Among their chief observations was the amount of diversity in delivery channels for video, not just between companies, but often within a single company. For example, although Netflix and Blockbuster both have internet DVD rental servivces, Netflix also operates a streaming service for their customers, while Blockbuster is purchasing online movie service Movielink and already has the largest chain of brick and mortar DVD rental outlets in the U.S.
Another interesting observation regards the success of ad supported video while user paid content seems to be floundering. Despite resistance to this new model from many sides, from television network and viral video sites are having a much easier time courting advertisers than commercial content providers trying to find customers. Of particular note was Google's decision to drop Google Video months after acquiring YouTube.
Meanwhile some companies, most notably television networks, are seeing success making shows available online in a variety of different formats. With networks often owned by large entertainment conglomerates, the report finds that the key to success for these sites is creating an identity to establish a sort of "brand loyalty" among viewers.
Finally, they mention that the proliferation of set-top set-top boxes may spark a boom in internet based content as it becomes easier to get content to your television instead of having it held hostage on a computer.
Source: TechNewsWorld
Written by: Rich Fiscus @ 15 Sep 2007 12:25
