Sullivan,+T+Report+Prospectus

Sullivan, T



**Free Streaming Video: A Gen Y's Dream** Charging For Premium Content Will Drive Most Gen Y Viewers Away

With many of Gen Y's favorite shows being showed online through legal and illegal website providers, Gen Y viewers are increasing watching more shows online. Since this content is not free to the provider, the sites need to generate revenue in one of two ways. One way is to show advertisements throughout the video, similar to watching on a television set. The other way is to charge the viewers premiums.
 * The Problem **


 * Proximity's Solution for providers contemplating charging premiums**

Switching to premium video would be another way to make revenue. However, it would probally be less then imagined because many previous viewers will not continue watching the site if they have to pay. After conducting many focus groups, Proximity has learned that most of Gen Y will not pay an additional subscription to watch video on demand at a certain site. This is because Gen Y is already paying for a cable subscription and are only watching online for convience, but if sites start to charge subscriptions, that same convience will not be worth as much.

This report shows the thought process on Gen Y when it comes to watching videos and shows, as well as the options the content providers have for generating revenue.