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Wednesday, May 16, 2007

Online Video: Must See (on) TV

ABI Research agrees with moi: Online video only gets content companies so far; the big money will come when your video clip can be seen on televisions.

The biggest challenge for online video providers and consumer platform companies today is bridging to the TV," says ABI Research director Michael Wolf. "Over the next few years new solutions from the likes of Apple, Netgear, and Sony will help cross this divide, making à la carte video download and viewing much easier. That doesn't mean this transition will be an easy one: factors such as video quality, pricing of content, and technical glitches will persist for some time."

ABI Research expects that of the contenders for watching Web video on the TV -- DVRs, media boxes such as AppleTV, or game consoles -- consoles will be the biggest generators of revenue. They may be right, but DVRs will be highly competitive. I just don't see why you'd want a third box like AppleTV if your DVR or console can accomplish the same thing.

Within a few years you won't be able to differentiate between the video that came from the TV network or the Internet publishing company, and most TV networks will have an Internet arm. Just as today it doesn't matter if we watch a show from USA Networks or Fox, in the future we'll be watching shows from Discovery Channel Online alongside of Disney and smaller publishers.

This is shift towards on demand programming stored locally will be the biggest thing to hit TVs since cable, and will be even bigger.

Posted By John Gartner at 10:20 AM
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