Internet TV Growing Strongly
The number of people watching internet TV has increased steadily year on year, suggesting a healthy future for this technology, according to Continental Research’s Autumn 2007 Internet & Convergence Report.
| Numbers watching internet TV in last 12 months | ||||
| internet users 2006 | internet users 2007 | Numbers 2006 (millions) | Numbers 2007 (millions) | |
| Watched TV programme broadcast via the internet (streaming) | 7% | 10% | 1.9 million | 2.9 million |
| Downloaded a programme via the internet and watched it later. | 5% | 8% | 1.3 million | 2.4 million |
| Net internet TV (streamed / downloaded) | 11% | 15% | 3.0 million | 4.3 million |
| Base: omnibus: c.1000 face to face interviews per wave | ||||
| Source: Continental Research | ||||
James Myring, author of the report, said: “The internet can act as a huge TV library, where old shows can be stored & the viewer can watch at a time that suits them, removing the need to store videos/ DVDs of favourite shows.”
In addition to the 2.9 million people who have already watched streamed TV online, a further 2.4 million say they are likely to in the next year. Downloaded TV looks set to grow even faster, says Continental, with current users being potentially swelled by a further 3.3 million likely to download TV.
| Internet TV market forecasts | ||
| Streamed TV | Downloaded TV | |
| Numbers currently viewing in last year (millions) | 2.9m | 2.4m |
| Non users likely to do in next year | 2.4m | 3.3m |
| Longer term potential size | 5.3m | 5.7m |
| Base: omnibus: 983 face to face interviews | ||
| Source: Continental Research | ||
Satisfaction amongst those viewing TV online is generally positive, with only 12% not satisfied with the service overall.
The areas with the greatest dissatisfaction relate to the size of the picture and the quality of the sound and picture.
Myring said: “Whilst watching via a PC offers a much greater screen size than watching via a mobile phone (the numbers watching mobile TV has actually not increased in the last year), there is still significant number dissatisfied with the screen size.
“In a world where TV screens get bigger and bigger, people have a much higher expectation of screen size. When assessing the potential of alternative viewing platforms this needs to be taken into account.”
Channel 4 was the most popular service used to download shows, which Continental said demonstrates the benefits gained by moving early in this market.
* 4OD 25% * BBC/ BBC iPlayer 16% * Sky Anytime 12% * ITV on Demand 10%
| Likelihood of using BBC iPlayer to download and watch TV programmes online | |
| Autumn 07 | |
| Almost certain | 9% |
| Very likely | 7% |
| Quite likely | 24% |
| Not likely | 44% |
| Don’t know | 16% |
| NET CERTAIN/ LIKELY | 40% |
| Base: online all internet users 685 | |
| Source: Continental Research | |
Myring concluded: “The strength of the BBC brand name helps ensure very considerable interest in experimenting with the iPlayer. A greater presence by the BBC online can only help serve to boost the popularity of internet TV in general, but the numbers who start to regularly use the iPlayer will be dependent on how easy the iPlayer is to use.
“Ultimately connecting broadband with the TV screen is likely to be crucial for the success of internet TV. At present most internet TV is viewed online, but increasingly it is possible to connect up TV screens with a broadband connection.”
A new US study from In-Stat says that whether it’s PVRs, User Generated Content (UGC), or online TV shows, the market has started the process of “unbundling television/video entertainment,” and this redistribution of control will likely come to dominate the overall consumer landscape in years to come (see Trends Favour Mainstream Acceptance of Internet TV).
Meanwhile, Parks Associates released research which said that the number of US paying users of online video sites has grown significantly between 2006 and 2007 (see Number Of US Paying Users Of Online Video Sites Increases).