Online Video Content Still Growing

Nov 30, 2009•Blog Posts•Online & Digital Media• by author

Nancy B.

According to Jack Loechner from the Center for Media Research, modern media trends indicate that 67% of online Americans are now “digital video users”, users that have streamed or downloaded digital video content. Services like Netflix and Hulu have greatly gained in popularity recently. Hulu, for example, has grown from 9% awareness in September of 2008 to 41% awareness in April 2009. In the short video market, YouTube continues to dominate with a 4% increase of awareness, from 83% to 87% between September 2008 and April 2009. [Source: Ipsos MediaCT, September 2009]

In addition to an increased usage of digital video content, Jack Loechner states, “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.” A majority of respondents in the Ipsos MediaCT study found it acceptable to have advertising as a part of free online video. Amidst the current digital landscape, perhaps online video users have realized that in order to have a quality product, revenue must be generated. Users prefer the rather non-intrusive advertisements that play before the start of the show instead of a subscription service that requires payment.

With the rise in popularity of online video content, network and cable TV have taken notice and put forth their own initiative to capture the market. A few popular TV shows, such as NBC’s Heroes and Showtime’s Dexter have webisodes, which function as supplements to the series plotline or an expansion of secondary characters. These online supplements, in addition to full episodes available on the channel’s website, help maintain viewers’ interests in the series during the mid-season gap. Besides webisodes, some series like CSI New York and Gossip Girl have mobile tie-ins. CSI takes a bold step and offers a ‘Second Life’ type interactive story available exclusively on the cell phone.

With a wealth of interactive web content, full TV shows, and even sponsored YouTube clips, the cross platform landscape is ripe for advertising and branding opportunities. Given the online video users’ willingness to accept free quality entertainment at the price of intermittent advertising, it is clear that this medium has plenty of room for expansion in the near future.