Wired magazine rolls out OTT TV with sponsors Audi, HP and Verizon

Brief:

Condé Nast's Wired magazine launched the media company's first over-the-top (OTT) streaming channel this week, according to Digiday. On July 1, Wired's channel hit Apple TV, Amazon Fire TV and Android TV and will also launch on Roku in the next week.
The service aims to reach people who are spending more time watching streaming video services like Netflix and Hulu than traditional TV. Audi, HP, Quicken Loans and Verizon are the first four sponsors of the new Wired video channel, which will be free to watch and ad-supported. These four sponsors will run ads on the channel through mid-September.
Wired's channel features the most popular videos and shows from Wired.com and the publisher's YouTube channel, including shows such as "Autocomplete Interviews," "Almost Impossible" and "Technique Critique." As Wired nears its 25th anniversary later this year, the publication will roll out more programming made specifically for the streaming channel. Licensed movies and TV shows will round out the library.

Insight:

With the OTT channel, Wired can build on its success that began on YouTube, while giving advertisers opportunities to reach Wired's audience on a new platform and create an additional revenue stream. Wired's channel has 2.3 million subscribers and 688 million video views a year. The YouTube channel also shows promising engagement metrics so far, with shows like "Technique Critique" posting an average watch time of nearly 11 minutes. This signals that Wired's audience may be interested in the new OTT streaming service that will feature a variety of longer content.

The growing consumer adoption of connected TV devices is helping to drive Condé Nast's shift to video. The number of U.S. households that only have OTT service has tripled in the past five years to 14.1 million, still only 11% of total TV households, according to a report from the Video Advertising Bureau. OTT-only households will grow to 17.9 million in the next three years, the report predicts, another indication that Wired's channel may gain traction.

While Wired is Condé Nast's first publication to support a fully programed streaming channel, it also plans to create similar channels for GQ and Bon Appétit next year. Condé Nast Entertainment highlighted the 12 billion views it received for digital video content on social, syndicated and owned-and-operated properties. Unlike startup producers of video content seeking to get noticed among the 5,000 channels that a service like Roku carries, Condé Nast has well established print media brands that may find a crossover audience on streaming platforms.