More Consumers Are Watching TV Online
Consumer Internet Barometer™ Tracks Who's Doing What on the Internet

October 25, 2006

One out of every ten online consumers watches television broadcasts online, according to the latest Consumer Internet Barometer, released today. The Barometer, produced by The Conference Board and TNS, the world's largest custom research company, covers 10,000 households across the country.

Online viewers say personal convenience and avoiding commercials are the top reasons for watching TV broadcasts online. Only a small percentage of consumers claim that their traditional television viewing has decreased, while three out of every four online viewers report no change in their viewing habits.

Many Consumers Use the Internet for Entertainment on a Daily Basis

Today, more than two-thirds of online consumers log on daily for entertainment purposes and an additional 16 percent log on for entertainment several times a week. One in ten online consumers are watching TV broadcasts via the Internet, and about one-third of these households consist of multiple viewers.

Says Lynn Franco, Director of The Conference Board Consumer Research Center: "Although online television viewing is not a widespread phenomenon, the proportion of users is likely to increase over time given consumers' penchant for entertainment."

"As we have learned through our ongoing research, those content providers who communicate the value, context and capabilities of online programming will be positioned to grab the greatest share of the growing market for online entertainment," says Edye Twer, a TNS Senior Vice President specializing in the Media and Entertainment sector. "Additionally, this is representative of a larger trend toward, 'anytime, anywhere' viewing that includes the use of digital video recorders, video on demand and portable video players, such as the iPod."

News is the Most Widely Viewed TV Content Online

More than three out of five online TV viewers cite personal convenience as the major reason for watching TV broadcasts online. Another reason for viewing online is the ability to avoid commercials. Other reasons are portability and a preference for computer viewing.

Online viewers tend to watch news broadcasts more often than other types of broadcasts, with more than 62 percent logging on for news content. Close to 50 percent go online for entertainment viewing. Catching up on missed content, previews, sports, and watching entire episodes of shows are also among the top draws cited by more than a quarter of viewers.

Few Consumers Willing to Pay for Online Television Downloads

The most popular methods for viewing TV broadcasts online are streaming and free download, cited by 53 percent and 49 percent of viewers, respectively. Very few consumers are willing to pay per download or enroll in subscription services.

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One out of every ten online consumers now chooses to catch news or TV highlights while surfing the web. Given the convenience of Internet broadcasts, it’s no surprise. Consumers can now have their entertainment delivered TiVo style, on demand and relatively commercial-free.

Another perk of Internet TV viewing is its universal accessibility. I can view my favorite programs at the office, in my bedroom, or an Internet café in San Paolo. It’s much easier for me find out who was eliminated from this week’s Bachelor in a 60 second clip (while I check my MySpace account at work) than it is for me to sit through 15 minutes worth of commercials to view the hour-long program in its entirety. Although many shows offered on the Web come with a commercial or two inserted before the broadcast, ads that interrupt the continuity of traditional television viewing are a thing of the past.

Although one in ten hardly constitutes a rampant phenomenon, more than two-thirds of online consumers use the Web daily for entertainment purposes, proving that the Internet is increasingly becoming a one-stop-shop for all forms of news and entertainment. Does this mean the days of traditional TVs are numbered? The Internet and iPod-like devices have led consumers to expect -- even demand -- their entertainment anytime, anywhere. Let’s face it: TV just doesn’t cut it when it comes to portability and live 24 hour requests for media variety.

Most online viewers maintain that they’re still watching just as much traditional television as before, but I can’t say I agree with that. I’ve found that I get more news and entertainment on my computer at work than I do on my television at home. What are your personal findings? Are you the one in ten who gets most of your entertainment from the Web, or is traditional TV still your favorite medium? Furthermore, what should we call Internet Television? I-TV? NetVision? This new phenomenon needs a name!