Annual Reports go YouTube
Watching online videos is no longer cutting edge news, but rather a way of life as evidenced by stats released in a recent Pew study that showed 57% of adults online have watched online videos.
But an annual report on YouTube? That’s a fairly new concept, yet a great idea and some high-profile public companies are opting to use video to give their shareholder communications a little more pizazz.
I happen to pick up a CFO magazine while in the waiting room at the Doctors office today (why they had a CFO magazine in the waiting room, I don’t know), but I stumbled on an article that I just reread again tonight about the move by some innovative companies towards video annual reports in lieu of the printed version.
And it’s not just companies in the tech sector. Companies like Sealy Corp., California Pizza Kitchen and Ruth’s Chris Steak House Inc. have moved to this video format for their annual reports.
The Hollywood approach isn’t just about image, however: a graphics-intense annual report can ultimately cost a large-cap company $1 million to produce and mail. A video report, in contrast, may run $20,000.
The embrace of video is part of a larger movement away from printed shareholder communications, a trend the Securities and Exchange Commission heartily endorses. In fact, the SEC has taken several steps to streamline the delivery of all proxy-related materials. In December, the commission tentatively approved a plan to allow Web-only versions of Schedule 14A proxy statements, Schedule 14C information statements, and annual reports to suffice.
The SEC’s proposal, which took effect on a voluntary basis in July, will ease that paper jam by making Internet delivery the de facto setting which will likely increase this video trend.
CFO.com quotes one observer this way:
In five years, a printed annual report will be a collector’s item.
And I’ll be less guilt-ridden for pitching the stacks right into the recycle bin.
This post was written by: Kim Mickelsen