18. Porter 5 Forces Analysis Bargaining power of customers – High Many alternative websites available Switching Cost is low Bargaining power of suppliers – Marginal Suppliers of videos are often common internet users The only bargain can be the amount of web space provided to upload the video Threat of new entrants – High Limited amount of capital required Services can be easily copied Scope for innovation like faster download
19. Porter’s 5 Forces Analysis Threats of substitutes – Medium Social media sites providing comprehensive services, hence eating into the share Highly dynamic industry Competitive Rivalry in industry – High Many big firms trying to capture this lucrative market New innovative products on offer
39. Some Closing Thoughts Consumers are viewing online video for convenience benefits Viewing of originally-scripted content on viewers’ own schedule is the key driver of online viewer behavior Much of the online viewing of video represents an incremental audience for originally scripted content because it includes viewers who may have missed the live airing Online viewing represents a significant additional revenue stream to content owners
40. Some Closing Thoughts Time spent viewing online video and video ad dollars are currently a small fraction of TV There is no decline in time spent watching TV nor in TV ad spending TV ad effectiveness shows no decline over past decade The ad load for online video is low relative to TV and could be increased Avoids content owners nightmare of fast forwarding of ads Online video represents a compelling opportunity for the digital channel to capture a meaningful share of branding dollars Online video ad campaigns overlaid on TV can increase effective reach while not increasing cost
