streaming: just how big is it?

Streaming: Just How Big Is It?

http://www.streamingmedia.com/index.asp

comScore Networks Confidential

What You’ll Hear From Me Today

comScore’s Research Approach and Methodology The Advertising Opportunity (“Imperative”) Size of the Internet Streaming Marketplace

Radio – AudioVideo

Consumer Profiles Example of Streaming Engagement Summary and Next Steps


Recognized for Outstanding Growth and Innovation

America’s Fastest Growing Private Companies

comScore ranked 97th among the nation’s fastest growing privately held firms. November 2004

Top 100 Innovative Companies

Named one of the 100 companies that will shape the next year in technology. December 2004

Fifth Fastest Growing Research Firm

Currently ranked the 30th largest U.S. research firm – up ten spots from previous year.June 2004

World’s Largest Database

Grand prize winner for developing the largest NT decision support warehouse.December 2003

Honomichl Top 50

Marketing NewsMarketing News

Rising Star

Named one of only three “Rising Stars” among Virginia-based technology companies.October 2004

High Tech Award

Recognized as a technology leader for successfully developing innovative products.November 2004


comScore technology

2.0 million member panel of online consumers who have agreed to be continuously and passively observed

Proprietary technology collects all streaming activity

All data associated with streaming, including:

User/browser demographicsAll streaming by portsComplete URL/clickstream data, including

referring URLStreaming player typeStreaming data type (audio/video)Streaming protocol usedDuration metricsFile sizes transmitted

comScore Panelists

comScore Servers

World Wide Web

Passive tracking of actual consumer streaming activity


Dial-up is a Dying Breed

Source: comScore Marketing Solutions; U.S. Market


Implications of the Death of Dial-up

People consume more of everythingBroadband users spend an average of 84.1 minutes per day

online – Their narrowband counterparts spend 64.2 minutesAlmost 25% more time spent by broadband-connected peopleBroadband users consume 222 billion pages per month –

Narrowband users consume 67 billionOver three times as many pages consumed by broadband usersBroadband users do six times as many searches as narrowband

users Consumer touch-points increase

What we previously only did at Work, we can now do anywhere Marketers can get more creative

E.g. VW films


Creative Applications Abound …


Internet users watch 5 hours less TV per week

Bill Gates believes that the CD is the last physical form of music and the DVD the last for movies

Apple’s iPods sold at an annualized rate of 26 million of in the last quarter

Itunes announced one million video downloads in 20 days

IPTV market to grow at a compound annual growth rate of 78%, from 3.7 million subscribers this year, to 36.9 million in 2009

75% of national advertisers plan to cut spending on TV commercials by at least 20 percent in the next five years due to widespread ad-skipping devices

Last month the Arctic Monkeys single reached #1 in the UK – a band without a label, without a CD, without distribution

pdaboll

need a bullet or page on music downloads, streaming/video


It will more than quadruple in the next 10 ….

In just over 10 years, global online In just over 10 years, global online advertising has grown from zero to $19 advertising has grown from zero to $19

BillionBillion


50% of advertisers believe TV advertising will lose effectiveness according to Forrester

Research

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003

0%

5%

10%

15%

20%

25%

Network Ad Revenues $(mm)

Network Prime Time Ratings

“The future of advertising is the Internet”

- Bill Gates 11/05


How Prevalent is Streamed Content?

Percent of Internet users who access streamed content in an average month:

A. 28%B. 33%C. 40%D. 58%E. 66%

It could easily be two-thirds by the end of the year.

Source: comScore Marketing Solutions; August 2005

OVER 100 MILLION PEOPLE STREAMED THIS MONTH

OVER 100 MILLION PEOPLE

STREAMED THIS

MONTH !!!

Source: comScore Marketing Solutions; August 2005; U.S. Market


That’s equal to the entire population of Mexico

That’s greater than the entire populations of 216 countries …

Source: U.S. Census Bureau, International Data Base. Data updated 4-26-2005


Streaming Shows Seasonal Variability As With Most Internet

Activity

Source: comScore Marketing Solutions


What About Internet Radio?

Number of Internet users who listened to one of the leading online radio stations in a typical week in 2005:

A. Under 2 Million

B. 2 to 3 Million

C. 3 to 5 Million

D. Lots and Lots

E. 6.1367 MillionSource: comScore Arbitron Online Radio Ratings; Cume Listeners per Average Week (millions)


Portals, Leaders In Terrestrial Radio, And Creative New Applications Have All Gathered

Strong Audiences

Source: comScore Arbitron Online Radio Ratings; Cume Listeners


On Average, Radio Listeners Tune-In For 9.8 Hours Per Week

Source: comScore Arbitron Online Radio Ratings; TSL


The Internet Radio Listener is Valuable

People who listen to Internet Radio tend to also spend more money online:

Radio listeners are 60% more likely to be online buyers.

Radio listeners spend an average of $216 on other eCommerce products online every month!



The Internet Radio Listener is Valuable

Predictably, Internet radio listeners are twice as likely as the average Internet users to buy Consumer Electronics, Music, Movies, Videos, Event Tickets.

But, they are also more likely to be buyers of some less obvious categories such as Apparel, Travel, Books and even Consumer Packaged Goods.



Video Content Networks are Exploding

Broadband Enterprises number of Video Viewers … and six-month growth rate:

A. 117%

Source: comScore Online Video Ratings

March 2005 August 2005


Where are Consumers Getting Their Content?

Portals, given their leadership position on the Web, also lead the pack in terms of the place where consumers turn to get their video content.

Almost 50 million Internet users streamed from an Entertainment site; and Adult, Music, and Retail categories each reached around 15 million.

Millions Of Consumers Who Streamed From This Type Of Site*

*Site Categories will overlap (e.g Yahoo! News is both Portal and News), so some locations will be double-counted.



…And How Much Do They Consume?

Entertainment, Gaming and Music show a high number of streams consumed – 20 to 30 per month for the average viewer.

Number of Streams per Month, per User by Site Category*

*Site Categories will overlap (e.g Yahoo! News is both Portal and News), so some locations will be double-counted.


So What Do These Consumers Look Like … Demographically?



38% Female 62% Male


8 in 10 people who use the Internet from work consume some type of streamed content, and over half of all University Internet users do so.

Even 1 in 3 Internet users from home see a stream, making that audience almost 50 million consumers!


From All Internet Locations


Streaming Activity is Strong Among The Valuable 35 to 49

Year-Old Group



One in Five Streamers are Males Age 35 to 49 Years Old



The Same Age Bracket Shows Dominance for the Female

Audience



When Are They Doing It?


*Percent of the daypart’s audience that is reached by streaming in that daypart


Let’s Discuss Some Examples of Streamed Executions


Over 15% Of The Total Viewing Audience For “Fat Actress” Tuned-in To Watch It Online!


Yahoo! Apprentice with Intel

Apprentice content on Yahoo! IM Insider

In-depth Apprentice content on Yahoo! TV

Promotion on TV programming to visit the site, mention of streaming clips

Intel streamed ad at the initiation of the Yahoo! Apprentice streamed clips and sponsorship on the Yahoo! TV channel


Apprentice Season II Premier

Apprentice Season II

Source: comScore Media Metrix

Yahoo! TV Channel Visitors Surged With The Premier of “The

Apprentice”


Apprentice Visitors and Streamers were more engaged with and loyal to Yahoo! Search than the average Yahoo! User

“The Apprentice” Streamers on Yahoo! Were More Engaged with Yahoo! Overall

Source: comScore qSearch



September – December, 2004; Data is time-aligned based on the user’s first observed visit to Y! Apprentice during the period.

Those That Watched the Streams Were More Engaged with Yahoo!

Over Time All Yahoo! Apprentice Visitors increased their visit frequency of the Yahoo! Property during the month of

their first visit and the two months following.

Yahoo! Apprentice Streamers visited slightly more often in the following months than those who did not stream.


They Consumed More of the Yahoo! Site



Apprentice Streamers consumed more Yahoo! channels in the months of and after streaming than they did the month prior.




Yahoo! Apprentice Streamers were 50 to 100% more likely than Non-Streamers to return to Yahoo! Apprentice following their initial visit.

… And They Kept Coming Back for More


Y! Apprentice Streamers 28% make over $100k HH

income 53% Female / 47% Male 54% 1 - 2 Person Households Twice as likely at Average

Internet User to have at least some college education

Spend $225 per person online (vs. $160 for Average User)

Spend 3X more on Computer Hardware/Software and Electronics (vs. Avg. User)

Source: comScore Streaming Report

Yahoo! Reached a Very Valuable Audience for Their

Intel Client


Let’s Recap …

Streaming is a mainstream activity It reaches a valuable advertising audience Radio and Video are both strong Preliminary evidence that the streaming

audience is a more loyal and voracious user of a site


“State of the Streaming Market” available on

www.streamingmedia.com How many consumers are streaming online, and how is this

changing over time?

How much streaming content are they consuming, and how is this changing?

How many streams and how many minutes of content are being consumed per month, and is this growing?

How much content is being delivered via streaming versus download technologies? How many consumers are consuming content delivered via each distinct method?

What is the demographic composition of those viewing video content on the Web?


“State of the Streaming Market” available on

www.streamingmedia.com From what location (home, work, and university) are

consumers viewing and listening to streamed content?

During what times of the day are people viewing streamed content?

What protocols are most prevalent for delivering streamed content?

What players are most prevalent for consuming streamed content?

Do consumers typically consume content through embedded or standalone media players?


Thank You!!

[email protected]

(415) 828 2600

streaming: just how big is it?

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