Citing a new survey analyzing the online video consumption habits of more than 1,000 U.S. consumers, analyst Spencer Wang said Friday that online video is "a powerful new application" that is best consumed on a single site with many choices.
According to their research, 57% of respondents watch video online, with 30% streaming content at least once a week. Males age 18-24 are the group most likely to watch content online, with 62% streaming videos at least once a week.
Although many users prefer online video with no ads, 48% of all respondents and 67% of males 18-34 said their preference for monetization of the platform would be a free ad-supported service with 10- to 15-second commercials. Only 4% said they prefer paying $1.99 per video, and 3% answered that they would like a $14.99 subscription to a service.
A central site for videos was important to consumers, with 56% of all respondents and 69% of males 18-34 preferring that option to different sites. According to the survey, with 42% of all respondents and 72% of males 18-34 report that they use YouTube.
Wang and Bear Stearns analyst Robert Peck stressed that YouTube remains the "behemoth" of the online video space, and they do not see any serious competitors at this time. Peck agreed with Google chairman and CEO Eric Schmidt's assertion last month at a Bear Stearns conference that "you tend to see power consolidated in a market leader." For now, Peck said, YouTube remains that market leader, "far and away."
Wang said that News Corp.'s MySpace could emerge as a potential competitor in this space. The "entertainment companies," though, are too slow and bureaucratic at the moment to compete in this platform, he said.
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