Highlighting Digital Video Behavior
Since 2006, Ipsos MediaCT's MOTION syndicated program has been monitoring the digital video landscape, with the aim of understanding the impact streaming and downloading has had on traditional viewing options.
The MOTION research program illustrates that there are a number of ways consumers can access their preferred video entertainment, whether it be full-length motion pictures, current and vintage television programming, sporting events, music videos and/or a host of other video entertainment choices.
Data for MOTION are collected on a biannual basis; each wave targets a representative online audience of 1,000 adults (ages 18+) and 120 teens (ages 12-17).
Based on this research, some key trends and implications for the online video are emerging. A few of those are highlighted here.
Due to recent growth among women and older adults, online video streaming has become a mainstream activity and should be addressed as a mass market media.
Since late 2007, the percentage of female Internet users ages 12 and older who have streamed a video online in the past 30 days has grown from 45% to 55%- an all-time high for this demographic and nearly equal to the percentage of men (59%) who have recently streamed video content online. At the same time, the percentage of adults aged 55 and older who have recently streamed video online has also increased significantly since December 2007, rising from 32% to 46% in that time span.
Despite some encroachment on traditional television viewing, the living room remains a preferred destination for video viewing due to emerging technologies such as HDTV, DVR, Blu-ray; online video services that allow easy transfer to the home theater will flourish in this environment.
Today's entertainment enthusiasts remain largely steadfast in their love of traditional viewing options. Among those adults who actively stream and download video content, just 20% of the video content they consume is viewed on a PC. However, it is clear that the PC is beginning to encroach on the time spent watching TV, as the share of video watching on the PC has almost doubled since early 2007 (from 11% to 20%). For the time being, the overwhelming majority of their video content (67%) is consumed on a television. Despite the rise of online video offerings today, consumers appear just as entranced by the increasing variety of content options available for viewing on their TVs, including terrestrial and premium broadcast television, DVDs, and pay-per-view options, as well as a growing ability to control when they watch their video content.
Short-form videos (amateur content, news, commentary, etc.) have benefited the most from online streaming, although TV show streaming has doubled in the past year, due in part to the networks allowing free streaming of their shows.
Among the various types of video streams offered online, shorter video clips, such as those found on video file sharing sites like YouTube, are by far the most preferred type of video file accessed today by Internet users. The popularity of short video clips has more than likely been driven by the universal appeal of YouTube, as almost half (49%) of those that have streamed or downloaded video content have accessed the site in the past 30 days. Other video file sharing sites such as MySpace and Google Video are also common destinations for video streamers. In addition, the streaming of movie and TV show trailers, as well as music videos, are also extremely prevalent among those who stream video content.
While short video clips dominate, there is also significant growth potential for long-form videos, such as movies and TV shows. Past 30 day TV show streaming currently resides at a quarter (25%) of the streamer/downloader population, which is double the proportion seen in early 2007 (12%). It is clear that the free streaming offered by the major networks is having a profound impact on the digital video industry, as those who miss a single episode of their favorite program can go online to view the episode they missed.
Consumers find the inclusion of advertising to be reasonable (with the exception of user generated content) for both streams and downloads if the content remains free, further supporting the growth potential for online video advertising.
How will consumers react to the growing proliferation of ad-supported online video services? Recent research suggests that the majority of these consumers will find the inclusion of advertising a "reasonable" expectation for free access to this content.
At least three in four digital video consumers say they would find it "very" or "somewhat reasonable" for advertising to be included in the free digital distribution of full-length TV shows and movies, while around two-thirds say the inclusion of advertising would be reasonable with free access to music videos, short news or sports clips, as well as movie/ TV trailers or previews. As might be expected, digital video consumers generally find it more acceptable to have advertising included within longer, professionally produced video offerings such as full-length movies or TV shows, should this content be available for free online. Fewer are ready to accept this "price of admission" for shorter-form content or less-professionally polished content. Still, for most video content types, the majority of these consumers find the trade-off between free video content with advertising to be a fair value proposition. Yet as we've reported, consumers prefer the free streaming of longer-form content vs. paid downloading.
The one content type that may be the exception to ad-supported willingness is amateur video content. Just over half (52%) of consumers age 12+ who have downloaded or streamed video say they would find it "not very" or "not at all reasonable" to have advertising embedded within free amateur or homemade videos online. This finding is particularly interesting because some video sharing websites, such as YouTube, are beginning to diversify their content offerings to include longer, professionally produced material that may be advertising-supported. Ad-subsidized service models will have to be carefully considered by these video sharing websites, since their current audience has grown accustomed to free streams without advertising.
These are just a few of the highlights from our ongoing MOTION syndicated study. For more detailed excerpts from Ipsos' 2008 MOTION program, including charts and tables, download our latest Point of View.
To learn more about MOTION, a quarterly syndicated tracking programming researching the U.S. online video market, please visit: http://www.ipsosmediact.com/products/motion_overview.aspx.
About Ipsos MediaCT
Ipsos MediaCT is the specialization within Ipsos dedicated to serving clients in the converging Media, Content, Telecoms & Technology Industries. Areas of expertise include audience measurement, consumer insight, customer acquisition and retention, market sizing and new product development. Our global team combines rigorous research skills with a clear business focus to assist companies in maximizing their return on investment.
To learn more, please visit: www.ipsosmediact.com.
