Online and Downloadable Video - US - October 2007

Abstract

The rise of the Internet has created dramatic changes in how consumers find, receive, enjoy and create media content. The ability to easily upload, store and share content has already transformed the music industry, and the rise of broadband connections is beginning to transform video as well.

In this report, Mintel examines industry players; key market drivers and trends; and consumer behavior and attitudes in order to provide conclusions on the current direction of the industry. Mintel also makes recommendations for successful future business strategies.

Specifically, this report discusses:

• User needs and profiles. Internet and portable video usage patterns, consumer attitudes, and spending patterns are reviewed, based on exclusive consumer research conducted by Mintel.
• Industry players and business models. Key players and emerging business models are discussed, including free content, ad-supported models, paid downloads, streams and subscriptions. Advertising and promotional strategies are also reviewed. Content issues, including quality, availability and access. Broadband access is an important factor for long-form content such as TV episodes. Image quality and the availability of different types of content are other important drivers. Types of online and downloadable video of interest to users are discussed.
• Consumer behavior models. Whether online and downloadable video will be primarily viewed on PCs or televisions is one topic of active debate in the industry. Drawing on its exclusive consumer surveys, Mintel provides conclusions about what models will be most popular.
• Future business models. Mintel predicts which business models are most likely to succeed. Also discussed are recommendations for staying ahead of the curve and meeting consumer needs.

  For the purposes of this report, online and downloadable video refers to video content that is either downloaded or played from a remote source (streamed) via the Internet or wireless networks. Not included is content transmitted by cable companies or other providers through non-Internet networks such as “on demand” or pay-per-view programming. However, this content is discussed when relevant to Internet and cellular delivery of content.