UPDATED 12:47 EDT / DECEMBER 13 2010


Online Industry competing with TV, More Growth in Next Few Years

For the first time ever in the US, web surfing is becoming as time-consuming as watching TV. A recent Forrester report suggests that online consumers are spending as much time on web surfing as on watching television. Besides, they are also selective about what they are doing online. Mobile Internet is also playing a significant role in this online landscape.

Combining the web and TV is something that has spilled into the gaming industry as well, as we’ve seen with Microsoft’s efforts with Xbox. Evidence for this is the record sales of 2.5 million units of Kinect peripheral for the Xbox 360 in just 15 days. Overall, the total sales of this best-selling console jumped almost 68 per cent as compared to November 2009. Moreover, Kinect is also expected to become a major gift purchase this holiday season.

This drive in online industry is also taking over Hollywood. In fact, we recently heard about Warner Bros. changing their Internet piracy policy in order to make more customers. Under this new policy, they are targeting the content pirates to see if they can recruit them to purchase more content. As a result of a study by Warner Bros., several interesting facts came out, such as most of the piracy takes place between males of 18-24 age group while females jump on to some popular shows like CW’s Gossip Girl and Vampire Diaries.

But this is not about the US only, as this is becoming a global trend. Some recent developments include Youku, China’s largest video sharing site, which is also experiencing tremendous growth. It also announced its IPO of $15.8 million shares.

“There is no question that video advertising has seen huge growth, presenting both advertisers and publishers alike with incredible opportunities. As consumers turn to online video across all platforms, marketers are moving dollars and creative to the web and we expect this trend to grow into 2011 as online advertising grows,”said Jayant Kadambi, President and Co-Founder of YuMe.

A comScore report also suggests that the U.S. pushed 1 billion ads viewed in the fall,  and this is prompting advertisers to move into online space. Google is also taking regulatory measures with the acquisition of Seattle-based anti-piracy software provider Widevine.

Finally, the web will soon begin monetizing TV, further incorporating the two aspects of consumer media consumption including web & TV. Google ads are also coming to Verizon FiOS TV. The deal will be finalized early next year.

[Photograph credit: Getty Images]

A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy