Online Video Advertising Business Plan Term Paper

An example of this is Disney's decision to make their popular television programs available via download to Apple iPod users. Figure 3 provides a forecast of the spending on Internet Downloads of TV Programs from Veronis Suhler Stevenson (2005), a well respected communications company that focuses on the online video marketplace.

Figure 3: Internet Video Downloads of Television Programs

Additional key points from the firms' research on online video advertising and downloadable television programs include the following insights:

About one in ten U.S. online consumers watches television broadcasts online.

Respondents mostly were still watching as much TV on the TV as they had been, despite adding some online viewing to the mix.

Three out of four online views said their traditional TV-viewing habits haven't changed, a small percentage said it had decreased and a smaller number said it had increased.

More than two-thirds of online consumers log on daily for entertainment purposes, and 16% seek entertainment online several times per week. About one-third of households that watch TV online contain multiple viewers.

News broadcasts are the most popular go-to content online, drawing 62% of online news viewers, followed by entertainment viewing (nearly 50%).

Other popular content: missed favorite shows; previews; sports; and seeing entire episodes of shows, each drawing a yes vote from more than 25% of online TV viewers.

Americans ages 18-34 are roughly twice as likely to have downloaded television programs from the Web as the population at large, according to the study.

Based on its survey of 1,143 Web users, Ipsos estimates that 10% of U.S. adults under 35 have downloaded a show, compared to 5% of the overall population.Downloading is even more prevalent among 18-24-year-olds, as 14% of that group has downloaded a show.

Although the overall proportion of TV downloaders is small, it's growing quickly. Last year, just 2% of the population at large had downloaded TV shows, as did 5% of 18-34-year-olds.

Internet video services will generate over $1.7 billion in revenues by 2010.

The market for Internet video services began its dramatic acceleration in 2005 as content owners started to experiment with digital distribution as a way to complement and enhance their existing business models and to stem illegal P2P file sharing and piracy.

In particular, the television networks' decision to offer episodes from new shows as well as old sparked significant interest in Internet video.

Growth of Animation as a Result of Online Video Growth

Given the growth in Digital Video Recording and the corresponding growth of video-based advertising, the use of 3D animation tools specifically developed for assisting artists, animators and design professionals create animations tailored for high performance on the Internet all are contributing to significant growth of animated-based animation downloads. The following graphic provides insights into this growth from LWC Research (2006).

The focus on using animation for distance learning, certifications and entertainment are the three largest vertical market segments of online animation growth. In conjunction with this growth is the stabilization of Java as a programming language and the overall growth of animation as an accepted form of development for entertainment and advertising.

References

Forrester Research (2005) - U.S. Online Marketing Forecast: 2005-2010 May 2, 2005. Charlene Li, Chris Carron, Jennifer Joseph,.....