By 2011, eMarketer estimates there will be more than 200 million broadband internet users in the US, 92% of whom will regularly watch video online.
At that time the broadband audience will be two-thirds the size of the total US TV audience, up from less than half the TV audience in 2006, says the online research company.
In addition, 45.1% of US TV households will have DVRs and nearly 59% will have VOD capabilities – both of which are used to avoid advertising.
Ben Macklin, eMarketer senior analyst and author of the new report, US TV Trends: The Impact of DVRs, VOD and the Web, said: “Talk of TV’s short-term demise is premature. Yet it is equally shortsighted to think that the traditional TV model will not change significantly over the next decade.
“TV advertising dollars will inevitably shift to alternative channels. Online advertising is likely to be the major beneficiary of this redistribution.”
ZenithOptimedia’s UK Television Forecasts to 2012 predicts that the television ad market will stop shrinking this year, and start growing again in 2008 (see UK Mobile Broadband Services To See Rapid Growth).
A report from Understanding & Solutions published in July said that internet TV advertising could achieve revenues of up to $10 billion worldwide by 2011 (see Internet TV Ad Revenues Could Reach $10bn Worldwide).
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