IP video publishers are forecast to deliver $22 billion in ad sales and subscription receipts across all platforms and geographies served in 2015, made against related COGS/OpEx vendor payments of $10.3 billion, according to a multi-disciplinary, industry-wide analysis carried out by the author.

IP video publisher receipts, and fees paid for requisite technology support and services (i.e. CDN, mobile video adtech, desktop/cross-channel video adtech, players, integrated CMS platforms and media processing), when evaluated against tech vendor net revenues indicate positive operational margins have been maintained, currently estimated at 46% in 2015.

(NOTE: This analysis pertains to tech payments only, and excludes subscription IP video service content licensing fees made to rights holders).

Publisher revenues utilized as a basis for multi-year marginal analysis are generated from the sale of video advertising (in-stream, in-banner, VOD, authenticated sign-in, viral and social), plus IP video subscription services or download-to-own stores.

Complete performance results contained in IP Video Publisher Receipts and Tech Vendor Payments: Ecosystem Profit Per COGS/OpEx Unit of Investment 2015 – 2017, show margins have historically landed in the 44 - 57% range (excluding any content licensing or rights payments), though expected to decline sequentially over the next several years as sophisticated IP cross-channel video adtech infrastructure deployments ramp up to support linear and non-linear broadcast groups more closing the gap between operating units.

IP video publishers are tasked to run very lean digital businesses, and have enough pricing leverage in the marketplace to secure favorable agreements across the entire tech vendor landscape; publishers can demand highly sophisticated and even customized solutions at near commodity prices.

Moreover, as the market works through rounds of tech consolidation, vendors have adopted business models and sell-in strategies offering their publisher partners generous and flexible pricing, often structured against performance incentives designed to drive down unit costs further as services scale.

IP video publishers, on average, generate $2.13 in combined advertising and subscription revenue for each $1 in tech vendor billings at present, though projected to decline through 2017.

This IP video publisher an tech vendor revenue profit analysis includes net revenue across the entire ecosystem, historical growth profiles, target markets, core competencies, billing models, media spend by site, in-stream inventory, in-banner impressions, CPMs, analysis of adtech platforms and programmatic systems, ad networks, channels and aggregators, subscription revenues by service (including Netflix, Hulu, Vudu, iTunes Video, sports leagues etc.).

Video CDN is declining as a percentage of COGS share (CDN as a percentage of total IP video vendor revenues).

Cross-channel video adtech is increasing in share as the marketplace deploys more sophisticated IP video adtech systems. Video adtech vendor revenues are “net” or post any publisher payouts associated with inventory arbitrage or impressions under management by IP video ad networks or clearing platforms, or any other upfront guarantees (i.e. made by video adtech systems and networks).

Mobile video adtech is increasing in share as the marketplace deploys more sophisticated user tracking, audience analytics and predictive behavioral technologies/ audience profiling systems

Platform and processing market positions are maturing and declining slightly as a percent of COGS/OpEx share, though increasing as a percentage of total IP video publisher receipts through 2017.

Section One: Ecosystem ROI’s IP Video Publisher and Tech Vendor Receipts and Cogs/Opex Marginal Performance Metrics: Bottom Line Overview 2015 – 2017

Vendor Business Models And Strategies Are Flexible And Often Structured Against Performance Guarantees Or Flat Rate Pricing That Supports Consistently Positive IP Video Publisher Gross Margins

IP Video Publishers Operate Lean Business Units That Maintain Solid Margins (I.E. Revenue Minus Cogs/Opex Associated With Operations)

Marketplace Inversion: IP Video Cogs/Opex to Outpace Monetization Growth Rates in The 2015 – 2017 Timeframe

IP Video Publishers Generate $2.13 in Combined Advertising and Subscription Revenue For Each $1 In Tech Vendor Billings At Present, Though Declining Through 2017

Marginal Integrity Forecast to Be Sustained Through 2017, Though At A Declining Rate As Tech Upgrades To Video Platforms And Adtech Systems/Solutions Deploy

IP Video Publisher Margins At 53% in 2015, 46.8% In 2016

Where the Money Goes: IP Video Adtech and Inventory Clearing Vendors Have Captured the Largest Share Of Video Technology Investments Made Since 2012

IP Video Solutions Related Revenue Total $10.2 Billion in 2015, Including CDN, Cross-Channel Video Adtech, Video Processing/Platforms and Mobile Video Adtech

Monetization Efforts Layered On Top Of CDN Are Highly Cost Effective

Desktop And Mobile IP Video Adtech Solutions To Produce $5 Billion In 2015, $6.9 Billion In Net Tech Billings, While Publishers Capture $10.3 Billion In Ad Spend

IP Video Platform Growth To Increase Over The Next Several Years; Share Of Tech Billings To Increase To 13.2% In 2015, 15.7% By 2017

Mobile Adtech Is A High Growth Market Segment, But Remains The Smallest Component To Total Cogs Through 2017

Section Two: IP Video Publishers
Making Money: IP Video 2015

IP Video Advertising, Subscription, Paid Channels And Site Vendors 2003 – 2018: A $21.8 Billion Marketplace In 2015 - 2016

IP Video Markets Exhibit Advertising And Subscription Services Strength Across The Globe

Trending: IP Video Subscription And Paid Services Have Generated 50+% Of Annual Marketplace Revenue Since 2012

Business Operations: The Businesses Providing The Programming Services In This Marketplace Are Owned By Large Media Companies, Whether Pure-Play Internet Multinationals, Or Cross-Platform Multinationals

Digital Audiences Want Video: IP Movies And Television At $11.1 Billion In Total 2015 Receipts; $16.4 Billion By 2018

Subscription-Based IP Movie And Television Revenues Have A 12-Year CAGR Of 84.8%

IP Video Advertising To Deliver $10.3 Billion In Total 2015 Billings

Internet Pure-Play Publishers, Website Destinations Capture 56.1% Of In-Stream Digital Video Ad Spend

Broadcast Networks, Cable Channels Allocate Linear Ad Loads Against On-Demand Video

Youtube Desktop, Hulu, Aol, Facebook, The Broadcasters And Cable Channels Are In-Stream Video Advertising Market Share Leaders

Cbs, Nbc, Abc, Turner, Espn And Discovery Lead The Broadcast/Cable Cross-Platform Segment In Digital Video Advertising Revenue

Nytimes.Com, Wsj.Com, Washingtonpost.Com and Time Digital Lead Print Publisher Segment With In-Stream Video Advertising

NDN Is The Largest Syndication Platform Delivering In-Stream Video Ad Spend

IP Audio / Video Subscription And Download Services Forecast To Realize $22.6 Billion In 2015 Global Sales, Including Music

Revenue Shifts Indicate The Market’s Growing Preference For Rental Options And Pay-As-You-Go Services: IP Media Rentals Outpacing User Demand To Own Media Outright

Vendor And Marketplace Trends: This Is A Globally Distributed Marketplace Approaching $31.7 Billion In Year-End Receipts By 2018

Vendor And Marketplace Trends: Music (Subscription And Download–To-Own) And Movies/TV Generate The Vast Majority Of Paid Audio/Video Services Revenue

Vendor And Rights Acquisition Trends: The Migration Of Video Libraries Online Is Taking Place, Though At A Moderate Rate, Incentivizing Vendors Such As Netflix And Amazon To Invest In Original Programming Or Strike Exclusive Rights Deals With Studios To Augment Library Depth And Breadth

Vendor Business Model Trends: Flat Rate (I.E. Single-Digit), Per-Month Pricing Tiers To Access Video Content (Movies And Television) Online Are An Inducement To Cord Cutting (Almost 1 Million Paying Accounts Have Dropped Cable And Satellite Packages In 2015); Internet Music Programmers With Pay Business Models Reduced Monthly Fees By An Average Of 20% In 2015

Music Services (Subscription And Download To-Own) Forecast To Capture 49.4% Of Global Vendor Revenue In ‘15

Pricing Elasticity Of Demand: Fees Fall 20.1% In 2015, Internet Music Radio Programmer Subs Forecast To Increase By 57.2% In 2015; 28% In 2016

IP Music Radio Subscription Listening Hours Slow Go: Forecast To Grow By 10.6% In 2015; Single-Digits Through 2018

Download and Pay-As-You-Go Movie And Television Services Set To Lead The Market In Global Sales

Global Media Store And Service Momentum 2003 - 2015: Subscription And Download Vendor Sales Have Advanced At A 44.4% CAGR Over The Past Twelve Years

A Total Market Worth $22.6 Billion By Year-End 2015 Including Music, Audio Sports Packages

Section Three: IP Video Tech Vendors

IP Video Tech 360 Value Chain 2015 – 2017: CDN, Software, Cross-Channel Adtech, Transcoding And Processing: Modules To Workflow Revenue Analysis

IP Video Tech Ecosystem-Wide Double-Digit Growth Projected Through 2017

2014 IP Video Tech Revenue Share Breakout: CDNs Owned A 35.5% Stake In The Business

The Global IP Video Tech Ecosystem Grew By 44.1% In 2014, Including Operations From AWS, Iad, Facebook, Twitter, Conversant And Google

The Global IP Video Tech 360 Ecosystem Grew By 42.5% In 2014; 33% Forecast For 2015

The U.S. Market Was Worth 54% Of The Global IP Video Tech Market In 2014, Forecast To Ease Slightly To 52% By 2017

CDNs 2015 – 2017: IP Video 360: Audience Migration Tests Network Availability, Security, Quality And Scale

Selling In: What The Market Is Buying, And Why: 2015

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