Gauging Viewership Trends in Live Online Video...

Gauging Viewership Trends in Live Online Video in Business Communications

Copyright © 2012 Wainhouse Research, LLC Page 1

WHITE PAPER

Gauging Viewership Trends in Live Online Video Business Communications

Steve Vonder Haar

March 2014

White Paper commissioned by:



Contents

Executives Engage with Live Online Video ................................................................................................... 1

Methodology ................................................................................................................................................. 2

Live Online Video Usage Patterns ................................................................................................................. 2

Gauging Live Online Video Use in Business .................................................................................................. 7

Key Takeaways .............................................................................................................................................. 9

About the Author / About WR ................................................................................................................... 10

List of Figures

Figure 1: Frequency of Live Online Video Usage Via Desktop Computer for Business Applications - Overall

Respondents ................................................................................................................................................. 1

Figure 2: Extent of Usage of Specified Technologies for Business Communications – Overall Respondents

...................................................................................................................................................................... 3

Figure 3: Survey Respondents' Self-Reported Comparison of Usage of Live Online Video for Business -

2013 vs. 2010 - Overall Respondents ............................................................................................................ 4

Figure 4: Gains in Live Online Video Usage; 2013 vs. 2010 - Segmented by Current Live Online Video

Usage Patterns .............................................................................................................................................. 4

Figure 5: Frequency of Live Online Video Usage for Business Applications - Segmented by Functional

Discipline ....................................................................................................................................................... 5

Figure 6: Frequency of Live Online Video Usage for Business Applications - Segmented by Vertical Sector

...................................................................................................................................................................... 6

Figure 7: Segmentation of Live Online Video Viewership – 2013 vs. 2017 – By Type of Device ................. 7

Figure 8: Number of Hours of Business Live Online Video Viewership - Actual and Forecast - 2013 to 2017

- Segmented by Device Type ......................................................................................................................... 8

WR Paper: Sizing Viewership for Live Online Video in Business Communications

Copyright © 2014 Wainhouse Research. All rights reserved.



This report is the second in a series of

white papers and webinars tracking

the usage, deployment and executive

perceptions of online video in the

corporate sector.

The concept for this series was

inspired by previous market research

published on behalf of Cisco Systems

that measures the growing use of

online video on the Internet.

Commissioned by Ustream and

produced by Wainhouse Research,

the Business Video Now Series seeks

to take the next step in gauging

momentum in the evolving online

video market.

The aim of Business Video Now is to

foster greater awareness and

understanding of online video trends

by providing data-driven insight,

focusing on the expanding role of the

technology in enterprise

communications. Results from a

survey of 1,007 executives conducted

in the fourth quarter of 2013 serve as

the foundation for information

presented in this series.

Future editions of the Business Video

Now Series will identify the video

applications that executives

frequently employ and discuss

lessons learned from

implementations of technologies

enabling online video.

ABOUT THE BUSINESS VIDEO NOW

SERIES

Executives Engage with Live Online Video

Live online video is emerging as viable venue for spreading a

business message. Whether used for employee training,

enhanced marketing, or any of a raft of other

communications applications, live online video provides

executives an engaging environment well-suited to reaching

large audiences on a real-time basis.

The impact of live online video in business can sometimes be

overlooked, though, because of the way that some

organizations use it. Frequently deployed for employee-to-

employee communications behind a corporate firewall, live

online video does not typically generate the same level of

industry hype accorded to well-known consumer video

services, such as Google’s YouTube.

These market perceptions, however, belie the significant role

that live online video plays in today’s business world. In 2013,

more than 1 billion viewer hours were spent watching live

online video featuring business messages, according to

estimates developed for this report by Wainhouse Research.

These viewership metrics, based in part on results collected

in the fourth quarter 2013 Wainhouse Research Enterprise

Web Communications Survey, reflect the widespread

adoption of live online video among selected segments of the

Figure 1: Frequency of Live Online Video Usage Via Desktop Computer for Business Applications - Overall Respondents



enterprise market. As illustrated in Figure 1, nearly 60% of the executives surveyed say that they have

experienced live online video at the desktop. One out of five respondents report that they experience

live online video at the desktop on a daily basis. Another 18% of respondents report viewing live online

video on at least a weekly basis.

In this research report, Wainhouse Research highlights live online video adoption patterns in today’s

market, provides a detailed overview of its global viewership estimates for live online video usage in

business through 2017, and discusses the methodology used in developing these metrics for live online

video adoption.

Methodology

Data presented in this report comes from the Wainhouse Research Enterprise Web Communications

Survey – an online survey of 1,007 corporate executives conducted in the fourth quarter of 2013.

Respondents were recruited randomly from managed survey panels to answer questions gauging the

use, deployment and perceptions of streaming solutions and other web-based communications

technologies. Panel quotas were used only to ensure equal distribution of respondents from small

companies (less than 250 employees), mid-size companies (250 to 2,499 employees), and large

companies (2,500 or more employees.)

This report features comparisons of responses between defined segments of the overall survey group.

Unless otherwise noted, survey results presented for these sub-segment groups are composed of at

least 100 survey participants.

These survey results also serve as the foundation for Wainhouse Research estimates – presented in this

report – of total hours of live online video viewership of content used for business purposes. Wainhouse

Research used data from the United States Census Bureau to size specific business market segments and

then overlaid live online video usage results from corresponding market segments represented in the

executive survey. This analysis produced an estimate of the total number of live online video events

experienced by executives in North America. Wainhouse Research then reviewed vendor logs to gauge

the length of time individuals typically are engaged with live online video events, using averages to

calculate the total amount of time users spent watching business live online video in North America.

Corporate spending totals for enterprise streaming technologies outside of North America served as a

proxy for adoption of these technologies in other regions and were used to extrapolate viewership

results on a global basis.

Live Online Video Usage Patterns

Live online video – defined in this report as the integration of video into real-time online events reaching

at least 25 viewers simultaneously – is a sometimes-overlooked workhorse of business communications.

Presentations developed for one-to-many distribution can reach a targeted audience of thousands of



viewers at once, setting the stage for out-sized business impact. Top-level executives, for instance, can

deliver their message to a sprawling network of employees in all-hands meetings held online. High-

quality trainers can leverage the technology to touch more workers on a real-time basis, spreading best-

practices throughout an organization more rapidly. Likewise, companies can showcase their best

presenters in pivotal marketing events, creating engaging venues capable of streamlining the

distribution of product information to key target markets.

Indeed, a little bit of live video goes a long way. Because a single event can reach a wide swath of users

at once, the percentage of executives who have experienced this technology is on par with usage

patterns witnessed for other established enterprise solutions, such as web conferencing. And survey

results suggest that live online video is much more pervasive element of business communications than

social media. Applications such as Facebook, Twitter and LinkedIn generate significant market

awareness because of their extensive adoption for personal use. That said, when viewed as a tool for

conveying business messages, usage of social media lags far behind the adoption of live online video.

As illustrated in Figure 2, 59% of all executives surveyed report experience in using live online video for

business at the desktop. That rate is nearly double the extent to which executives report usage of social

Figure 2: Extent of Usage of Specified Technologies for Business Communications – Overall Respondents



Figure 3: Survey Respondents' Self-Reported Comparison of Usage of Live Online Video for Business - 2013 vs. 2010 - Overall Respondents

media applications for business communications. For instance, while 70% of all survey respondents say

they have created their own Facebook page, less than one-quarter of all survey participants report using

this aspect of social media for business communications.

Among the most popular social media applications among business users are those designed specifically

to achieve a specific work task. More than 30% of all respondents, for instance, say that they have

established a profile on the LinkedIn service specifically

for business use. Video use of Skype also is a leading

social application for business use. Overall, 29% of

respondents say that have used video via Skype for

business communications.

While survey results suggest that use of live online

video for business applications is broad-based, a

significant portion of the survey audience also say that

they are using live online video more frequently than

had previously been the case. Survey participants were

asked to compare their current level of live online

video usage to the extent to which they had used the technology in 2010. Overall, 43% of executives

report that their usage of live online video for business applications had increased when compared to

three years earlier. (See Figure 3.) One out of 10 respondents report than their usage of live online has

more than doubled compared to 2010 levels.

As might be expected, those who report the greatest frequency of live online video usage in 2013 also

are the most likely to have boosted their usage of the technology during the past three years. Among

those who use view live online video for business on a daily basis, 16% report having doubled their video

consumption rate since 2010. Among those who use the technology less than monthly, only 4% report a

doubling in live online video usage during this period. (Figure 4)

The results highlight the nature of online

video usage in the corporate sector. The

adoption of live video seemingly becomes

an “all or nothing” proposition. Those that

use the technology frequently are among

the group most likely to rapidly accelerate

its adoption. Those who use the

technology infrequently are less inclined to

rapidly expand their use of live online

video for business.

Figure 4: Gains in Live Online Video Usage; 2013 vs. 2010 - Segmented by Current Live Online Video Usage Patterns

Source:

Wainhouse

Research

Enterprise Web

Communications

Survey, Q42013;

n=1,007



This trend – if it continues – holds significant long-term implications for the usage of live online video for

business applications. The survey results suggest that much of the growth in usage of live online video is

likely to come from those already using it extensively. The task of determining the engines of future

growth for live online video usage in business becomes an exercise in identifying the market segments

where the technology is already used on a widespread basis.

Usage of online video is strongest among groups likely to be early adopters of technology, with the most

pervasive use of online video coming from IT executives. As illustrated in Figure 5, more than four out of

five IT executives (89%) report that they have viewed live online video for business; 27% of IT

respondents report daily usage of the technology. Other functional disciplines reporting higher-than-

average usage of live online video include engineering and top executives. (The segmented groups

reported in Figure 5 tally results from groups of 42 to 139 respondents.)

The strong usage patterns from top executives correlate with similar results derived from executives

who have high household incomes. More than three quarters of executives with more than $100,000 in

annual household income report that they have used live online video for business. Thirty percent of

respondents from this high-earning group report daily usage of the technology. In contrast, only 44% of

workers with less than $60,000 in annual household income say that they have viewed live online video;

just 14% of this income group report daily usage of the technology.

Figure 5: Frequency of Live Online Video Usage for Business Applications - Segmented by Functional Discipline

Source: Wainhouse

Research Enterprise Web

Communications Survey,

Q42013; n=1,007



When segmenting usage by levels of household income, the results correlate with usage patterns of

those in functional disciplines that rank among the least frequent viewers of live online video in

business. Among the functional groups identified in the survey, workers involved in manufacturing and

customer support are the least frequent viewers of live online video. These disciplines also have

relatively modest household incomes when compared with the IT, engineering and top executive

disciplines that rank at the top of the usage frequency list.

The frequency of usage for live online video in business can also vary significantly by vertical industry. In

general, executives from knowledge-based industries - where value is based on an organization’s ability

to monetize intellectual property - are more likely than others to view live online video on a frequent

basis. As illustrated in Figure 6, one quarter of respondents from the financial services sector report

using live online video on a daily basis with another 28% of respondents from the vertical citing at least

weekly viewing of live online video. Although total usage levels from the technology sector are lower

than that seen from the financial services vertical, technology does have a larger share of high-

frequency users of live online video – viewing the content on a weekly basis – than does any other

vertical segment represented in the survey. (The results reported in Figure 6 reflect cumulative

responses from vertical groups ranging in size from 37 to 109 respondents.)

At the other end of the spectrum, survey respondents working in the hospitality and retail segments use

live online video at the lowest frequency. In both of these segments, a cumulative total of 30% of

respondents report at least weekly usage of live online video for business. The government and

education verticals report even lower rates of weekly usage but have a higher proportion of

respondents who have experienced the technology at some point.

Source: Wainhouse

Research Enterprise Web

Communications Survey,

Q42013; n=1,007

Figure 6: Frequency of Live Online Video Usage for Business Applications - Segmented by Vertical Sector



Gauging Live Online Video Use in Business

The video consumption patterns described thus far in this report demonstrate the significant role that

live online video is playing in business communications. By leveraging this data and analyzing it in

conjunction with other information collected from the United States Census Bureau, streaming

technology vendors and end users, Wainhouse Research has developed a market sizing model

measuring the cumulative number of hours of live online video content viewed globally. In 2013, WR

estimates business users viewed 1.12 billion hours of live video in online webcast events drawing 25 or

more attendees.

Nearly three-quarters (73%) of viewing time for live online video in business took place in North America

with the balance of viewing (27%) taking place in the rest of the world. Most of the viewership activity

outside of North America took place in Europe

with a smaller share of the rest-of-world

viewership coming from the Far East.

Despite the growing popularity of smartphones

and tablet devices, most viewership of live online

video used in business took place via desktop

computers and laptops. As illustrated in Figure 7,

77% of the all the live online video hours

associated with business applications were

viewed via traditional computers. Another 15%

of viewership took place via tablet devices with

the remaining viewing time generated from

smartphones.

Several factors contribute to this central role for traditional computers in the consumption of live online

video for business. Most importantly, many businesses in 2013 had yet to deploy effective solutions

optimizing the distribution of live video content to mobile devices. Fewer than one in five of

organizations surveyed by Wainhouse Research report that they have access to technologies that make

live online video distribution possible to mobile devices.

Corporate demand for mobile distribution of live online video is growing. In 2014 alone, one quarter of

organizations represented in the Wainhouse Research survey report plans to implement technologies

that enable distribution of online video to tablet devices. As the technologies that enable mobile online

video distribution grow more commonplace, tablets and smartphones will play a significant role in

fostering expanded viewership of live online video by business users. By 2017, less than half of live

online business video viewership will come from the desktop. Tablets and smartphones will account for

a combined 51% of live online video viewership by business users by 2017, compared to just 23% of

viewership activity in 2013.

Figure 7: Segmentation of Live Online Video Viewership – 2013 vs. 2017 – By Type of Device

Source: Wainhouse Research



This embrace of video via mobile devices, coupled with ongoing investment in business streaming

technology solutions and services overall, will drive significant growth in the extent of live online video

viewership for business applications.

In 2014, the cumulative total of hours of live online business video viewership is projected to grow 23%

over 2013 levels, reaching 1.38 billion hours for the year. (See Figure 8.) Growth rates in viewership

hours for live online video used in business will actually accelerate during the forecast period that

extends through 2017. By the final year of the forecast, year-over-year growth in viewership hours will

top 30%.

Compared to 2013 levels, the market will see a doubling by 2016 in the number of hours that business

users are engaged with live online video, reaching 2.23 billion hours of viewership in the year. Total

hours of viewership will reach nearly 3 billion hours (2.92 billion) annually in 2017.

Despite the extensive use of live online video in business communications, viewership of this content

remains only a sliver of an end user’s overall video diet. According to research by A.C. Nielsen, United

Source:

Wainhouse Research

Figure 8: Number of Hours of Business Live Online Video Viewership - Actual and Forecast - 2013 to 2017 - Segmented by Device Type



States residents watch television an average of 34 hours weekly – a viewership rate that translates into

more than 550 billion hours of video consumption annually in the United States alone.

As technology evolves and end users become more familiar with potential applications for live online

video in business communications, ample opportunity exists for more extensive viewership of live online

video events. Wainhouse Research intends to update estimates for live online video viewership for

business applications on an annual basis.

Key Takeaways

Adoption of live online video for business communications is significant and growing. During 2013,

viewers watched 1.12 billion hours of live online business video content in events reaching 25 or more

attendees. Market participants should keep the following survey results in mind while gauging the

impact of live online business video today and projecting growth opportunities for this market segment

in years to come:

Reach of Live Online Video for Business is Extensive: Nearly six in 10 Wainhouse Research

survey respondents report that they have viewed live online video for business use with 20% of

all respondents saying they do watch this type of content on a daily basis.

Survey Results Reflect Growth in Viewership Over Time: More than 40% of survey respondents

say they are watching more live online video for business than was the case three years ago.

And some of these viewership gains are substantial, with one in 10 respondents self-reporting

viewership more than double the levels experienced in 2010.

Exposure Accelerates Adoption: Current usage of live online video in business begets

accelerated adoption down the line. The most rapid expansion in viewership comes from

individuals already familiar with the technology. With 38% of respondents now reporting at least

weekly usage of live online video for business, a large segment of the corporate audience is

poised for more extensive use of the technology.

Not All Executives Tune In Equally: Executives from selected functional disciplines and vertical

sectors demonstrate a greater-than-average propensity for watching live online video for

business on a frequent basis. To identify candidates for extensive viewing, look for executives

with high household incomes and/or early adopter tendencies who work in industries where the

real-time exchange of information generates significant business value.

Don’t Discount the Desktop: While mobile devices remain a key driver of change in a variety of

technology markets, remember that the desktop computer still plays a vital role in the

distribution of live online video for business use. Desktops typically have the form factor,

computing horsepower and network access to handle extended viewing sessions for live online

video content. While mobile capabilities will continue to drive marketplace growth and industry

buzz, desktop devices will continue to play a workhorse role in the distribution and consumption

of live online video content used in business.



Market Remains in the Starting Blocks: Compared to other forms of video, such as television,

live online video for business remains a small part of an individual’s overall video diet. As

executives grow more familiar with the technology, it is reasonable to expect live online video to

grab additional executive mind share. Wainhouse Research estimates that annual viewership of

live online video for business, totaling 1.12 billion hours in 2013, will double in volume by 2016

and reach nearly 3 billion hours of viewer engagement in 2017.

About the Author / About WR

Steve Vonder Haar is a Senior Analyst with Wainhouse Research, focusing on enterprise streaming &

webcasting. Steve has covered the technology industry for more than 20 years. He previously served as

Research Director of Interactive Media Strategies and as Director of Media and Entertainment Strategies

for the Yankee Group. He is a graduate of the University of Missouri Columbia with degrees in Journalism

and Economics, and holds a Master’s degree in Business Administration from the University of Texas-

Arlington. He can be reached at [email protected]

About Wainhouse Research: Wainhouse Research is an independent analyst firm that focuses on

critical issues in the unified communications and collaboration market. The company provides 6 different

vendor subscriptions covering unified communications, group videoconferencing, personal & web-based

collaboration, audio conferencing, streaming & webcasting, and distance education & e-Learning

solutions, as well as a single all-inclusive subscription for enterprise users. The company acts as a

trusted advisor providing strategic advice and direction for both the UC&C industry and its enterprise

users. For further details contact [email protected] or see http://www.wainhouse.com.

mailto:[email protected]

http://www.wainhouse.com/

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