Skip to main content

Rise of Hulu and Decline of Network TV Ads

More than 167 million U.S. Internet users watched online video during the month of October 2009, according to a market study by comScore. Online video viewing continued to reach record levels in October -- with nearly 28 billion videos viewed during the month.

Google websites continued to rank as the top U.S. video property in October as it delivered 10.5 billion videos viewed. YouTube.com accounted for nearly 99 percent of all videos viewed at the Google properties.

Hulu ranked second with 856 million videos viewed (3.1 percent) followed by Microsoft websites with 451 million (1.6 percent) and Fox Interactive Media with 446 million (1.6 percent).

More than 167 million viewers watched an average of 160+ videos per viewer during the month of October. Google websites attracted 126 million unique viewers during the month (83.5 videos per viewer), followed by Fox Interactive Media with more than 53 million viewers (8.4 videos per viewer) and Yahoo! websites with 50 million viewers (6.8 videos per viewer).

The average Hulu viewer watched 20.1 videos during the month, representing another all-time high for the property.

In October, Tremor Media ranked as the #1 video ad network with a potential reach of 75 million viewers, or 45.0 percent of the total viewing audience. YuMe Video Network ranked second with a potential reach of 68 million viewers (40.4 percent penetration) followed by Broadband Enterprises (BBE) with 67 million viewers (40.0 percent).

Clearly, Hulu's success contributes to the cannibalization of TV network advertising revenue. The trend from linear TV program viewing to on-demand video viewing is already solidified -- in both advertisers and consumers minds.

Even if Hulu were to shift to a pay-per-view or subscription model tomorrow, this would not alter the behavior pattern that's been established.

Some of those who refuse to pay Hulu will merely watch readily available video content on one of the multitude of other advertiser-supported websites. Others will simply download the blocked TV show videos, once again, from the P2P Darknet. Industry analysts describe what appears to be a no-win situation for the big-media companies.

Other findings from the comScore study include:

- 84.4 percent of the total U.S. Internet audience viewed online video.

- The average online video viewer watched 10.8 hours of video.

- 125.3 million viewers watched nearly 10.4 billion videos on YouTube.com (83.1 videos per viewer).

- 41.1 million viewers watched 313.5 million videos on MySpace.com (7.6 videos per viewer).

Popular posts from this blog

Artificial Intelligence Growth at an Inflection Point

Business technology investment no longer follows a predictable path to growth. The global venture capital (VC) investment in artificial intelligence (AI) was close to its peak in 2021 reaching $22.3 billion, according to the latest worldwide market study by ABI Research. This is just $400 million shy of the historical high of $22.7 billion recorded in 2019. Compared to the $15 billion recorded in 2020, the market made a remarkable recovery, with a 48.5 percent year-on-year growth. Will the future AI marketplace return to stable growth, or will it remain volatile? Artificial Intelligence Market Development "COVID-19 greatly accelerated the speed of digital transformation within the enterprise. Businesses are looking for solutions to work processes automation, customer care, due diligence, transcription and translation, and sales and marketing enablement tools," said Lian Jye Su, research director at ABI Research . At the same time, COVID-19 led to the Great Resignation of 2021

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th