Internet TV viewers rise again in July - By: Paddy Chang

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Streaming Internet TV streams are increasingly popular. According to Nielsen’s Online report for March released on Monday. Internet video watching by US residents showed a 1.9% growth in viewer numbers.

Total streams watched grew by 8.7% and time watching a stream per viewer rose by 12.6% compared to February.
YouTube is still the daddy of video sites and showed a healthy lead in its share of the market. It streamed an eyestraining close on 5.5 billion video streams, giving it 56.6 percent of total video views. Hulu was a close second showing close on 348 million streams.
Then come the usual suspects in Yahoo, Fox, and Nickelodeon who are always kicking around those second tier of places showing 232 million, 207 million, and 196 million video views respectively.
This shows despite some gloom and doom merchants that online TV and video is increasing month on month, and that the demand for internet TV grows ever stronger. The real winner is still Hulu who grow in leaps and bounds showing a total of 8.8 million unique users who watched 40 video streams each.

We all know that internet TV is the hot ticket right now and that traditional TV is well, just Erm.. boring. But in a new report, Microsoft are claiming that within 4 years traditional TV could be dead and buried.
Apparently the TV sitting in your front room will soon be obsolete, and will be replaced by Internet TV and TV that accesses the internet. They also predict that Internet useage will be greater than TV useage by the year 2010. Microsofts forecast shows that on average useage of the Internet will be 14.2 hours per week compared to 11.5 hours watching the traditional gogglebox.
How much can be read into an internet based company predicting the death of TV and a move into internet based TV streams? Well there is no denying the facts that the trend for higher Internet access has been happening for quite some time according to research. Interestingly though, Microsoft are also predicting a 50 percent fall in Internet useage on standard computers within the next five years indicating a move away from watching tv on pc to Internet enabled TV sets.
Of course traditional TV is being attacked from all sides including mobile TV on phones and other portable devices which although only slowly catching on, is now a major growth market.
Of course this is all theory and conjecture but the simple fact is that our viewing habits and Internet useage will change significantly in the near future.

Whilst negotiations are still underway between Disney and Hulu ongoing (Hulu and Disney deal all but done). And the companies sweat over the fine print. Rumours are rife about Hulu running low on cash funds and needing the deal more than Disney.
Hulu which started just over a year ago had $100M of finance put into its setup and operation. And when your ad revenue isnt covering your costs $100 mill doesnt last forever. Hulu deny such claims, but then does any company running out of cash ever admit it?

Because of the massive size and growth of Hulu it is not a surprise that they have gone through the vast majority of their finance in the past few months. The investment made by NBC and FOX is unknown, but with Hulu’s advertising revenue still not covering the costs and their traffic growing at a massive rate, Hulu is using cash up like its going out of fashion.
During February, Hulu streamed over 300M streams and according to comScore, drew in 34.7 million viewers as well. And the word on the street is that Hulu is only filling about 50% of its ad inventory which has not been helped by the downtown of online advertising in the current recession.
If Hulu truly is ruining low on cash alleged, then it puts Disney in prime position in their negotiations with Hulu and probably gives them more clout than they had a year ago. Was this the Disney plan from the beginning? who knows but it will be very interesting to hear more about the deal if and when it happens. And that deal is expected to be announced very soon.

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