[opendtv] Survey: Consumers prefer TV, not PC, for Web video

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 15 Feb 2006 10:58:00 -0500

A few on this list will be completely amazed that even young kids use
the PC for interactive sessions, while they prefer the TV for more
passive entertainment.

Bert

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Survey: Consumers prefer TV, not PC, for Web video

Spencer Chin
(02/14/2006 11:50 PM EST)
URL: http://www.eetimes.com/showArticle.jhtml?articleID=3D180201849

MANHASSET, N.Y. - As media and technology companies race to bring more
video to the Internet, they are failing to provide that content on one
medium consumers overwhelmingly view: the TV.=20
That's the conclusion of a phone survey by market research firms Points
North Group and Horowitz Associates Inc. The survey said that while 25
percent of Internet users are interested in watching downloaded TV shows
and movies on their PCs, 38 percent prefer to watch that video on their
TVs.

Interest in watching on TV is even stronger among 18 to 34 year-olds at
68 percent, compared with 45 percent interested in watching on PCs, the
survey concluded.

"While many younger folks spend more time in front of their PCs than
TVs, these younger PC users use their PC as an interactive experience--
game play, Web surfing for play and/or home work," said Stewart Wolpin,
senior consulting analyst for Points North Group, replying to questions
from EE Times. "The TV, however, is a passive device, and young people
are unlikely to want to use a device as versatile and interactive as the
PC to do something as passive as TV watching. In many ways,
PC-generation users use the TV to relax from their PC activities."

Wolpin believes the industry is missing a key revenue opportunity by not
focusing on getting web-based video to the TV. He does acknowledge that
technical, business, and legal considerations could present challenges
to massive adoption of Web-based TV.

"There are several IPTV companies making STBs supplying mostly specialty
or public domain Web-based programming, such as Dave.TV and XTV Networks
as well as Windows Media Center PCs like the one from HP and even other
multimedia boxes such as Moxie from Digeo," Wolpin said. "Intel's Viiv
also is supposed to address some of this."

"On the technical side, the biggest roadblock is getting an Internet
connection, wired or wireless, from the PC/office to the TV. Wi-Fi is
simply not robust enough to support HDTV, which is why technologies such
as UWB and IBM's recent 60-GHz transceiver chip are important."

Addressing the business angle, Wolpin said, "The business hurdle is
figuring out the business models-- what's the right price point for what
type of content and what kind of distribution models to follow--
exclusive, limited exclusivity, shotgun."

Wolpin suggests the biggest issue may be pay-per-preview.

"In March, DirecTV will begin offering Fox programs 24 to 48 hours ahead
of their actual broadcast for $2.99 each. Our own survey indicates that
34 percent of respondents would pay 99 cents for a program a week ahead
of broadcast. That many consumers willing to pay and how well the
Fox/DirecTV program works could presage a whole new profit opportunity
for content owners. How this pay-per-preview model works could mark a
sea-change in TV distribution models."

On the legal side, Wolpin added, "Several of Hollywood's creative guilds
have begun to question pricing and their members' cuts of this new
distribution outlet. Older material created before the advent of
pre-packed media should not be as big of a problem, but actors, writers,
and directors will likely demand a larger piece of this ever-growing
pie."

All material on this site Copyright 2006 CMP Media LLC. All rights
reserved.
 
 
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