Internet Video: The New Television/Movie Theater?

10 Jun

There has also been a consumer trend in the entertainment industry where internet users in increasing numbers have deferred to web-video to be entertained rather than traditional media outlets such as television and the movie theater.  Hulu.com, which is owned by NBC Universal and Fox, offers free television content online.[1] While YouTube recently signed a deal with Disney to start distributing its content from ABC and ESPN online as well.[2] These moves by major television and movie distributors seem to be reflective of the times.  Emarketer identifies a 20.3 percent increase in average minutes per day spent on television websites in March 2007 when compared to 2006.1 These online television viewing websites create a host of advertising opportunities for television producers and hope to mitigate the profit-damaging effect of pirated television content that can be found on the web today.

The above tables indicate both an increase in reliance on online video for entertainment on the part of consumers, as well as the varied success of brands in their pursuit of strong internet audiences.  Internet video has also provided an opportunity for the coming together of small and large studios as evidenced by the recent deal between NBC Universal and the smaller video web shop 60 FramesNBC Universal has agreed to pitch original web shows created by 60 Frames to its advertisers.  The deal is mutually beneficial, with 60 Frames benefiting from the potential backing of NBC’s advertisers and NBC benefiting from lower production costs and minimized risk.[3] The entertainment industry is a vastly different arena than it was even just last year.  Keeping up with advances in internet technology has been the only way that entertainment companies have kept themselves in business.


[1] Fanner, Eric P. “Websites go fishing in tv’s advertising revenue stream.”The New York TImes 19 Nov. 2007, Late Edition ed., sec. C.


[2] Vascellaro, Jessica E., and Elizabeth Holmes. “Youtube seals deal on abc, espn clips.” The Wall Street Journal [New York] 31 Mar. 2009, sec. TECH


[3] Whitney, Daisy. “NBCSU-60 frames deal a trendsetter.” Television Week 13 Oct. 2008: 9-11. ProQuest. <http://proquest.umi.com.proxy.lib.umich.edu/pqdlink?Ver=1&Exp=05-17-2014&FMT=7&DID=1586960361&RQT=309&clientId=17822&gt;.

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