Online Video Will Not Replace TV

• Posted: Friday, March 14, 2008
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• Author: pradhana
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• Filed under: Digital Content

By Ben Macklin, Senior Analyst

There is no correlation between US Internet users watching video online and a potential audience for television content delivered on the Internet. Just because consumers are currently watching free, short-form video does not necessarily indicate there is a viable business model to support viewing of traditional TV content online.

Most of the evidence available suggests that online video content is supplementing and complimenting traditional TV content and viewing habits rather than replacing or supplanting them.

Audiences are fragmenting, but they have been fragmenting ever since the introduction of cable TV. People may be watching less of the traditional broadcast channels in favor of cable, time-shifted content and Web-based content, but overall TV usage has still increased, according to Nielsen Media Research.

The vast majority of online video content is short-form and bite-sized. It is not the new TV. Not only is the content different, but the way people view it is different: lean-forward compared with lean-back.

The distribution of content must be addressed separately from the means of accessing that content. Convergence is definitely occurring in content distribution, which will eventually all be through Internet protocol. However, the PC and Internet will not replace the TV as an access device in the foreseeable future.

In fact, what is more likely is that more Web content will be viewed on the TV in the future. The comfortable lounge room and big-screen TV is best place to watch premium video.

Read more - eMarketer

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