Summary
Marina, CA. Online video applications, platforms, advertising networks and related services tallied $494.7 million in 2008 revenue, up 86.7% over 2007.
VASP, video CMS and ad network revenues combined are forecast to increase by 41% in 2009 and 38% in 2010, according to this far-reaching online video services and analytics report.
The report, Online Video Applications and Platforms: 2007-2010, unites the spectrum of extant video applications and platforms, and aligns them in relevant product category groupings.
Product groups include video overlay applications, advertising platforms, CMS platforms, platforms with inventory sales, search with inventory sales, integration services, indexing and metadata libraries with media sales.
Each product category is analyzed by business model (or models), entrants, revenue, participation structure, gross media spend delivered by platform, trends, account totals and media suite capabilities.
VASPs are integrated product packages with business units built to achieve profitability through scale, rapid response and increasingly, automation.
The top four VASPs are in-banner video advertising platforms (including Eyewonder, Eyeblaster, Pointroll and DoubleClick), and as a category generated an estimated $225 million in net revenue in 2008.
The following ten VASP providers had combined revenue estimated at $194.3 million, and include industry leaders such as Brightcove, Tremor Media, BBE, Worldnow, thePlatform and Internet Broadcasting.
An additional nineteen providers analyzed in the report generated 2008 revenue estimated at $74.4 million.
The VASP market is evolving, however. Video advertising platform total share is forecast to decline from 45.6% in 2008 to 35.6% in 2010.
Video services (including transcoding, custom player design and widgets) are forecast to grow from an 8.5% share in 2008 to 10.7% in 2010. Video indexing and metadata support is forecast to grow from 3.9% share in 2008 to 9.3%.
"VASPs are selling an ROI model in 2009, which plays well in a tight economy by focusing on ways to save clients money," commented our research director.
"Whether that's more efficient allocation of marketing spend supporting strategic video publishing online or increasing paid media placement, VASPs are betting with their business models they can deliver better content performance."
Table of Contents
Executive Summary 2
Trends: Increasing Video Efficiency, Audience Flow and Asset Exploitation2
The Internet's scale and performance as a video platform enabled by new generation
applications; VASP revenue up 86.7% in 2008, forecast to increase 41% in '09 2
VASP market segments incorporate diverse application sets packaged into integrated
solutions 3
VASP business models generate 66% of revenue through advertising-related serving
fees or direct participation in 2008 3
In-banner VASP share at 45.6%, video CMS at 22.7% share, video ad sales and CMS
at 13.1% share in 2008 4
Overview 5
Introduction to Online Video Applications and Platforms: 2007-2010 5
Online Video Application and Platform Services Terminology 7
Video Platform and Application Trends, Market Dynamics, Innovations and Relative Business Strength 10
Trends: Increasing Video Efficiency, Audience Flow and Asset Exploitation 10
As the Internet's scale, performance and appeal as a video platform has increased,
application revenue has gone up; 86.7% growth in 2008, forecast at 41% in '09 10
Industrial grade video platforms offer suites of integrated solutions 10
Trends: VASP Business Model Success Predicated On Achieving Scale 13
MRR, SAS, revenue share and usage-based business models perform well, but need
to achieve scale 13
VASP pricing: Early stage, higher fixed cost models or capital structures impact deal
points 14
VASPs selling into ROI-driven and video-as-brand-strategy client bases 14
VASP valuation scenarios based on capturing market share quickly inside expanded
customer verticals, ramping toward annual revenue targets in the $10-$30 million
range 15
Applications and platforms that deliver content performance, plus inventory guarantees
attract ROI clients 17
VASP customer adoption trends show a favorable mix media and non-media clients 19
VASP operating efficiency and marginal performance imperative: Automation 19
Section One 21
VASP revenue grows by 86.7% in 2008 to $494.7 million 21
VASP market segments incorporate diverse application sets packaged into integrated
solutions 22
In-banner video advertising platforms generate an estimated $225 million in revenue
in 2008 23
In-banner VASP share at 45.6%, video CMS at 22.7% share, video ad sales and CMS
at 13.1% share in 2008 31
Section Two 33
Indexing VASP trends: Client prospecting via the rolodex, focus on automation 33
Indexing VASP segment worth $19.1 million in 2008, forecast to grow 150% in 2009 33
Q & A Profiles 37
AFFINE SYSTEMS 37
AUDITUDE 41
BAYTSP 48
DELVE NETWORKS 52
DIGITALSMITHS 57
EVERYZING 62
MAGNIFY.NET 67
vMIX 71
Section Three 76
Video platform and services trends: Integrated solutions, well funded entrants, global
media brand take-up 76
Video platform services and applications segment estimated at $42 million in 2008,
forecast to grow 62% in 2009 76
Q & A Profiles 80
BAYTSP 80
IOKO 84
ORIGIN DIGITAL 87
ORTIVA WIRELESS 92
VISIBLE MEASURES 96
Section Four 103
In-banner video advertising platform trends: Mature business model, strong market
fundamentals, large scale providers 103
In-banner video segment revenue grew by 66.5% in 2008, 22.2% forecast for 2009, and
another 24.7% in 2010 103
Q & A Profiles 107
EYEBLASTER 107
EYEWONDER 112
POINTROLL 118
Section Five 123
Video search trends: Indexed library growth, well understood business model based on
contextual paid media placement 123
Video search revenue jumped 183% in 2008 123
Q & A Profiles 127
AOL/Truveo 127
Section Six 131
Video advertising sales, paid placement platform trends: a highly competitive
segment 131
Video advertising sales and platforms generated $64.9 million in 2008 net revenue 131
Q & A Profiles 134
BBE (formerly BROADBAND ENTERPRISES) 134
SPOTXCHANGE 140
TREMOR MEDIA 144
VOLOMEDIA 149
YUME NETWORKS 152
Section Seven 155
Video CMS/Platform trends: Large, well capitalized entrants, highly competitive
segment, increased pricing pressure 155
Video CMS platforms generated an estimated $112.3 million in 2008 155
Q & A Profiles 159
BRIGHTCOVE 159
KICKAPPS 164
MOVE NETWORKS 169
REALITY DIGITAL 174
THE FEEDROOM 179
thePLATFORM 183
WORLDNOW 190
Section Eight 194
Video overlay application trends: High volume, lower margins; business models evolving 194
Overlay providers netted an estimated $10.1 million in revenue in 2008 194
Q & A Profiles 197
ADAPT.TV 197
SCANSCOUT 201
VIDEOEGG 203
