Viewing of Video Online is Increasing

Nov 14, 2005  •  Post A Comment

New data from comScore Media Metrix and research firm Points North Group indicates that consumers are indeed starting to watch video via the Internet. The research is particularly noteworthy since there has been little documentation to date of online video consumption habits.

Larchmont, N.Y.-based Points North Group released its first Internet video report last week, a survey of 1,000 consumers. The report indicated that 20 percent of respondents watch news videos on the Internet at least three to four times a week, and more than 10 percent watch movie previews, TV shows, music videos and sports segments with the same frequency. Points North Group worked with Horowitz Associates on the research.

To date, scant movie and TV content has been legally available online, suggesting that consumers may have been devouring pirated content, said Craig Leddy, analyst with Points North, which has been operating as a proprietary research firm for the past two years and is now publicly releasing data. That appetite for content is spurring big media companies to quickly develop legal avenues for online video consumption, Mr. Leddy said.

Additional data from the survey found that 22 percent of respondents were “very interested” in watching video from the Internet on their TV, either downloading, storing or playing content from the Internet directly to the TV. “Is the glass half-full or half-empty? I think it’s just starting to fill up right now,” he said. “Big media companies are going to have to find the best ways to attract people and generate enough usage.”

In addition to the Points North research, comScore reports that consumers who use online video use it a lot. The research firm reported that in June more than 94 million people in the U.S., or 56 percent of the U.S. Internet population, watched at least one streaming video online. Among the video consumers, the average user watched 73 minutes per month for the three-month period ending in June.

Internet Video consumption

Selected results from a November 2005 survey of 1,000 consumers by Points North Group and Horowitz Associates

  • 30 percent of respondents don’t think of their computer as a way to watch video.

  • 16 percent of respondents are “very interested” in being able to click on an advertisement on TV to get more detailed information about a product.