How Video Is Going to Take Over The World

Forrester Research lays out a future landscape dominated by video in a new report How Video Will Take Over The World.

Analyst James L. McQuivey, Ph.D, envisages consumers being confronted with “a dozen video platforms per day.”

He asks us to imagine:

1. waking up to a video alarm clock;
2. checking satellite weather videos on your mobile phone;
3. watching traffic videos on your GPS unit while driving in to work;
4. watching an ad for a Ford Edge (F) on Gas TV while fueling up at a gas station;
5. streaming MSNBC stock reports from your desktop at work;
6. seeing a short address from your CEO in a meeting-room photo frame;
7. watching a promo for American Gladiators in the back of a video-enabled taxi on the way to the airport;
8. hearing Glenn Beck’s take on the elections while waiting at the airport gate;
9. watching a clip from your daughter’s middle-school debut in Guys and Dolls that your spouse emailed as you board the plane;
10. indulging in American Idol on the satellite TV on your JetBlue (JBLU) flight;
11. checking in at your hotel through a video kiosk; and finally
12. catching Iron Man in HD on the hotel room’s flat-screen TV.

In five years, it will be a rare day in which you don’t experience this many different video platforms.

What McQuivey calls OmniVideo “is about to explode, driving up total video viewing time from 4 hours per day to 5 hours by 2013.”

“Once video becomes this easy to produce, deliver, store, and share, every agent in society will not only want to participate but will have to participate in order to have a shot at reaching people with its products and services.”

In his view that means:

• Consolidation and collaboration will increase even faster than before. But the pick-a-winner approach to integrating content with devices will get blown wide open as companies like Sony (SNE) and Panasonic realize they can’t bet on a single partner but have to offer access to all major content partners.
• Companies will continuously “broadcast” video from inside the enterprise. The Internet has forced marketers to go far beyond a few ads and some brochures in their communications efforts. The shift to video will be much more taxing because companies have to have a strategy for communicating every message — internal or external — with video.
• Every video surface will become a marketing platform. When nearly every surface in your environment can display video, marketers will pay a pretty penny to show up at the bottom of a food bowl or in a bathroom mirror, where their product marketing message will be far more relevant than it is on a TV today. “The only broker of this ad space in your home is you: We envision ad networks one day paying you for the right to aggregate your ad experiences.”

Comments

[Pfloyd234]

I tell you what. I hope not. I think this is ridiculous. I can't stand watching a few commercials during my favorite show let alone having to watch a commercial after finishing a bowl of cereal!! I think bowls would become rare in America cause everyone would end up throwing them across the room. Lets not go overboard here.....!!!!!!

[Moise]

Akamai will benefit from it ; I agree

[vassar]

Just plug me in now (a'la Matrix)

[nickgogerty]

yuck. long silence, short video.

[oregonrain]

Finally something I really know something about on Seeking Alpha.

Forrester is correct. There is a growing "industry" which is seeking to fill this space. The best publicly held example of which is Focus Media in China. The problem is that the Focus Media (FMCN) model cannot be duplicated in the developed world as it depends on guys on bikes to physically deliver the media to the screens in "elevator lobbies" In addition, Focus pays nothing or next to nothing for the right to have the screens in the buildings. Somehow I do not see guys like Trump "forgetting" to ask for a piece ( a really large one ) of the ad revenue stream of the screens that go into his properties. But, Focus is instructive.

For an example, ( a not so good one ) in the US take a look at Wireless Ronin (RNIN). This is more a pure play in some ways as they have a passable software solution and then integrate the parts.

Cisco (CSCO) has also jumped in but at this point has a weak offering. But, with their ability to buy things and integrate them they would be one to watch. In addition, while these systems are really communication tools at the end of the day the dreaded IT departments get involved and want to put their "stamp" on it. For this reason if for no other Cisco will have a great advantage.

This industry is growing faster in Europe and Asia for the very reason that the comments here reflect. "Yuk" But, the business case for these systems is overwhelming just on a merchandising model let alone an ad model basis. In projects I have worked on we have achieved 15% - 40% sales uplift at retail for the products on the screens.

In addition, the way to really look at these is as communications devices...and you can either put the likes of Jerry Springer on them or Planet Earth...your choice.

[bkinn]

OregonRain, I'm curious.. do you see JAVA taking a portion of this space? I remember back in the 90's, we all thought that SUNW (JAVA) was going to be the leader in dedicated hardware/chips that would communicate "On-Net" 24/7. The concept, aside from being the dot in dot com... (lol) was "the network is the computer". Anyway, given Sun's development in coding and hardware ... do you see them taking a significan't niche here?

[delacroixP]

Gr8 stuff... as an encoding and movie enthusiast I just hope some bright spark out there will implement 'GPU encoding support' !

It's all good !

[Big Bear Lake Hostel]

Someone will invent intelligent "media blocker" sunglasses for city people which will block out or noise cancel all electronic noise and video and replace all advertising with screen saver type images of your own choosing. how about wanting through times square and only hearing your favorite song, and what humans are saying around you, and instead of billboards everywhere you saw images from your flickr account wallpapering the buildings around you. a short of realtime TIVO for your physical reality..

or I could just keep living out in the mountains and not worry about it.

G
bigbearhostel.com