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BizReport : Research archives : December 13, 2006

Online Video Audience Not Engaged

Movie downloads remain the least-watched genre of online video. Instead of long programming, 70% of online video users are watching short clips of sports and news.

by Kristina Knight

Only about 5% of North American online viewers have rented or purchased a digital movie download according to the Broadband Video and Web Television End-User Perceptions report from ABI Research. That is a much lower percentage than those who say they have downloaded a free movie because of peer-to-peer communities.

"The vast majority of those watching content online are watching short-form content," said Michael Wolf of ABI (via eMarketer). "Older users in particular watch primarily news and sports, while younger users are watching more entertainment content, including viral media provided by sites such as YouTube."

Why are they watching “little” shows? Because they are satisfied with their current cable and satellite services and DVD purchases, according to the report.

That is only one problem for the relatively new online video market. According to new research from eMarketer advertisers lag behind those who are watching online content and could buy their products.

The new Internet Video Audience Report suggests by the end of this year more than 59% of users will have watched an online video. With the vast majority of watchers preferring short-form content, advertisers could have better results sponsoring specific clips from sporting events or news programs, or producing their own viral clips.

This year, the online video ad spend is expected to be only about 2% of the total online ad spend.

Tags: online advertising, online television, online video, online video advertising

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