"Video-on-demand is steadily increasing in popularity and will occupy
well over a third of Americans' TV-viewing time by 2012, according to research
done by information solutions company Pike & Fischer. The report
examines the shift in TV viewing from scheduled broadcasts to shows
that can be viewed at any time. The firm says that as viewers'
preferences change over the next several years, advertisers' focus will
change as well.
According to Pike & Fischer, the majority of US households will watch some
form of video-on-demand through cable, satellite, or fiber-optic lines
within the next five years. But Americans won't be adding
video-on-demand shows on top of their regular TV viewing—the firm
predicts that the average monthly time spent watching television will
remain relatively stable. Instead, the proportion of time spent
watching video-on-demand shows will grow, from 8.5 percent in 2007 to
38 percent in 2012. "That translates into nearly two hours of VOD
viewing per day," writes the firm.
A report
published in August by The Diffusion Group appears to support Pike
& Fischer's data. It stated that although only about 12 percent of
people who rent movies regularly reported using video-on-demand
services, non-traditional rental services (such as video-on-demand)
were growing in popularity. Download services like iTunes, Unbox, or
Xbox Live Video, on the other hand, have only made a "negligible
impact" on rental behavior thus far.
But what does this mean for advertisers, who will no longer be able to
bank on certain demographics watching shows on specific days and times?
The shift from live broadcast to time-shifted television viewing has
scared some advertisers in recent years, not only because time-specific
ads lose their relevancy (that sale on Saturday isn't so important when
it happened last Saturday), but because of many viewers' fondness for skipping ads.
But Pike & Fischer's director of Broadband Advisory Services, Scott
Sleek, says that this shouldn't be the case. "Video on demand will
enable more targeted advertising, based on user profiles and viewing
habits—the same way sites like Amazon.com operate today, 'Sleek said in
a statement. "That will make television an appealing marketing platform
for advertisers.'"
via
Ars Technica