It's no secret that Web video is increasingly popular, but what are people watching, and how? Nielsen recently examined two of the more popular video-watching sites, Hulu and Netflix, and discovered a big difference in how and what its users were consuming.
When it comes to Netflix, many subscribers are taking advantage of the various Web-enabled devices that connect to the sevice. While 42 percent watch on their computer, others are connecting through the TV, especially via game consoles. Of the 12,000 people polled by Nielsen, 25 percent connected via the Nintendo Wii, 13 percent opted for the PlayStation 3, and 12 percent streamed through the Xbox. About 14 percent connect their computer to the TV.
About 11 percent had an Internet-connected Blu-ray player, while 6 percent had a Web-enabled TV. Fewer people opted for other connections, like the Roku Box (5 percent), a mobile phone (3 percent), the iPad (2 percent), Google TV (1 percent), and Apple TV (1 percent).
In contrast, the majority, or about 89 percent, accessed Hulu content directly on their computers. Consoles were not as popular, with only about 3 percent of consumers tapping into Hulu on the Wii, PS3, or Xbox, and there were similar numbers for Web-enabled Blu-ray players and TVs.
Not surprisingly, Hulu users mostly watch TV shows while Netflix subscribers gravitate toward movies. About 73 percent of Hulu fans watch TV shows, compared to 11 percent of those on Netflix. Also, "twice as many Netflix users than Hulu users watch both movies and TV shows equally," Nielsen found.
That's not entirely surprising given that the main draw of Hulu is access to full seasons of popular TV shows. The service is also co-owned by major TV content producers Fox, NBC Universal, and ABC. Netflix Watch Instantly also streams TV shows (including Mad Men, which was added today), but its focus is mainly on movies.
In a recent note to shareholders, Netflix said its largest competitor over time will likely be a cable channel that improves its Internet video on-demand services, like HBO GO. Netflix said it was also "mindful" of Hulu Plus and Amazon Prime, though it noted that Hulu Plus added 325,000 subscribers in the second quarter to Netflix's almost 2 million. "We invest much more than Hulu Plus in content, in marketing, and in R&D," Netflix said.
The company also denied that it has an interest in purchasing Hulu "because most of its revenue is from providing free ad-supported streaming of current season TV shows, which is not our focus."