Wednesday, April 9, 2008

Online Video: A Changing Picture

“Convergence” sounds like an idea tossed around in the 1990s that never came to pass. But don’t be fooled. Today, most video consumed online is snackable video—bite-sized entertainment—rather than a complete meal of TV episodes or full-length movies.


The most popular video content consists of short pieces: news clips, jokes, movie trailers, music videos, clips from TV shows and entertainment news.

“As technology problems are solved, however, making the computer-television connection more viable and pleasurable for the average consumer,” says David Hallerman, eMarketer Senior Analyst, “online video content will expand in both length and breadth, and professionally-produced material will become a large part of the menu.”

It hasn’t happened yet, but full-blown convergence between television and the Internet is on the way. “The trend toward greater video convergence is being driven by factors such as broadband, digital TV and, ironically, the fragmentation of the audience,” says Mr. Hallerman. “Fragmentation is forcing the networks and studios to reach out to where the audience lives.”
People prefer the Internet to TV when it comes to convenience, control and the ability to find enjoyable content,” says Mr. Hallerman. “TV wins out for relaxation, sharing the experience with friends and family and less annoying advertising than online.”

The technical and viewer preference obstacles to convergence are many, and they won’t be overcome easily or quickly. “Surveys have found that roughly half of all US consumers who watch video watch at least some of it online,” says Mr. Hallerman. “That percentage isn’t going down, and the desire for convergence isn’t going away.”

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