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Webcasting & Online Transmission: Must-Read Reports & Analysis

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Global Online Broadcasting Industry

The global online broadcasting industry (part of the content provider market) continues to grow due to changing consumer habits, with internet users availing of on-demand and streaming entertainment, accessing audio and video content on a variety of devices.

The online broadcasting sector involves making TV and radio programming accessible to consumers, and facilitating publishing and content development without the high cost and time delay involved in traditional forms of media.

Key Market Segments

Online TV involves the use of video streaming technology to make television programs and video content available to viewers through the internet. Online broadcasting is increasingly popular with viewers as they can access content at anytime from anywhere and enjoy television without being tethered by broadcasting schedules as is the case with traditional television broadcasting. Viewers can access content archives to watch their chosen programs, and they can also pause, and jump back and forth in the time play of video content. Online TV broadcasting rights change depending on the country in question and sometimes change from one region to another within any one country. Broadcasting rights control copyrighted content and media distribution.

Online radio involves music streaming through the internet. Unlike traditional radio broadcasting, listeners can pause radio shows and music. They can also access playlists to find track information. According to research from Accustream, online radio and track play listening hours jumped almost 51% in 2011 to reach a volume close to 1.5 billion a month. In the same year, advertising and subscription were up 64%.  Usage and monetization results showed favorable growth in 2011, which has continued into 2012. Growth in online radio and music industry revenue has grown faster than growth in radio and track play listening. Gross media spend, encompassing all formats including display, audio and video, reached almost $294 million in 2011 and saw $172 million in subscription revenue. The overall market is expected to grow close to 80% in 2012. Audio inventory is expected to exceed 6 billion avails monthly in 2012.

Audio fill rates are expected to climb to 60% in 2012 across all segments. Mobile listening continues to grow in importance, with soaring cross device audio placements. Mobile music and track play hours witnessed more than 220% growth in 2011, equivalent to just over 40% of the total. Non-PC listening on Pandora in 2012 is at 70% of overall listening, and 50% of Slacker listening is similarly mobile. Online audio services are forecast to generate revenue of more than $2.5 billion in 2012, equivalent to 10% of the overall audio services sector.

Regional Markets

National telecommunications operator in Russia, Rostelecom, has reported a 40% increase in its online Interactive TV1 subscriber base, reaching 1 million households so far in 2012.

The UK’s broadcast sector predicts four-fold online video services revenue growth by 2012, according to Red Bee Media. More than three quarters of UK broadcasters expect positive industry growth moving forward. Online video is expected to provide a strong source of revenue in the coming year, particularly in the form of online advertising, digital streaming licensing deals and paid subscription. Competition is expected to intensify as connection speeds and the country’s broadband infrastructure improve, attracting an ever-expanding viewer base.

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Parent industry: Content Provider
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