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January 08, 2007
Piper Jaffray Report: Online Video Up while TV Viewing Declining
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 networks 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 sais that they watch less TV now than two years ago.
Other tidbits. No surprise here:
"News, Movie Previews, and Amateur Videos Most Popular.
More interesting: "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 then...)
Note this is all based on survey data. I have an email in to find out how big the survey panel was.
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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Tracked on January 25, 2007 10:02 AM
Don't just ask how big the panel size was. You also should ask what was the quality of the panel -- especially with survey-response rates in massive decline, amidst a proliferation of cheap panel companies which are striving harder and harder for anyone to give them the time of day.
You also should ask them for their interpretation of what constitutes viewership. There's nothing wrong with the survey question you reference above, "where do you go to watch video content online," but so much online video is irrelevant to that question. I don't have hard stats, but I would presume one also must ask "how does video come to you" or "how do you discover it" or "how do others share it with you". Why do we view certain content online? Sometimes because we go to a portal, but perhaps mostly because someone sent it to you, linked to it, or embedded it their own syndcation channel, or a search engine presented it, regardless of where you physically view it.
All that said, I don't disagree with the directional assumption.
Posted by: Max Kalehoff at January 8, 2007 01:57 PM
Good questions Max. I'll email them again with that.
Posted by: Heather Green at January 8, 2007 02:29 PM