Nielsen: Broadband Video an Effective Tool

HOLLYWOOD, January 24: The use of broadband video extends
the reach of traditional TV, according to a new report from Nielsen Analytics
that also maintains that broadband consumers are “young, affluent, highly
educated,” and are constantly connected.

"By researching controlled broadband access, this study
concludes that programmers have the opportunity to create new revenue models to
benefit content owners and their affiliated stations," said Larry
Gerbrandt, the general manager and senior VP of Nielsen Analytics. "Such
ad-supported models are uniquely adaptable to the broadband environment and are
potentially superior to existing models because they can take full advantage of
the digital environment. With broadband streams, for example, fast forwarding
through commercials can be disabled making it more likely the consumers will
watch the spots and possibly interact with them."

Although an increasing number of prime-time TV shows are
being streamed on network websites, and despite the popularity of
user-generated content, there has been no measurable fall in traditional
television viewing, the report notes. Video on PCs and iPods are expanding the
audience of traditional TV programs, Nielsen says, noting that TV usage was at
a record high in U.S. households at 8 hours, 14 minutes a day during the
2005-2006 TV season. Household viewing has risen more than an hour a day over
the past decade.

"Advertisers and programmers using broadband have a
unique advantage in the increasingly competitive advertising world,"
continued Gerbrandt. "Ad models can be customized and managed in a
broadband environment, and interactivity can be embedded into the program in
such a way as to enhance engagement which does not take viewers away from the
enjoyment of the program."

The report is entitled Whatever, Whenever, Wherever: How
Broadband is Redefining the Economics of Television.