Online Video Up while TV Viewing Declining

From January 8th 2007, Piper Jaffray study via Businessweek Blog

A new report from Wall Street analyst Safa Rashtchy at Piper Jaffray outlines the rapid adoption of online video and the subsequent decline of TV viewing among online users. One of the interesting points is that TV network sites are increasingly popular and are the second most popular destinations, after YouTube.

But YouTube draws a younger crowd.

  • 60% of 25-34 year olds use YouTube, 43% use TV network sites, and 32% use Google Video.

  • Among 45-54 year olds, 47% use TV network sites, 22% use YouTube, 25% use Google Video, 26% use Yahoo! Video, and 28% use MSN video.
Safa says 2007 is the year for video, the year when companies have to make a place for themselves in online video distribution or bow out. And it’s important this year for traditional media to get a piece of the pie too: 40% of the people surveyed by Piper Jaffrey said they watch less TV now than two years ago.
  • News, Movie Previews, and Amateur Videos are the Most Popular.
  • Limited Ads Tolerable but Paid Online Videos Are Not.
Approximately 40% of our survey respondents indicated that they are willing to watch limited commercials before an online video (assuming that the online video is free), and approximately 80% indicated they are not willing to pay for online videos.” (not great news for companies betting on the pay per download model)

Update: It was a survey of 337 people who were recruited online. Piper Jaffray says that it was fairly representative but skewed a little older. So this isn’t a survey of the population overall, it was a survey of online habits of online people, which isn’t representative of the overall TV audience.

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