According to the report, interest among users in IPTV programming remains high, even though many media companies, studios and networks have failed to identify a commercially viable economic model.
“Broadband video nicely complements TV today, but this grace period won't last forever,” Jupiter Research analyst Joe Laszlo said. “Substitution of Internet video for traditionally delivered video will grow over the next few years, and media companies must account for this coming audience shift in their mid-to-long-term plans.”
While the report stopped short of suggesting strategies for ways to monetize IPTV traffic, it did say users most frequently viewed video content online when friends recommended a clip or when a search engine query yielded a particular result.
“There are many tactics that media programmers should employ to increase interest in online video,” Jupiter Research President David Schatsky said. “For example, by including an ‘email this video’ link on a page, or using URLs short enough to paste into an instant message window, programmers can facilitate audience growth.”
Although the report finds that many users are interested in the potential of IPTV, it makes no predictions about which delivery system will win out, saying that for now, IPTV will compete with download sales and rentals, subscription services and ad-supported free services for the online video market.
