Showing posts with label online video. Show all posts
Showing posts with label online video. Show all posts

Tuesday, July 8, 2008

Online Video Complements, Not Replaces, TV; DVDs Still Being Copied


A new study conducted by The Nielsen Company shows that online video serves as a great complement to traditional TV, rather than threatening to replace it.

When asking U.S. consumers what sorts of video they watch online, many cited things like a TV show's new episode previews (38%), behind-the-scenes video clips (27%), bloopers (22%), and deleted scenes (20%). (I wish I knew of networks that offered bloopers and deleted scenes online; if such content is available, it really should be advertised more!)

Of consumers that do watch full TV show episodes online, the majority (82%) said that it was only because they missed the actual airing on TV. What's more, a whopping 87% said they viewed the show from the TV network's own Website; not some third-party piracy site like many would like us to believe. (Naturally, this study hails from the U.S., since online video offering through TV networks in Canada is relatively scarce).

If this is the case, why aren't more networks (especially in Canada) offering their programming online as a supplement to the TV versions? The answer is likely due to fear that online videos will steer viewers away from standard TV. I'd argue (and the study also reinforces) that this certainly isn't the case: each means represents a very different experience. I can't imagine opting to watch a show online instead of via TV for any viable reason other than that I can't access the show by TV at that particular time.

What's more, the Nielsen study discovered that most consumers prefer the Web for short videos, like movie trailers (53%), user-generated videos (45%), music videos and general news segments (37%), comedy programs (31%), and sports clips (31%).

"This analysis shows a continuing strong appetite for watching television the traditional way even as viewers begin to extend their viewing to the personal computer." said Susan Whiting, Executive Vice President, The Nielsen Company.

With that said, Nielsen also found that interest in things like HD programming and on-demand TV have also increased. 20% of the respondents who subscribe to HD channels say they watch HD programming "every time" they watch TV; while awareness of free on-demand TV jumped from just 49% in 2005 to 71% in 2007. Customers interested in jumping on the flat-panel HDTV bandwagon rose from 18% in 2005 to 28% in 2007.

A small portion of consumers is also exploring additional ways of viewing video content: 6% watch video via compatible mobile phones and 5% via other portable video players. Of those who own a video-capable iPod, 16% say they watch videos two to three times a month on the portable device. However, we certainly have a long way to go in this area: 35% of iPod Video owners have never watched a video on the player!

Interestingly, just as I was writing this, another study appeared in my inbox that reveals consumers are actively making copies of pre-recorded DVDs. The study, conducted by Futuresource Consulting, found that one-third of respondents from both the U.S. and the U.K. admitted to making a DVD copy in the past 6 months. The most likely culprits: 18-24-year-old males; and the most likely methods include copying via a DVD player and recorder, or using PC burning software. As for what they're coopying, it's, no surprise, new release movie titles.

Making a back-up copy of one's own purchased movie should, in my eyes, be permitted. But the study claims that a "significant portion" of copying is done with borrowed or rented movies. One argument many have made against the "lost revenues" argument from illegal copying is that the consumer likely would not have purchased a legitimate copy of the film anyway. However, Futuresource's study discovered that 77% of respondents in the U.S. and 63% in the U.K. said they would, in fact, have purchased legal copies of most of the movies in question had they not been able to make the copy.

One thing's clear from all of this information: consumers really are interested in video content every which way they can get it. Perhaps in making more video accessible in more ways, this will help curb piracy altogether; and satisfy consumer craving for vast amounts of media consumption.

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Monday, September 17, 2007

New Site to Offer Free Music Downloads

A new digital music download Website has emerged that promises to offer tracks from Universal Music artists for free. Of course, there’s a small catch…

To download a tune from http://www.spiralfrog.com/, you’ll first have to wait a tiresome 90 seconds for the song to download. That’s no big deal; I can live with that. I lived with waiting longer than that back in the original Napster days when I was on dial-up! (It took half an hour to download one song!)

Second, you’ll have to fill out a survey each month about your buying habits. OK, a bit intrusive and demanding, but I’m willing to do this if it means no-hassle downloads on a daily basis.

The clincher for me, however, is that downloaded songs can’t be burned to a CD (strike one) nor transferred to an iPod (strike two). Strike three is obvious: the site only offers tunes from one label.

I do commend the company for attempting to find a winning solution to an ever-growing battle in the world of music. However, in my opinion, any service that restricts what I can do with something is o-u-t out. I want the exact same functionality I’d get with a store-bought, Compact Disc. Anything less is, well, less. To spiralfrog’s credit, you can transfer downloaded tracks to any Windows-compatible mobile device, so I’ll take back half a strike.

On a brighter note, I do believe that spiralfrog.com is on to something. How did the company manage to snag a deal with Universal to offer its tunes for free? Through online advertising: to which a portion of the revenue is undoubtedly paid to the label. This sounds like the most logical option I’ve heard to date. As it is right now, I quite often endure 10-15 second commercials so I can watch an online video, or engage in a quick game of Bejeweled 2. So I’d be more than happy to watch a quick commercial, or eyeball some ads, in order to download a desired track. This is provided I’m able to do with it as I like once it’s “mine”.

Spiralfrog.com might not be the breakthrough we’ve been looking for, but it’s definitely a step in the right direction.

Friday, August 31, 2007

NBC Universal Says No to iTunes

NBC Universal is not renewing its contract with iTunes. According to Reuters, the studio is iTunes' number-one supplier of digital videos, including popular TV shows like Heroes, 30 Rock, and The Office.

NBC reportedly wants Apple to pay an inflated fee for the content, which would result in an increase in the price customers pay for downloads (supposedly US$4.99 per episode instead of US$1.99). Apple says sorry, that won't fly.

Of course none of this matters to us Canucks north of the border who can’t even get downloadable TV content through the Canadian iTunes service. Not that I'm bitter, but I'll digress, since this is a whole other topic unto itself!

Nevertheless, this decision could lead to some very interesting possible outcomes. The first, I propose, is that downloadable online video continues to appeal only to techno-geek, early adopters, and eventually dwindles away. Downloadable video is still in a growth phase. Correct me if I'm wrong, but if the most popular media download site (i.e. iTunes) starts offering fewer quality videos instead of more, aren’t we moving in the wrong direction of where we want to be?

The second possible outcome is this: imagine NBC decides to launch its own site to rival iTunes (but just offers its own content); or partners with a competing online store that accomodates the price NBC wants. Would you pay $1.99 for stuff you don't want; or $4.99 for stuff you do? NBC announced in March that it would launch an ad-supported online video distribution site in partnership with Fox that would be available through partners like AOL and MySpace. You never know: I could be way off base, but an online video download store may not be too far off the horizon!

Sure, Apple’s domination in the portable player and online download arena is really being put to the test as of late, but we can't forget the third possible scenario: NBC feels the pain of missing the exposure of its 2007-08 season through iTunes (Apple reportedly said it would pull the plug before the new season rather than wait until the end of the year); and Apple laughs all the way to the bank.

Which way will things go? We'll just have to wait and see.