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U.S. OTT (Internet) Video Report — May 2011
June 2011

According to Nielsen’s May 2011 Internet Video report, U.S. consumers streamed more than 15 billion videos in the month, which was 2% more than in April 2011 (14.7 billion). The number of unique online viewers also increased 2.5%, rising to 145 million.

The top Website remains Google’s YouTube with 8.86 billion streams out of the total 15.02 billion, up 1.3% from the previous month. YouTube also had 111.78 million unique viewers in May, a 0.5% increase. Microsoft’s sites were ranked Number 4 and (MSN/WindowsLive/Bing) had 266.71 million streams, which was the biggest increase from the previous month, up 27%. Hulu had 14.62 million unique viewers, and was Number 6, but ranked second in total streams with more than 852 million, a 12.1% increase.

In terms of time spent watching (stickiness), Hulu was Number 1, with viewers watching an average of 4 hours 43 minutes streaming video in May 2011.

Nielsen noted, however, that Netflix was not included in the May report because of technical issues related to URL changes for the provider.

To subscribe to MRG's IPTV Monthly Bulletin, go to: www.mrgco.com/bulletin.html

Younger Consumers Prefer Multi-Screen
June 2011

VOD Provider Epix (co-owned by Lionsgate, MGM and Paramount) said that a recently commissioned study found that younger consumers in the U.S. prefer watching movies on electronic devices such as smartphones or PCs. Younger viewers are using video-capable iPods (24%), iPad and tablet computers (21%), smartphones (21%) and netbooks (15%) to watch movies, compared with viewers between 35 to 64 years old, who prefer to use the TV in the living room.

The most common source for watching movies (aside from theaters) was TV networks (85%) and “basic” Cable networks (83%) at least monthly. About 51% of online streamers/downloaders also watch movies monthly on “premium” channels. Also, more than half (53%) plan to purchase another Broadband-enabled device, such as a tablet, netbook, laptop or PC, with 26% saying they intend to buy a mobile phone with Internet access in the next 12 months.

The survey was conducted online in April 2011 by research firm Ipsos OTX Media CT, and results were compiled from a sample of 500 respondents in the U.S. between the ages of 25 and 64 who had streamed or downloaded video content during the previous six months.

To subscribe to MRG's IPTV Monthly Bulletin, go to: www.mrgco.com/bulletin.html

Consumers Would Consider Cord Cutting
June 2011

According to a survey by Adweek/Harris Interactive, 77% of U.S. consumers have watched a TV show on the Internet rather than on regular TV. Only 30% say they are not interested in cutting the cord and watching TV shows on the Internet. At the same time, 56% said that they would stop paying for TV if certain stipulations were met. Other findings include:

• Half of U.S. adults say they have watched a show on the Internet that they never previously saw on a traditional television (51%);

• Younger adults are more likely to have watched a TV show on the Internet than those 55 and over—88% of those 18-34 years have compared to 84% of those 35-44 years, 75% of those 45-54 years and 64% of those 55 years and older;

• Men and women are equally likely to have watched a TV show on the Internet—just over three quarters say they have done so (76% and 77%, respectively);

• Two in five say they would stop paying for Cable TV in favor of watching TV shows on the Internet if they could get all of the programs that they wanted to watch for free online (44%);

• A quarter of adults say that they would need to get all the shows they wanted to watch online at the same time that they air on TV (25%);

• 16% would do so if they could get all the programs they wanted to watch for a small fee online and the same number say they would do so if it was less complicated to set their TV up with Internet.

To subscribe to MRG's IPTV Monthly Bulletin, go to: www.mrgco.com/bulletin.html