Online TV Viewing Approaches the Mainstream
Nearly 20 percent of American households are tuning into TV over the Internet. That's twice the number from 2006, according to new research from The Conference Board Consumer Research Center and market-research firm TNS. The most popular destinations for online broadcasts? The official TV channel home page and YouTube.com.
The growing movement toward watching TV online is attributable, in part, to schedule-bucking viewers who want to watch the shows they want to watch when they want to watch them. Other reasons for the rise in online TV viewing include portability and the ability to skip commercials.
"Most consumers are pressed for time and require flexibility in their daily schedules and TV viewing habits," said Lynn Franco, director of The Conference Board Consumer Research Center. "Being able to watch broadcasts on their own time and at their convenience are clearly reasons why we are seeing a greater number turning to the Internet. And, it is the reason why we would expect to see this trend continue."
Content on Demand Is King
News, drama, sitcom/comedy, reality shows and sports are the top five types of shows viewed online. User-generated content followed close behind.
Specifically, 43 percent of online TV viewers tune into the news, 39 percent watch drama shows, 34 percent view sitcom/comedy shows, 23 percent watch reality shows, 16 percent view sports, and 15 percent view user-generated content. Previews, additional content from favorite shows, soap operas and advertisements are also gaining the attention of online TV viewers.
Despite citing portability as a reason for watching TV online, almost 90 percent of viewers said they watch online broadcasts at home. About 15 percent said they watch Internet broadcasts in the office, and six percent watch from other locations, including the library or a friend's house.
"The shift from appointment TV to content on demand is well under way," said Michael Saxon, senior vice president of brand and communications at TNS. "Fundamentally, consumers expect content to be available when they want it, and on the screen of their choice -- TV, PC, or mobile. For consumers, PCs enhance content on demand from simply time-shifting to place-shifting. Online content can be viewed in any room in the house, or at work or school."
Reviewing the Most Popular Destinations
Streaming video is the top method for viewing broadcasts online, used by 68 percent of online TV viewers. Free downloads came in second, used by 38 percent of viewers. The top two destinations for online broadcasts are the official TV channel home page, accessed by 65 percent of viewers, and YouTube.com, accessed by 41 percent of viewers.
Other sites used for access include iTunes, Hulu, file-sharing sites, social-networking sites, and LimeWire. Few consumers are willing to enroll in pay-per-download and subscription services, the survey revealed.
According to Phil Leigh, senior analyst at Inside Digital Media, this survey reflects two digital-marketplace facts: There are more broadband subscribers, and more content is being put online.
"Look at Hulu, an industry-sponsored Web site where you can watch movies and TV shows. They are gradually increasing the available library of titles. You watch the broadcasts for free, but of course you have to watch commercials, too," Leigh said. "More and more TV shows are also finding their way to YouTube, including old programs. The next big step will be to see how we can get the video off of our computers and put it onto our TV."