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Video viewing behavior continues to evolve as services and devices beyond the television vie for consumers’ attention. What largely started as user-generated content (UGC) has, within the past decade, drastically altered the video landscape and irrevocably changed how younger generations perceived content and services. Despite these changes, the presence of online video has not brought about the collapse of the pay-TV industry as some have feared, nor has it diminished the value of premium content. In fact the avenues and channels to find said content have and will continue to expand in the coming years. What this content looks like, however, has undergone some seismic changes that coincide with the evolving viewing landscape.
This research analysis takes a closer look at the market conditions and revenue opportunity for short-form video in the context of the greater online video space. Short-form video in particular is transitioning from short clips of broadcast content (intended for sharing) and UGC to higher-quality tiers and increasingly into segments for premium content. Short-form video is being used by advertisers and companies in brand campaigns and among content holders to increase viewer engagement. A new generation of talent is also being showcased on sites like YouTube and represented by multi-channel networks (MCNs) to help monetize these efforts. As the landscape shifts content holders, pay-TV operators, and broadcasters are working to address the changing needs of the consumer while maintaining high engagement levels to remain relevant in tomorrow’s video markets.
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