Greg Tarr On Feb 11 2013 - 1:00am

NPD: Streaming TV Continues To Grow

 

PORT WASHINGTON, N.Y. – Twelve percent of U.S. TV watchers reported streaming TV shows for free during the prior three months, compared with 14 percent who watched a TV show via subscription video on demand (SVOD), according to a new streaming media study from The NPD Group.

The market research firm said in its new “Free Streaming TV Report” that traditional pay-TV operators and broadcast networks still dominate the consumer television viewing, but new options are growing in popularity, including SVOD, electronic sell-through (EST) and free TV streaming.

Although SVOD drives the most online TV streams, the incidence of consumers who used SVOD and free streaming in 2012 was relatively equal, NPD said.

“Over half of the viewers for streaming TV are between the ages of 18 and 34, so the YouTube generation is evolving from short-form and user-generated content to TV shows and, like YouTube, they can watch where and when they want,” said Russ Crupnick, NPD industry analysis senior VP. “Despite the attention lavished on tablets and phones, an astonishing 83 percent of free TV-streaming programs are viewed on a computer.”

NPD’s report said nearly all broadcast and cable TV networks offer free streaming of their programming via the Internet; however, based on NPD’s latest information, consumer usage of free-streaming TV sites varies.

Hulu.com dominated free streaming TV, accounting for 43 percent of total streams during 2012.

NPD’s research shows that streaming consumers are very satisfied overall with the experience. All of the top 10 free streaming sites have strong consumer feedback with 75 percent or more of each of these site’s users reporting that they intend to return to the site in the future.

Hulu.com, in particular, has very committed users, given that two-thirds said that they “definitely” will return to the site, according to NPD.

These free sites generally perform well on convenience and site organization. Most of them also perform well on current release availability; however, Fox.com streamers rate the site much lower on this measure, due to the fact that Fox generally delays availability of its programming, NPD said.

Based on NPD’s findings, the shift toward Internet video distribution drives a more complex and diverse set of content and purchase and rental options to consumers.

With it comes a more diverse set of direct and indirect competitors among movie studios and TV networks, as well as their TV and digital distribution partners.

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