1) Premium Video Breaks Out – Hulu, the online video joint venture between NBC Universal, Disney and News. Corp., charted 924 million videos viewed in December 2009. It is on pace to become only the second site to serve 1 billion video views in a single month. The company is also far ahead of plan on producing revenue from the videos it shows.
Why this is compelling: The site is proving that premium content models can work online. What’s more, Hulu’s ascension is indicative of a shift in consumer behavior to view video content on-demand and online. Cable companies and other video programming companies are taking note, and launching a competitive service called “TV Everywhere,” led by Comcast and Time Warner. Companies that understand the change in consumer behavior are more likely to remain profitable, as the network model becomes unsustainable in the same fashion that CDs were cannibalized by individual song purchases and downloads online.
Further reading: Vevo – Hulu for music videos, Update on TV Everywhere
2) Mobile Advertising Firms Make Big Exits – Google and Apple both paid 9-digit sums for mobile advertising technology companies in the past two months. Google bought AdMob for $750 million and Apple bought Quattro for $250 million, as the tech giants heat up their battle in the mobile arena.
Why this is compelling: Google and Apple are ramping up a battle over the smartphone market, with Google offering Android handsets and Apple offering the iPhone. These large acquisitions by both companies speaks volumes about the opportunity available for revenue generation through mobile advertising.
Further reading: Apple acquires its own mobile ad network, FTC examines Google’s purchase of Ad Mob
