[ press Release ]
NEW KNOWLEDGE NETWORKS STUDY SHOWS STREAMERS, DOWNLOADERS REJECT FOR-PAY MODEL; ONE IN FOUR IS "MORE INCLINED" TO BUY FROM SPONSORING BRANDS
In new Knowledge Networks study, seven in ten streamers of TV network video watch or listen to pre-roll advertisements
Menlo Park, CA; March 18, 2009: A new Knowledge Networks study offers clear evidence that streamers and downloaders of TV network video have embraced – or at least accepted – advertising as an alternative to for-pay models. Eighty percent (80%) of network video downloaders favor watching ads in exchange for free video – up from 67% in 2006; and 69% of network video streamers either watch the pre-roll ads before the video or listen to those ads while doing something else on the computer.
The findings are from How People Use® TV's Web Connections, a new syndicated report from Knowledge Networks, produced as part of The Home Technology Monitor™. The survey was conducted on KnowledgePanel® – the only online panel based on a representative sample of the U.S. population – and utilized a trademarked methodology for understanding the interactions of consumers and media in everyday life.
Thirty-seven percent (37%) of all Internet users say they streamed TV network video – from clips to full episodes – during the three-month study period, and 11% have watched downloaded network video in the same timeframe.
The percentage of network video streamers watching pre-roll ads has grown since 2006, from 30% to 37%, while incidence of watching video without pre-roll ads has dropped, from 15% to 10%.
"Streamers and downloaders particularly value the ability to watch full episodes of TV shows via the Internet, and both groups accept the idea of ad-supported access," said David Tice, Vice President and director of The Home Technology Monitor™. "Our research shows that downloaders are increasingly seeing advertising as an acceptable compromise for obtaining free network video; and while many streamers try to avoid preroll ads in some fashion, a surprising percentage is still exposed in one way or another."
The findings include:
- 37% of network video streamers watch preroll ads in those videos, and another 32% listen to the ads' audio while doing other things on the computer
- 17% of network video streamers have forwarded a link to a commercial or advertiser video (down from 26% in 2006), and 25% have ever gone to an advertiser's own site to watch a commercial (down from 28% in 2006)
- users of downloaded network video are significantly more likely than streamers to say that
- ads on their favorite TV programs are relevant to them (49% downloaders and 34% streamers), and that
- they are inclined to buy from companies that advertise on their favorite programs (42% vs. 26%)
- downloaders who also stream are almost twice as likely as streamers overall to say that pre-roll ads are more relevant to them than the ads they see on regular television
In addition, the report offers insights into the differing attitudes and habits of those who download complete episodes, clips, or online-only features (such as bloopers and behind-the-scenes video). For example, streamers who exclusively watch full episodes have the highest likelihood (76%) of watching or listening to pre-roll ads.
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The study was conducted among Internet users age 13 to 54 using KN's KnowledgePanel®, which is the only online research panel based on a probability sample. Over 1,900 persons were interviewed, including 1,700 broadband users. The error range is +/- 2%.
Knowledge Networks specializes in solving complex, high-impact problems, providing extraordinary quality and service to leaders in business, government and academia. We work closely with clients to create healthy consumer-brand connections, effective marketing and advertising, sound public policies, and accurate social science research. We have established respected practices in media, marketing, advertising, and government & academic studies. KN excels in study design, analytics, and custom panel creation; we deliver affordable, statistically valid online research through KnowledgePanel® – the only available probability selected, nationally representative Internet panel.
