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Your Viewing Habits Are Killing America

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We have become a nation of streamers.

Web-traffic tracker comScore (Nasdaq: SCOR  ) has issued online video consumption metrics for April, and the report shows that we've been busy with the clicks.

In the U.S., 178 million Internet users -- more than half the country -- streamed a video in April, according to comScore Video Metrix. As a nation, we took in 30.3 billion videos, a lot more than the 16.8 billion clips we consumed a year earlier.

Google's (Nasdaq: GOOG  ) YouTube led the way, naturally. It has even tacked on market share over the past year, going from a thick 40.7% slice of the pie to an even larger 43.2% chunk. YouTube's penetration may not seem like much, but it translates into a 93% surge in the number of videos being served.

YouTube owns this space. Hulu, owned by a consortium of media giants, is a distant runner-up, with a 3.2% sliver of the market.

News Corp.'s (Nasdaq: NWS  ) (Nasdaq: NWSA  ) Fox Interactive is the only major player to have served up fewer video clips this April than it did a year earlier, yet another troubling indication as to how far MySpace has fallen.

Outside News Corp., everyone's a winner regardless of market-share jockeying, because they're all attracting larger audiences. Even online-advertising laggard AOL (NYSE: AOL  ) managed to nearly double its clip viewership.

Are you ready for the bad news? Well, our lazy, eye-candy-seeking pursuits have to be leaving other industries smarting. If we took the time to collectively watch 80% more videos than we did a year earlier, where did that time come from?

I ruffled some feathers last month, when I suggested that the success of Google, Apple (Nasdaq: AAPL  ) , and Facebook in delivering free -- or nearly free -- entertainment was killing America. It was intended in a tongue-in-cheek spirit, but the reality is that time checking out YouTube, playing free App Store programs, or tending to faux farms consists of ticks on the clock that aren't being spent elsewhere.

Google will lead the way in selling ad space against our sticky viewing habits, but there are entire leisure industries that may crater as we the consumers reallocate our leisure time.

There's plenty of meat in comScore's trend report, but the heartiest nugget is the unspoken reality that Web-based video is growing at something else's expense.  

Is Web-based video a friend or foe? Share your thoughts in the comments box below.

Google is a Motley Fool Rule Breakers choice. Apple is a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz is ready to officially classify himself as a clip-culture junkie. He owns no shares in any of the stocks in this article and is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Read/Post Comments (2) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 02, 2010, at 4:32 PM, TMFKris wrote:

    Sadly, perhaps people have reduced the time they spend with family, friends, and neighbors in order to watch more clips.

    Kris (TMF copyeditor)

  • Report this Comment On June 02, 2010, at 9:35 PM, lordmorgul wrote:

    Or perhaps we're simply doing less of the other 'free' but still 'advertising subsidized' activities like watching network television. I know several of my friends (and myself) have stopped spending time in front of a TV and are only consuming shorter video clips instead. It has freed up lots of my time and I'm reading much more. The increase in my streaming video consumption did not kill any industries, it merely moved the advertising dollars from network TV to the web. There really is nothing devastating about that.

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