Frank N. Magid Associates study reveals consumer behavior and preferences in online video

Palo Alto, CA - July 24, 2008 - Frank N. Magid Associates, the world leader in research-based consultation, and Metacafe®, whose more than 30 million1 unique viewers each month make it one of the world’s largest video entertainment sites, today released survey results revealing consumer behavior and preferences in online video viewing. Notably, the survey found that the top-five most popular categories of videos watched online are all short-form: comedy, music videos, videos shot and uploaded by consumers, news stories and movie previews.

“Online video has quickly become not only a mainstream cultural phenomena but also a powerful marketing vehicle for brands that want to reach consumers who no longer watch as much television – and even fewer TV commercials,” said Mike Vorhaus, managing director of Frank N. Magid Associates. “There’s clearly a big consumer appetite for snack-sized content, and we expect the trend towards more advertising dollars moving online – specifically to sites specializing in short-form video entertainment – to continue and accelerate in the coming months and years.”

The national study, conducted by Frank N. Magid Associates’ online research division SurveysOnline.com, surveyed nearly 2,000 people between the ages of 12 and 64 with gender, age and ethnicity representations matching those of the U.S. census.

Key findings include:

-- 50% of all respondents watch online video weekly.

-- 11% of all respondents watch online video daily.

-- 28% of those who watch online videos report watching less TV as a result. -- 19% of those who watch online videos report regularly sharing a link to a video with someone else.

The top-five most commonly viewed types of online video content, based on respondents reporting that they watch regularly, are:

-- Comedy/jokes/bloopers (37%)

-- Music videos (36%)

-- Videos shot and uploaded by consumers (33%)

-- News stories (31%)

-- Movie previews (28%)

This research is part of the Magid Media FuturesTM Practice, which surveys consumers annually to identify trends and help clients implement product and marketing strategies that address them. The online video portion of this year’s study was sponsored by Metacafe.

“Short-form video is an emerging entertainment genre – distinct from online TV – that consistently proves popular with people of widely varying backgrounds and tastes, as demonstrated yet again by the Magid survey,” said Erick Hachenburg, CEO of Metacafe. “Online TV, or traditional networks distributing their shows on the Internet, is really just the same long-form programs, with the same audience, supported by the same advertisements – only the delivery platform is different. We’re excited about the new and growing opportunity short-form video entertainment presents, and we’re committed to growing our leadership in this sector.”

About Metacafe®
With more than 30 million unique viewers each month, Metacafe® is one of the world’s largest video entertainment sites. We specialize in short-form original content – from new, emerging talents and established Hollywood heavyweights alike. Metacafe delivers an exceptional entertainment experience by engaging and empowering our audience every step of the way. Our VideoRank™ technology helps expose the most entertaining content, and our Producer Rewards® program rewards video creators for their best work – all as determined by viewer response. The privately held company is headquartered in Palo Alto, Calif., and has offices in Tel Aviv, New York City and Los Angeles. For more information – and hundreds of thousands of entertaining videos – visit www.metacafe.com.

About Frank N. Magid Associates
Frank N. Magid Associates, the world leader in research-based consultation, applies the most rigorous research methods available to study behaviors, attitudes and intentions of your audience. Our knowledge base is substantive, encompassing thousands of research studies and consultation engagements. Founded in 1957, Frank N. Magid Associates has provided strategic insight and direction for clients in 37 countries around the world. We have developed an international reputation for excellence that spans multiple industries. Our 350 experienced professionals and operations staff serve clients around the world from offices in New York, Los Angeles, London, and Marion, Iowa. More information is available at www.magid.com.