Twitter Wants to Remind You It Does a Lot of Video, Too

NEW YORK (TheStreet) -- As 2015 becomes the year of video with companies like Spotify, YouTube, Facebook (FB) and others entering or increasing their positions, Twitter (TWTR) wants you to remember it, too, is in the game. 

Speaking at a J.P. Morgan tech, media and telecom conference in Boston, CFO Anthony Noto stated the San Francisco-based Twitter is already a major video platform for users, with more to come.

"Seventy percent of Twitter users are consuming video on the platform, with 90% of that on mobile." Noto said. "We feel really great about our position, but there's still a lot of work ahead of us, especially as we leverage our broader video assets."

The company owns Vine, which lets users record 15-second short loops, which Noto said is key to the younger demographic, as well as Periscope, which it purchased earlier this year.

Twitter also has Niche, which it purchased in February, which helps content creators and Vine stars match up with marketing and advertising partners.

Periscope, for those not familiar, allows users to broadcast video streams in real-time of whatever they're watching, be it a game, conference, event, etc. The live-streaming app gained significant notoriety during the Floyd Mayweather-Manny Pacquiao fight, as users streamed the fight, much to the dismay of Time Warner's (TWX) HBO and CBS's (CBS) Showtime, who broadcast the pay-per-view event live.

Following the fight, Twitter CEO Dick Cosotlo tweeted that Periscope was the winner of the fight.

 

"If you think about being real-time, the epitome of it is live," Noto said at the conference. "The epitome of public is broadcast and what's what Periscope is -- it's live broadcast."

So far, Twitter has generated little if any revenue from its Vine and Periscope properties, as it struggles to grow in both monthly active users (304 million as of the end of the first quarter) and revenue, as opposed to Facebook, which has more than 1.4 billion users around the world and generated more than $12 billion in annual revenue in 2014.

Shares of Twitter have had an up-and-down start to 2015, most recently falling victim to an earnings release snafu that led to the shares losing more than 20% of their value in one day.

The push to video comes at a time when all eyes (pun intended) and advertising dollars are being thrust upon it.

At an event earlier on Thursday, Spotfiy, the Swedish-based music streaming company, announced it, too, was getting into the video business. Facebook recently announced it surpassed 4 billion daily video views and Google-owned (GOOG) (GOOGL) YouTube is increasingly looking to alternative ways to get eyeballs, including launching a subscription business.

On a recent earnings call, Google disclosed that YouTube sees more than 1 billion viewers per month.

Digital video ad spending totaled $5.81 billion in 2014, according to research firm eMarketer and is set to rise by nearly a third to $7.77 billion in 2015 as more people watch video on a number of devices. Including PCs, tablets, smartphones and other devices, eMarketer estimated that U.S. adults spend 76 minutes a day watching TV shows on these devices, with more than 150 million people in the country watching TV shows on digital devices once a month.

As the state of online video continues to shift and twist throughout the year (Noto also noted that video autoplay is in the works for later this year, which would presumably help boost views), Twitter wants users (and investors) to remember it too is in this space, even if it's dwarfed in size by the competition.

If you liked this article you might like

Kylie Jenner Will Probably Send Snap's Stock Into a Fresh Tailspin

Kylie Jenner Will Probably Send Snap's Stock Into a Fresh Tailspin

Why Facebook Struggles to Keep Pace With FANG Peers

Why Facebook Struggles to Keep Pace With FANG Peers

Using Twitter to Trade Stocks

Using Twitter to Trade Stocks

Twitter Still Looks Bullish, Small Adjustment to My Risk Suggestion

Twitter Still Looks Bullish, Small Adjustment to My Risk Suggestion

Jim Cramer: Short Footprints Everywhere

Jim Cramer: Short Footprints Everywhere