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Internet Video Market has Very Broad Appeal

Change used to move relatively slowly in the entertainment business. That was, until the whole notion of a mass-market for television became null and void.

First it was music production and distribution and now it's video. In this rapidly evolving market, consumers are being afforded more choice and control when it comes to content.

Whether it's PVRs, User Generated Content, or TV shows online, the market has fundamentally started the process of unbundling television or video entertainment, and this redistribution of control will likely come to dominate the overall consumer landscape for years to come, according to an In-Stat market study.

In addition, as evidenced by an In-Stat survey of U.S. consumers, when it comes to online video, despite a stratification by age, these trends appear more endemic than unique to the under 25 market segment.

Respondents who watch online video were equally upbeat on the future of digital media, in many cases expecting these emerging forms of entertainment to become more mainstream over time.

"A testament to the significance these trends pose to all members within the value chain," says Michael Inouye, In-Stat analyst. "And just like music, these shifts appear far more entrenched than a simple fad -- additional reason to strategically review this evolving market and the new levers they bring."

In-Stat's market study found the following:

- Respondents to an In-Stat survey felt online video will become more mainstream over time.

- Social networking aspects are starting to play an important part on how the newer generation wants to watch and interact with TV.

- Primary detractors for online video continue to be download speed, user interface, cost, and quality of video (both visual and content).

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