The study claims that the revenue attached to bite-sized video clips will carry a six-year compound annual growth rate (CAGR) of 18.5%, with short videos proving “ideal for today’s hectic lifestyle.”
However, with OTT services like Netflix, Hulu, and VUDU – which often generate more revenue per play – expected to show a stronger revenue growth opportunity, short-form video’s total share of the online video market is expected to decline in the coming years.
ABI said that the overall online video market is expected to top US$56 billion by 2019 with a six-year CAGR of 23.1%.
“As the overall online video market evolves we anticipate the value for short-form video will rise in kind. Multi-channel networks (MCNs) that work with content contributors and advertising agencies targeting services like YouTube are finding suitors and partners among some of the largest industry players in video. While much of this is linked to preparations for the future, these are aggressive steps forward that could help define the what, how, when, and where we watch content,” said ABI practice director, Sam Rosen.
Senior analyst Michael Inouye added: “Subscription services such as Netflix continue to headline the market, but electronic sell-through in North America is starting to gain momentum. While initiatives like UltraViolet continue to make progress many still view the market from a service-centric point of view, leaving opportunities for companies to try differentiation strategies to win consumers. The landscape for video is shifting, but so far it continues to move at a steady pace, rather than in seismic shifts.”