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  (Source: guidingtech.com)
comScore said YouTube has a lot to do with the growth in online video viewership

After a long day of work or school, many Americans stretch out in front of the TV and unwind while watching their favorite shows. But this traditional form of relaxation seems to be changing rapidly in the way of exchanging cable television for online videos.

According to the latest comScore study, 100 million Americans watch online videos on a daily basis. This number is up 43 percent from 73.7 million in 2010.

The study also found that Americans streamed 43.5 billion videos in December 2011, which is a 44 percent increase from December 2010. The average viewer watches approximately 239 videos per month, and most videos are over five minutes long.

In addition to videos, video advertising volume is increasing rapidly as well. ComScore noted that video ads are rising faster than the videos themselves, with the ad-to-video ratio growing 12.8 percent to 14.1 percent in 2011. Video ad volume grew 20 percent to 7.1 billion ads.

ComScore said YouTube has a lot to do with the rapid growth of online video popularity. This is hardly surprising, since YouTube announced that it reached four billion video views daily last month, which was a 25 percent increase from May 2011. While this is great news for YouTube, traditional cable television should watch its back. With online videos like YouTube and video streaming services like Netflix and Hulu around, which are more affordable and available on several different devices, traditional cable is facing some stiff competition.

In fact, other companies have been looking to jump on the video streaming bandwagon, hoping to offer alternatives to traditional cable services. For instance, Google recently revealed its plan to offer a subscription cable package, and Sony discussed its idea to launch a Web-based TV service back in November. Also, back in 2010, Microsoft talked about creating a cable service that would be available over the Xbox 360 console, but announced last month that it was putting its Web TV subscription idea on hold due to costs.

While many have seen Netflix's success in offering a video streaming subscription model that challenges traditional cable television packages, they find that setting up a Netflix-like service is not so easy. In July 2011, Netflix explained that it had to raise subscription plan prices because of the cost of licensing rights from movie studios and television networks. In the first three months of 2011, Netflix said it spent $192 million on streaming rights. Throughout 2010, the video streaming service spent $406 million total on its streaming library. It has no choice but to spend such extravagant amounts of money to keep its library up-to-date and attractive for users.

ComScore said television and movie studios should take note of how the online subscription and video services like YouTube are engaging viewers, and create new ways of capturing this audience.

Source: Tech Crunch





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