Thursday, March 26, 2009

Free content is main lure for Western Europeans watching video online

February 26, 2009

Adoption of online video has increased in Europe, but international research firm Parks Associates reports that the vast majority of usage is not generating any direct revenues. The firm, which recently released the white paper 31% of broadband households in Western Europe have downloaded a movie or TV show for free in the last six months while only 8% of households have paid for an Internet download.

See The Impact of Online Video in Europe,

While you always expect free to outpace for-pay offerings, the real problem emerges for content and solution providers when analyzing consumers’ preferred means of watching video,” said John Barrett, director, research, Parks Associates. “Over 80% of broadband households prefer traditional options for viewing video, including going to the cinema or watching a DVD. Since so many users are watching online video only because it is free, they will likely step away from the computer if they have to start paying for it.”

The Impact of Online Video in Europe,