• by Mark Walsh  @markfwal, July 6, 2009

With 77% of U.S. Internet users watching online video and 43% viewing weekly, the medium has hit critical mass, according to a new study by Frank N. Magid Associates.

The research commissioned by video site Metacafe also found that more one-third (37%) of consumers who watch professionally produced video clips online -- including TV clips, movie trailers, sports highlights and music videos -- found them equally or more entertaining than watching full-length shows on their TV sets. Forty-one percent found them "somewhat" as entertaining.

The findings were based on an online survey of 1,927 people between the ages of 12 and 64 conducted in April as part of the Magid Media futures practice. Not surprisingly, young males between the ages of 18 and 24 were found to the heaviest video consumers, with 70% of that age group watching weekly.

But the regular audience goes well beyond kids. Nearly one-third (30%) of those ages 55 to 64 were also watching online video weekly. More than one-third (34%) mesh their TV and Internet habits, going online at least half the time while watching TV. But 20% of online video viewers said they are watching less TV because of Web video, a small but significant proportion of cannibalization.

Separate research spotlighted Monday by Nielsen, however, found that both TV and online video viewing is growing. "The number of options for viewing content on the Web is proliferating, be it short-form, long-form, or via mobile devices. Data shows that Americans are viewing more TV than ever before, while at the same time online video viewership continues to increase," states the Nielsen blog.

According to Nielsen's recent Three Screen Report, people are watching 153 hours of TV in their living rooms compared to just three hours of online video. So in terms of time spent, Web video obviously still has a long way to go to catch up. That's hardly comforting to companies like Time Warner and Comcast, which are moving ahead with systems to ensure that those who view their shows online are also cable customers.

When it comes to advertising in online video, people expressed more receptivity than might be expected. More than half (52%) found ads in video as or more acceptable than ads in TV shows. Twenty percent found them unacceptable, and 28% weren't sure.

Metacafe, which has shifted increasingly toward short-form professional video, used the findings about that type of content to tout its own programming. The report found that user-submitted material and professional clips are the most popular video genres.

But it's clear that audiences are also becoming more comfortable with full-length shows online in the growth of TV network-owned sites like Hulu and TV.com. Figures released by Nielsen Monday showed unique visitors to Hulu.com increasing from 9 million to 10.1 million between October 2008 and May, and total streams climbing from 206,000 to 382,000.

Even on "protail" video sites like Blip.tv, the average video is now 14 minutes long, whereas a year ago all but one of Blip's top 25 shows was under 5 minutes. The two-minute limit no longer applies.