Video market shifting

There are clear shifts afoot in the video market as more consumers look to on-demand video, mobile video and digital video recorders that allow fast-forwarding through ads. According to SNL Kagan, revenue for programming delivered on-demand will jump from $3.35 billion in 2007 to $6.03 billion in 2011, with telcos earning a third of that and enjoying the fastest compound annual growth rate. Cable earns the biggest piece of the pie with $3.6 billion by 2011.

Mobile content often targets younger audiences who, according to Yankee Group, are not adverse to paying for content if it means avoiding advertising — except when it comes to TV and video, in which case teens are more willing to view ads if it means getting free content.

Among DVR users, the most popular approach to providing ad content is a button that consumers can click on to get more information. The lowest-rated option is disabling fast-forwarding capability, either during ads or during on-demand programming.