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Amazon could see huge boost from long-form video consumption trend on tablets

Published Feb 26th, 2013 3:35PM EST
Tablet Video Consumption Study

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The new Ooyala study on video consumption patterns highlights just how much tablets are now outperforming the PC, smartphone and video game console platforms when it comes to long-form video watching. The long-form video category is the lucrative Holy Grail of content delivery. Videos longer than 60 minutes tend to be feature-length movies, the product category that commands a stiff premium compared to network TV shows or online comedy clips. Apple (AAPL), Samsung (005930), Microsoft (MSFT), Nintendo (NTDOY), Sony (SNE), Netflix (NFLX), Amazon (AMZN)… who isn’t trying to hit the jackpot in the digital movie distribution competition?

According to Ooyala, the percentage of time consumers spent watching programming that lasted more than 60 minutes on tablets jumped from 46% to 63% between the first and second quarters last year. That percentage actually declined on connected TVs and video game consoles from 89% to 82%. It grew only 2-3 percentage points on smartphones and PCs.

The tablet is the platform where consumer behavior is changing fastest in favor of viewing long-form video. It looks as though consumers are training themselves to watch full-length movies on tablets. Of course, with connected TVs and video game consoles, the long-form percentage already tops 80%. But it’s interesting that tablet owners are changing their viewing habits this quickly.

This might mean Amazon could have a strong foothold in movie distribution if its Kindle range manages to grow its tablet market share aggressively. The big battle for digital movie distribution may not only be waged around the living room TV set between cable companies, Netflix, Hulu, Apple, Samsung, Microsoft and Sony — the tablet platform could play an important role here.

If Nook now collapses and is no longer a serious rival to the Kindle, Amazon could have more bigger growth potential here than many of its TV-centric rivals.[bgr-post-bug]

After launching mobile game company SpringToys tragically early in 2000, Tero Kuittinen spent eight years doing equity research at firms including Alliance Capital and Opstock. He is currently an analyst and VP of North American sales at mobile diagnostics and expense management Alekstra, and has contributed to, Forbes and Business 2.0 Magazine in addition to BGR.

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