December 18, 2006

Survey Says Online Movies Not a Must See

By Mike Robuck

While the sprint, or in cable's case Sprint, to get video clips to various devices resembles a gold rush from the 1800s, not all online videos are golden.

A recent ABI Research survey of Internet users in North America found that only 5 percent of those who watch video on the Internet have rented or purchased a digital movie download, a lower overall number than indicate they have downloaded a movie free from a peer-to-peer sharing site. Movie downloads, both legal and illegal, remain the least watched genre of online video on the Internet, where short-form content such as sports and news clips is watched by nearly seven in 10 of those that watch Internet video.

"The vast majority of those watching content online are watching short-form content such as news and sports clips," said research director Michael Wolf, in a press release. "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."

When ABI Research asked consumers why they chose not to watch movies downloaded or streamed from the Internet, the biggest reason was satisfaction with existing cable and satellite services as well as DVDs. Nearly half - 48 percent - indicated they would never purchase a movie online for download because they were satisfied with their current providers and the rental market.

"Despite the growing interest in the pay market for Internet-delivered video, perhaps the biggest remaining hurdle to widespread adoption is that the status quo usually gives consumers a vastly superior, and often less expensive, experience than Internet-delivered content," said Wolf. "The industry needs to develop reasons and business models that increase overall consumer interest in Internet delivered video, including allowing for easy transfer and better viewing on the large screen."

And speaking of YouTube, it's expected that Comcast's Ziddio Web portal, which was launched last month in beta test form, will add more functionally this week. Like YouTube, Ziddio lets registered users load video onto the site, but Ziddio puts the videos into six different contest categories with the winning videos getting posted on Comcast's VOD platform.

- Mike Robuck