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Report: Online Video Cannibalizing TV Consumption

A new IBM study reveals that online video is cannibalizing television consumption. The poll of 2,800 people in six countries found that 76% have viewed video online and that 45% do so regularly. About 15% of those who watch online videos say they watch "slightly less" TV than they used to, while 36% say they watch "significantly less" TV as a result of their online video viewing. Indeed, "place-shifting alternatives may be changing consumer couch-potato behavior," the study claims. IBM polled 2,800 people in six countries for the study.

Other findings were that people definitely prefer the ad-supported model to paying for content. Of those who watch online video, a whopping 70% said they prefer the ad-supported approach, though they specify that commercials be viewed either before or after the video clip runs in its entirety. Also, nearly 60% of respondents said they were willing to provide advertisers with personal information in exchange for something of value, like discounts on products, frequent flier points, or free music videos.

According to Saul Berman, the study's co-author, the online video industry "must find appealing ways to monetize new content sources or risk a similar fate as that of the music industry where value shifted away from core players."

Read the whole story at The Hollywood Reporter »

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