What: In its VOD Ad Impression Report for Q1 2017, Canoe Ventures revealed that its VOD Dynamic Ad Insertion technology helped the platform attain 5 billion ad impressions in Q1 alone.
Why It Matters: This is compared to the 17.9 billion total ad impressions that were generated through the technology in 2016, 11.8 billion in 2015, and 6.3 billion in 2014.

In its VOD Ad Impression Report for Q1 2017, Canoe Ventures revealed that its VOD Dynamic Ad Insertion technology generated 5 billion ad impressions in Q1 alone, putting Canoe on track to reach the same number of ad impressions generated over the entire course of 2014 by early into Q2 of this 2017.

4.2 billion of the impressions in Q1 2017 were from mid-roll ads, 732 million from pre-roll, and 95 million from post-roll. Impressions stayed steady throughout the work week (with slight increases on Monday), and rose considerably over the weekends.

75 percent of the ads were external client campaigns, while 25 percent were network tune-in ads. Of the campaigns that ran, average ad opportunities hovered around 1.05-1.13 in pre and post-roll ads, and reached 3.84 mid-roll ad opportunities. Campaigns that use frequency capping had an average of two impressions per episode.

Through the VOD DAI technology, TV networks can insert VOD programming into their MVPD (cable, telco, or satellite companies) VOD platforms. As the consumer watches his or her television program of choice, advertisements are inserted before, during and after the program.

VOD DAI is interoperable, as “the MVPDs as well as the programmers can choose the technology that best suits their needs,” said Joel Hassell, the CEO of Canoe. FreeWheel and Google DFP, for example, meet minimal standards and capabilities to work with Canoe. While OTT and Mobile also offer DAI, Hassell emphasized that “Canoe VOD DAI is unique because of the quality control Canoe brings to the VOD DAI ecosystem.”

Consumers love quality video and the convenience of enjoying it on their primary screen in the comfort of their living rooms.

Canoe offers quality control in the sense that ad campaigns route through Canoe, where they are then monitored before generating accurate, verified reporting returns.  The goal is to focus on the “quality and reliability of the viewer experience combined with the trust advertisers place in the platform,” Hassell explained. Canoe’s platform reaches over 35 million households through Comcast, Cox, and Charter Spectrum.

Hassell described their “main job” at Canoe as ensuring that “all the moving parts throughout the ecosystem work seamlessly and nothing falls through the cracks.” Their Service Assurance team is constantly monitoring the life cycle of the campaigns, and “alerts the programmer and the MVPDs to any issues before and during the campaign, and has authority to act on any issues that may occur once the campaign is running.

Hassell believes that the VOD DAI’s success stems from the fact that “consumers love quality video and the convenience of enjoying it on their primary screen in the comfort of their living rooms,” and that  “programmers continue to add more content to their VOD offering because they know they can trust Canoe’s VOD DAI to monetize it.” It is also Canoe’s job to “make certain that ads don’t get placed within content that is inconsistent with the advertiser’s brand,” Hassell added.

In terms of targeting, NBC Universo, Telemundo, and Univision all use Canoe VOD DAI to “utilize traditional TV advertising techniques, and simply buy Hispanic-oriented VOD,” said Hassell. But he clarified that “advertisers can also buy specific series on non-Hispanic VOD networks that over index to Hispanics if a network allows for it.”

What: Qubit.tv presents an alternative business model to OTT.
Why It Matters: Because competition between cable channels and OTT services have led businesses to come up with new ways to sell their content in order to differentiate themselves from others.

It’s no secret that the relationship between cable channels and VOD (Video On-Demand) and OTT (Over-the-Top) services has become more and more competitive. Cable channels are launching their own channels and saving content to present exclusively on their own platforms, as HBO does, or as Televisa did when it took its content off of Netflix.

On the other hand, OTT platforms developed their own high-quality content to compete. The best example of this is Netflix and its original series that have broken records like “Orange is the New Black,” and “House of Cards.” Here, the challenge is bigger, because companies need to know about both technology and content to come out ahead.

To differentiate themselves and compete with a giant VOD platform like Netflix, Lilián Beriro, content acquisition manager of the Argentine OTT platform Qubit.TV, explains that since 2011, the company has sought to “have a much deeper idea of what the theater experience is, take advantage of local cultures of each country to understand how they are and bring specific content to each of them. And it is important to provide access to payment methods other than credit cards, so that your services are accessible to a much wider user base.”

With the objective of offering technological content solutions to businesses as much as the final user, Qubit Corporate has two business units, one that is B2B and another that is B2C. Thanks to this, the company has a presence in six countries already: Argentina, Uruguay, Paraguay, Colombia, Ecuador and just recently, Guatemala.

“What we do is develop a VOD platform with added content for third parties, which can be big companies from industries like telecommunications,” explains Beriro. Among their clients are companies like Antel, Arnet, Personal Argentina and Personal Paraguay. In this sense, large companies that have a wide client base can offer them a VOD content platform as added value.

The platform and the content catalogs are the same, and what we do is offer a blank page for them to customize the platform.

Like that, this VOD platform, with 3500 different titles, becomes one more product that the companies can offer their clients, as many telephone companies include access to a music or video game platform to their clients. When the platform belongs to the intermediary company, that company needs to worry about promoting the site and creating a marketing and branding strategy for it. At the same time, Qubit.tv has its own platform that it sells directly to the final consumer.

Thanks to this business model, Qubit Corporate isn’t looking for individual clients, but seeks large corporations that already have a captive audience of mobile content consumers. This allows Qubit to charge for the service without needing to finance itself through investors, as Netflix has done (and for that reason, experts say that the company still hasn’t made money).

We have not tried to compete with Netflix, because what we do is create strategic alliances in the business that allow us to create a financially sound business to be able to pay for technology and, most importantly, content.

Qubit Corporate plans to have a presence in 10 Latin American countries by the end of this year, and assures us that they are very interested in Mexico, where it may enter in 2017. “We have to be careful, because the value of content, due to the current volume and high potential of the Mexican market, and because we have already witnessed strong performances by companies like Claro Video and Netflix. But of course, it’s a great aspiration of ours to enter that market,” concludes Beriro.

A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

U.S./U.S. Hispanic Market

According to research by Nielsen, 32% of global respondents (and 22% of respondents in the U.S. and Canada) plan to cancel traditional TV subscriptions for online services. The survey involved 30,000 people in 61 countries.

And another Nielsen survey found that 66% of global respondents were seeing ads on their VOD content for products they do not want. 62% say they believe the ads are distracting, and 65% said they wish they could block all ads altogether. But 68% said they were ok with ads, as long as they kept the content free.

study by Ooyala’s Global Video Index revealed that total mobile plays have grown 35% in the past year, and 170% since 2013. The study also found that mobile and tablets account for 26% of all online viewing in the world, up from 24% in 2014. And with the increasing popularity of OTT content, these numbers should continue to rise.

Sony has launched its PlayStation Vue streaming service in the United States after testing it for a year.

Verizon Digital Media Services has acquired video company Volicon in part of its effort to improve its OTT video services. Volicon has set itself apart for its specialization in video capture, archival, compliance monitoring and clip creation workflow for broadcasters.

The BBC and ITV are supposedly discussing a joint OTT video service venture. The BBC currently offers online transmission, but this move would take their video efforts to the next level.

fccThe Federal Communications Commission has voiced approval for the $55 billion Charter acquisition of Time Warner Cable, but will likely require conditions that involve efforts to slow down the expansion of online video. Charter promised to follow net neutrality rules for at least three years, and that it will not charge content companies to connect to Charter’s servers.

New trends in online video monetization, measurement, engagement and many more aspects of the emerging OTT market will be explored at the Latin Online Video Forum during PortadaLat in Miami on June 8-9, 2016. Get your tickets at early bird price now!

Latin American Market

New stats from Colombia’s Comisión de Regulación de Comunicaciones (CRC) show that less than three in 100 Colombians use the Internet as their primary video viewing platform. But of those that do consume online video, 76% use YouTube, 14.3% use social media and 9.7% use VOD platforms. Strangely, this data contrasts with the latest report from Ericsson, which claimed that a third of Colombians were using VOD services for TV viewing and that the country is leading in Latin American mobile video penetration.
Market research firm GfK found that Latin American media gfkconsumption on cell phones and tablets is more widespread than that of desktop computers, and that it will soon catch up to TV. The study also found that viewers in the region tend to watch an average of around 20 hours of TV per week and 17 hours of content on mobile and tablets. ESPN had commissioned the study to look at trends in media consumption in Latin America.
2btube, a platform for YouTube creators, is opening Latin American operations. The company tapped Hugo Tapia to serve as country manager in Mexico, where the company will open an office. Tapia will be in charge of producing original content, optimizing revenue streams for the region’s audiences and discovering new creators.
New trends in online video monetization, measurement, engagement and many more aspects of the emerging OTT market will be explored at the Latin Online Video Forum during PortadaLat in Miami on June 8-9, 2016. Get your tickets at early bird price now!