Will online video surpass traditional TV?

It’s true that the revolution has so far passed us by, but in the USA and Western Europe it’s already in full swing, taking the shape of Netflix. Founded in 1997 as an online video rental service, Netflix has grown into one of the most influential film and television producers, and now announces it will be available in nearly every country within two years. In Poland, many eagerly await its arrival.

Local VOD services’ legal offerings are currently rated a low three. That’s not terrible, but... pirates still offer more content faster. It’s no surprise then that when seeking a specific title, users often turn to illegal sources, sometimes without realizing their money doesn’t go to copyright holders.

Pirates still have the edge over VOD

- It happens that internet users don’t know where the content they’re watching comes from. When they pay for a video download, they think it’s legal. Nothing could be further from the truth - notes Gabi Jakimik, marketing & PR manager at Tube.AD. - All it would take is clearly labeling these video services so viewers know exactly where their content originates.

Yet it’s hard to believe ignorance is the only reason pirates still lead. Polish VOD services mainly struggle with limited offerings. Relying on their own TV productions, they can’t match even a fraction of what’s available online. The good news is that the situation is improving.

T-Mobile and Player partnership offers hope

- The collaboration between T-Mobile and the Player platform, although unnecessarily limited to network subscribers only, could foreshadow more partners stepping in to help cover licensing fees and expand offerings. Unfortunately, the current state is still a pale imitation of the content available in the gray market. Spotify succeeded precisely because of its vast music library available to everyone, worth the monthly subscription fee - argues Jakub Kwaczyński from GoldenSubmarine.

Video ads are becoming increasingly effective

Video advertising is also improving. Clients are slowly realizing that what works on TV doesn’t necessarily work online. This shift is encouraged by Google and Facebook, which emphasize the need for personalized video content.

Will online video surpass traditional TV?

- Clients have allocated budgets for digital video campaigns, and that inevitably impacts the quality of advertising creatives - observes Maciej Sawicki, CEO of Mumin's Interactive. - Additionally, agencies are starting to realize that the values important for traditional TV ads (ATL) are secondary when it comes to YouTube pre-rolls or Facebook ads.

Traditional TV spots don’t work online

Despite glimpses of positive change, there are still “cheapskates” who want to copy TV spots directly into digital without adaptation — and it simply doesn’t work.

- Video ads are displayed aggressively, either before or during the content, just like on TV. The same content and duration are copied from traditional TV. In most cases, the interactive potential with the user is ignored — a chance to build a connection that’s impossible in traditional TV - summarizes Barbara Helman, publisher development director at Sataku.

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Conclusion

Polish VOD services still lag behind pirate sources — not only due to user ignorance, but mostly because of limited programming offerings based mostly on local TV productions. Hope lies in the T-Mobile and Player partnership, though experts believe it’s too narrow in scope. Jakub Kwaczyński from GoldenSubmarine points to Spotify as an example, whose success comes from an extensive music library accessible to everyone.

Rising budgets for digital video advertising translate into higher-quality advertising creatives. Clients are understanding that TV spots can’t be copied one-to-one into the internet — interactivity and personalization are missing, which Google and Facebook are actively promoting.