Wednesday, August 10, 2011

Almost third of US homes can watch online videos through TV.

Research from Leichtman Research Group indicates that 30% of  TV homes in the U.S. have at least one “TV device” connected to the Net.  About 10% have TVs that are directly connected,  and 23% are connected through videogame platforms that are also connected to TVs.  Access through other devices remains in single digits.

Another study by Frank Magid Associates looked at what devices and brands provided net access.  Videogame platforms dominated, with the Sony Playstation 3 at 19% and Microsoft’s Xbox 360 at 13%.  Another 6% get Internet access through Tivo or other DVRs (mostly provided by cable or DBS systems).  Single purpose access links trailed – Apple TV and Google TV each with about 4%, Roku at 3%, and Slingbox and Boxee at 1% penetration each.  While brands/models were not broken down, 7% of US TVHH had a Net-connected Blu-ray player connected to their main TV entertainment centers.
Magid also provided some use metrics, finding that 10% of adults watch at least one video a week through Net-connected TV devices, compared to 15% using mobile phones, and 9% using tablets.  But for online video watching generally, most viewing was through a laptop or PC (89% 0f viewing time).

As penetration of alternative display devices and interconnection of devices continues to grow, new markets and potential uses emerge.  You can think of this negatively, as increased competition, or you can think of it as opportunities to enter new markets and new potential sources for revenues.  You can see some of this in how different groups to the notion of “TV Everywhere.”  Cable MSOs, DBS services, and emerging telecomm based services see that growth as a way of adding value to there services, and hopefully expanding use and viewing of TV signals beyond the TV set in the home (and helping to retain subscribers).  On the other hand, many of the networks and program producers are concerned that this may impact on their ability to market content to video-streaming services.  Both arguments look at short-term concerns.  In the long term, though, the potential to develop new markets and add value should trump concerns about shifts in the traditional markets.

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