A new report from market analysis firm JupiterResearch finds that more than one third—37 percent—of broadband Internet users have some interest in having television programming delivered to their computers…but studios, distributors, and media companies are having a difficult time finding business models which work for online video.
“Broadband video nicely complements TV today, but this grace period won’t last forever,” said Joe Laszlo, Senior Analyst and Research Director with JupiterResearch. “Substitution of Internet video for traditionally delivered video will grow over the next few years, and media companies must account for this coming audience shift in their mid-to-long term plans.”
Jupiter notes that Internet search engines and recommendations from friends remain the two most important factors drawing people to watch online videos, and there are many strategies distributors and providers can adopt which make their content accessible and flexible in the online medium. “There are many tactics that media programmers should employ to increase interest in online video,” said David Schatsky, President of JupiterKagan. “For example, by including an ‘e-mail this video’ link on a page, or using URLs short enough to paste into an IM window, programmers can facilitate audience growth.”
Overall, Jupiter does not make any predictions for what sort of business and distribution models might eventually dominate online video, arguing instead that download sales, subscription services, download rentals, and ad-supported free services will continue to compete against each other. For now, Jupiter concludes the main benefit from Internet video is to build and audience for traditional television programming, or increase the loyalty of audiences who already tune in to broadcast or subscription programming.
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