Online video will not replace traditional TV anytime soon
Posted by Evan Fell on December 3, 2007 at 11:10 AM
Consultancy Bain & Co. has reported that time spent watching TV will rise much faster than time spent on the Internet through 2012 and that audience for online video may take a very long time to develop.
David Sanderson, head of Bain's global media practice, said it could take around five years or more for Internet video to become a viable alternative to the broadcast, cable or satellite signals in a viewer's homes.
He said, "There are capacity constraints, the technology isn't quite there ... and frankly the business models for the content owners, all of that still needs to be worked out."
The company reported that by 2012 viewers are expected to be watching two more hours of television per week, and Internet use outside of an office is only expected to grow by a half an hour per week.
Sanderson talked about technology of the Web and TV saying, "until the Internet can deliver that same experience, then it's still going to be delivered over the traditional multichannel video providers," he said.
Many companies have been putting video online recently in an attempt to gain revenue from advertising. Notably, General Electric Co and News Corp have been experimenting with their online video service Hulu, Viacom Inc has put as much video as possible online, and ABC also puts prime-time shows online.
While people are increasingly using the Internet to watch video, it is mostly short video clips and cannot be compared to the amount of professionally generated content watched on traditional TV, at least, not yet.
Source : Reuters through I Want Media
He said, "There are capacity constraints, the technology isn't quite there ... and frankly the business models for the content owners, all of that still needs to be worked out."
The company reported that by 2012 viewers are expected to be watching two more hours of television per week, and Internet use outside of an office is only expected to grow by a half an hour per week.
Sanderson talked about technology of the Web and TV saying, "until the Internet can deliver that same experience, then it's still going to be delivered over the traditional multichannel video providers," he said.
Many companies have been putting video online recently in an attempt to gain revenue from advertising. Notably, General Electric Co and News Corp have been experimenting with their online video service Hulu, Viacom Inc has put as much video as possible online, and ABC also puts prime-time shows online.
While people are increasingly using the Internet to watch video, it is mostly short video clips and cannot be compared to the amount of professionally generated content watched on traditional TV, at least, not yet.
Source : Reuters through I Want Media
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