A new report predicts that the number of US broadband households accessing web-to-TV content will hit 24 million and generate $2.9 billion in revenue from streaming services by 2013.
According to the In-Stat report, nearly 30% of those in the 25-34 age group use game consoles to view streaming video from the internet, but web-enabled TVs and set-top boxes will soon begin to take their place as the main vehicle for accessing online video.
In five years, says In-Stat, there will be 7.4 million US broadband households that use media centre PCs for streaming web-to-TV content.
Keith Nissen, In-Stat analyst, said: “Once web-to-TV video becomes simple and convenient, mass consumer adoption will follow quite rapidly.
“Our primary research shows that users want a variety of their consumer devices to enable a web-to-TV video experience.”
He added that, as US consumers expand their viewing of on-demand content on sites like Hulu and YouTube, and broadcast and cable nets face continued cannibalisation of ad revenue, cable companies and networks will begin to change their business models.
While viewers currently view online TV as an addition to pay TV services, web-to-TV is predicted to force a complete restructuring of today’s video services.
At the end of April, Magna forecast that the US market for online video will grow by 32% this year, rising from $531 million in 2008 to $699 million in 2009 (see US market for online video forecast to grow 32% this year).
According to Magna, this growth will come as marketing budgets are being reduced across industries, meaning advertisers will attempt to reach their consumers in a more targeted and cost-effective manner.
However, despite the proliferation of computers, video-capable mobile phones and similar devices, TV in the home still commands the greatest amount of viewing in the US, even among those aged 18-24, according to recent research conducted by Ball State University (see Home TV viewing still popular in the US).
