AP, AOL: Online Video Overblown

AOL and AP say, after canvassing in the internet, that online video usage data may be severely overblown. They report that only one-fifth of internet users have watched a full TV episode or movie online. That contrasts with the majority, who do download video - but it smaller clips, mostly as garnishings to other web content.

The sluggish acceptance of video via the net may be more an issue of supply than demand. Only recently have TV networks and movie studios started to cooperate with online content providers to allow their works online.

One of the major obstacles to that in the past has been broadly written contracts with video talent, making it unclear what sorts of royalties or other payment liabilities would beset studios if they let their content free onto the web. In the past few years, these contracts have been amended to allow more freedom in distribution.