Online video for the most part remains a supplemental activity, complementing multichannel video subscription services. But online usage continues to grow, raising obvious questions about when a tipping point might be reached. But no tipping point can be reached unless content owners can create a viable and substantial new revenue model from online video, and advertising already is seen as merely supplemental. That likely means subscriptions, one way or the other. Up to this point Netflix and Hulu have been the leaders in that regard, despite efforts by iTunes and others.
Online views, or online viewers, are important. But ultimately those metrics alone will not drive a shift to major online availability of professionally-produced content. Some combination of subscriptions and on-demand payments will have to emerge, large enough in volume to create a viable expectation that revenues from such alternative streams can rival the revenues now earned from cable and other video distributors. Views and viewers are important, but not as important as the emergence of paid models of some size.
When looking at the most engaging video brands – as measured by time spent – Netflix was the top destination as the average U.S. video viewer spent over 11 hours watching video on the site from home and work locations, which isn’t surprising considering Netflix subscribers can now watch full-length movies and television shows from their PC/Mac/laptops.
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