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Internet Video Viewing Grows

10/25/2006 12:47:00 PM Eastern

New York - A new study called the Consumer Internet Barometer released by The Conference Board and TNS says that one out of every 10 online consumers watches television broadcasts online.

The study found that online viewers generally prefer the personal convenience of the Internet and avoiding commercials as the top reasons for watching videos online.

Only a small percentage of consumers surveyed claim that their traditional television viewing has decreased, while three out of every four online viewers report no change in their viewing habits.

The Barometer is billed as a custom research study covering 10,000 households across the country. The Conference Board is a leading business membership and research organization. It produces The Consumer Confidence Index and the Leading Economic Indicators for the U.S. and other major nations.

Other findings include that 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.

Of those households watching TV online, about one-third 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 VP.

“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.”

More than 62 percent of Internet viewers log 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.

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, the study says.

For more information, please email f.tortorici@conference-board.org or lynn.franco@conference-board.org.

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