Great Article on Online Video Trends from TechCrunch
Posted by Mark Levy | Posted in Online Video | Posted on 31-01-2010
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Context is King: How Videos Are Found And Consumed Online
Editor’s note: This is the third in a series of posts by guest writer Ashkan Karbasfrooshan
.Previously, he wrote about the State of Online Video, and 12 Surprising Things Holding Back Online Video Advertising. In part 3 today, he examines how videos are found and consumed online. Karbasfrooshan is the founder and CEO of WatchMojo
, a producer of premium, informative and entertaining video content. The company’s catalog of 5,000 videos has generated over 110 million streams since 2006.
To try to understand—let alone guess—the future of video advertising, one needs to start by looking at the biggest trend in media over the past few decades. In November 2006, Bear Stearns Cable and Satellite analyst Spencer Wang published a study
called “Why Aggregation & Context and Not (Necessarily) Content are King in Entertainment”. While Bear Stearns has since beenacquired
by JP Morgan and is now a mere footnote in business books, the study’s findings are more relevant than ever. Let’s examine 8 key factors behind online video consumption
Factor 1: Media is Fragmenting
According to a recent NY Times
article, in the 1952-53 season, more than 30% of American households watched NBC
during prime time, according to Nielsen. In fact, up until twenty years ago, you could buy a 30-second spot on CBS, NBC or ABC and reach “everyone.” Today, NBC’s prime time reach is 5%. Sure, NBC is lagging CBS and ABC, but neither the Tiffany network nor Disney’s counterpart is faring much better. The secret’s out: fewer people watch TV and teenagers spend every waking minute connected
to the Internet, increasingly through the mobile web.




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NEW YORK: Findings from State of the Media Democracy, a new-media survey by Deloitte & Touche, were leaked late last week to The Hollywood Reporter. The data, which will not become officially available until next month, underscore the rise and rise of online media platforms.