Abstract
Executive Summary
Internet Video is a conundrum for IPTV(1) service providers. On the one hand,
most IPTV service providers also offer high-speed Internet service, and video
sites such as YouTube and Joost fuel a heavy demand for broadband. On the
other hand, Internet Video competes with IPTV for viewers, and with the
advertising revenues that come from those viewers. So, is Internet Video a
threat or an opportunity?
In this report, we come down firmly on the side of opportunity. The fact is
that watching video has become an integral part of Internet usage for most
people. According to the Pew Internet & American Life Project (2):
The majority of adult Internet users in the U.S. (57%) report watching or
downloading some type of online video content, and 19% do so on a typical day.
Almost three-quarters of broadband users (74%) who have high-speed connections
at both home and work watch or download video online. For those who have
high-speed access only at home, 66% report online video consumption, compared
with 39% of home dial-up users.
Roughly one in three (31%) Internet users ages 18-29 said they watched or
downloaded some type of video on a typical day during the period of the Pew
survey. By comparison, 18% of Internet users ages 30-49, 12% of those 50-64
and 10% of those 65 and older watch or download any type of video on the
average day. In short, Internet Video isn' t going away. So, how can IPTV
service providers take advantage of that viewership?
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