An estimated 81 million people, or 63% of the 129 million people who access the internet over broadband in the US, watch broadband video at home or at work, according to new research conducted by The Nielsen Company for The Cable & Telecommunications Association for Marketing (CTAM).
This number increased from 70 million in September 2006 to 81 million in March 2007, a jump of 16% in just six months.
Broadband viewing was found largely to be incremental new viewing rather than a substitute for traditional television viewing.
Online video (including broadband video at work and in the home) was shown to add to overall video viewing more frequently than it replaced traditional television viewing in the home, representing a net audience gain to total television viewing.
Of those surveyed, 33% indicated that watching video over broadband internet increased their television viewing time, versus 13% who indicated it decreased their traditional television viewing.
An additional thirty-two million lighter broadband video users report being open to more TV programs via the Internet. Further, consumers indicate that greater awareness of where to find the videos they’re seeking, better navigation interfaces, and the increased availability of more high-profile television programs online could significantly drive future broadband video content use over the long-term.
Based on respondent feedback, widespread consumer use of broadband video seems to be contingent on Internet platform video content becoming more easily accessible via home television sets. At that point, consumers say, Internet video fare could assume its place as another source for content on demand.
Paul Donato, chief research officer of The Nielsen Company, said: “”Linking television viewing data with Internet usage behaviour goes far beyond what traditional survey-based research methods can offer to help content providers best manage the growth of television and broadband video platforms.
“The fusion of these discrete Nielsen data sets into a single, unified analysis provides the most complete benchmark of broadband content viewing behaviour to date.”
Tim Brooks, research committee liaison to the CTAM Board of Directors and executive vice president, research, Lifetime Television, said: “There have been major changes over the last 30 years in how television is consumed – the remote control, portable TV, time shifting DVRs – but one of the most dramatic promises to be television via the internet.
“This new study helps us understand the impact of this radically new method of distribution both as it is now, in its infancy, and how it is likely to unfold over the next few years.”
A recent report from iSuppli suggested that the market for IPTV video services will rise to $26.3 billion in 2011, up from $779.2 million in 2006 (see IPTV Video Revenue To Reach $26 Billion By 2011).
Meanwhile, a study from StrategyOne for Motorola’s Connected Home Solutions Division revealed that almost half of Europe is now regularly watching TV over the internet (see 45% of Europeans Watching Television Online).
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