Effects of pixelization/noise of video on audiences

[dvsadvocate]

I dont think anyone has ever asked this question before so I think its high time I asked it on this forum since I know a lot of people here come from agencies and have worked long enough in the industry to know why this is very important.

I hope people can pitch in the reasons behind this because I am doing a study on how it affects audiences. Please disregard Youtube in all of this as I want to concentrate on advertising/communications via LCDs only.

Id like to state the reason why I am doing this but its going to be long so ill try to keep it as short as possible. TIA PhilMUG!

P.S.
By the way, i am looking for the pros and cons. Basically I am against highly compressed/pixelated videos.