VIDEO INDEX REPORTQ3 2011

VIDEOMIND VIDEO INDEX REPORT

METHODOLOGY ....................................................................... 5Data sources & sample size ....................................................... 5Data collection ............................................................................ 5Analysis & metrics ...................................................................... 5

VIEWER BEHAVIOR & ENGAGEMENT .................................... 6Device type: Mobile, tablet, connected TV devices and game consoles ................................ 7Content length ............................................................................ 8Day of week: Desktop & Connected TV Devices ........................ 9Social media & video sharing ................................................... 10

MULTI-DEVICE VIDEO DELIVERY ......................................... 11Mobile ....................................................................................... 12Tablets ...................................................................................... 13iOS vs. Android ........................................................................ 14Connected TV devices and game consoles ............................. 15

INDUSTRY VERTICALS .......................................................... 16Television .................................................................................. 18Print .......................................................................................... 20Online Media ............................................................................ 21Consumer Brands .................................................................... 22

APPENDIX ............................................................................... 23Glossary ................................................................................... 23Metrics & definitions ................................................................. 23Caveats, disclaimers, & assumptions ....................................... 24

TABLE OF CONTENTS

3

VIDEOMIND VIDEO INDEX REPORT

EXECUTIVE SUMMARY

Ooyala’s technology helps media companies and marketers around the globe manage, monetize, deliver and analyze their videos across a variety of platforms and devices. The information generated each day provides Big Data insights into global viewer engagement, multi-device viewing, content discovery, sharing via social media, and hundreds of other trends and variables.

This new report marks the first time Ooyala has offered a quarterly overview of the state of online video. The data set is vast: Ooyala handles more than 1 billion analytics pings per day, which reflect the anonymized viewing behavior of over 100 million monthly global unique users. Ooyala distills this data to help publishers make better decisions on how to tap new markets, grow audiences and increase revenue. (Details on data and methodology can be found later in this report.)

Key findings:

• Tablets dominated viewer engagement across all videos played in Q3. Viewers with tablets averaged nearly 30 percent more viewing time per play than those who watched on desktops—and completed videos at double the desktop rate.

!" #$%%&'(&)"*+")&,-'&."/%)"0/1&"'$%.$2&."/3&"(/4-%0"$55. Video plays tripled in Q3 alone.

!" +-&6&3."2-4&"($"6/('7"2$%085$31"'$%(&%("$%"9-0".'3&&%.. For videos more than 10 minutes long, viewers using connected TV devices and game consoles were more than twice as likely to complete a video than viewers on desktops.

• *7&":$:;2/3-(<"$5"=/'&9$$4",/3-&."03&/(2<"/1$%0"'$;%(3-&. when it comes to sharing video. Facebook is 17 times more popular than Twitter in Italy, for instance, but the two social media sites are on par in Japan.

!" ->/)."'3;.7&)"?%)3$-)"(/92&(."-%"(&31."$5"($(/2"/;)-&%'&".-@&A accounting for 97 percent of all tablet video plays.

4

VIDEOMIND VIDEO INDEX REPORT

A MESSAGE FROM OOYALA

Ooyala was founded to help companies personalize their consumer media experience and increase reach, engagement, revenue and consumer satisfaction. To achieve this mission, we’ve invested heavily to build a truly robust and scalable real-time video analytics system. We’ve also gone to great lengths to anonymize our user viewership data to protect user privacy.

The VideoMind Video Index report is designed to help publishers give consumers a better video experience. We recently launched a new quantitative analysis team, led by a PhD in physics and applied mathematics, to work with our publishers and help them improve their online video strategies.

Among the slew of interesting Big Data findings outlined in this report, I found the following trends particularly telling.

First, viewers love their tablets and continue to warm up to their connected TV devices and game consoles. Averaged across all plays in Q3, they were more engaged when watching on tablets than on any other device. When looking just at long-form videos, viewers who watched on connected TV devices and game consoles were most engaged, followed closely by (you guessed it) tablet viewers.

Second, a number of clues suggest that viewers are turning to social media to share video content. Our data indicates that Facebook is far and away the most popular way to share video. The full promise of Social TV has yet to be realized, but we see strong signals that viewers increasingly prefer to engage social media and video content together.

The final observation—and perhaps the most obvious—is that people are watching more and more online video. Simply put, we’re in the midst of a fundamental shift in how people everywhere watch TV, film and video content. And I think this trend validates much of what we believed when we set out, nearly five years ago, to build the future of personalized media: that viewers want to watch what they want, when they want, and on whatever device they want. New challenges exist for video publishers, but potential audiences have never been bigger.

We hope you find this report interesting and useful. If you have thoughts on how future editions might be improved, please send your ideas to videoindex@ooyala.com. We look forward to hearing from you.

Thanks for watching,

B-.1/3'4"C&:& Co-founder & President of Products, Ooyala

VIDEOMIND VIDEO INDEX REPORT

METHODOLOGY!"#"$%&'()*%$+$%",-.*$%/0*

The data sample used in this report covers the third quarter of 2011, from July 1 through September 30. The data was taken from an anonymous cross-section of Ooyala’s customer and partner database—an array of broadcasters, studios, cable operators, print publications, online media and consumer brand companies in over 30 different countries. Collectively, our customers’ video streams are watched in 100 countries across more than 5,000 unique domains, and more than 100 million unique viewers watch an Ooyala-powered video every month.

The data sample is not intended to represent the entire Internet or all online video viewers.

!"#"$)&..*)#/&1

Data is tracked by Ooyala’s video analytics technology. During playback, Ooyala’s video player continuously gathers information and relays it back to an analytics module, which stores the data in a distributed file system called Hadoop. Viewer statistics are then complied in near-real time and stored in a Cassandra data cluster, where the information is made readily available for analysis.

"1".2%/%$+$,*#(/)%

Ooyala’s video analytics module tracks a range of standard variables, such as:

• Displays, plays and time watched

• Viewer engagement and video completion rates

• Sharing by social network

• Geography (region, state, city, Designated Marketing Areas)

• Device type (mobile, desktop, tablet, connected TV devices & game consoles)

• Operating system (Windows, Android, iOS)

• Browser (Safari, Chrome, Firefox, Internet Explorer)

For more details on specific metrics and measures, please see the Metrics & Definitions section in the appendix.

VIDEOMIND VIDEO INDEX REPORT

VIEWER BEHAVIOR & ENGAGEMENTOoyala’s video analytics technology tracks many key viewer engagement metrics, including conversion rate,1 video completion rate and sharing events. Combined with data on variables like device type and geography, these metrics can be used to understand viewer behavior.

Across the entire data set, the average conversion rate increased in Q3, rising to 35.1 percent from 32.6 percent in Q2. The average time watched per play grew considerably quarter over quarter, rising 26.5 percent in Q3.

KEY TAKEAWAYS

D&,-'&"(<:&"/%)".'3&&%".-@&"1/((&3E In Q3, people who watched on a tablet were more than twice as likely to finish an entire video than viewers on a desktop.

Viewer engagement was generally higher on mobile devices than on desktops—&,&%"5$3"2$%085$31"videos. Mobile viewers completed 3/4 of a long-form video at a rate of 20 percent, compared to 18 percent for desktops.

When it comes to video sharing, =/'&9$$4"beats Twitter in most parts of the world—especially Taiwan, Italy and Australia.

F&&4)/<."(3;1:"6&&4&%).E Viewers tend to watch more online video during the week—especially on desktops—though there are exceptions.

1 The ratio of video displays to video plays. For more details, please see the appendix.

Avg. Conversion Rate Q3, 2011

Desktop Mobile Tablet Connected TV Devices and Game Consoles

Co

nv

ers

ion

rate

(p

lay

s/d

isp

lay

s)

0%

20%

40%

60%

80%

VIDEOMIND Video Index

VIEWER BEHAVIOR & ENGAGEMENT

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!*3/)*$#2-*4$,&5/.*6$#"5.*#6$$)&11*)#*!$#3$!*3/)*%$"1!$7",*$)&1%&.*%

As a general rule, device type heavily influences viewer engagement. In Q3, tablet viewers were the most engaged, while desktop and laptop viewers were relatively less engaged. For each desktop viewer who completed a video in Q3, for instance, 2+ viewers did the same while watching on a tablet. Across all plays, the video completion rate for mobile devices was slightly higher than that for connected TV devices and game consoles.

Viewer Engagement: By Device Q3, 2011

Desktop

Mobile

Tablet

Connected TV Devicesand Game Consoles

40%

Watched 1/4 Watched half Watched 3/4 Completed video

% o

f a

ud

ien

ce

0%

20%

60%

80%

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VIEWER BEHAVIOR & ENGAGEMENT

8VIDEOMIND VIDEO INDEX REPORT

)&1#*1#$.*17#8

Q3 data suggests that viewers are turning to their tablets, mobile devices and especially their connected TV devices and game consoles to watch medium- and long-form videos. Desktops or laptops are far more likely to be used to watch short clips. Videos shorter than three minutes, for instance, accounted for more than half (52 percent) of the hours of content viewed on desktops. That same measure is 42 percent for mobile devices, 29 percent for tablets and just 6 percent for connected TV devices and game consoles.

By contrast, longer-form videos represent a bigger share of the hours played on non-desktop devices. Videos 10 minutes or longer accounted for 30 percent of the hours watched on mobile devices, 42 percent on tablets and nearly 75 percent on connected TV devices and game consoles. Notably, videos shorter than a minute were just 7 percent of the total hours watched on tablets and 2.2 percent for connected TV devices and game consoles.

The data indicates that viewers who watch on connected TV devices and game consoles complete longer-form content at a higher rate than viewers who watch on any other device.

Avg. Content Length & Device Type, Q3, 2011

10+ min

6-10 min

3-6 min

1-3 min

< 1 min

Desktop Mobile Tablet Connected TV Devices and Game Consoles

% o

f to

tal h

ou

rs w

atc

he

d

0%

25%

50%

75%

100%

VIDEOMIND Video Index

Viewer Engagement on Videos Longer than 10 min Q3, 2011

Desktop Mobile Tablet Connected TV Devices and Game Consoles

% o

f au

die

nce

th

at

watc

he

d 3

/4

0%

10%

20%

30%

40%

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VIEWER BEHAVIOR & ENGAGEMENT

9VIDEOMIND VIDEO INDEX REPORT

!"2$&9$:**;4$!*%;#&-$+$)&11*)#*!$#3$!*3/)*%

Viewers tend to watch more online video on weekdays.2 The most notable exception was publishers in the online media vertical, who recorded higher-than-average viewing times during the weekend on mobile devices, tablets, and connected TV devices and game consoles. (Ooyala’s customers are separated into four industry verticals. The online media vertical includes companies that were explicitly founded as Web-based companies and publish video primarily online. A full explanation is outlined in the Industry Verticals section.)

Q3 data suggests that on weekdays, viewers typically watch longer on desktops, regardless of industry vertical.

Weekend Viewing Habits Q3, 2011TV

Print

Online Media

Consumer brands

-60% -30% 0% 30% 60%

Connected TV Devicesand Game Consoles

Tablet

Mobile

Desktop

Watched less on weekends(% less than average time watched)

Watched longer on weekends(% more than average)

VIDEOMIND Video Index

2 Across Ooyala’s database, viewership data are tracked on a daily basis. More granular reporting—on a time-of-day basis, for example—is enabled by Custom Analytics, an extension of our core analytics module. Because that extension isn’t deployed universally across the database, insights are limited to day of week.

VIEWER BEHAVIOR & ENGAGEMENT

10VIDEOMIND VIDEO INDEX REPORT

%&)/".$,*!/"$+$3/!*&$%8"(/17

Ooyala’s video player makes content sharing easy, and our analytics module tracks sharing events to help publishers learn how viewers are engaging with their content. The aggregated data reveal how viewers around the world use social media and video together. A snapshot of Ooyala’s top 20 countries in terms of sharing activity in Q3 can be seen below.

Generally speaking, Facebook is a more popular means of sharing video than Twitter—but that margin varies widely depending on region. In Japan, for instance, there’s approximately a 1:1 ratio between Facebook and Twitter sharing. By contrast, in Italy, sharing on Facebook is 17 times more popular than on Twitter.

Social Media & Online Video: Facebook vs. Twitter Q3, 2011

# Videos shared on Facebook for every 1 video shared via Twitter

0 5 10 15 20

TaiwanItaly

AustraliaPhilippines

FranceIndia

United StatesSpain

CanadaGermany

MexicoUnited Kingdom

BrazilArgentinaColombia

NetherlandsSingaporeVenezuela

South KoreaJapan

VIDEOMIND Video Index

VIDEOMIND VIDEO INDEX REPORT

MULTI-DEVICE VIDEO DELIVERYAcross the data set, desktops account for the bulk of total displays, total plays and total number of hours watched. However, viewers are watching an increasing amount of content on other device types, namely mobile devices, tablets, and connected TV devices and game consoles.3

Let’s set aside desktop systems for a moment. Among other devices, mobile devices accounted for the biggest share of total hours played in Q3, with 48 percent. Plays on tablets were a close second, accounting for 45 percent, while connected TV devices and game consoles earned 6.4 percent of total hours played.3

% of Total Hours Played by Device: Mobile, Tablet, Connected TV Devices & Game Consoles Q3, 2011

MobileTabletConnected TV Devicesand Game Consoles

48.3%

6.4%

45.3%

VIDEOMIND Video Index

->/)."/3&"4-%0"$5"(7&"(/92&(.E The iOS devices are currently responsible for the vast majority of video played on tablets, accounting for 97.7 percent of total plays in Q3.

*7&"/1$;%("$5",-)&$":2/<&)"$%")&,-'&."2-4&"G$$02&"*+A"B$H&&"/%)">2/<I(/(-$%"-."03$6-%0"3/:-)2<E During Q3, the amount of time watched on connected TV devices and game consoles tripled.

>;92-.7&3."%&&)"/"(/92&(",-)&$".(3/(&0<E"Compared to desktops, the average time watched per play in Q3 was 28 percent longer on tablets.

KEY TAKEAWAYS

3 !"#$%#&%##&'(#&)"*%%$+,&-*+&.#/01'1*0%&*-&2*,$"$3%&.#415#6',7#&5$'#8*+1#%9

MULTI-DEVICE VIDEO DELIVERY

12VIDEOMIND VIDEO INDEX REPORT

,&5/.*

In Q3, the average time watched per play on mobile devices was on par with the average time on desktops. A comparison of 25- and 75-percent video completion rates, however, reflects that mobile viewers were on average more engaged than their desktop counterparts.

Viewer Engagement: Desktop vs. Mobile Q3, 2011

Desktop

Mobile

Watched 1/4 Watched 3/4

% o

f au

die

nce

0%

20%

40%

60%

80%

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MULTI-DEVICE VIDEO DELIVERY

13VIDEOMIND VIDEO INDEX REPORT

#"5.*#%

Tablet viewers on average watch longer than viewers on desktops or mobile devices. For each minute watched on a desktop, tablets recorded 1:17 in played content— 28 percent longer than the desktop average. Video completion rates for tablets were consistently more than double the completion rates for desktops and around 30 percent higher than for mobile devices.

Viewer Engagement: Desktop, Mobile & Tablet Q3, 2011

Desktop

Mobile

Tablet

Watched 1/4 Watched 3/4

% o

f au

die

nce

0%

20%

40%

60%

80%

VIDEOMIND Video Index

MULTI-DEVICE VIDEO DELIVERY

14VIDEOMIND VIDEO INDEX REPORT

<&%$=>?$"@ABC<A

Together, iOS and Android devices account for more than 90 percent of the video hours played on tablets and mobile devices across Ooyala’s database. iPads were responsible for the vast majority of video played on a tablet in Q3, accounting for 99.4 percent of displays, 97.7 percent of total plays and 95.7 percent of total hours streamed.

That noted, in Q3 the average conversion rate for Android mobile devices (45 percent) was considerably higher than that of iPhones (22 percent). The average conversion rate for videos on Android tablets (47 percent) was likewise higher than the comparable figure for iPads (13 percent).

% of total displays, Q3, 2011

iPhone

Android mobile

Mobile: Other

7%

21.2%

71.8%

VIDEOMIND Video Index

% of total plays, Q3, 2011

iPhone

Android mobile

Mobile: Other

7%

36.8%56.2%

VIDEOMIND Video Index

% of total hours played, Q3, 2011

iPhone

Android mobile

Mobile: Other

44.4%

6.5%

49.1%

VIDEOMIND Video Index

MULTI-DEVICE VIDEO DELIVERY

15VIDEOMIND VIDEO INDEX REPORT

Conversion rates were higher for Android, but viewer engagement rates were higher on iPads. About 48 percent of iPad viewers watched three-quarters of their video in Q3, while 41 percent of Android viewers did so. Viewers completed videos at a rate of 38 percent on iPad and 36 percent on Android tablets.

Note that these viewer engagement trends on iOS and Android devices may vary depending on industry vertical. (See the Industry Verticals section below.)

)&11*)#*!$#3$!*3/)*%$"1!$7",*$)&1%&.*%

Connected TV devices and game consoles account for a small share of the plays in Ooyala’s database, but the third quarter saw remarkable growth in the amount of video played on these devices. In three out of the four industry verticals, video played on connected TV devices and game consoles grew more than 200 percent over the second quarter. Moreover, compared to desktops, they had higher viewer-engagement rates than desktops.

Viewer Engagement: Desktop vs. Connected TV Devicesand Game Consoles Q3, 2011

Desktop

Connected TV Devicesand Game Consoles

Watched 1/4 Watched 3/4

% o

f a

ud

ien

ce

0%

20%

40%

60%

80%

VIDEOMIND Video Index

Viewer Engagement on Tablets: iPad vs. Android Q3, 2011

Android Tablet

iPad

Watched 1/4 Watched half Watched 3/4 Completed video

% o

f au

die

nce

0%

25%

50%

75%

100%

VIDEOMIND Video Index

VIDEOMIND VIDEO INDEX REPORT

INDUSTRY VERTICALSOoyala’s customers fall into four broad industry verticals: TV, print, online media and consumer brands.

• The (&2&,-.-$%",&3(-'/2 includes companies involved in the creation, distribution or curation of content for film and television. Sub-verticals include studios, broadcasters, networks, and cable and satellite operators.

• The :3-%(",&3(-'/2 includes media companies that are historically focused on the creation of print content, but which now use video as a complement to their content offerings.

• The online media vertical features media companies founded explicitly as Web properties.

• The '$%.;1&3"93/%).",&3(-'/2 refers to any and all companies that use video to promote their brand, products or services.

Viewers watched more long-form TV content on tablets and connected TV devices and game consoles relative to desktops.

Online media companies exhibited the lowest viewer engagement rates on desktops of all the four industry verticals.

For the consumer brands vertical, viewers were the least engaged when watching on mobile devices.

For the print vertical, viewer engagement rates were nearly identical for Android tablets and iPads.

KEY TAKEAWAYS

% of Total Time Watched, by Vertical, Q3, 2011

TVOnline MediaPrintConsumer Brands

42.1%

5.1%

46.1%

6.6%

VIDEOMIND Video Index

INDUSTRY VERTICALS

17VIDEOMIND VIDEO INDEX REPORT

In Q3, the TV vertical saw a bigger share of its long-form videos watched on mobile devices and tablets, while the print vertical had a larger portion of shorter-form content.

Audiences watched more shorter-form content from print media companies on their tablets. But videos from the TV industry dominated longer-form content viewed on tablets.

Video plays by mobile, Q3, 2011

Consumer Brands

Online Media

Print

TV

Video length

< 1 min 1-3 min 3-6 min 6-10 min 10+ min

% o

f to

tal p

lay

s

0%

25%

50%

75%

100%

VIDEOMIND Video Index

Video plays by tablet, Q3, 2011

% o

f to

tal p

lay

s

0%

25%

50%

75%

100%Consumer Brands

Online Media

Print

TV

Video length

< 1 min 1-3 min 3-6 min 6-10 min 10+ min

VIDEOMIND Video Index

INDUSTRY VERTICALS

18VIDEOMIND VIDEO INDEX REPORT

#*.*3/%/&1

In Q3 non-desktop plays, mobile devices accounted for just over half of all the hours of TV video content played. Tablets had the second-biggest share at 38 percent while connected TV devices and game consoles had the smallest share at 11.7 percent.

In longer-form video content, viewers exhibited a strong preference for tablets, connected TV devices and game consoles. Videos 10 minutes or more in length accounted for 56 percent of the video played on tablets and 84 percent played on connected TV devices and game consoles. By comparison, longer-form videos accounted for just 28 percent of the video played on a desktops or laptops.

TV Vertical: Hours Played by Device Type, Q3, 2011

Mobile

Tablet

Connected TV Devicesand Game Consoles

11.7%

38%

50.3%

VIDEOMIND Video Index

TV: Content Length & Device Type, Q3, 2011

10+ min

6-10 min

3-6 min

1-3 min

< 1 min

Desktop Mobile Tablet Connected TV Devicesand Game Consoles

% o

f to

tal h

ou

rs p

lay

ed

0%

25%

50%

75%

100%

VIDEOMIND Video Index

INDUSTRY VERTICALS

19VIDEOMIND VIDEO INDEX REPORT

Viewers watching TV content, regardless of length, were most engaged when viewing on tablets, followed by connected TV devices and game consoles. They were least engaged on desktops.

The data suggests4 that viewers of TV content are more engaged when watching on an iPad than on an Android tablet. For every 1 million viewers who started a video on an Android, about 360,000 completed it. For every 1 million viewers who started a video on iPad, about 470,000 completed it—a difference of 30 percent.

TV Vertical: Viewer Engagement, Q3, 2011

Watched 1/4 Watched half Watched 3/4 Completed video

% o

f a

ud

ien

ce

0%

25%

50%

75%

100% Desktop

Mobile

Tablet

Connected TV Devicesand Game Consoles

VIDEOMIND Video Index

TV Vertical: Viewer Engagement on iPad vs. Android Tablet Q3, 2011

Android Tablets

iPad

Watched 1/4 Watched half Watched 3/4 Completed video

% o

f a

ud

ien

ce

0.00%

25%

50%

75%

100%

VIDEOMIND Video Index

4 Note that, because of differences in market share, the Android tablet data sample is considerably smaller than the iPad sample. Readers are cautioned against drawing absolute conclusions from the Android tablet numbers.

INDUSTRY VERTICALS

20VIDEOMIND VIDEO INDEX REPORT

-(/1#

Tablet video views accounted for 55.1 percent of hours played during Q3, followed by mobile views at 44.7 percent. Views on connected TV devices and game consoles accounted for less than 1 percent of hours viewed in the print vertical.

As in the TV vertical, video publishers in the print vertical see high engagement levels from tablet viewers. Unlike TV, the print vertical reflects low engagement from viewers on connected TV devices and game consoles. Desktops and mobile devices have similar engagement rates.

Interestingly—and unlike the trend in the TV vertical—engagement on Android tablets for print companies is on par with engagement on iPads. Again, note that the small size of the Android tablet data sample makes it difficult to draw absolute conclusions.

Print Vertical: Hours Played by Device, Q3, 2011

44.7%

55.1%

MobileTabletConnected TV Devicesand Game Consoles

0.29%

VIDEOMIND Video Index

Print Vertical: Viewer Engagement, Q3, 2011

Watched 1/4 Watched half Watched 3/4 Completed video0.00%

25%

50%

75%

100% Desktop

Mobile

Tablet

Connected TV Devicesand Game Consoles

% o

f au

die

nce

VIDEOMIND Video Index

Print Vertical: Viewer Engagement on iPad vs. Android Tablet, Q3, 2011

Watched 1/4 Watched half Watched 3/4 Completed video0%

25%

50%

75%

100%Android Tablet

iPad

% o

f au

die

nce

VIDEOMIND Video Index

INDUSTRY VERTICALS

21VIDEOMIND VIDEO INDEX REPORT

&1./1*$,*!/"

Mobile devices accounted for half the video play hours for online media, followed by tablets at 45.4 percent. Connected TV devices and game consoles made up the remaining 5 percent of hours played.

Online media sees high engagement from tablet viewers, which is consistent with other verticals. Online media had the lowest rates of desktop engagement of any vertical.

Day-of-week data for the online media vertical shows that users watch more video on mobile devices, connected TV devices and game consoles on weekends than they do on weekdays.

Online Media Vertical: Hours Played by Device Type, Q3, 2011

MobileTabletConnected TV Devicesand Game Consoles

49.7%45.4%

4.9%

VIDEOMIND Video Index

Online Media: Viewer Engagement, Q3, 2011

Watched 1/4 Watched half Watched 3/4 Completed video0%

25%

50%

75%

100% Desktop

Mobile

Tablet

Connected TV Devicesand Game Consoles

% o

f au

die

nce

VIDEOMIND Video Index

Day of Week and Time Watched: Online Media, Q3, 2011

-30% -15% 0% 15% 30%

Desktop

Mobile

Tablet

Connected TV Devicesand Game Consoles

Watched less on weekends(% less than average time watched/day)

Watched longer on weekends(% more than average watched/day)

VIDEOMIND Video Index

INDUSTRY VERTICALS

22VIDEOMIND VIDEO INDEX REPORT

)&1%',*($5("1!%

For consumer brands, the majority of non-desktop hours played were on tablets (53.3 percent), followed by mobile devices (45.7 percent) and connected TV devices and game consoles (about 1 percent).

Interestingly, the consumer brands vertical reflects some of the highest viewer engagement numbers of all the industry segments. Relative to other devices, viewer engagement is lowest on mobile devices, which is unique to consumer brands.

Consumer Brands Vertical: Hours Played by Device Type, Q3, 2011

45.7%

53.3%

Mobile

Tablet

Connected TV Devicesand Game Consoles

1.09%

VIDEOMIND Video Index

0%

25%

50%

75%

100%

Consumer Brands Vertical: Viewer Engagement by Device, Q3, 2011

Desktop

Mobile

Tablet

Connected TV Devicesand Game Consoles

Watched 1/4 Watched half Watched 3/4 Completed video

% o

f a

ud

ien

ce

VIDEOMIND Video Index

23VIDEOMIND VIDEO INDEX REPORT

APPENDIX7.&%%"(2

,*#(/)%$+$!*9/1/#/&1%

GLOSSARY

METRICS & DEFINITIONS

Conversion rate the ratio of plays to displays.

#$1:2&(-$%"3/(& the rate at which viewers watch a specified portion of a given video. Sometimes useD interchangeable with “play-through rate.”

D-.:2/< any time a video is loaded in a browser and displayed to the viewer.

J$9-2&")&,-'&. all smart phones, including iOS, Android, Blackberry and all others.

>2/< any time a video starts playing.

I&(8($:"9$H&. this category includes a number of devices, including Wii, Playstation, Boxee, Roku and Google TV.

Tablets all media tablets, including iOS and Android.

an online video v ) a publisher that owns many videos p )

a video owned by a publisher ! p v ) pis a set of publishers (e.g., the TV vertical) S ) is a member of set ! S p ) p S

a metric (e.g., number of plays in Q3) evaluated over video (v) " ) " v

is the sum of for all publishers in set "S = P p!S

"p ) "S "p p S

is the ratio of two metrics (v) (v)=" (v) r = "1 2 ) (v) r (v); " (v) "1 2

the same ratios over a single publisher or set of publishers ; r rp S) p S

= rp (v))=( (v)) (P v!p

"1

P v!p

"2

= rS (v))=( (v)) (P p!S

P v!p

"1

P p!S

P v!p

"2

a weighted sum. (v) (v))=( (v)) #p = (P v!p

# ! wP v!p

w )

For instance, the average length of a video played weighted by the number of plays for eachvideo, would be the length of video, and the weight is the number of plays. Since is(v) # (v) w #p

a ratio, it would also be possible to determine for a set of publishers using the rule above. #S

ExamplesEngagement is a ratio where is the number of times the video was(v) (v)=" (v) r = "1 2 "1

watched some percentage of the way through (25, 50, 75, 100) and is the number of times it "2

was played.

Some metrics are more complex. For instance, may be the number of times a video that was "

of length greater than 10 minutes was watched on a tablet device. Only videos that are longer 10minutes contribute to this total.

24VIDEOMIND VIDEO INDEX REPORT

Data are not aggregated across all videos or providers for vertical data, and only publishers with a meaningful amount of videos watched are included. Some publishers do not fall into any of our four verticals, however these publishers are included in global statistics. Publishers with incomplete data across the third quarter (for instance newly added publishers) have been excluded.

When selecting items for inclusion in the report, Ooyala’s data science team selected metrics that were clear and meaningful. Because granular measures were broken down along many categories, a large amount of data resulted. Rather than reporting all of this data, the Ooyala team chose to highlight those measures that give a good impression for the data set as a whole.

Consider viewer engagement, which can be measured in many ways. First, one could measure consider the rate at which a displayed video starts playing (conversion rate). Next, one could look at the chance a video was played 25 percent of the way through. Video completion rates of 75 and 100 percent might also provide useful insights. By including granular results, the report offers display information that is easy to understand.

Alternatively, it would have been possible to construct just a single measure of engagement out of all the ones mentioned above: e.g., conversion rate x video completion rate. This would have given a simpler result that could be displayed in a single graph at the cost of being more convoluted.

CAVEATS, DISCLAIMERS, & ASSUMPTIONS

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