Final+Report

Lerner J. Personal Page proximity

Proximity Research Final Report
= = = From the TV to the Computer =

**Table of Contents**

 * Executive Summary

Introduction: Television Use on the Web

The Old Way to Watch TV in Previous Generations

How Watching Web Television is Different than Watching Regular Television

Options for Watching TV on the Web

How Hulu Makes Online-Television Easier

Recommendations

Focus Group Results

Attachment 1

Attachment 2

References**

Movies and TV shows have always been watched either at the movie theater or on television. This has been the main way to watch since the beginning of its existence. If people missed episodes of a show, they went from having to wait for reruns to come to paying extra money for TiVO. Yet, no one has been able to watch their shows wherever and whenever they wanted to.

Now, with this new computer-dominated generation, everyone wants everything on the computer screen. People figured out how to upload premium video content to the online web. This turned out to be a huge hit. Gen-Y love watching video and having the idea of being able to watch video content online. They can watch whatever movie or show they want on their own time. They have so many options in today's world.

**Introduction: Television Use on the Web**
The future of television is on the internet. Millions of people all over the world are making their favorite spot their computer chair. From Hulu to YouTube, there are so many options for Gen-Y to watch their favorite movies and television shows on the computer. The technological society we are living in is all for it. The primary selection of watching an episode of a show or movie on the computer is sweeping the globe.

**The Old Way to Watch TV in Previous Generations**
Ever since the 1930's and 1940's people have been watching television on schedules. Television viewers would base their day around when they wanted to watch TV. Whenever their favorite show was on, people would run to the television set and watch their show at the time it was on. If they missed it they would have to wait until a rerun came on later in the day or later at night.

Better technology started occurring and people were able to record the shows and movies they wanted when they would not be home to watch. They would later on have to go back to their TV and watch what they recorded, and then delete it afterward. People have been doing this for years ever since iO came out. iO or not, viewers would still have to watch commercials during every break also.





**How Watching Web Television is Different than Watching Regular Television**
On television, users must use remote controls to look for what they want to watch. They have to look through hundreds or thousands of channels to find what they want, which could take a while. Also, television viewers have to wait to watch certain shows or movies at certain times. They have to follow to TV programming schedule.

On the web, people can use different websites to watch shows they want to watch. It just takes a couple very simple steps. They use the browser to type in any movie or show they are looking for. One can watch a whole movie or show, or they can watch clips and pieces of it. Once they find it they can watch it right then and there. The movie/show takes seconds to stream and then users can watch right away. No need to wait nor depend on a schedule, one can watch on demand whenever they want. If people miss a show, they can watch it right after at anytime during the day. Some websites put up the shows just hours after worldwide television viewing. Though there are some commercials, there are not nearly as many on regular TV.

** Options for Watching TV on the Web **
There are a few options one could use to watch on the internet... Those are four websites, just to name a few. Up-to-date users know and use more websites.
 * Hulu
 * Youtube
 * Netflix
 * ESPN3

Hulu is a free online video service that allows users to watch any movie or TV show they want. Youtube lets people watch, upload and share videos. Netflix is a website where users can rent movies and shows straight from the computer. They could instantly be streamed to the computer online. ESPN3 is a part of ESPN.com which allows sports fans to watch their favorite teams online right on the computer, no matter your location.

These are the most popular websites of web-TV users. They find out which website excels best for each purpose. Whether it's to watch a movie, TV episode or little clips and pieces.

** How Hulu Makes Online-Television Easier **
Hulu is a top online video service on the web today. The website gives users an opportunity to watch shows and movies for free right there at their computer screen. Hulu says that their mission is to let people "enjoy the world's premium video content when, where and how they want it." People do not need to have a television to watch what they want in this case. Gen-Y can watch hundreds of hit shows and movies for free with a few clicks of the mouse. All they need is a computer and a hulu.com.

Hulu.com is broken down into different section which makes it easy for the users of the website. They have movies and TV separated and they have different categories for each. Under movies, a user can look under popular movies or documentaries or browse though all movies by alphabetical order. And under TV, a user can look under popular episodes, popular shows, coming soon or browse through all shows alphabetically. Alternatively, one could search for what they want by different channels. For example, the channels are categorized by genre such as comedy, drama, horror and suspense, sports, reality, etc. There are 24 different channels. They can also browse most popular, recently added and trailers for both movies and TV.

If a viewer just wants to browse and look around the website to find a video that interests them, hulu provides thumbnails of popular clips, recently added video and most popular movies and shows from the middle of the home page all the way down to the bottom. The site is set up for viewers to use with ease. There are nine top stories with pictures, a search engine where one can type in exactly what they want to watch, a log in at the top, and everything a user needs to survive on the website it right there in front of them with a thumbnail to go along with each topic. Nothing is hiding or is hard to get to. It is also gives the chance to follow hulu on twitter or facebook with a direct link to both websites.





** Recommendations **
With Gen-Y noticing that that there are many ways to watch television on web, the core websites Gen-Y uses should be noticing that they are the top contenders. They should use this to their advantage and start charging people for using their websites. Even though they are still making tons of money, they are only making that money through advertisement. They can make much more with having users sign up for a membership. Maybe they don't have to make everyone pay, but to start, websites should at least have a plus-version to it in which people pay for special features and extra video.

The generation today is all about computers and watching things on computers, so I advise websites to advertise everywhere they can to target at the Gen-Y audience. Targets on social networking sites such as twitter or facebook, which has a core young crowd, which is where most Gen-Y is at.

Focus Group Results
__**Focus Group Rationale**__ Premium video content is increasingly being delivered through the Internet, giving Gen-Y many different was to access TV shows and movies. As a result broadcast TV audiences are being fragmented and the movie industry can no longer assume that box office revenues alone will pay for the production of new movies. The rationale for our focus group sessions is to determine how Gen-Y currently watches premium video and which broadband technologies they prefer. This information will allow us to advise Proximity clients on how best to target Gen-Y using ads associated with premium content.


 * Overall Findings**


 * Gen-Y is increasingly watching more movies and shows on the computer.
 * Gen-Y watches more movies at home than at theaters.
 * Gen-Y would rather rent movies than buy them on DVD.
 * The size and quality of the screen are important factors to watching the video.
 * Gen-Y has downloaded videos illegally on a weekly basis. And they do not feel bad about it.

Ultimately, Gen-Y is migrating to the computer screen for video. People are staying at home more on the computer and the internet, finding the videos they want to watch.

Attachment 1
Online video steady growth continues. This is a chart which breaks down all the videos used and shared on the internet.

According to the chart below, right underneath Google, Hulu has the most videos available and most percentage of shared video. This means that online-TV users are steadily making their way to watching more and more movies and television shows. Gen-Y is becoming more interested in watching on the web rather than on their television screen.

Source: Mashable.com. "Online Video Continues Steady Growth Streak [STATS]"

Attachment 2
Hulu is taking the lead over Time Warner cable. The chart below shows the statistics for Hulu, Comcast, TW cable and DirecTV viewers.

The graph shows that Hulu just gained the edge over TW Cable.

Source: Fast Company. "Is Hulu watched More Than Time Warner Cable?"