Report on the Bloomberg Analysis of the Global Video Production Market Boosters

Sean_VictorydawnStarred Page By Sean_Victorydawn, 2nd Oct 2016 | Follow this author | RSS Feed | Short URL
Posted in Wikinut>Business>Business Opportunities

FALL,2016- Annual growth rates of amateur video production by revenue from the partners of Youtube,Facebook,Netflix,Amazon-Prime,Hulu are analyzed in comparison of federal approach between Anglosphere Countries and Shanghai Pact.

Increased Demand for Professional Content from Small Businesses (before Nov,8,2016)

In general, the top difference between being in business within an Anglosphere Country:

    (USA, UK, Australia, Canada, New Zealand)

and being in business within Shanghai Pact:


is the positive competition between small businesses. In a positive competition the higher the volume of companies gets, the larger turns the market growth and economical power. In an Anglosphere Country owning a small business in a growing market brings up company growth. Whereas in Shanghai Pact small businesses that hold their own ground are not even counted as part of the market, since the competition there is controlled and ruled by larger assets eliminating the small values.

Speaking in Digital Media Production, out of the 5 Anglosphere nations, only UK and Canada lead the positive competition at the moment. This moment is dated 5 weeks behind the American Presidential Elections. Over the last few years when Obama is the president, the 5 Internet Video Broadcast Megacorps(YFNAH*) are globalized immeasurably like no other digital broadcast organization has ever been globalized. An announcement last week(19-23 of Sept'16) on Financial Post by the Boston Consulting Group revealed that Internet video and over-the-top(OTT**) content providers were boosting the global video production market by the amount of finance they risked as sum of their produced digital materials.

Economical statistics indicate the OTT market has provided US$25 billion in revenue for the video industry, which is calculated at 5% worth of the total US$500 billion global video market assets. These rates by themselves provide a forecast for amateur digital video production to be increased in demand as much as the professional productions.

The Monopoly "Game" of Digital Video Production in Canada

As the demands increase the expectations grow in English-language markets. Putting larger markets like UK and USA aside, production spending only in Canada or only in Australia by itself is growing at a rate of 6% annually. Compared with non-English language markets Sweden and Germany lead the highest demand in the same aspect of the competition, even though these two markets together have experienced a slower annual growth than the smaller English-language markets. Production spending in Sweden saw a growth of 3% and in Germany saw a growth of 0.9%.

The power of demand growth for both Canada and Australia lies in the highly concentrated OTT market values of five major companies: Youtube, Facebook, Netflix, Amazon Prime and Hulu gain 50% of the sector's revenue against 500 other digital video platforms including Vimeo, Canada's Shomi, and Crave TV . Since the positive competition provides access to small companies, the radian networks in contact with brick-and-mortar establishments cause 99% of the competition to drop out of the market. Here is how the radians are calculated to come up with how much total combined market share would the remaining 500 companies have left after the YFNAH:

    Optimistically speaking from a small business owner perspective. The population of all values is 500(even though is actually more than). 5 owns %50 of 1,

    then 495 owns the remaining %50 of 1

    495 : 5 = 99 means that 99% of the competition is dropped out of the market

Only 1% of the total population of values possess the 99% of the revenue. That revenue, as a humble average, is 99 times more than the revenue of a member of 500 population value. Finally it's a Win/Win situation for both the smallest enterprise and the biggest enterprise. Yet it is a total Loss for all the enterprises in between reportedly. So the only way for them to be rescued is to buy shares of the biggest enterprises and to partner up with the smallest enterprises.

Removal of Strategic, Economic, and National Barriers to Meet The Demand

These monopoly controlled increases in consumer access to global digital programming has not reduced the amount of Canadian content being broadcast at home. Same consistent rates applied from 2008 to 2014 with a new reform set at the end of 2015 for the share of CBC Television's domestic programming. 2016 Bloomberg data indicate that the CBC's broadcasts consisted of 92% domestic content in 2014, went up 10 points from 82% in 2011, while private conventional channels broadcast 43% domestic content, going up from 40% over the same period; as a result of making use of telecommunications industry applications.

When the viewer platforms were diversified from Satellite TV to Internet Browsers, and then from Internet Browsers to Cellphone Applications, the traditional Canadian broadcasters began to struggle due to the shifting revenues despite the growth on the production side. The CBC reported to Financial Post a total revenue of $1.1 billion in 2015, which was 16.6% less from 2014, and Canada's 93 private conventional and cable channels generated declining revenues of $1.76 billion, a loss of 2.6%. Trudeau government previously had plans for implementing a "Netflix tax" for the viewers on foreign OTT providers to stay alive in the competition. Yet Canadian Heritage Minister Melanie Joly denied these implementations on a report to the Financial Post in June,2016.

Ms.Joly also spoke to Financial Post in September, following the announcement of new digital content regulations. She affirmed solemnly that the Canadian federal government intends to grow the domestic broadcasting by pushing content abroad, so that the global cultural market of digital contents would provide more benefits. "We haven't branded ourselves as a creative country, and I want to make sure that is the case, which could help to create demand" Joly said(***).

Sean Craig from Financial Post(***/*) reviews his interview with a Boston Consulting Group senior advisor:

    "The biggest impact of the OTT market on the television and film industries is the removal of barriers - strategic, economic, and national - to the distribution of video content"

as Craig asks whether the demographics of viewer content demand are applied to increase the market value or not he is responded:

    "The demand for quality video content from consumers, and the number and variety of new services that OTT enables for meeting this need is both increasing the market value of content and destabilizing the roles and market values of linear networks and traditional aggregators"

Andrew Harrer from Bloomberg(***/**) the next day following the Financial Post interview summarized the analysis. Harrer reported that the production spent in Canada is growing at an annual rate of 5%. Harrer also repeated the governing idea of Melanie Joly's interview by highlighting the continuation of traditional Canadian broadcaster's struggle despite the growth on the production demand.

The Crying Game as a Canadian Business Idiom

As a retired Urban Dictionary author, out of the top 10 most discussed idioms from the 21st century's first decade, I'd pick "The Crying Game" to describe what it is to establish a small video business in Canada from scratch. There were plenty of instances that the produced content was belong to nobody. The number of Entertainment Attorneys are so low in English-speaking Canada. The shame of non-respondent Entertainment Attorneys in the mean time are so high in the same geography.

Basically these all come to one meaning in summary: "You cannot have it anymore what is belong to you, if you produce it in Canada". There is a law approving a copyright renewal on top of someone else's unapproved copyright. Pay attention, not disapproved, "unapproved". The dog is still waiting for you to throw the ball once, just for once.

    Just mention a person who is unaware of the law, is a dog

    And mention his owner is the attorney

    The dog is running around his owner hoping that he will throw the ball once so the dog will run to catch it

    But his owner never does so

    Then the dog owner takes back his dog to the Pet Shop claiming: "My dog is not catching the ball".

The ball was in your hand the whole time for Christ's sake.

Citations, References, Bibliography, Credits and Special Thanks

(*) 5 Internet Video Broadcast Mega Corporations are always referred as Youtube, Facebook, Netflix, Amazon, and Hulu listed in order of market revenue share from bigger to smaller. That is in short commonly used as: YFNAH in Bloomberg data, retrieved from Nieman Journalism Lab, June,7th,2016, issue 76.
(**) OTT providers stand for: Over The Top digital and online media producers and suppliers alongside 5 major megacorps Youtube/Facebook/Netflix/Amazon/Hulu whose revenues sum up to 99% of the total revenue of the remaining 495 companies in the competition
retrieved on Sept,22,2016 from Ottawa Citizen local daily press newspaper, Financial Post section, page 4.
(***) Financial Post interview with Canadian Heritage Minister Melanie Joly is summarized and cited from Financial Post articles on June,10th,2016 and Ottawa Citizen Sept,21,2016, Financial Post section, page 4.
(***/*) Sean Craig's interview with Boston Consulting Group senior advisor John Rose, a senior partner at BCG and a co-author of the report, a part of the consultancy's Future of Television series, is retrieved from Financial Post Sept,21,2016.
(***/**) Andrew Harrer from Bloomberg analyzed a summary of the Canadian Traditional Broadcasting Network Struggles with Digital Market Shares and that summary was both in writing and in financial data, retrieved from Bloomberg Sept,22,2016

-My dog is not catching the ball
+The ball was in your hand the whole time.
was originally shared on Urban Dictionary until the content was moved to by both the author and the contributor in an unwritten production partnership agreement of the picture above.

Special Thanks to
GIS analysis by ©ESRI

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