Companies Making Money from Online Video are Raking in the Dough

Research firm IDATE expects the online video market’s global revenues to grow to $29.9 billion in 2015. That’s up from $6.5 billion in 2010 — a compound annual growth rate of 28%. YouTube (NASDAQ:GOOG) and Hulu (NASDAQ:CMCSA)(NASDAQ:NWSA) have enjoyed this growth as their revenue sources are primarily video advertising. On the other side of the business, Apple (NASDAQ:AAPL) and Netflix (NASDAQ:NFLX) make money from customer purchases of and subscriptions to video content.

Due to the peculiar structure of the USA video market — with strong on-demand revenues coming from Apple and Netflix, and to a lesser extent paid TV channels — IDATE estimates that 48% of the world online market is funded by advertising revenues and 52% from pay-revenues. In most other territories, the bulk of revenues originate from advertising. Catch-up TV (coming from Hulu and others) and live streaming are also fairly used. TV series consumption is indeed growing fast thanks to streaming platforms and catch-up TV services. Short clips, such as those seen on YouTube and others, are the favorite online videos, with 78% of broadband Internet users watching them.

“Implementing cost-per-click tariffs rather than cost-per-thousand are key for the adoption of online video advertising by advertisers,” according to Advanced Television.

Here’s how these stocks are trading:

  • Google Inc. (NASDAQ:GOOG): The shares recently traded at $610.66, up $2.33, or 0.38%. Its market capitalization is $197.78 billion. They have traded in a 52-week range of $473.02 to $642.96. Volume today was 1,906,825 shares versus a 3-month average volume of 3,613,730 shares. The company’s trailing P/E is 20.82, while trailing earnings are $29.34 per share. About the company: Google Inc. is a global technology company that provides a web based search engine through its website. The Company offers a wide range of search options, including web, image, groups, directory, and news searches. Get the most recent company news and stock data here >>
  • Comcast Corporation (NASDAQ:CMCSA): The shares recently traded at $22.57, down $0.08, or 0.35%. Its market capitalization is $62.05 billion. They have traded in a 52-week range of $19.19 to $27.16. Volume today was 8,554,297 shares versus a 3-month average volume of 21,467,100 shares. The company’s trailing P/E is 16.24, while trailing earnings are $1.39 per share. The company pays a dividend of $0.45 per share for a dividend yield of 2.00%. About the company: Comcast Corporation is a provider of video, high-speed Internet and phone services. The Company offers a variety of entertainment, information and communications services to residential and commercial customers. Comcast is headquartered in Philadelphia, Pennsylvania. Get the most recent company news and stock data here >>
  • News Corp. (NASDAQ:NWSA): The shares recently traded at $17.02, up $0.07, or 0.41%. Its market capitalization is $44.71 billion. They have traded in a 52-week range of $13.38 to $18.35. Volume today was 11,510,514 shares versus a 3-month average volume of 30,396,200 shares. The company’s trailing P/E is 16.70, while trailing earnings are $1.02 per share. The company pays a dividend of $0.19 per share for a dividend yield of 1.10%. About the company: News Corporation is a diversified global media company. The Company’s operations include the production and distribution of motion pictures and television programming. The Company provides television, direct satellite, and cable broadcasting and the publication of newspapers, magazines, books and promotional inserts. Get the most recent company news and stock data here >>
  • Apple Inc. (NASDAQ:AAPL): The shares recently traded at $405.90, up $6.17, or 1.54%. Its market capitalization is $377.19 billion. They have traded in a 52-week range of $297.76 to $426.70. Volume today was 9,685,687 shares versus a 3-month average volume of 21,469,300 shares. The company’s trailing P/E is 14.66, while trailing earnings are $27.68 per share. About the company: Apple Inc. designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Get the most recent company news and stock data here >>
  • Netflix, Inc. (NASDAQ:NFLX): The shares recently traded at $90.47, down $0.36, or 0.4%. Its market capitalization is $4.75 billion. They have traded in a 52-week range of $74.25 to $304.79. Volume today was 2,907,120 shares versus a 3-month average volume of 9,158,410 shares. The company’s trailing P/E is 20.56, while trailing earnings are $4.40 per share. About the company: Netflix Inc. is an online movie rental service. The Company ships DVDs with no due dates or late fees, directly to the subscriber’s address. Netflix also provides background information on DVD releases, including critic reviews, member reviews and ratings, and personalized movie recommendations. Get the most recent company news and stock data here >>

Don’t Miss: Will Cisco Continue to Outperform After Earnings?