Over the last few years, the landscape of television has changed drastically. Viewers have gone from scheduling time around specific programs, to watching many of the same shows at their own leisure. One of the major questions many networks and industry officials have had to answer, deals with the legality of watching their content online.
The way in which Fox and NBC dealt with this change was the partnership in creating Hulu. Today Hulu included movies and television shows from a variety of networks that are free and legal to watch through the support of its advertisers.
I personally, am a huge advocate of Hulu. I get to catch up on episodes of The Office, recent Saturday Night Live skits (which were great during the pre-election coverage), The Daily Show (when I feel like watching it), and I started watching a show, Burn Notice, only because of its presence on Hulu.
I'll get off of my Hulu pedestal, and on to the article (found here). With the downturn of the economy during the fourth quarter this year, many companies have been forced to trim their budgets. Partially because there is not a full understanding of online video, multiple formats, and increased quality programming from internet companies rather than network websites, many companies in need of cutting their marketing budgets, have looked to their online video advertising.
Advertising on regular television has been projected to fall almost 2% next year and 5% in 2010. Conversely, the amount of money spent advertising on digital video sites has increased, the expected growth will not happen as quickly as originally anticipated.
With my addiction to Hulu, I am enjoying the conversion to watching shows I enjoy at my convenience. With this mindset taking hold, the landscape of television will continue to change. My feeling is when the economy begins to turn around, advertisers will soon be putting greater percentages of their budgets into online video content.