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VIDEO INDEX
REPORT
Q3 2011
VIDEOMIND VIDEO INDEX REPORT




TABLE OF CONTENTS
METHODOLOGY ....................................................................... 5
Data sources & sample size ....................................................... 5
Data collection............................................................................ 5
Analysis & metrics ...................................................................... 5
VIEWER BEHAVIOR & ENGAGEMENT .................................... 6
Device type: Mobile, tablet,
connected TV devices and game consoles ................................ 7
Content length ............................................................................ 8
Day of week: Desktop & Connected TV Devices ........................ 9
Social media & video sharing ................................................... 10
MULTI-DEVICE VIDEO DELIVERY ......................................... 11
Mobile ....................................................................................... 12
Tablets ...................................................................................... 13
iOS vs. Android ........................................................................ 14
Connected TV devices and game consoles ............................. 15
INDUSTRY VERTICALS .......................................................... 16
Television .................................................................................. 18
Print .......................................................................................... 20
Online Media ............................................................................ 21
Consumer Brands .................................................................... 22
APPENDIX ............................................................................... 23
Glossary ................................................................................... 23
Metrics & definitions ................................................................. 23
Caveats, disclaimers, & assumptions....................................... 24
VIDEOMIND VIDEO INDEX REPORT




                            EXECUTIVE SUMMARY
Ooyala’s technology helps media companies and marketers around the globe manage,
monetize, deliver and analyze their videos across a variety of platforms and devices. The
information generated each day provides Big Data insights into global viewer engagement,
multi-device viewing, content discovery, sharing via social media, and hundreds of other trends
and variables.

This new report marks the first time Ooyala has offered a quarterly overview of the state of
online video. The data set is vast: Ooyala handles more than 1 billion analytics pings per day,
which reflect the anonymized viewing behavior of over 100 million monthly global unique users.
Ooyala distills this data to help publishers make better decisions on how to tap new markets,
grow audiences and increase revenue. (Details on data and methodology can be found later in
this report.)

Key findings:

• Tablets dominated viewer engagement across all videos played in Q3. Viewers with
  tablets averaged nearly 30 percent more viewing time per play than those who watched
  on desktops—and completed videos at double the desktop rate.

!" #$%%&'(&)"*+")&,-'&."/%)"0/1&"'$%.$2&."/3&"(/4-%0"$55. Video plays tripled in Q3 alone.

!" +-&6&3."2-4&"($"6/('7"2$%085$31"'$%(&%("$%"9-0".'3&&%.. For videos more than 10 minutes
   long, viewers using connected TV devices and game consoles were more than twice as likely
   to complete a video than viewers on desktops.

• *7&":$:;2/3-(<"$5"=/'&9$$4",/3-&."03&/(2<"/1$%0"'$;%(3-&. when it comes to sharing
  video. Facebook is 17 times more popular than Twitter in Italy, for instance, but the two social
  media sites are on par in Japan.

!" ->/)."'3;.7&)"?%)3$-)"(/92&(."-%"(&31."$5"($(/2"/;)-&%'&".-@&A accounting for 97 percent
   of all tablet video plays.




                                                                                                               3
VIDEOMIND VIDEO INDEX REPORT




A MESSAGE FROM OOYALA

Ooyala was founded to help companies personalize their consumer media experience and
increase reach, engagement, revenue and consumer satisfaction. To achieve this mission, we’ve
invested heavily to build a truly robust and scalable real-time video analytics system. We’ve also
gone to great lengths to anonymize our user viewership data to protect user privacy.

The VideoMind Video Index report is designed to help publishers give consumers a better video
experience. We recently launched a new quantitative analysis team, led by a PhD in physics
and applied mathematics, to work with our publishers and help them improve their online video
strategies.

Among the slew of interesting Big Data findings outlined in this report, I found the following
trends particularly telling.

First, viewers love their tablets and continue to warm up to their connected TV devices and
game consoles. Averaged across all plays in Q3, they were more engaged when watching on
tablets than on any other device. When looking just at long-form videos, viewers who watched
on connected TV devices and game consoles were most engaged, followed closely by (you
guessed it) tablet viewers.

Second, a number of clues suggest that viewers are turning to social media to share video
content. Our data indicates that Facebook is far and away the most popular way to share video.
The full promise of Social TV has yet to be realized, but we see strong signals that viewers
increasingly prefer to engage social media and video content together.

The final observation—and perhaps the most obvious—is that people are watching more
and more online video. Simply put, we’re in the midst of a fundamental shift in how people
everywhere watch TV, film and video content. And I think this trend validates much of what we
believed when we set out, nearly five years ago, to build the future of personalized media: that
viewers want to watch what they want, when they want, and on whatever device they want. New
challenges exist for video publishers, but potential audiences have never been bigger.

We hope you find this report interesting and useful. If you have thoughts on how future editions
might be improved, please send your ideas to videoindex@ooyala.com. We look forward to
hearing from you.

Thanks for watching,

B-.1/3'4"C&:&
Co-founder & President of Products, Ooyala




                                                                                                               4
VIDEOMIND VIDEO INDEX REPORT




METHODOLOGY
!"#"$%&'()*%$+$%",-.*$%/0*
The data sample used in this report covers the third quarter of 2011, from July 1 through September 30. The
data was taken from an anonymous cross-section of Ooyala’s customer and partner database—an array of
broadcasters, studios, cable operators, print publications, online media and consumer brand companies in over
30 different countries. Collectively, our customers’ video streams are watched in 100 countries across more than
5,000 unique domains, and more than 100 million unique viewers watch an Ooyala-powered video every month.

The data sample is not intended to represent the entire Internet or all online video viewers.



!"#"$)&..*)#/&1
Data is tracked by Ooyala’s video analytics technology. During playback, Ooyala’s video player continuously
gathers information and relays it back to an analytics module, which stores the data in a distributed file system
called Hadoop. Viewer statistics are then complied in near-real time and stored in a Cassandra data cluster,
where the information is made readily available for analysis.



"1".2%/%$+$,*#(/)%
Ooyala’s video analytics module tracks a range of standard variables, such as:

• Displays, plays and time watched

• Viewer engagement and video completion rates

• Sharing by social network

• Geography (region, state, city, Designated Marketing Areas)

• Device type (mobile, desktop, tablet, connected TV devices & game consoles)

• Operating system (Windows, Android, iOS)

• Browser (Safari, Chrome, Firefox, Internet Explorer)



For more details on specific metrics and measures, please see the Metrics & Definitions section in the appendix.
VIDEOMIND VIDEO INDEX REPORT




VIEWER BEHAVIOR
& ENGAGEMENT
Ooyala’s video analytics technology tracks                                                        Across the entire data set, the average
many key viewer engagement metrics,                                                               conversion rate increased in Q3, rising
including conversion rate,1 video completion                                                      to 35.1 percent from 32.6 percent in Q2.
rate and sharing events. Combined with data                                                       The average time watched per play grew
on variables like device type and geography,                                                      considerably quarter over quarter, rising 26.5
these metrics can be used to understand                                                           percent in Q3.
viewer behavior.

                                                                      Avg. Conversion Rate Q3, 2011
                                                                80%
                             Conversion rate (plays/displays)




                                                                60%




                                                                40%




                                                                20%




                                                                 0%
                                                                         Desktop         Mobile          Tablet   Connected TV Devices
                                                                                                                   and Game Consoles

                                       VIDEOMIND Video Index




    KEY TAKEAWAYS

        D&,-'&"(<:&"/%)"                                              F&&4)/<."(3;1:"             Viewer engagement           When it comes to video
        .'3&&%".-@&"1/((&3E                                           6&&4&%).E Viewers           was generally higher        sharing, =/'&9$$4"
        In Q3, people who                                             tend to watch more          on mobile devices           beats Twitter in most
        watched on a tablet                                           online video during         than on desktops—           parts of the world—
        were more than twice                                          the week—especially         &,&%"5$3"2$%085$31"         especially Taiwan, Italy
        as likely to finish an                                         on desktops—though          videos. Mobile viewers      and Australia.
        entire video than                                             there are exceptions.       completed 3/4 of
        viewers on a desktop.                                                                     a long-form video at
                                                                                                  a rate of 20 percent,
                                                                                                  compared to 18 percent
                                                                                                  for desktops.




1 The   ratio of video displays to video plays. For more details, please see the appendix.
VIEWER BEHAVIOR & ENGAGEMENT




                     !*3/)*$#2-*4$,&5/.*6$#"5.*#6$$
                     )&11*)#*!$#3$!*3/)*%$"1!$7",*$)&1%&.*%
                     As a general rule, device type heavily influences viewer engagement. In Q3, tablet
                     viewers were the most engaged, while desktop and laptop viewers were relatively
                     less engaged. For each desktop viewer who completed a video in Q3, for instance,
                     2+ viewers did the same while watching on a tablet. Across all plays, the video
                     completion rate for mobile devices was slightly higher than that for connected TV
                     devices and game consoles.



                            Viewer Engagement: By Device Q3, 2011
                      80%
                                                                                                   Desktop
                                                                                                   Mobile
                                                                                                   Tablet
                                                                                                   Connected TV Devices
                      60%                                                                          and Game Consoles
     % of audience




                      40%




                      20%




                      0%
                      Watched 1/4            Watched half           Watched 3/4         Completed video


             VIDEOMIND Video Index




                                                                                                   VIDEOMIND VIDEO INDEX REPORT   7
VIEWER BEHAVIOR & ENGAGEMENT




)&1#*1#$.*17#8                                                                  Avg. Content Length & Device Type, Q3, 2011
                                                                        100%                                                                   10+ min
Q3 data suggests that viewers                                                                                                                  6-10 min
are turning to their tablets, mobile                                                                                                           3-6 min
devices and especially their                                                                                                                   1-3 min




                                       % of total hours watched
connected TV devices and game                                           75%                                                                    < 1 min

consoles to watch medium- and
long-form videos. Desktops or
laptops are far more likely to be                                       50%
used to watch short clips. Videos
shorter than three minutes, for
instance, accounted for more
than half (52 percent) of the hours                                     25%

of content viewed on desktops.
That same measure is 42 percent
for mobile devices, 29 percent                                           0%
for tablets and just 6 percent for                                                 Desktop       Mobile       Tablet    Connected TV Devices
                                                                                                                         and Game Consoles
connected TV devices and game
consoles.                                VIDEOMIND Video Index

By contrast, longer-form videos
represent a bigger share of the
hours played on non-desktop
devices. Videos 10 minutes or
longer accounted for 30 percent                                                Viewer Engagement on Videos Longer than 10 min Q3, 2011
of the hours watched on mobile                                          40%

devices, 42 percent on tablets and
                                       % of audience that watched 3/4




nearly 75 percent on connected
TV devices and game consoles.                                           30%
Notably, videos shorter than a
minute were just 7 percent of the
total hours watched on tablets                                          20%
and 2.2 percent for connected TV
devices and game consoles.
The data indicates that viewers                                         10%
who watch on connected TV
devices and game consoles
complete longer-form content at
                                                                         0%
a higher rate than viewers who
watch on any other device.
                                                                         Desktop        Mobile       Tablet    Connected TV Devices and Game Consoles


                                         VIDEOMIND Video Index




                                                                                                                       VIDEOMIND VIDEO INDEX REPORT       8
VIEWER BEHAVIOR & ENGAGEMENT




                !"2$&9$:**;4$!*%;#&-$+$)&11*)#*!$#3$!*3/)*%

                Viewers tend to watch more online video on weekdays.2 The most notable exception
                was publishers in the online media vertical, who recorded higher-than-average
                viewing times during the weekend on mobile devices, tablets, and connected TV
                devices and game consoles. (Ooyala’s customers are separated into four industry
                verticals. The online media vertical includes companies that were explicitly founded
                as Web-based companies and publish video primarily online. A full explanation is
                outlined in the Industry Verticals section.)

                Q3 data suggests that on weekdays, viewers typically watch longer on desktops,
                regardless of industry vertical.



                                           Weekend Viewing Habits Q3, 2011
                                                                                                                              TV
           Connected TV Devices                                                                                               Print
             and Game Consoles                                                                                                Online Media
                                                                                                                              Consumer brands

                               Tablet



                              Mobile



                             Desktop


                                        -60%                  -30%                   0%               30%            60%



                                            Watched less on weekends                         Watched longer on weekends
                                        (% less than average time watched)                     (% more than average)


                    VIDEOMIND Video Index




2 Across Ooyala’s database, viewership data are tracked on a daily basis. More granular
 reporting—on a time-of-day basis, for example—is enabled by Custom Analytics, an
 extension of our core analytics module. Because that extension isn’t deployed universally
 across the database, insights are limited to day of week.


                                                                                                                          VIDEOMIND VIDEO INDEX REPORT   9
VIEWER BEHAVIOR & ENGAGEMENT




         %&)/".$,*!/"$+$3/!*&$%8"(/17

         Ooyala’s video player makes content sharing easy, and our analytics module tracks
         sharing events to help publishers learn how viewers are engaging with their content.
         The aggregated data reveal how viewers around the world use social media and video
         together. A snapshot of Ooyala’s top 20 countries in terms of sharing activity in Q3
         can be seen below.

         Generally speaking, Facebook is a more popular means of sharing video than
         Twitter—but that margin varies widely depending on region. In Japan, for instance,
         there’s approximately a 1:1 ratio between Facebook and Twitter sharing. By contrast,
         in Italy, sharing on Facebook is 17 times more popular than on Twitter.



                          Social Media & Online Video: Facebook vs. Twitter Q3, 2011
              Taiwan
                  Italy
            Australia
          Philippines
               France
                 India
       United States
                Spain
              Canada
            Germany
              Mexico
     United Kingdom
                Brazil
           Argentina
            Colombia
         Netherlands
           Singapore
           Venezuela
         South Korea
                Japan
                          0              5             10            15             20

                              # Videos shared on Facebook for every 1 video shared via Twitter


      VIDEOMIND Video Index




                                                                                         VIDEOMIND VIDEO INDEX REPORT 10
VIDEOMIND VIDEO INDEX REPORT




MULTI-DEVICE
VIDEO DELIVERY
Across the data set, desktops account for                                      Let’s set aside desktop systems for a
the bulk of total displays, total plays and                                    moment. Among other devices, mobile
total number of hours watched. However,                                        devices accounted for the biggest share of
viewers are watching an increasing amount                                      total hours played in Q3, with 48 percent.
of content on other device types, namely                                       Plays on tablets were a close second,
mobile devices, tablets, and connected TV                                      accounting for 45 percent, while connected
devices and game consoles.3                                                    TV devices and game consoles earned 6.4
                                                                               percent of total hours played.3

% of Total Hours Played by Device: Mobile, Tablet,
Connected TV Devices & Game Consoles Q3, 2011

                           6.4%




                                                                         Mobile
                                                  48.3%                  Tablet
                                                                         Connected TV Devices
             45.3%
                                                                         and Game Consoles




  VIDEOMIND Video Index




    KEY TAKEAWAYS

      ->/)."/3&"4-%0"$5"                      >;92-.7&3."%&&)"/"                *7&"/1$;%("$5",-)&$"
      (7&"(/92&(.E The iOS                    (/92&(",-)&$".(3/(&0<E"           :2/<&)"$%")&,-'&."
      devices are currently                   Compared to desktops,             2-4&"G$$02&"*+A"B$H&&"
      responsible for the                     the average time                  /%)">2/<I(/(-$%"-."
      vast majority of video                  watched per play in Q3            03$6-%0"3/:-)2<E During
      played on tablets,                      was 28 percent longer             Q3, the amount of time
      accounting for 97.7                     on tablets.                       watched on connected
      percent of total plays                                                    TV devices and game
      in Q3.                                                                    consoles tripled.




3 !"#$%#&%##&'(#&)"*%%$+,&-*+&.#/01'1*0%&*-&2*,$"$3%&.#415#6',7#&5$'#8*+1#%9
MULTI-DEVICE VIDEO DELIVERY




                      ,&5/.*

                      In Q3, the average time watched per play on mobile devices was on par with the
                      average time on desktops. A comparison of 25- and 75-percent video completion
                      rates, however, reflects that mobile viewers were on average more engaged than their
                      desktop counterparts.




                               Viewer Engagement: Desktop vs. Mobile Q3, 2011
                        80%
                                                                                                                Desktop
                                                                                                                Mobile
                        60%
      % of audience




                        40%




                        20%




                          0%
                                           Watched 1/4                          Watched 3/4



         VIDEOMIND Video Index




                                                                                                    VIDEOMIND VIDEO INDEX REPORT 12
MULTI-DEVICE VIDEO DELIVERY




                      #"5.*#%

                      Tablet viewers on average watch longer than viewers on desktops or mobile devices.
                      For each minute watched on a desktop, tablets recorded 1:17 in played content—
                      28 percent longer than the desktop average. Video completion rates for tablets were
                      consistently more than double the completion rates for desktops and around 30
                      percent higher than for mobile devices.




                              Viewer Engagement: Desktop, Mobile & Tablet Q3, 2011
                       80%
                                                                                                            Desktop
                                                                                                            Mobile
                                                                                                            Tablet
                       60%
      % of audience




                       40%




                       20%




                         0%
                                          Watched 1/4                        Watched 3/4



         VIDEOMIND Video Index




                                                                                                    VIDEOMIND VIDEO INDEX REPORT 13
MULTI-DEVICE VIDEO DELIVERY




<&%$=>?$"@ABC<A
                                                          7%
Together, iOS and Android devices
account for more than 90 percent
of the video hours played on tablets         21.2%                          % of total displays, Q3, 2011
and mobile devices across Ooyala’s
database. iPads were responsible for                                           iPhone
the vast majority of video played on
                                                                               Android mobile
a tablet in Q3, accounting for 99.4
                                                                               Mobile: Other
percent of displays, 97.7 percent of                              71.8%
total plays and 95.7 percent of total
hours streamed.

That noted, in Q3 the average
conversion rate for Android mobile
                                         VIDEOMIND Video Index
devices (45 percent) was considerably
higher than that of iPhones (22
percent). The average conversion                          7%
rate for videos on Android tablets
(47 percent) was likewise higher than
the comparable figure for iPads (13
                                                                            % of total plays, Q3, 2011
percent).
                                           36.8%                               iPhone

                                                                   56.2%       Android mobile

                                                                               Mobile: Other




                                          VIDEOMIND Video Index




                                                         6.5%



                                                                            % of total hours played, Q3, 2011
                                                                    44.4%
                                                                               iPhone

                                                                               Android mobile

                                           49.1%                               Mobile: Other




                                        VIDEOMIND Video Index




                                                                                VIDEOMIND VIDEO INDEX REPORT 14
MULTI-DEVICE VIDEO DELIVERY




Conversion rates were higher for                                                 Viewer Engagement on Tablets: iPad vs. Android Q3, 2011
Android, but viewer engagement                                            100%
rates were higher on iPads. About                                                                                                          Android Tablet
48 percent of iPad viewers watched                                                                                                         iPad
three-quarters of their video in Q3,                                      75%
while 41 percent of Android viewers




                                                          % of audience
did so. Viewers completed videos at
a rate of 38 percent on iPad and 36                                       50%
percent on Android tablets.
Note that these viewer engagement
                                                                          25%
trends on iOS and Android devices
may vary depending on industry
vertical. (See the Industry Verticals
                                                                           0%
section below.)                                                             Watched 1/4     Watched half   Watched 3/4        Completed video



                                                              VIDEOMIND Video Index




)&11*)#*!$#3$!*3/)*%$"1!$7",*$)&1%&.*%
Connected TV devices and game consoles account for a small share of the plays in Ooyala’s database, but
the third quarter saw remarkable growth in the amount of video played on these devices. In three out of
the four industry verticals, video played on connected TV devices and game consoles grew more than 200
percent over the second quarter. Moreover, compared to desktops, they had higher viewer-engagement rates
than desktops.



                                        Viewer Engagement: Desktop vs. Connected TV Devices
                                        and Game Consoles Q3, 2011
                                  80%

                                                                                                               Desktop

                                                                                                               Connected TV Devices
                                                                                                               and Game Consoles
                                  60%
                  % of audience




                                  40%




                                  20%




                                   0%
                                                 Watched 1/4                              Watched 3/4


                         VIDEOMIND Video Index




                                                                                                                    VIDEOMIND VIDEO INDEX REPORT 15
VIDEOMIND VIDEO INDEX REPORT




INDUSTRY VERTICALS
Ooyala’s customers fall into four broad industry verticals: TV, print, online media and
consumer brands.
•   The (&2&,-.-$%",&3(-'/2 includes companies involved in the creation, distribution or
    curation of content for film and television. Sub-verticals include studios, broadcasters,
    networks, and cable and satellite operators.
•   The :3-%(",&3(-'/2 includes media companies that are historically focused on the creation
    of print content, but which now use video as a complement to their content offerings.
•   The online media vertical features media companies founded explicitly as Web properties.
•   The '$%.;1&3"93/%).",&3(-'/2 refers to any and all companies that use video to promote
    their brand, products or services.

    % of Total Time Watched, by Vertical, Q3, 2011


                     6.6%
              5.1%



                                   42.1%           TV
                                                   Online Media
                                                   Print
                                                   Consumer Brands



          46.1%




     VIDEOMIND Video Index



    KEY TAKEAWAYS

    Viewers watched          For the print vertical,        Online media                For the consumer
    more long-form TV        viewer engagement              companies exhibited         brands vertical, viewers
    content on tablets and   rates were nearly              the lowest viewer           were the least engaged
    connected TV devices     identical for Android          engagement rates on         when watching on
    and game consoles        tablets and iPads.             desktops of all the four    mobile devices.
    relative to desktops.                                   industry verticals.
INDUSTRY VERTICALS




                                           Video plays by mobile, Q3, 2011
                              100%
                                                                                                                         Consumer Brands

                                                                                                                         Online Media

                                                                                                                         Print
                              75%
           % of total plays




                                                                                                                         TV



                              50%




                              25%




                               0%
                                             < 1 min       1-3 min           3-6 min        6-10 min       10+ min

                                                                         Video length

                   VIDEOMIND Video Index


         In Q3, the TV vertical saw a bigger share of its long-form videos watched on mobile devices
         and tablets, while the print vertical had a larger portion of shorter-form content.




                                             Video plays by tablet, Q3, 2011
                                 100%
                                                                                                                              Consumer Brands

                                                                                                                              Online Media

                                                                                                                              Print
                                     75%
           % of total plays




                                                                                                                              TV



                                 50%




                                     25%




                                     0%
                                                 < 1 min       1-3 min           3-6 min        6-10 min       10+ min

                                                                             Video length


               VIDEOMIND Video Index


         Audiences watched more shorter-form content from print media companies on their tablets.
         But videos from the TV industry dominated longer-form content viewed on tablets.




                                                                                                                          VIDEOMIND VIDEO INDEX REPORT 17
INDUSTRY VERTICALS




#*.*3/%/&1                                                              TV Vertical: Hours Played by Device Type, Q3, 2011

In Q3 non-desktop plays, mobile
devices accounted for just over half                                                  11.7%
of all the hours of TV video content
played. Tablets had the second-
biggest share at 38 percent while
connected TV devices and game
                                                                                                                     Mobile
consoles had the smallest share at
                                                                                                         50.3%       Tablet
11.7 percent.
                                                                                                                     Connected TV Devices
                                                                            38%                                      and Game Consoles
In longer-form video content, viewers
exhibited a strong preference for
tablets, connected TV devices and
game consoles. Videos 10 minutes
or more in length accounted for 56
percent of the video played on tablets
and 84 percent played on connected                                      VIDEOMIND Video Index

TV devices and game consoles. By
comparison, longer-form videos
accounted for just 28 percent of
the video played on a desktops or
laptops.

                                                                        TV: Content Length & Device Type, Q3, 2011
                                                                 100%
                                                                                                                                     10+ min
                                                                                                                                     6-10 min
                                                                                                                                     3-6 min
                                       % of total hours played




                                                                 75%
                                                                                                                                     1-3 min
                                                                                                                                     < 1 min


                                                                 50%




                                                                 25%




                                                                  0%
                                                                            Desktop             Mobile   Tablet   Connected TV Devices
                                                                                                                  and Game Consoles



                                              VIDEOMIND Video Index




                                                                                                                        VIDEOMIND VIDEO INDEX REPORT 18
INDUSTRY VERTICALS




                                                TV Vertical: Viewer Engagement, Q3, 2011
                                        100%                                                                         Desktop
                                                                                                                     Mobile
                                                                                                                     Tablet
                                         75%                                                                         Connected TV Devices
                                                                                                                     and Game Consoles
                      % of audience




                                         50%




                                         25%




                                          0%
                                         Watched 1/4        Watched half                 Watched 3/4      Completed video



                VIDEOMIND Video Index

                Viewers watching TV content, regardless of length, were most engaged when viewing on tablets,
                followed by connected TV devices and game consoles. They were least engaged on desktops.



                                               TV Vertical: Viewer Engagement
                                               on iPad vs. Android Tablet Q3, 2011
                                      100%
                                                                                                                  Android Tablets
                                                                                                                  iPad


                                       75%
                     % of audience




                                       50%




                                       25%




                                      0.00%
                                       Watched 1/4       Watched half                  Watched 3/4     Completed video

                  VIDEOMIND Video Index

                The data suggests4 that viewers of TV content are more engaged when watching on an iPad
                than on an Android tablet. For every 1 million viewers who started a video on an Android, about
                360,000 completed it. For every 1 million viewers who started a video on iPad, about 470,000
                completed it—a difference of 30 percent.


4 Note that, because of differences in market share, the Android tablet data sample
 is considerably smaller than the iPad sample. Readers are cautioned against drawing
 absolute conclusions from the Android tablet numbers.



                                                                                                                     VIDEOMIND VIDEO INDEX REPORT 19
INDUSTRY VERTICALS




-(/1#                                                                Print Vertical: Hours Played by Device, Q3, 2011


Tablet video views accounted for                                                               0.29%
55.1 percent of hours played during
Q3, followed by mobile views at
44.7 percent. Views on connected
                                                                                                       44.7%
TV devices and game consoles                                                                                           Mobile
                                                                                                                       Tablet
accounted for less than 1 percent of                                         55.1%                                     Connected TV Devices
                                                                                                                       and Game Consoles
hours viewed in the print vertical.

As in the TV vertical, video
publishers in the print vertical see
high engagement levels from tablet                                   VIDEOMIND Video Index
viewers. Unlike TV, the print vertical
reflects low engagement from viewers
on connected TV devices and game
                                                                     Print Vertical: Viewer Engagement, Q3, 2011
consoles. Desktops and mobile
devices have similar engagement
rates.                                                       100%                                                                             Desktop
                                                                                                                                              Mobile
                                                                                                                                              Tablet
Interestingly—and unlike the trend                                                                                                            Connected TV Devices
                                         % of audience




                                                               75%
                                                                                                                                              and Game Consoles
in the TV vertical—engagement on
Android tablets for print companies
is on par with engagement on iPads.                           50%

Again, note that the small size of the
Android tablet data sample makes it                            25%
difficult to draw absolute conclusions.

                                                             0.00%
                                                              Watched 1/4             Watched half     Watched 3/4         Completed video


                                             VIDEOMIND Video Index




                                                                     Print Vertical: Viewer Engagement
                                                                     on iPad vs. Android Tablet, Q3, 2011
                                                             100%
                                                                                                                                              Android Tablet

                                                                                                                                              iPad

                                                              75%
                                             % of audience




                                                              50%




                                                              25%




                                                               0%
                                                              Watched 1/4             Watched half     Watched 3/4         Completed video


                                                 VIDEOMIND Video Index




                                                                                                                     VIDEOMIND VIDEO INDEX REPORT 20
INDUSTRY VERTICALS




&1./1*$,*!/"                                                     Online Media Vertical: Hours Played
                                                                 by Device Type, Q3, 2011

Mobile devices accounted for half                                             4.9%
the video play hours for online media,
followed by tablets at 45.4 percent.
Connected TV devices and game
consoles made up the remaining 5                                                                                  Mobile
percent of hours played.                                                                        49.7%             Tablet
                                                                 45.4%                                            Connected TV Devices
                                                                                                                  and Game Consoles

Online media sees high engagement
from tablet viewers, which is
consistent with other verticals. Online
media had the lowest rates of desktop
engagement of any vertical.                                  VIDEOMIND Video Index



Day-of-week data for the online media
vertical shows that users watch more
                                                                 Online Media: Viewer Engagement, Q3, 2011
video on mobile devices, connected
TV devices and game consoles on
weekends than they do on weekdays.                        100%                                                                                 Desktop
                                                                                                                                               Mobile
                                                                                                                                               Tablet
                                                                                                                                               Connected TV Devices
                                          % of audience




                                                          75%
                                                                                                                                               and Game Consoles




                                                          50%




                                                          25%




                                                           0%
                                                          Watched 1/4            Watched half              Watched 3/4           Completed video


                                              VIDEOMIND Video Index




                                                             Day of Week and Time Watched: Online Media, Q3, 2011
                                                                                                                                               Desktop
                                                                                                                                               Mobile
                                                                                                                                               Tablet
                                                                                                                                               Connected TV Devices
                                                                                                                                               and Game Consoles




                                                            -30%               -15%                0%              15%                   30%


                                                                 Watched less on weekends                  Watched longer on weekends
                                                          (% less than average time watched/day)        (% more than average watched/day)

                                                           VIDEOMIND Video Index




                                                                                                                      VIDEOMIND VIDEO INDEX REPORT 21
INDUSTRY VERTICALS




)&1%',*($5("1!%                                 Consumer Brands Vertical:
                                                Hours Played by Device Type, Q3, 2011
For consumer brands, the majority
of non-desktop hours played were                                        1.09%
on tablets (53.3 percent), followed
by mobile devices (45.7 percent) and
connected TV devices and game
consoles (about 1 percent).
                                                                                                Mobile
Interestingly, the consumer brands                                               45.7%
                                                                                                Tablet
vertical reflects some of the highest
viewer engagement numbers of all the              53.3%                                         Connected TV Devices
                                                                                                and Game Consoles
industry segments. Relative to other
devices, viewer engagement is lowest
on mobile devices, which is unique to
consumer brands.



                                                VIDEOMIND Video Index




                       Consumer Brands Vertical:
                       Viewer Engagement by Device, Q3, 2011
                100%                                                               Desktop
                                                                                   Mobile
                                                                                   Tablet
                                                                                   Connected TV Devices
                 75%
                                                                                   and Game Consoles
% of audience




                50%




                 25%




                 0%
                  Watched 1/4    Watched half     Watched 3/4            Completed video

    VIDEOMIND Video Index




                                                                                      VIDEOMIND VIDEO INDEX REPORT 22
APPENDIX
      GLOSSARY
7.&%%"(2
,*#(/)%$+$!*9/1/#/&1% the ratio of plays to displays.
           Conversion rate

                 #$1:2&(-$%"3/(&   the rate at which viewers watch a specified portion of a given video. Sometimes useD
                                   interchangeable with “play-through rate.”

                 D-.:2/<           any time a video is loaded in a browser and displayed to the viewer.

                 J$9-2&")&,-'&.    all smart phones, including iOS, Android, Blackberry and all others.

                 >2/<              any time a video starts playing.

                 I&(8($:"9$H&.     this category includes a number of devices, including Wii, Playstation, Boxee, Roku and Google TV.

                 Tablets           all media tablets, including iOS and Android.




         METRICS & DEFINITIONS

                                   v ) an online video
                                   p ) a publisher that owns many videos
                                   v ! p ) a video owned by a publisher p
                                   S ) is a set of publishers (e.g., the TV vertical)
                                   p ! S ) p is a member of set S
                                   "(v) ) a metric " (e.g., number of plays in Q3) evaluated over video v
                                           P
                                   "S =       "p ) "S is the sum of "p for all publishers p in set S
                                              p!S

                                   r(v) = "1(v)="2(v) ) r(v) is the ratio of two metrics "1(v); "2(v)
                                   rp; rS ) the same ratios over a single publisher p or set of publishers S
                                          P        P
                                   rp = ( "1(v))=( "2(v))
                                            v!p            v!p

                                            PP                   PP
                                   rS = (             "1(v))=(             "2(v))
                                            p!S v!p              p!S v!p

                                            P                        P
                                   #p = (          #(v) ! w(v))=(           w(v)) ) a weighted sum.
                                             v!p                      v!p

                                   For instance, the average length of a video played weighted by the number of plays for each
                                   video, #(v) would be the length of video, and the weight w(v) is the number of plays. Since #p is
                                   a ratio, it would also be possible to determine #S for a set of publishers using the rule above.


                                   Examples
                                   Engagement is a ratio r(v) = "1(v)="2(v) where "1 is the number of times the video was
                                   watched some percentage of the way through (25, 50, 75, 100) and "2 is the number of times it
                                   was played.

                                   Some metrics are more complex. For instance, " may be the number of times a video that was
                                   of length greater than 10 minutes was watched on a tablet device. Only videos that are longer 10
                                   minutes contribute to this total.




                                                                                                                     VIDEOMIND VIDEO INDEX REPORT 23
CAVEATS, DISCLAIMERS, & ASSUMPTIONS

    Data are not aggregated across all videos or providers for vertical data, and only publishers with a meaningful amount
    of videos watched are included. Some publishers do not fall into any of our four verticals, however these publishers
    are included in global statistics. Publishers with incomplete data across the third quarter (for instance newly added
    publishers) have been excluded.

    When selecting items for inclusion in the report, Ooyala’s data science team selected metrics that were clear and
    meaningful. Because granular measures were broken down along many categories, a large amount of data resulted.
    Rather than reporting all of this data, the Ooyala team chose to highlight those measures that give a good impression for
    the data set as a whole.

    Consider viewer engagement, which can be measured in many ways. First, one could measure consider the rate
    at which a displayed video starts playing (conversion rate). Next, one could look at the chance a video was played
    25 percent of the way through. Video completion rates of 75 and 100 percent might also provide useful insights. By
    including granular results, the report offers display information that is easy to understand.

    Alternatively, it would have been possible to construct just a single measure of engagement out of all the ones
    mentioned above: e.g., conversion rate x video completion rate. This would have given a simpler result that could be
    displayed in a single graph at the cost of being more convoluted.




                                                                            )"3*"#%6$!/%)."/,*(%6$+$
                                                                            "%%',-#/&1%




                                                                                                        VIDEOMIND VIDEO INDEX REPORT 24

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Ooyala video-index-report-Q3-2011

  • 2. VIDEOMIND VIDEO INDEX REPORT TABLE OF CONTENTS METHODOLOGY ....................................................................... 5 Data sources & sample size ....................................................... 5 Data collection............................................................................ 5 Analysis & metrics ...................................................................... 5 VIEWER BEHAVIOR & ENGAGEMENT .................................... 6 Device type: Mobile, tablet, connected TV devices and game consoles ................................ 7 Content length ............................................................................ 8 Day of week: Desktop & Connected TV Devices ........................ 9 Social media & video sharing ................................................... 10 MULTI-DEVICE VIDEO DELIVERY ......................................... 11 Mobile ....................................................................................... 12 Tablets ...................................................................................... 13 iOS vs. Android ........................................................................ 14 Connected TV devices and game consoles ............................. 15 INDUSTRY VERTICALS .......................................................... 16 Television .................................................................................. 18 Print .......................................................................................... 20 Online Media ............................................................................ 21 Consumer Brands .................................................................... 22 APPENDIX ............................................................................... 23 Glossary ................................................................................... 23 Metrics & definitions ................................................................. 23 Caveats, disclaimers, & assumptions....................................... 24
  • 3. VIDEOMIND VIDEO INDEX REPORT EXECUTIVE SUMMARY Ooyala’s technology helps media companies and marketers around the globe manage, monetize, deliver and analyze their videos across a variety of platforms and devices. The information generated each day provides Big Data insights into global viewer engagement, multi-device viewing, content discovery, sharing via social media, and hundreds of other trends and variables. This new report marks the first time Ooyala has offered a quarterly overview of the state of online video. The data set is vast: Ooyala handles more than 1 billion analytics pings per day, which reflect the anonymized viewing behavior of over 100 million monthly global unique users. Ooyala distills this data to help publishers make better decisions on how to tap new markets, grow audiences and increase revenue. (Details on data and methodology can be found later in this report.) Key findings: • Tablets dominated viewer engagement across all videos played in Q3. Viewers with tablets averaged nearly 30 percent more viewing time per play than those who watched on desktops—and completed videos at double the desktop rate. !" #$%%&'(&)"*+")&,-'&."/%)"0/1&"'$%.$2&."/3&"(/4-%0"$55. Video plays tripled in Q3 alone. !" +-&6&3."2-4&"($"6/('7"2$%085$31"'$%(&%("$%"9-0".'3&&%.. For videos more than 10 minutes long, viewers using connected TV devices and game consoles were more than twice as likely to complete a video than viewers on desktops. • *7&":$:;2/3-(<"$5"=/'&9$$4",/3-&."03&/(2<"/1$%0"'$;%(3-&. when it comes to sharing video. Facebook is 17 times more popular than Twitter in Italy, for instance, but the two social media sites are on par in Japan. !" ->/)."'3;.7&)"?%)3$-)"(/92&(."-%"(&31."$5"($(/2"/;)-&%'&".-@&A accounting for 97 percent of all tablet video plays. 3
  • 4. VIDEOMIND VIDEO INDEX REPORT A MESSAGE FROM OOYALA Ooyala was founded to help companies personalize their consumer media experience and increase reach, engagement, revenue and consumer satisfaction. To achieve this mission, we’ve invested heavily to build a truly robust and scalable real-time video analytics system. We’ve also gone to great lengths to anonymize our user viewership data to protect user privacy. The VideoMind Video Index report is designed to help publishers give consumers a better video experience. We recently launched a new quantitative analysis team, led by a PhD in physics and applied mathematics, to work with our publishers and help them improve their online video strategies. Among the slew of interesting Big Data findings outlined in this report, I found the following trends particularly telling. First, viewers love their tablets and continue to warm up to their connected TV devices and game consoles. Averaged across all plays in Q3, they were more engaged when watching on tablets than on any other device. When looking just at long-form videos, viewers who watched on connected TV devices and game consoles were most engaged, followed closely by (you guessed it) tablet viewers. Second, a number of clues suggest that viewers are turning to social media to share video content. Our data indicates that Facebook is far and away the most popular way to share video. The full promise of Social TV has yet to be realized, but we see strong signals that viewers increasingly prefer to engage social media and video content together. The final observation—and perhaps the most obvious—is that people are watching more and more online video. Simply put, we’re in the midst of a fundamental shift in how people everywhere watch TV, film and video content. And I think this trend validates much of what we believed when we set out, nearly five years ago, to build the future of personalized media: that viewers want to watch what they want, when they want, and on whatever device they want. New challenges exist for video publishers, but potential audiences have never been bigger. We hope you find this report interesting and useful. If you have thoughts on how future editions might be improved, please send your ideas to videoindex@ooyala.com. We look forward to hearing from you. Thanks for watching, B-.1/3'4"C&:& Co-founder & President of Products, Ooyala 4
  • 5. VIDEOMIND VIDEO INDEX REPORT METHODOLOGY !"#"$%&'()*%$+$%",-.*$%/0* The data sample used in this report covers the third quarter of 2011, from July 1 through September 30. The data was taken from an anonymous cross-section of Ooyala’s customer and partner database—an array of broadcasters, studios, cable operators, print publications, online media and consumer brand companies in over 30 different countries. Collectively, our customers’ video streams are watched in 100 countries across more than 5,000 unique domains, and more than 100 million unique viewers watch an Ooyala-powered video every month. The data sample is not intended to represent the entire Internet or all online video viewers. !"#"$)&..*)#/&1 Data is tracked by Ooyala’s video analytics technology. During playback, Ooyala’s video player continuously gathers information and relays it back to an analytics module, which stores the data in a distributed file system called Hadoop. Viewer statistics are then complied in near-real time and stored in a Cassandra data cluster, where the information is made readily available for analysis. "1".2%/%$+$,*#(/)% Ooyala’s video analytics module tracks a range of standard variables, such as: • Displays, plays and time watched • Viewer engagement and video completion rates • Sharing by social network • Geography (region, state, city, Designated Marketing Areas) • Device type (mobile, desktop, tablet, connected TV devices & game consoles) • Operating system (Windows, Android, iOS) • Browser (Safari, Chrome, Firefox, Internet Explorer) For more details on specific metrics and measures, please see the Metrics & Definitions section in the appendix.
  • 6. VIDEOMIND VIDEO INDEX REPORT VIEWER BEHAVIOR & ENGAGEMENT Ooyala’s video analytics technology tracks Across the entire data set, the average many key viewer engagement metrics, conversion rate increased in Q3, rising including conversion rate,1 video completion to 35.1 percent from 32.6 percent in Q2. rate and sharing events. Combined with data The average time watched per play grew on variables like device type and geography, considerably quarter over quarter, rising 26.5 these metrics can be used to understand percent in Q3. viewer behavior. Avg. Conversion Rate Q3, 2011 80% Conversion rate (plays/displays) 60% 40% 20% 0% Desktop Mobile Tablet Connected TV Devices and Game Consoles VIDEOMIND Video Index KEY TAKEAWAYS D&,-'&"(<:&"/%)" F&&4)/<."(3;1:" Viewer engagement When it comes to video .'3&&%".-@&"1/((&3E 6&&4&%).E Viewers was generally higher sharing, =/'&9$$4" In Q3, people who tend to watch more on mobile devices beats Twitter in most watched on a tablet online video during than on desktops— parts of the world— were more than twice the week—especially &,&%"5$3"2$%085$31" especially Taiwan, Italy as likely to finish an on desktops—though videos. Mobile viewers and Australia. entire video than there are exceptions. completed 3/4 of viewers on a desktop. a long-form video at a rate of 20 percent, compared to 18 percent for desktops. 1 The ratio of video displays to video plays. For more details, please see the appendix.
  • 7. VIEWER BEHAVIOR & ENGAGEMENT !*3/)*$#2-*4$,&5/.*6$#"5.*#6$$ )&11*)#*!$#3$!*3/)*%$"1!$7",*$)&1%&.*% As a general rule, device type heavily influences viewer engagement. In Q3, tablet viewers were the most engaged, while desktop and laptop viewers were relatively less engaged. For each desktop viewer who completed a video in Q3, for instance, 2+ viewers did the same while watching on a tablet. Across all plays, the video completion rate for mobile devices was slightly higher than that for connected TV devices and game consoles. Viewer Engagement: By Device Q3, 2011 80% Desktop Mobile Tablet Connected TV Devices 60% and Game Consoles % of audience 40% 20% 0% Watched 1/4 Watched half Watched 3/4 Completed video VIDEOMIND Video Index VIDEOMIND VIDEO INDEX REPORT 7
  • 8. VIEWER BEHAVIOR & ENGAGEMENT )&1#*1#$.*17#8 Avg. Content Length & Device Type, Q3, 2011 100% 10+ min Q3 data suggests that viewers 6-10 min are turning to their tablets, mobile 3-6 min devices and especially their 1-3 min % of total hours watched connected TV devices and game 75% < 1 min consoles to watch medium- and long-form videos. Desktops or laptops are far more likely to be 50% used to watch short clips. Videos shorter than three minutes, for instance, accounted for more than half (52 percent) of the hours 25% of content viewed on desktops. That same measure is 42 percent for mobile devices, 29 percent 0% for tablets and just 6 percent for Desktop Mobile Tablet Connected TV Devices and Game Consoles connected TV devices and game consoles. VIDEOMIND Video Index By contrast, longer-form videos represent a bigger share of the hours played on non-desktop devices. Videos 10 minutes or longer accounted for 30 percent Viewer Engagement on Videos Longer than 10 min Q3, 2011 of the hours watched on mobile 40% devices, 42 percent on tablets and % of audience that watched 3/4 nearly 75 percent on connected TV devices and game consoles. 30% Notably, videos shorter than a minute were just 7 percent of the total hours watched on tablets 20% and 2.2 percent for connected TV devices and game consoles. The data indicates that viewers 10% who watch on connected TV devices and game consoles complete longer-form content at 0% a higher rate than viewers who watch on any other device. Desktop Mobile Tablet Connected TV Devices and Game Consoles VIDEOMIND Video Index VIDEOMIND VIDEO INDEX REPORT 8
  • 9. VIEWER BEHAVIOR & ENGAGEMENT !"2$&9$:**;4$!*%;#&-$+$)&11*)#*!$#3$!*3/)*% Viewers tend to watch more online video on weekdays.2 The most notable exception was publishers in the online media vertical, who recorded higher-than-average viewing times during the weekend on mobile devices, tablets, and connected TV devices and game consoles. (Ooyala’s customers are separated into four industry verticals. The online media vertical includes companies that were explicitly founded as Web-based companies and publish video primarily online. A full explanation is outlined in the Industry Verticals section.) Q3 data suggests that on weekdays, viewers typically watch longer on desktops, regardless of industry vertical. Weekend Viewing Habits Q3, 2011 TV Connected TV Devices Print and Game Consoles Online Media Consumer brands Tablet Mobile Desktop -60% -30% 0% 30% 60% Watched less on weekends Watched longer on weekends (% less than average time watched) (% more than average) VIDEOMIND Video Index 2 Across Ooyala’s database, viewership data are tracked on a daily basis. More granular reporting—on a time-of-day basis, for example—is enabled by Custom Analytics, an extension of our core analytics module. Because that extension isn’t deployed universally across the database, insights are limited to day of week. VIDEOMIND VIDEO INDEX REPORT 9
  • 10. VIEWER BEHAVIOR & ENGAGEMENT %&)/".$,*!/"$+$3/!*&$%8"(/17 Ooyala’s video player makes content sharing easy, and our analytics module tracks sharing events to help publishers learn how viewers are engaging with their content. The aggregated data reveal how viewers around the world use social media and video together. A snapshot of Ooyala’s top 20 countries in terms of sharing activity in Q3 can be seen below. Generally speaking, Facebook is a more popular means of sharing video than Twitter—but that margin varies widely depending on region. In Japan, for instance, there’s approximately a 1:1 ratio between Facebook and Twitter sharing. By contrast, in Italy, sharing on Facebook is 17 times more popular than on Twitter. Social Media & Online Video: Facebook vs. Twitter Q3, 2011 Taiwan Italy Australia Philippines France India United States Spain Canada Germany Mexico United Kingdom Brazil Argentina Colombia Netherlands Singapore Venezuela South Korea Japan 0 5 10 15 20 # Videos shared on Facebook for every 1 video shared via Twitter VIDEOMIND Video Index VIDEOMIND VIDEO INDEX REPORT 10
  • 11. VIDEOMIND VIDEO INDEX REPORT MULTI-DEVICE VIDEO DELIVERY Across the data set, desktops account for Let’s set aside desktop systems for a the bulk of total displays, total plays and moment. Among other devices, mobile total number of hours watched. However, devices accounted for the biggest share of viewers are watching an increasing amount total hours played in Q3, with 48 percent. of content on other device types, namely Plays on tablets were a close second, mobile devices, tablets, and connected TV accounting for 45 percent, while connected devices and game consoles.3 TV devices and game consoles earned 6.4 percent of total hours played.3 % of Total Hours Played by Device: Mobile, Tablet, Connected TV Devices & Game Consoles Q3, 2011 6.4% Mobile 48.3% Tablet Connected TV Devices 45.3% and Game Consoles VIDEOMIND Video Index KEY TAKEAWAYS ->/)."/3&"4-%0"$5" >;92-.7&3."%&&)"/" *7&"/1$;%("$5",-)&$" (7&"(/92&(.E The iOS (/92&(",-)&$".(3/(&0<E" :2/<&)"$%")&,-'&." devices are currently Compared to desktops, 2-4&"G$$02&"*+A"B$H&&" responsible for the the average time /%)">2/<I(/(-$%"-." vast majority of video watched per play in Q3 03$6-%0"3/:-)2<E During played on tablets, was 28 percent longer Q3, the amount of time accounting for 97.7 on tablets. watched on connected percent of total plays TV devices and game in Q3. consoles tripled. 3 !"#$%#&%##&'(#&)"*%%$+,&-*+&.#/01'1*0%&*-&2*,$"$3%&.#415#6',7#&5$'#8*+1#%9
  • 12. MULTI-DEVICE VIDEO DELIVERY ,&5/.* In Q3, the average time watched per play on mobile devices was on par with the average time on desktops. A comparison of 25- and 75-percent video completion rates, however, reflects that mobile viewers were on average more engaged than their desktop counterparts. Viewer Engagement: Desktop vs. Mobile Q3, 2011 80% Desktop Mobile 60% % of audience 40% 20% 0% Watched 1/4 Watched 3/4 VIDEOMIND Video Index VIDEOMIND VIDEO INDEX REPORT 12
  • 13. MULTI-DEVICE VIDEO DELIVERY #"5.*#% Tablet viewers on average watch longer than viewers on desktops or mobile devices. For each minute watched on a desktop, tablets recorded 1:17 in played content— 28 percent longer than the desktop average. Video completion rates for tablets were consistently more than double the completion rates for desktops and around 30 percent higher than for mobile devices. Viewer Engagement: Desktop, Mobile & Tablet Q3, 2011 80% Desktop Mobile Tablet 60% % of audience 40% 20% 0% Watched 1/4 Watched 3/4 VIDEOMIND Video Index VIDEOMIND VIDEO INDEX REPORT 13
  • 14. MULTI-DEVICE VIDEO DELIVERY <&%$=>?$"@ABC<A 7% Together, iOS and Android devices account for more than 90 percent of the video hours played on tablets 21.2% % of total displays, Q3, 2011 and mobile devices across Ooyala’s database. iPads were responsible for iPhone the vast majority of video played on Android mobile a tablet in Q3, accounting for 99.4 Mobile: Other percent of displays, 97.7 percent of 71.8% total plays and 95.7 percent of total hours streamed. That noted, in Q3 the average conversion rate for Android mobile VIDEOMIND Video Index devices (45 percent) was considerably higher than that of iPhones (22 percent). The average conversion 7% rate for videos on Android tablets (47 percent) was likewise higher than the comparable figure for iPads (13 % of total plays, Q3, 2011 percent). 36.8% iPhone 56.2% Android mobile Mobile: Other VIDEOMIND Video Index 6.5% % of total hours played, Q3, 2011 44.4% iPhone Android mobile 49.1% Mobile: Other VIDEOMIND Video Index VIDEOMIND VIDEO INDEX REPORT 14
  • 15. MULTI-DEVICE VIDEO DELIVERY Conversion rates were higher for Viewer Engagement on Tablets: iPad vs. Android Q3, 2011 Android, but viewer engagement 100% rates were higher on iPads. About Android Tablet 48 percent of iPad viewers watched iPad three-quarters of their video in Q3, 75% while 41 percent of Android viewers % of audience did so. Viewers completed videos at a rate of 38 percent on iPad and 36 50% percent on Android tablets. Note that these viewer engagement 25% trends on iOS and Android devices may vary depending on industry vertical. (See the Industry Verticals 0% section below.) Watched 1/4 Watched half Watched 3/4 Completed video VIDEOMIND Video Index )&11*)#*!$#3$!*3/)*%$"1!$7",*$)&1%&.*% Connected TV devices and game consoles account for a small share of the plays in Ooyala’s database, but the third quarter saw remarkable growth in the amount of video played on these devices. In three out of the four industry verticals, video played on connected TV devices and game consoles grew more than 200 percent over the second quarter. Moreover, compared to desktops, they had higher viewer-engagement rates than desktops. Viewer Engagement: Desktop vs. Connected TV Devices and Game Consoles Q3, 2011 80% Desktop Connected TV Devices and Game Consoles 60% % of audience 40% 20% 0% Watched 1/4 Watched 3/4 VIDEOMIND Video Index VIDEOMIND VIDEO INDEX REPORT 15
  • 16. VIDEOMIND VIDEO INDEX REPORT INDUSTRY VERTICALS Ooyala’s customers fall into four broad industry verticals: TV, print, online media and consumer brands. • The (&2&,-.-$%",&3(-'/2 includes companies involved in the creation, distribution or curation of content for film and television. Sub-verticals include studios, broadcasters, networks, and cable and satellite operators. • The :3-%(",&3(-'/2 includes media companies that are historically focused on the creation of print content, but which now use video as a complement to their content offerings. • The online media vertical features media companies founded explicitly as Web properties. • The '$%.;1&3"93/%).",&3(-'/2 refers to any and all companies that use video to promote their brand, products or services. % of Total Time Watched, by Vertical, Q3, 2011 6.6% 5.1% 42.1% TV Online Media Print Consumer Brands 46.1% VIDEOMIND Video Index KEY TAKEAWAYS Viewers watched For the print vertical, Online media For the consumer more long-form TV viewer engagement companies exhibited brands vertical, viewers content on tablets and rates were nearly the lowest viewer were the least engaged connected TV devices identical for Android engagement rates on when watching on and game consoles tablets and iPads. desktops of all the four mobile devices. relative to desktops. industry verticals.
  • 17. INDUSTRY VERTICALS Video plays by mobile, Q3, 2011 100% Consumer Brands Online Media Print 75% % of total plays TV 50% 25% 0% < 1 min 1-3 min 3-6 min 6-10 min 10+ min Video length VIDEOMIND Video Index In Q3, the TV vertical saw a bigger share of its long-form videos watched on mobile devices and tablets, while the print vertical had a larger portion of shorter-form content. Video plays by tablet, Q3, 2011 100% Consumer Brands Online Media Print 75% % of total plays TV 50% 25% 0% < 1 min 1-3 min 3-6 min 6-10 min 10+ min Video length VIDEOMIND Video Index Audiences watched more shorter-form content from print media companies on their tablets. But videos from the TV industry dominated longer-form content viewed on tablets. VIDEOMIND VIDEO INDEX REPORT 17
  • 18. INDUSTRY VERTICALS #*.*3/%/&1 TV Vertical: Hours Played by Device Type, Q3, 2011 In Q3 non-desktop plays, mobile devices accounted for just over half 11.7% of all the hours of TV video content played. Tablets had the second- biggest share at 38 percent while connected TV devices and game Mobile consoles had the smallest share at 50.3% Tablet 11.7 percent. Connected TV Devices 38% and Game Consoles In longer-form video content, viewers exhibited a strong preference for tablets, connected TV devices and game consoles. Videos 10 minutes or more in length accounted for 56 percent of the video played on tablets and 84 percent played on connected VIDEOMIND Video Index TV devices and game consoles. By comparison, longer-form videos accounted for just 28 percent of the video played on a desktops or laptops. TV: Content Length & Device Type, Q3, 2011 100% 10+ min 6-10 min 3-6 min % of total hours played 75% 1-3 min < 1 min 50% 25% 0% Desktop Mobile Tablet Connected TV Devices and Game Consoles VIDEOMIND Video Index VIDEOMIND VIDEO INDEX REPORT 18
  • 19. INDUSTRY VERTICALS TV Vertical: Viewer Engagement, Q3, 2011 100% Desktop Mobile Tablet 75% Connected TV Devices and Game Consoles % of audience 50% 25% 0% Watched 1/4 Watched half Watched 3/4 Completed video VIDEOMIND Video Index Viewers watching TV content, regardless of length, were most engaged when viewing on tablets, followed by connected TV devices and game consoles. They were least engaged on desktops. TV Vertical: Viewer Engagement on iPad vs. Android Tablet Q3, 2011 100% Android Tablets iPad 75% % of audience 50% 25% 0.00% Watched 1/4 Watched half Watched 3/4 Completed video VIDEOMIND Video Index The data suggests4 that viewers of TV content are more engaged when watching on an iPad than on an Android tablet. For every 1 million viewers who started a video on an Android, about 360,000 completed it. For every 1 million viewers who started a video on iPad, about 470,000 completed it—a difference of 30 percent. 4 Note that, because of differences in market share, the Android tablet data sample is considerably smaller than the iPad sample. Readers are cautioned against drawing absolute conclusions from the Android tablet numbers. VIDEOMIND VIDEO INDEX REPORT 19
  • 20. INDUSTRY VERTICALS -(/1# Print Vertical: Hours Played by Device, Q3, 2011 Tablet video views accounted for 0.29% 55.1 percent of hours played during Q3, followed by mobile views at 44.7 percent. Views on connected 44.7% TV devices and game consoles Mobile Tablet accounted for less than 1 percent of 55.1% Connected TV Devices and Game Consoles hours viewed in the print vertical. As in the TV vertical, video publishers in the print vertical see high engagement levels from tablet VIDEOMIND Video Index viewers. Unlike TV, the print vertical reflects low engagement from viewers on connected TV devices and game Print Vertical: Viewer Engagement, Q3, 2011 consoles. Desktops and mobile devices have similar engagement rates. 100% Desktop Mobile Tablet Interestingly—and unlike the trend Connected TV Devices % of audience 75% and Game Consoles in the TV vertical—engagement on Android tablets for print companies is on par with engagement on iPads. 50% Again, note that the small size of the Android tablet data sample makes it 25% difficult to draw absolute conclusions. 0.00% Watched 1/4 Watched half Watched 3/4 Completed video VIDEOMIND Video Index Print Vertical: Viewer Engagement on iPad vs. Android Tablet, Q3, 2011 100% Android Tablet iPad 75% % of audience 50% 25% 0% Watched 1/4 Watched half Watched 3/4 Completed video VIDEOMIND Video Index VIDEOMIND VIDEO INDEX REPORT 20
  • 21. INDUSTRY VERTICALS &1./1*$,*!/" Online Media Vertical: Hours Played by Device Type, Q3, 2011 Mobile devices accounted for half 4.9% the video play hours for online media, followed by tablets at 45.4 percent. Connected TV devices and game consoles made up the remaining 5 Mobile percent of hours played. 49.7% Tablet 45.4% Connected TV Devices and Game Consoles Online media sees high engagement from tablet viewers, which is consistent with other verticals. Online media had the lowest rates of desktop engagement of any vertical. VIDEOMIND Video Index Day-of-week data for the online media vertical shows that users watch more Online Media: Viewer Engagement, Q3, 2011 video on mobile devices, connected TV devices and game consoles on weekends than they do on weekdays. 100% Desktop Mobile Tablet Connected TV Devices % of audience 75% and Game Consoles 50% 25% 0% Watched 1/4 Watched half Watched 3/4 Completed video VIDEOMIND Video Index Day of Week and Time Watched: Online Media, Q3, 2011 Desktop Mobile Tablet Connected TV Devices and Game Consoles -30% -15% 0% 15% 30% Watched less on weekends Watched longer on weekends (% less than average time watched/day) (% more than average watched/day) VIDEOMIND Video Index VIDEOMIND VIDEO INDEX REPORT 21
  • 22. INDUSTRY VERTICALS )&1%',*($5("1!% Consumer Brands Vertical: Hours Played by Device Type, Q3, 2011 For consumer brands, the majority of non-desktop hours played were 1.09% on tablets (53.3 percent), followed by mobile devices (45.7 percent) and connected TV devices and game consoles (about 1 percent). Mobile Interestingly, the consumer brands 45.7% Tablet vertical reflects some of the highest viewer engagement numbers of all the 53.3% Connected TV Devices and Game Consoles industry segments. Relative to other devices, viewer engagement is lowest on mobile devices, which is unique to consumer brands. VIDEOMIND Video Index Consumer Brands Vertical: Viewer Engagement by Device, Q3, 2011 100% Desktop Mobile Tablet Connected TV Devices 75% and Game Consoles % of audience 50% 25% 0% Watched 1/4 Watched half Watched 3/4 Completed video VIDEOMIND Video Index VIDEOMIND VIDEO INDEX REPORT 22
  • 23. APPENDIX GLOSSARY 7.&%%"(2 ,*#(/)%$+$!*9/1/#/&1% the ratio of plays to displays. Conversion rate #$1:2&(-$%"3/(& the rate at which viewers watch a specified portion of a given video. Sometimes useD interchangeable with “play-through rate.” D-.:2/< any time a video is loaded in a browser and displayed to the viewer. J$9-2&")&,-'&. all smart phones, including iOS, Android, Blackberry and all others. >2/< any time a video starts playing. I&(8($:"9$H&. this category includes a number of devices, including Wii, Playstation, Boxee, Roku and Google TV. Tablets all media tablets, including iOS and Android. METRICS & DEFINITIONS v ) an online video p ) a publisher that owns many videos v ! p ) a video owned by a publisher p S ) is a set of publishers (e.g., the TV vertical) p ! S ) p is a member of set S "(v) ) a metric " (e.g., number of plays in Q3) evaluated over video v P "S = "p ) "S is the sum of "p for all publishers p in set S p!S r(v) = "1(v)="2(v) ) r(v) is the ratio of two metrics "1(v); "2(v) rp; rS ) the same ratios over a single publisher p or set of publishers S P P rp = ( "1(v))=( "2(v)) v!p v!p PP PP rS = ( "1(v))=( "2(v)) p!S v!p p!S v!p P P #p = ( #(v) ! w(v))=( w(v)) ) a weighted sum. v!p v!p For instance, the average length of a video played weighted by the number of plays for each video, #(v) would be the length of video, and the weight w(v) is the number of plays. Since #p is a ratio, it would also be possible to determine #S for a set of publishers using the rule above. Examples Engagement is a ratio r(v) = "1(v)="2(v) where "1 is the number of times the video was watched some percentage of the way through (25, 50, 75, 100) and "2 is the number of times it was played. Some metrics are more complex. For instance, " may be the number of times a video that was of length greater than 10 minutes was watched on a tablet device. Only videos that are longer 10 minutes contribute to this total. VIDEOMIND VIDEO INDEX REPORT 23
  • 24. CAVEATS, DISCLAIMERS, & ASSUMPTIONS Data are not aggregated across all videos or providers for vertical data, and only publishers with a meaningful amount of videos watched are included. Some publishers do not fall into any of our four verticals, however these publishers are included in global statistics. Publishers with incomplete data across the third quarter (for instance newly added publishers) have been excluded. When selecting items for inclusion in the report, Ooyala’s data science team selected metrics that were clear and meaningful. Because granular measures were broken down along many categories, a large amount of data resulted. Rather than reporting all of this data, the Ooyala team chose to highlight those measures that give a good impression for the data set as a whole. Consider viewer engagement, which can be measured in many ways. First, one could measure consider the rate at which a displayed video starts playing (conversion rate). Next, one could look at the chance a video was played 25 percent of the way through. Video completion rates of 75 and 100 percent might also provide useful insights. By including granular results, the report offers display information that is easy to understand. Alternatively, it would have been possible to construct just a single measure of engagement out of all the ones mentioned above: e.g., conversion rate x video completion rate. This would have given a simpler result that could be displayed in a single graph at the cost of being more convoluted. )"3*"#%6$!/%)."/,*(%6$+$ "%%',-#/&1% VIDEOMIND VIDEO INDEX REPORT 24