Average Time Spent per Day with Major Media by US Adults, 2013-2018 (hrs:mins)

US Internet Users Who Subscribe to Subscription Video-on-Demand (SVOD) Services, 2013-2016 (% of respondents)

Likelihood that US Pay TV Subscribers Will Cancel Their Pay TV Subscription and Use Only Streaming Video Services, July 2016 (% of total)

Number of Video-Capable Devices Owned by US Broadband Households, Q2 2016 (% of respondents)

US Internet Users Who Have Access to Streaming Video Services, by Demographic, July 2016 (% of respondents in each group)

US Internet Users* Who Have Watched a TV Program via Smartphone, by Age, July 2016 (% of respondents in each group)

Platforms

US Connected TV Users, by Device, 2015-2020

US Internet Users Who Own a Connected TV Device, 2014, 2015 & 2016 (% of respondents)

US TV Household Penetration of Select Devices/Technologies, Q2 2016 (% of total)

Devices Used by US Digital Video Viewers to View Streaming Video Content, July 2016 (% of respondents)

Content Platforms

US Over-the-Top (OTT) Video Service Users, by Service Provider, 2015-2020

Subscription Video-on-Demand (SVOD) Services Used by US Internet Users, 2015 & 2016 (% of respondents)

Platforms Used by US Internet Users to Watch Live Streaming Video, Aug 2016 (% of respondents)

Video-on-Demand (VOD) Services Used by US Cord-Cutters, Aug 2016 (% of respondents)

Content

Content Spending for Select US TV Networks and Subscription Video-on-Demand (SVOD) Services, 2016 (billions)

Number of Scripted TV Shows Premiering on US Video-on-Demand (VOD) Services, 2012-2016

Share of Original Content on US Amazon Prime Video vs. Netflix, Q1 & Q2 2016 (% of total content on each service)

Types of Short-Form Digital Video Content Typically Viewed by US Digital Video Viewers, June 2016 (% of respondents)