Media companies are increasingly jumping to offer video on an ad-supported basis, for sale as a download, via subscriptions, and as rentals. However, no clearly winning strategy has emerged, and revenues from all these models will remain modest for the next several years. JupiterResearch argues that the main benefit to Internet-delivered video lies in building the audience, or increasing audience loyalty, for traditionally delivered television programming.
"Broadband video nicely complements TV today, but this grace period won't last forever," said Joe Laszlo, Senior Analyst and Research Director with JupiterResearch. "Substitution of Internet video for traditionally delivered video will grow over the next few years, and media companies must account for this coming audience shift in their mid-to-long term plans.
Recommendations from friends and Internet search remain the two most important factors leading people to watch videos online.
"There are many tactics that media programmers should employ to increase interest in online video," said David Schatsky, President of JupiterKagan. "For example, by including an e-mail this video link on a page, or using URLs short enough to paste into an IM window, programmers can facilitate audience growth."
The complete findings of this report and recommendations for media programmers are immediately available to JupiterResearch clients online at http://www.jupiterresearch.com/. For details on JupiterResearch's methodology, visit www.jupiterresearch.com/bin/item.pl/methodology/A>