Entertainment business @ Internet

One of the study group assignments made me research on the business of “professional video content download” business. To crystal gaze, some research was carried out on the video watching and buying pattern of consumers. Some of the results point out to not so encouraging behaviour on net. Will some business models need to be rewritten, going forward?

• Though 39% of the consumers watch online videos but only circa 8% are willing to pay for the online content. Top online video sites are the ones offering for free (you tube, BBC etc)

• Average length of the movie watched is only 3 min.
• For every 1 official song download, 40 are downloaded illegitimately. A large percentage (almost 35%) have clear preference for pirated downloads.

 Another interesting issue is the preference of content consumption. It is estimated that people want to watch long duration videos on TV. Hence a mad rush to reach the content on TV. Apple iTV, launched and admitted as a mistake. Is it a case on not understanding the consumer needs or actually forcible creation of needs?