Study shows social networking a prime channel to distribute online video

Parks: Users who frequent social networking sites such as MySpace show a predilection for online video, with 55% viewing streaming videos and 21% downloading long-form videos on at least a monthly basis.

This correlation between social networking Websites and Internet video services is even more dramatic when comparing social networking users and non-users. People who visit a social networking site at least weekly are overall six times more likely to download long-form videos and 1.5 times more likely to view streaming Internet videos than are those who do not use these Websites.

Whether the business model is free video streaming backed by advertisements or the sale of online movies and TV shows, social network Websites are well positioned to become strong contenders in the Internet video business,. On the other hand, online video Websites, if they are to be competitive, need to beef up their social networking features to attract and retain users.

Media companies with online assets also have the challenge of attracting older users, who are likely to have more disposable income but are not yet part of the social networking scened. Currently, two-thirds of frequent social networking users are younger than 24, an age group that typically includes heavy users of digital entertainment. In order to approach older demographics, these companies need to seek alternatives.

Social networking sites such as MySpace and Facebook are effective in reaching a young and dynamic Internet audience, but the question is what’s next?. Besides monetizing their social networking assets, large media companies need to attract older demographics to social networking or leverage other virtual hangouts that appeal to older Internet users, such as peer-to-peer communities, which have a slightly older audience, or special-interest websites like iVillage.

Internet Video: Direct-to-Consumer Services Publ 20060928