Internet TV and video viewing is becoming more popular each day, but still consumers do not want to pay for the online tv experience – so says a new eMarketer report.

Whilst watching online content and streams is an interesting novelty and pretty useful to the average householder, the thought of yet another bill to pay is decidedly unpopular.

eMarketers senior analyst Paul Verna said:- “It is difficult to imagine the public tolerating a return to paid content for video genres that are currently advertising funded,”

A popular theory of how the internet tv landscape may pan out is that top sites likeYoutube and Hulu could well make a charge charge for premium content like the latest movies, sporting events and top tv shows, whilst leaving everything else including TV shows, funny videos, news, user submitted videos as they are – Free but advertising funded.

Looking beneath the pay TV on demand model, internet tv is getting ever more popular and viewer numbers and video views are growing, the demographic’s of viewers is growing and the streaming content watched is evolving from shorter clips to more full length streams. The most popular being TV shows and movies says the report.

It also predicts that by the year 2013, online video viewers will account for 85% of all internet users. This equates to 188 million users that will stream or download video content at least once a month, which is up from 144 million, or 72% of all internet users this year.

Verna further commented:- “This will put online video within range of Web activities such as search and e-mail, which are nearly at saturation points among U.S. Internet users,”

Looking at the US market, internet video will accomplish a 59% penetration rate by the year 2013, which is up from 47% in 2009. Apparently the market tipping point event will happen during 2010, when internet tv and video will be watched by around 50% of users.

Currently most of the internet video streams are paid for using advertising, but some latest movies and sporting events continue to be monetized via the means of a subdcription service or download costs.

The ability to share video through social networks, blogs, email and other social platforms makes every video a potential viral hit and opens opportunities for content distributors and marketers to monetize the medium, eMarketer concludes.

Vast improvements in stream quality and HD streaming can also help to further make the whole online tv experience appeal to viewers, especially on mobile devices and phones.

Interestingly, much of the growth in the online video market during the past year has come from premium streams like TV episodes and movies resulting in the web becoming an increasingly important part of the media mix for consumers in the US and around the world.

Online TV will continue to expand as more new developments occur including mobile distribution through phones and other mobile devices, High Definition streams, improved integration on computers, digital cable boxes and television sets, and viewer interaction and social networking to compliment the streaming.

Source eMarketer

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