1. Market Research
  2. > Telecom
  3. > Internet Services Market Trends
  4. > IP Video Publisher Receipts and Tech Vendor Payments: Ecosystem Profit Per COGS/OpEx Unit of Investment 2015 – 2017

IP video publishers are forecast to deliver $22 billion in ad sales and subscription receipts across all platforms and geographies served in 2015, made against related COGS/OpEx vendor payments of $10.3 billion, according to a multi-disciplinary, industry-wide analysis carried out by AccuStream Research.

IP video publisher receipts, and fees paid for requisite technology support and services (i.e. CDN, mobile video adtech, desktop/cross-channel video adtech, players, integrated CMS platforms and media processing), when evaluated against tech vendor net revenues indicate positive operational margins have been maintained, currently estimated at 46% in 2015. (NOTE: This analysis pertains to tech payments only, and excludes subscription IP video service content licensing fees made to rights holders).
Publisher revenues utilized as a basis for multi-year marginal analysis are generated from the sale of video advertising (in-stream, in-banner, VOD, authenticated sign-in, viral and social), plus IP video subscription services or download-to-own stores.

Complete performance results contained in IP Video Publisher Receipts and Tech Vendor Payments: Ecosystem Profit Per COGS/OpEx Unit of Investment 2015 – 2017, show margins have historically landed in the 44 - 57% range (excluding any content licensing or rights payments), though expected to decline sequentially over the next several years as sophisticated IP cross-channel video adtech infrastructure deployments ramp up to support linear and non-linear broadcast groups more closing the gap between operating units.

IP video publishers are tasked to run very lean digital businesses, and have enough pricing leverage in the marketplace to secure favorable agreements across the entire tech vendor landscape; publishers can demand highly sophisticated and even customized solutions at near commodity prices.

Moreover, as the market works through rounds of tech consolidation, vendors have adopted business models and sell-in strategies offering their publisher partners generous and flexible pricing, often structured against performance incentives designed to drive down unit costs further as services scale.

IP video publishers, on average, generate $2.13 in combined advertising and subscription revenue for each $1 in tech vendor billings at present, though projected to decline through 2017.

Table Of Contents

IP Video Publisher Receipts and Tech Vendor Payments: Ecosystem Profit Per COGS/OpEx Unit of Investment 2015 - 2017
SECTION ONE: ECOSYSTEM ROI's 6
IP VIDEO PUBLISHER AND TECH VENDOR RECEIPTS AND COGS/OpEx MARGINAL PERFORMANCE METRICS: BOTTOM LINE OVERVIEW 2015 - 2017 6
Vendor business models and strategies are flexible and often structured against performance guarantees or flat rate pricing that supports consistently positive IP video publisher gross margins 6
IP video publishers operate lean business units that maintain solid margins (i.e. revenue minus COGS/OpEx associated with operations) 10
Marketplace inversion: IP Video COGS/OpEx to outpace monetization growth rates in the 2015 - 2017 timeframe 13
IP video publishers generate $2.13 in combined advertising and subscription revenue for each $1 in tech vendor billings at present, though declining through 2017 13
Marginal integrity forecast to be sustained through 2017, though at a declining rate as tech upgrades to video platforms and adtech systems/solutions deploy 13
IP video publisher margins at 53% in 2015, 46.8% in 2016 14
Where the money goes: IP video adtech and inventory clearing vendors have captured the largest share of video technology investments made since 2012 15
IP video solutions related revenue total $10.2 billion in 2015, including CDN, cross-channel video adtech, video processing/platforms and mobile video adtech 16
Monetization efforts layered on top of CDN are highly cost effective 18
Desktop and mobile IP video adtech solutions to produce $5 billion in 2015, $6.9 billion in net tech billings, while publishers capture $10.3 billion in ad spend 21
IP video platform growth to increase over the next several years; share of tech billings to increase to 13.2% in 2015, 15.7% by 2017 21
Mobile adtech is a high growth market segment, but remains the smallest component to total COGS through 2017 23
SECTION TWO: IP VIDEO PUBLISHERS 25
MAKING MONEY: IP VIDEO 2015 25
IP VIDEO ADVERTISING, SUBSCRIPTION, PAID CHANNELS AND SITE VENDORS 2003 - 2018: A $21.8 BILLION MARKETPLACE IN 2015 - 2016 25
IP VIDEO MARKETS EXHIBIT ADVERTISING AND SUBSCRIPTION SERVICES STRENGTH ACROSS THE GLOBE 25
TRENDING: IP video subscription and paid services have generated 50+% of annual marketplace revenue since 2012 25
BUSINESS OPERATIONS: The businesses providing the programming services in this marketplace are owned by large media companies, whether pure-play internet multinationals, or cross-platform multinationals 25
DIGITAL AUDIENCES WANT VIDEO: IP MOVIES AND TELEVISION AT $11.1 BILLION IN TOTAL 2015 RECEIPTS; $16.4 BILLION BY 2018 32
SUBSCRIPTION-BASED IP MOVIE AND TELEVISION REVENUES HAVE A 12-YEAR CAGR OF 84.8% 34
IP VIDEO ADVERTISING TO DELIVER $10.3 BILLION IN TOTAL 2015 BILLINGS 35
INTERNET PURE-PLAY PUBLISHERS, WEBSITE DESTINATIONS CAPTURE 56.1% OF IN-STREAM DIGITAL VIDEO AD SPEND 38
BROADCAST NETWORKS, CABLE CHANNELS ALLOCATE LINEAR AD LOADS AGAINST ON-DEMAND VIDEO 39
YOUTUBE DESKTOP, HULU, AOL, FACEBOOK, THE BROADCASTERS AND CABLE CHANNELS ARE IN-STREAM VIDEO ADVERTISING MARKET SHARE LEADERS 40
CBS, NBC, ABC, TURNER, ESPN AND DISCOVERY LEAD THE BROADCAST/CABLE CROSS-PLATFORM SEGMENT IN DIGITAL VIDEO ADVERTISING REVENUE 48
NYTIMES.COM, WSJ.COM, WASHINGTONPOST.COM AND TIME DIGITAL LEAD PRINT PUBLISHER SEGMENT WITH IN-STREAM VIDEO ADVERTISING 53
NDN IS THE LARGEST SYNDICATION PLATFORM DELIVERING IN-STREAM VIDEO AD SPEND 54
IP AUDIO / VIDEO SUBSCRIPTION AND DOWNLOAD SERVICES FORECAST TO REALIZE $22.6 BILLION IN 2015 GLOBAL SALES, INCLUDING MUSIC 55
Revenue shifts indicate the market's growing preference for rental options and pay-as-you-go services: IP media rentals outpacing user demand to own media outright 55
VENDOR AND MARKETPLACE TRENDS: This is a globally distributed marketplace approaching $31.7 billion in year-end receipts by 2018 55
VENDOR AND MARKETPLACE TRENDS: Music (subscription and download-to-own) and movies/TV generate the vast majority of paid audio/video services revenue 55
VENDOR AND RIGHTS ACQUISITION TRENDS: The migration of video libraries online is taking place, though at a moderate rate, incentivizing vendors such as Netflix and Amazon to invest in original programming or strike exclusive rights deals with studios to augment library depth and breadth 55
VENDOR BUSINESS MODEL TRENDS: Flat rate (i.e. single-digit), per-month pricing tiers to access video content (movies and television) online are an inducement to cord cutting (almost 1 million paying accounts have dropped cable and satellite packages in 2015); internet music programmers with pay business models reduced monthly fees by an average of 20% in 2015 55
MUSIC SERVICES (SUBSCRIPTION AND DOWNLOAD TO-OWN) FORECAST TO CAPTURE 49.4% OF GLOBAL VENDOR REVENUE IN ‘15 58
PRICING ELASTICITY OF DEMAND: FEES FALL 20.1% IN 2015, INTERNET MUSIC RADIO PROGRAMMER SUBS FORECAST TO INCREASE BY 57.2% IN 2015; 28% IN 2016 59
IP MUSIC RADIO SUBSCRIPTION LISTENING HOURS SLOW GO: FORECAST TO GROW BY 10.6% IN 2015; SINGLE-DIGITS THROUGH 2018 60
DOWNLOAD AND PAY-AS-YOU-GO MOVIE AND TELEVISION SERVICES SET TO LEAD THE MARKET IN GLOBAL SALES 62
GLOBAL MEDIA STORE AND SERVICE MOMENTUM 2003 - 2015: SUBSCRIPTION AND DOWNLOAD VENDOR SALES HAVE ADVANCED AT A 44.4% CAGR OVER THE PAST TWELVE YEARS 64
A TOTAL MARKET WORTH $22.6 BILLION BY YEAR-END 2015 INCLUDING MUSIC, AUDIO SPORTS PACKAGES 66
SECTION THREE: IP VIDEO TECH VENDORS 71
IP VIDEO TECH 360 VALUE CHAIN 2015 - 2017: CDN, SOFTWARE, CROSS-CHANNEL ADTECH, TRANSCODING AND PROCESSING: MODULES TO WORKFLOW REVENUE ANALYSIS 71
IP Video Tech Ecosystem-wide double-digit growth projected through 2017 71
2014 IP Video Tech Revenue Share Breakout: CDNs owned a 35.5% stake in the business 73
The global IP Video Tech ecosystem grew by 44.1% in 2014, including operations from AWS, iAd, Facebook, Twitter, Conversant and Google 79
The global IP Video Tech 360 Ecosystem grew by 42.5% in 2014; 33% forecast for 2015 82
The U.S. market was worth 54% of the global IP Video Tech market in 2014, forecast to ease slightly to 52% by 2017 85
CDNs 2015 - 2017: IP VIDEO 360: AUDIENCE MIGRATION TESTS NETWORK AVAILABILITY, SECURITY, QUALITY AND SCALE 85
Selling In: what the market is buying, and why: 2015 91
CDN business operations, market dynamics, technology and account acquisition trends 2015 - 2017 94
Account Acquisition, new entrants and competitive forces 94
Retail and transit bandwidth pricing indicators: 2015 - 2017 95
Video formats and adoption trends 96
International markets, competition and account wins 96
The macro market: CDN MRR as calculated as topline revenue divided by total accounts declined by .2% in 2014 96
MRR analyzed by individual CDN: Average MRR increased 12.3% in 2014 to $8,153 99
CDNs CAPEX investment balanced against account additions 2006 - 2017 105
The CDN sector grew by 36.9% in 2014, including AWS and international vendors with a U.S. presence 107
Media and Entertainment (audio/video—excluding games) contract value delivers 36.6% revenue share in 2014 110
IP VIDEO TECH 360 SOFTWARE SECTOR OVERVIEW: PLATFORMS, MODULES AND WORKFLOW: THE MARKET DEMANDS CUSTOMIZED SOLUTIONS AT COMMERCIALIZED PRICES 131
The Big Picture: Selling IP Video Tech 360 solutions across account verticals, transforming the video business across all channels and platforms 131
IP Video Tech 360: The viewing experience and status of video formats and media players 134
Must Have IP Video Tech: Transcoding and media processing demand seen across all content/publishing/distribution verticals 134
IP Video Tech 360: Legacy business models ported to all devices, at all times 135
IP Video Tech Recommendation engines: Measuring ROI 135
Financial Fundamentals: Products, services and solution suite expansion and sell-in strategy evolution provide the foundation for double-digit growth 136
Workflow vendors capture the majority of IP Video Tech Spend 2007 - 2017 138
IP Video Tech markets continue to consolidate, reorganize, expand geographically, ramp up R and D, hire additional staff, plus attract venture capital and generate M and A 140
CAGR by IP Video Tech vendor vertical through 2017 143
IP VIDEO TECH 360 VENDOR ALIGNMENT, CORE COMPETENCIES, PRODUCT DIFFERENTIATION, PRICING AND BUSINESS MODELS 2015 - 2017 144
IP Video Tech vendor segment solutions alignment and revenue analysis 2007 - 2017 150
IP video tech 360 platform, service and workflow vendors: Price, positioning, product and promotion 2015 - 2017 150
Enterprise-facing IP video tech solutions are steady performers: Product, price, position and promotion 2015 - 2017 155
Encoding/Transcoding/Processing and CRM: Products, price, positioning and promotion 2015 - 2017 159
IP Video Tech: Discovery, social engagement, search, navigation, recommendation tools and technology 162
IP Video Tech 360: Media Players and Solutions 165
IP VIDEO ADTECH: VENDORS ARE OPTIMIZING AGAINST AUDIENCES, SCREEN, DEVICE TO DRIVE IMPRESSION TRANSPARENCY AND MONETIZATION BEYOND THE LINEAR CLOCK 168
Inventory management, trafficking and media clearing ecosystem fundamentals: The Business of IP Video 168
IP Video Adtech: A highly integrated ecosystem 170
The IP video adtech marketplace supports a wide array of impression formats and platform solutions 172
The IP adtech sector has experienced a significant amount of M and A activity and market consolidation; a trend expected to continue 173
IP VIDEO ADTECH MARKETPLACES AND PLATFORMS MANAGE $11.85 BILLION IN GLOBAL SPEND IN 2014 177
The fluid state of video ad technology adoption: Make, buy, license or outsource 179
IP Video Adtech allocation of economic rents: Market position and revenue capture flow chart 179
Video spend economics and GRP economies: Screen depth creates more views, greater reach and in-stream inventory 180
Predictive analytics, combined with data-enhanced audience/impression analytics provide brand advertisers greater confidence, but the user experience remains uneven 180
IP video ad trafficking platforms engaged, and continue to engage with the highest level of spend over a 7-year period (2008 - 2014) 182
Automated trading: The state of programmatic IP video ad clearing 2015 183
Site serving is a large part of the IP video monetization marketplace, though 3rd party trafficking is increasing 185
IP Video CPMs: Pricing consistency prevails on a per unit basis, though campaign variability exists as the demand side angles for lower blended CPMs 187
Business operations and topline revenue recognition; Calculation of unduplicated IP video ad spend and post publisher payout “net” revenue 187
MAPPING MEDIA SPEND THROUGH THE MOBILE ADTECH ECOSYSTEM: HOW THE INDUSTRY ALLOCATES REVENUES AND PAYMENTS 218
BUSINESS MODEL VIABILITY: VENDOR VERTICAL ALIGNMENT, PARTICIPATION SHARE, SERVICES RENDERED AND GETTING PAID 2015 - 2017 218
Mobile AdTech 101: Getting paid means staying relevant: The keys to creating a sustainable market position 2015 - 2017 218
PROFITING FROM VOLATILITY: THE MARKETPLACE IS FORECAST TO PAY $14 BILLION IN 2015 TOPLINE 219
HOW THE MOBILE ADTECH ECOSYSTEM CURRENTLY ALLOCATES REVENUE BY VENDOR CATEGORY THROUGH 2017 220
FACEBOOK AND TWITTER OWNED 61% OF TOTAL PLATFORM REVENUE IN 2014; INCREASING SHARE IN 2015 225
EXCLUDING FACEBOOK AND TWITTER, DSPs ARE FORECAST TO EARN 15.5% OF ECOSYSTEM REVENUE BY 2017 230
THE BUSINESS MODELS: PARTICIPATION PERCENTAGES FOR MOBILE ADTECH SOLUTIONS INCLUDE AD TRAFFICKING, IMPRESSION CLEARING, ANALYTICS, DATA, MEDIA REPRESENTATION REVENUE SHARE 231
Mobile adtech business models can be structured in multiple modes utilizing well-established billing norms 231
MOBILE ADTECH: BEYOND TALKING POINTS AND ECHO CHAMBER CHATTER, HERE'S HOW THE BUSINESS REALLY WORKS 239


View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
Global Fixed Communications Market Outlook to 2020: Volume and Revenue Analytics of Service Adoption and Access Lines

Global Fixed Communications Market Outlook to 2020: Volume and Revenue Analytics of Service Adoption and Access Lines

  • $ 19995
  • Industry report
  • September 2016
  • by Pyramid Research

Summary Pyramid Research report "Global Fixed Communications Market Outlook to 2020: Volume and Revenue Analytics of Service Adoption and Access Lines" is built using extensive market research carried ...

Europe Fixed Communications Market Outlook to 2020: Volume and Revenue Analytics of Service Adoption and Access Lines

Europe Fixed Communications Market Outlook to 2020: Volume and Revenue Analytics of Service Adoption and Access Lines

  • $ 10995
  • Industry report
  • September 2016
  • by Pyramid Research

Summary Pyramid Research report "Europe Fixed Communications Market Outlook to 2020: Volume and Revenue Analytics of Service Adoption and Access Lines" is built using extensive market research carried ...

Cancer Immunotherapy: Analytical Tool

Cancer Immunotherapy: Analytical Tool

  • $ 14914
  • Industry report
  • August 2016
  • by Bioseeker

Analytical Tools are cancer area specific intelligence and surveillance toolkits within a select number of hot, emerging cancer therapy areas. They are designed to empower biotech/pharma professionals ...

Cancer At Bio: Analytical Tool

August 2016 $ 14914

ref:plp2015

Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.