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New research confirms web TV impact

by David Mercer | Jul 01, 2008

Strategy Analytics has been studying results from its latest round of user research. We released highlights at the recent Digital Hollywood event in the US. The presentation focused on the impact of web video and television on traditional TV, and related to the findings of our US survey. Research from Europe will be released separately in due course. Global revenues from online video and TV are estimated to have reached $2bn in 2007. Our survey finds that younger age groups are already watching significantly less television than older demographics, in the sense of "watching TV shows and movies on a TV set". 64% of 15-19 year olds watch TV in this traditional fashion on a weekly basis, which means that more than a third do not. This compares to the average of 78%, and 85% of 40-44 year-olds, who watch TV at least once a week. We also investigated viewing of the same type of content – “TV shows and movies” – on PCs. Not surprisingly younger age groups are more likely to engage in this activity on a regular basis, with around a quarter of those aged between 15 and 29 claiming to do this at least on a weekly basis. The average across all age groups is 16%, and most older demographics are much less frequent “PC TV” users. More than half of US Internet users have now watched TV shows or movies from a broadcast network website, ie the equivalent to the BBC’s iPlayer in the UK. But most of these web TV users are still not active on a regular basis: only 7% claim to use a broadcaster’s website for video streaming at least weekly. Perhaps the demographic findings are not too surprising. We expect younger Internet users to be in the vanguard of many emerging trends, and the fact that they also watch television less frequently than their elders has also been documented previously. The inevitable consequence of these two indicators is that a growing proportion of younger people are likely to find television programming on the Internet rather than through their “TV” or the associated “service provider”, ie cable or satellite, DirecTV or BskyB, a trend I have highlighted. Or to put it another way, TV companies are increasingly likely to find younger viewers through Internet distribution than through traditional channels. The tipping point when younger people watch more TV online than "on TV" may not be far off. John Malone may not be happy but TV networks have little choice but to go with the flow. Client Reading: Online Video: Global Market Forecast Add to Technorati Favorites
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