Viewership of online video is rapidly shifting from checking out clips on YouTube to consuming premium content such as primetime shows and films. The trend is driving viewership on both TV and PC screens, according to a report from ABI Research. The question is: What are service providers doing about it?
The ABI study, “Broadband Video and Internet TV,” examines how the different distribution channels are trying to capitalize on this growth in consumption, how content owners and operators are trying to create more seamless and uniform access to online content across screens, and what the various strategies for monetization are for the pay and ad-supported broadband video markets.
ABI Research predicts online video viewers will grow from 563 million at the end of 2008 to 941 million by 2013.
“All stakeholders in the online video ecosystem are eyeing the living room,” says research director Michael Wolf . “With the continued adoption of network-connected video game consoles, the porting of popular online video services such as Hulu and Netflix onto third-party consumer electronics devices, and network operators’ growing interest in over-the-top video, we see this market for TV-displayed online video continuing to grow.”
A factor helping to accelerate the trend toward over-the-top video is the growing participation of advertisers.
“There is a continued maturation in the various advertising models for online video,” Wolf said. “At the same time, hybrid models such as those offered by Netflix’s instant viewing service or pay models such as Apple TV will also grow in importance.”
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