United States: In
an attempt to compete directly with YouTube, Facebook's Instagram app
has launched IGTV, which will increase Instagram's video time limit from one
minute to 10 minutes for most users. Accounts with large audiences will be able
to distribute programs lasting up to an hour.
Video is available through
Instagram or a new app called IGTV. It will give Facebook more opportunities to
sell advertising. The new feature seems to be inspired by YouTube and is being
dubbed as a cool place for the younger population to share and view content.
Instagram CEO, in an
interview claimed that he hopes IGTV will emerge as a hub of creativity for
relative unknowns who turn into internet sensations with avid
followings among teens and young adults. That is what's already happening on
YouTube, which has become the world's most popular video outlet since Google
bought it for $1.76 billion nearly 12 years ago. It now boasts 1.8 billion
users.
Instagram, which Facebook
bought for $1 billion six years ago, recently crossed 1 billion users, up from
800 million users nine months ago.
Besides giving Instagram
another potential drawing card, longer clips are more conducive for video ads
lasting from 30 seconds to one minute. Instagram doesn't currently allow video
ads, but eventually will. When the ads come, Instagram intends to share revenue
with the videos' creators - just as YouTube already does. The ads are likely to
aid Facebook to sustain its revenue growth. Total spending on online video ads
in the U.S. is expected to rise from nearly $18 billion this year to $27
billion in 2021.
IGTV's programming format
will consist exclusively of vertical video designed to fill the entire screen
of smartphones. By contrast, most YouTube videos fill only a portion of the
screen unless the phone is tilted horizontally.
In IGTV’s dedicated app or
its in-Instagram experience, viewers will be able to swipe through a variety of
longer-form videos, or swipe up to visit a Browse tab of personally recommended
videos, popular videos, creators they’re following and the option to continue
watching previously started videos. Users will also get callouts from the IGTV
button alerting them to new content.
According to TechSci Research, the IGTV launched by
Instagram is anticipated to drive the OTT market in the coming years. Growing
use for online media content over various platforms like smart devices, rapidly
increasing smartphone & tablet user base, growing demand for instant
messaging services, and internet-based voice and video calling services is
likely to drive the OTT market in the next couple of years. Moreover, growing
customer inclination towards online audio and videos, increasing adoption of
cloud computing, coupled with expanding online gaming user base is expected to
further propel growth in global OTT market in the future.
According
to the recently published report by TechSci
Research, “Global
Over The Top (OTT) Market, By Content Type (VoIP, Text & Media,
Video), By Platform, By Deployment Model, By Service Type, By User Type, By
Revenue Model, By End User, By Region, Competition Forecast and Opportunities,
2011-2021”, global OTT market is projected to surpass $64.9 billion by
2021, on account of growing trend of Bring Your Own Device (BYOD), rising
adoption of cloud computing, expanding market for Internet of Things (IoT).
Netflix accounted for the highest market share in global OTT market in 2015,
and the company is anticipated to maintain its dominance in the coming years on
account of growing video streaming business and rising number of partnerships
of Netflix with various local content providers, globally. In 2015, media &
entertainment sector was the largest end-user of OTT market. Increasing demand
for online content such as online publishing, Internet TV, online advertising,
and online short & long videos, is anticipated to fuel exchange of online
content in media & entertainment sector, which is expected to translate
into media & entertainment sector maintaining its dominance in the global
OTT market during the forecast period.
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