2006 Will Be a Tipping Point for Online Media

April 18, 2006, 3:42 PM — For the first ten years of mainstream Internet use, online media has been considered alternative - an alternative to television, radio, print and magazines. Online media had a limited audience, largely a result of bandwidth limitations, but also because web builders were still figuring out how to use Internet multimedia effectively.



10 years on, broadband penetration in the home is pushing 40% in the US, and is much higher in some areas of the world. Just as importantly, many sites are finding ways to use online media effectively. For these reasons and others, it looks like 2006 will be a tipping point for online media.



10 Reasons Why 2006 Will Be a Tipping Point for Online Media



1. Free media sharing sites are becoming some of the hottest destinations on the web. While some companies have debated how to move into online video, sites like YouTube have captured the interest of surfers, and are becoming popular and influential destination sites.



2. Content creators are experimenting with eliminating network and station middlemen and are delivering content directly to viewers or listeners. A new police drama, Port City PD, is going straight to iPod. The show is a 30-minute, episodic video podcast, made specifically for an Internet audience, and can be subscribed to for automatic download for viewing on a computer or a portable media player. Production costs are cheap, because of inexpensive digital video gear, computer editing and Internet distribution.



3. The poster child for video podcasting, Rocketboom, recently announced that it was getting 300,000 views per day. They also successfully auctioned a week's worth of advertising on the show for $40,000. These numbers are big enough to demonstrate that content producers can create and distribute video independently over the Internet. This is leading to an explosion of new online content.



4. Online media formats are part of many marketers' plans for 2006:

* Video ads - 27%

* Mobile/Wireless - 20%

* In-house podcasts - 18%

* Sponsoring podcasts - 14%

* Product placement in video games - 10%



5. Existing media companies are realizing the benefits of putting content on the Web. "TV programm[ing] over the internet could revolutionize broadcasting, and prompt a wider, cultural shift in television consumption,