Internet TV “Has Had Little Impact On British Viewing Habits”
Internet TV has had little impact on British viewing habits, according to a Deloitte report produced for the Media Guardian Edinburgh International Television Festival.
The report found that only 4% of the UK population consider it “very important” to be able to receive TV via the internet, while 47% still regard it is as not important to them at all.
Television industry executives see the internet as broadcast commercials’ greatest threat in 2008 with 69% of executives fearing the movement of advertising revenue away from television to online.
Jolyon Barker, head of Deloitte’s Technology, Media and Telecoms practice, said: “Internet TV currently appeals most to the young: 25% of 18-24 year olds thought the ability to watch Internet TV was important compared to just 8% of over 55s. Deloitte expects the audience for internet TV to increase as this audience grows up.”
Television executives predict a growing appetite for internet television, with 47% believing that by 2010 it will be embraced by the majority of viewers, but for a minority of viewing.
Television executives fear for the future of the traditional television commercial due to the movement of advertising revenue away from television to online (69%). However the report reveals members of the public were mainly content (43%) with the number of commercial channels on television and only a quarter (27%) wanted fewer.
Barker said: “It is clear that television and the internet are not discrete, mutually exclusive advertising media. Broadcasters should not see internet TV as a threat to traditional TV. A pound spent on the internet does not necessarily mean a pound lost for television.
“Internet TV will continue to play a key role in the television sector and one of its biggest contributions will be to bolster traditional, linear television, for example marketing programmes that help to maintain interest in a series between episodes. An increasing number of campaigns rely on a strong integration between Internet and television.”
JupiterResearch published a report earlier this week revealing that 28% of Europeans now regularly watch online video, more than double the rate in 2006.
Deloitte: www.deloitte.com