Commentary

Online Digital TV Success Presages Move to TV Sets

According to recent data from Ipsos MediaCT's MOTION study, online digital video has become mainstream in the U.S., as 67% of online Americans have now streamed or downloaded digital video content ("digital video users"). YouTube dominates the short video clip market, while the streaming of longer running content, such as TV shows and movies, has become more popular due to sites such as Hulu and Netflix.

The growth of Hulu in particular has been rapid - only 9% of digital video users were aware of Hulu in September 2008, but today, its awareness is 41%. iTunes posted growth for digital video during this time frame, and the visibility of MySpace as a digital video source has dimmed recently.

Digital Video Awareness & Usage (% of Digital Video Users; Awareness as a Digital Video Provider)

 

September 2008

April 2009

 

Awareness

Past 30 Day Use

Awareness

Past 30 Day Use

YouTube

83%

49%

87%

56%

iTunes store

46

8

49

10

MySpace

54

13

46

9

Hulu

9

3

41

14

Source: Ipsos MediaCT, September 2009

Brian Pickens, Senior Research Manager at Ipsos MediaCT, says "The increase in usage across multiple sites and business models confirms that Americans are watching a greater breadth of digital video... (while) studio support of Hulu... illustrates that many... on the content side have already incorporated online digital media into their strategies."

Consumer willingness to accept advertising within the online digital video medium is paramount. A positive sign is that a clear majority of digital video users feel it is reasonable to have advertising embedded in both online full-length TV shows and movies, as long as the content remains free-of-charge. These numbers help to illustrate why streaming sites have rapidly increased in popularity over a short timeframe.

Acceptance of Free, Advertising Supported Video (% of Digital Video Users, April, 2009)

 

Very Reasonable

Somewhat Reasonable

Not Very Reasonable

Not At All Reasonable

Full length TV shows

37%

49%

7%

7%

Full length movies

35

43

12

10

Movie/TV trailers of previews

26

39

17

18

Amateur/homemade video clips

22

28

20

31

Source: Ipsos MediaCT, September 2009

It is important to note, says the report, that digital video users watch almost 15 hours of TV on their traditional television per week versus only about two hours on their PC. In most cases, digital video users state a strong preference for viewing content on their televisions. With professionally produced content now available through legitimate online websites, there is a (consumer) desire to combine the readily available online video content and the preferred viewing platform: the television.

Pickens concludes, "...  Americans remain happy with their TVs and HDTVs...  especially as TVs grow larger and resolution improves.... However... creating an easy and affordable way to bridge the gap from online video to the TV would allow consumers to enjoy the best of both worlds."

For additional information, please visit Ipsos here.

 

 

 

2 comments about "Online Digital TV Success Presages Move to TV Sets".
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  1. Tilly Pick from Development Practice 360, LLC., September 15, 2009 at 1:01 p.m.

    Good data points. I find it interesting that iTunes hasn't grown more in the past year.

  2. Tony Barbee, January 12, 2010 at 12:27 p.m.

    I'm looking for the memberships of the following: Hulu and twitter. I was interested in how many users each site had compared to their viewers or unique viewers?
    Any insight on a article containing this information would be very helpful.

    Thank you!

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