Increasing online viewership intensifies competition

As U.S. video viewers increase their multiplatform viewing habits, advertising firms’ demand for an integrated tool to measure both TV and online video viewing will intensify over the next year. A new report, Cross-Platform Ad Metrics & Reporting, shows 71 percent of U.S. broadband households access videos online, compared to 87% who watch traditional TV content. Younger audiences, ages 18-34, are even more inclined to watch online video, with 88% watching online compared to 90% who watch traditional TV.

Online video viewing is approaching parity with traditional TV, especially in key audience segments, which is increasing pressure on the top firms to develop a comprehensive tool to quantify and evaluate the impact of online video content. Right now, Nielsen, Kantar Media, TiVo, Arbitron, and Rentrak are the primary cross-platform digital video audience measurement firms in the U.S.

Mixed media are increasingly important to a key and growing segment of consumers, and companies need to get ahead of this trend with cross-platform metrics in order to assess, assign, and evaluate the overall media mix. Nielsen plans to release an integrated TV and online video product in 2011, but it is unclear how the industry will receive the combined video metric and, more importantly, if the firm will meet its expected deliverable goal. In Cross-Platform Ad Metrics & Reporting, Parks Associates lists universal metric definitions, standards, and data collection methods as necessary to ensure industry-wide adoption of a new metric.

Cross-Platform Ad Metrics & Reporting provides a competitive analysis of the leading digital TV and online video audience measurement firms in the U.S. The study employs a competitor analysis framework, using competitor profiling, to determine which digital video audience measurement firms are strategically positioned to provide an industry-recognized, cross-platform digital video audience metric standard. In addition to the competitor analysis, the report examines multiplatform video usage trends based on key audience demographics.

3DTV coming of age soon

Jim O'Neill wrote a very nice overview of 3DTV on FierceIPTV.

The concept of 3D is becoming more of a reality as 3D-ready consumer electronics become more affordable and the availability of content increases.

There are many obstacles on the way to success: low consumer engagement, difficulties in marketing 3DTV effectively, advertising issues, etc.

However, as I told Jim, "there is no doubt in my mind that 3D is here to stay, and it will be a standard feature in sets being sold."

Increasing consumer awareness, lower prices, and quality content will contribute to its success.

More content and lower costs will push 3D into more CE

Parks Associates reports a modest increase in awareness of 3DTV among U.S. broadband households in 2010, but the mainstream viability of 3D depends on availability of premium video content and not one-off events such as the World Cup.

The firm’s latest report Trends in 3DTV finds 13% of households are familiar with 3DTV, an increase from 10% from the previous quarter. In some cases, 48% of these households are willing to pay for 3D content, provided they have access to the right types of content, including movies and TV shows.

Efforts such as the ESPN 3D broadcast of the 2010 World Cup are great experiments and effective in building awareness of the technology, but they have not resulted in extraordinary 3D TV sales. As content and service providers launch new 3D channels and Blu-ray discs, consumers will start to see more value in this technology, and shipments will increase as a result. By 2014, 80% of the TVs sold in the U.S. will be 3D-ready.

Parks Associates research indicates 3D movies generate the most interest from U.S. consumers. One-third or fewer of consumers are willing to pay for 3D television shows and sporting events, but nearly one-half are willing to pay for 3D movies. Trends in 3DTV provides a detailed overview of 3D technology and examines business strategies by industry segment. The report analyzes the availability of content, reviews issues and progress with each content delivery method, and describes the impact of 3D on CE.