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story category Internet Video Still Just a Baby
Just 1% of overall video consumption via Internet, says Nielsen
08:23AM Friday May 29 2009 by Karl Bode
tags: Video · competition · business · alternatives · cable · stats · content
The latest data from Nielsen suggests that Internet video remains a very small part of overall video viewership, notes MediaPost. While the threat of people "cutting the cord" is real and growing, Internet video viewing comprises just 1% of total US video consumption. For scale, TV viewership still outweighs the entire usage population of the Internet by about 100 million. As we noted yesterday, while Internet video remains in its infancy, you can expect Internet video numbers to climb sharply as next-generation broadband sees increased deployment, and simpler/cheaper hardware solutions emerge that allow casual technology users to bring video from their Internet and PC to their living room.

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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

It Must Be Easy To Use

Once Internet Video is as easy to watch as changing channels on a TV, then it will take off in popularity.
--
Blagojevich / Madoff 2012!

cableties
Premium
join:2005-01-27
·Verizon FIOS

Re: It Must Be Easy To Use

Yep. I got a laugh at the commercial for HULU. On FiOS. Dennis Leary is an alien...
HULU...let me see...I give it...2 years...tops...till someone buys it. Oh wait, what a great idea! Let's figure out how to get rights to stuff, then repackage the stuff and then sell the stuff!

BF69

join:2004-07-28
Camden, TN


1 edit

Re: It Must Be Easy To Use

said by cableties See Profile :

Yep. I got a laugh at the commercial for HULU. On FiOS. Dennis Leary is an alien...
HULU...let me see...I give it...2 years...tops...till someone buys it. Oh wait, what a great idea! Let's figure out how to get rights to stuff, then repackage the stuff and then sell the stuff!
You obviously don't have any idea who own's Hulu. NBC, FOX, Disney among others. There's no rights to get since they already own the rights.

Matt
Take me down to the paradise city
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..

said by cableties See Profile :

Yep. I got a laugh at the commercial for HULU. On FiOS. Dennis Leary is an alien...
HULU...let me see...I give it...2 years...tops...till someone buys it. Oh wait, what a great idea! Let's figure out how to get rights to stuff, then repackage the stuff and then sell the stuff!
You know Hulu was started by NBC and Fox right? So they already have the rights.

RARPSL

join:1999-12-08
Suffern, NY

Re: It Must Be Easy To Use

said by Matt See Profile :

said by cableties See Profile :

Yep. I got a laugh at the commercial for HULU. On FiOS. Dennis Leary is an alien...
HULU...let me see...I give it...2 years...tops...till someone buys it. Oh wait, what a great idea! Let's figure out how to get rights to stuff, then repackage the stuff and then sell the stuff!
You know Hulu was started by NBC and Fox right? So they already have the rights.
HULU allows the Networks to stream their shows and not need to do it from their own Site's Servers (although some shows do come from Network Site's Servers. Also, the viewer numbers that can be collected via HULU and the Sites are more accurate than those that Nielsen provides since there is a larger sample and a more targeted one. In a recent article on Show Renewals I saw a comment that some shows with so-so Nielsen ratings were renewed due to strong streaming numbers. There is also the fact that the Steaming Numbers are more accurate since they represent actual viewing (since they are in essence VoD numbers) while the Nielsen numbers are inaccurate due to shows airing opposite each other or at inconvenient times (or not being aired at the scheduled time due to a prior show "running over" its allocated slot).
robl27
Premium
join:2008-07-16
Mary Esther, FL

Re: It Must Be Easy To Use

video will be DEAD once we move to a metered billing system.

it's too bad not everyone is aware of the seriousness of this.

-Rob
bamabrad

join:2006-01-27
Port Orange, FL

Stats can show ANYTHING

I wonder how much video is moved using IP-whether in a company's walled garden or across the open net-same difference?
t0KE

join:2003-07-03

1% of total US video consumption

This stat has got to be numbers of people, or hours of viewing or something like that.

Also, it's probably reasonable to assume that the % of total Internet traffic consumed by streaming video exceeds 1%.

I'm not sure if the 2 stats are directly relatable, but something nags at me that this is an indicator of how internet bandwidth is used relative to what is available.

Are internet users who are watching something that is otherwise available on CATV/Satellite spectrum actually doing the Internet community a disservice?
old_wiz_60

join:2005-06-03
Bedford, MA

Nice idea, but...

This could be wrecked by the ISPs starting to bill you via usage. When you get cable TV, for example, you can leave it on 24x7 and you're fine. If you tried that with your internet connection you'd be kicked off.
blips

join:2001-04-17
Addison, IL


1 edit

Re: Nice idea, but...

said by old_wiz_60 See Profile :

This could be wrecked by the ISPs starting to bill you via usage. When you get cable TV, for example, you can leave it on 24x7 and you're fine. If you tried that with your internet connection you'd be kicked off.
I agree. Innovation on the internet will be completely stifled by ISP caps. Internet video will go no where fast. Don't expect the percentage of people downloading from the internet jump significantly.

beerbum
Premium
join:2000-05-06
Reading, PA
clubs:

Re: Nice idea, but...

said by blips See Profile :

said by old_wiz_60 See Profile :

This could be wrecked by the ISPs starting to bill you via usage. When you get cable TV, for example, you can leave it on 24x7 and you're fine. If you tried that with your internet connection you'd be kicked off.
I agree. Innovation on the internet will be completely stifled by ISP caps. Internet video will go no where fast. Don't expect the percentage of people downloading from the internet jump significantly.
Why do you think Comcast started the trend by implimenting their 250GB cap..?

I've said this over and over again to the point of sounding like a broken record over the years - Cable companies such as Comcast see Internet video as a direct threat to their video monopolies - and will do everything they can to keep Internet Video to just being a very small niche that is no threat to them.

BF69

join:2004-07-28
Camden, TN

said by blips See Profile :

said by old_wiz_60 See Profile :

This could be wrecked by the ISPs starting to bill you via usage. When you get cable TV, for example, you can leave it on 24x7 and you're fine. If you tried that with your internet connection you'd be kicked off.
I agree. Innovation on the internet will be completely stifled by ISP caps. Internet video will go no where fast. Don't expect the percentage of people downloading from the internet jump significantly.
Caps are temporary. In a couple of years or less they will either go away or be high enough that it's not an issue. Even right now to go over Comcast's 250 GB you'd have to watch 9.5 hours of video a day assuming it's streamed at 2 Mbps which most video isn't streamed anywhere near that.
ITALIAN926

join:2003-08-16
Stratford, CT
Absolutely right, TVip has absolutely no future, dont invest your money in it. The only people who will offer TVip will be the ISP's themselves.

BlitzenZeus
Burnt Out Cynic
Premium,MVM
join:2000-01-13
Beaverton, OR
·Verizon FIOS
·Verizon Online DSL

Nielsen ratings are off

Quite a few people leave their cable boxes running 24/7 skewing the results, the show we watch on the web sometimes are the ones we really want to watch as we might not have a dvr, and that is where sites like hulu come in.

Sure web video isn't full 720p, or 1080p that was being broadcast, but most of us don't care, they still get their commercials in while we get to watch the shows we want on our schedule.

I don't see this going away, the model works, and I found that sites like hulu post content days before cable networks get these same shows up on the video on demand.
--
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TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast

Re: Nielsen ratings are off

Another take on this subject:
»gigaom.com/2009/05/29/the-stream···-it-yet/
Over the past 12 months, we’ve seen a lot of new content offerings announced by companies like Netflix, Amazon and YouTube as they look to directly target the living room via entertainment devices. Indeed, the adoption rate of hardware devices like the Xbox 360, PS3, TiVo, Roku, VUDU, Apple TV and broadband-enabled Blu-ray players and TV sets will be crucial in determining if content owners can make money delivering video to the TV.

But despite all these new offerings, that content still only reaches a few million customers, a number largely unchanged from this time last year. Such low adoption rates in the face of so much effort leads me to think that while the market of delivering content to the TV will grow, it is unlikely to do so at the rate that many in this industry would like to believe. In fact I don’t think we’ll see these devices having a combined impact in any measurable way for at least another 3-4 years..........
It will grow very slowly until the average, non-tech person can watch it on their TV by hooking up only 1 box(including the already existing cable or telco linear TV capabilities) no more complicated then the existing STBs.
--
My BLOG .. .. Internet News .. .. My Web Page

BF69

join:2004-07-28
Camden, TN

Re: Nielsen ratings are off

said by TKJunkMail See Profile :

Another take on this subject:
»gigaom.com/2009/05/29/the-stream···-it-yet/
Over the past 12 months, we’ve seen a lot of new content offerings announced by companies like Netflix, Amazon and YouTube as they look to directly target the living room via entertainment devices. Indeed, the adoption rate of hardware devices like the Xbox 360, PS3, TiVo, Roku, VUDU, Apple TV and broadband-enabled Blu-ray players and TV sets will be crucial in determining if content owners can make money delivering video to the TV.

But despite all these new offerings, that content still only reaches a few million customers, a number largely unchanged from this time last year. Such low adoption rates in the face of so much effort leads me to think that while the market of delivering content to the TV will grow, it is unlikely to do so at the rate that many in this industry would like to believe. In fact I don’t think we’ll see these devices having a combined impact in any measurable way for at least another 3-4 years..........
It will grow very slowly until the average, non-tech person can watch it on their TV by hooking up only 1 box(including the already existing cable or telco linear TV capabilities) no more complicated then the existing STBs.
Ironcially this idea was tried over 10 years ago. It was called WebTv. Of course it failed because back then people said no one would want to access the internet from their TV.

Zen6

@myvzw.com

Re: Nielsen ratings are off

The problem with web tv was the dial up connection and poor video quality. This technology is gaining acceptance much to the dismay of the cap happy companies.
axiomatic

join:2006-08-23
Tomball, TX

Bust open the caps!

Internet video streaming providers need to bust open the caps. If I were a Hulu or a Sling.com or YouTube (or especially an advertiser using one of these streaming services to advertise) I would be looking to start lobbying for the removal of these caps citing anti-competitive reasons. In my opinion we are well past the point of all of those "net neutrality" concerns we all had years ago. It's happening, competition is being stifled by ISP caps and streaming services are being stifled by these caps. I'm ready for the shouting to begin in earnest.

moon1234

@tds.net

These numbers lie

I am part of a Nielson survey family. We get the little books once or twice a year. There is NO PLACE to record the amount of time or type of content you watch online.

This must be a complete guess on their part to pander to those they sell the ratings too.

RARPSL

join:1999-12-08
Suffern, NY

Re: These numbers lie

said by moon1234 :

I am part of a Nielson survey family. We get the little books once or twice a year. There is NO PLACE to record the amount of time or type of content you watch online.

This must be a complete guess on their part to pander to those they sell the ratings too.
I agree. If I go to HULU to watch a show, that can be measured and is a more VALID measure than Nielson's book that does not allow you to list what and when you watch as well as only showing what you claim to watch not what you actually watch. Also it does not allow for timeshifting (ie: Having your DVD/TiVo watch/record the show for you to see later). If there are 2 or 3 shows airing at the same time and you want to watch all of them, you must either DVR/TiVo Timeshift or go to HULU for the shows you can not record.

DaMaGeINC
The Lan Man
Premium
join:2002-06-08
Greenville, SC
clubs:

100%

Of my video comes from the internet. I dont watch tv whatsoever. Cant stand it, all the commercials and crap. Its brainwashing.

Musclebrain
Premium
join:2009-02-15
Lincoln, NE
·RoadRunner Cable


1 edit

Cut the Cable

I work graveyard shift and sleep during prime time. I'm also single, so this may not be the answer for everyone, but...

I cancelled my cable subscription 5 years ago. Since then I've purchased all the TV shows I want to watch on DVD. Sure, I'm always a year behind, but zero commercials means a 30 minute episode is ~21 minutes, a 1 hour program is 41-43 minutes. Not only did this automatically reduce wasted time by about 30%, the idiot box is only on when I'm watching a DVD, I'm not sucked in to watching reruns just because that's what's on at the moment. I supplement my DVD's with internet TV on SciFi Rewind and Fox's online offerings in HD. Frankly, I do not miss network TV in the least, mostly because of the commercials.

Another advantage to cutting the cable is that the money I save on the cable bill can finance the purchase of the TV shows and movies I want on DVD. You've already waited a year for the release of your favorite TV show on DVD, wait another month or three for Best Buy to put that season on sale for half price, and pick it up then. You can also pick them up secondhand on Amazon for around twenty bucks for a season if you're patient.

And finally, I don't have to wait for a week to see the next episode and get closure on an episode that leaves me hanging in suspense.

I'm glad I cut the cable, in my situation it was a huge waste of time and money.

Edit: Sorry all, this was supposed to be a reply, must have hit the wrong button. My bad.
Forums » Internet Video Still Just a Baby


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