TV Internet viewers have doubled since last year

The number of people who watch broadcast TV programming on the Internet has doubled in the last year, according to a new survey by Altman Vilandrie & Company and Peanut Labs. Despite this growth, clear opportunities exist for cable and satellite providers to grow through smart integration of new technologies like mobile and 3D video, the study found.

“While the study shows the rumblings of seismic shift in consumer video preferences, there are clear opportunities for cable and satellite providers to differentiate versus online video alternatives,” said Altman Vilandrie & Company Director Jonathan Hurd, who oversaw the research and analysis. “Providers that can be nimble in adopting mobile video, 3D and other innovations will stem potential defections, especially among younger consumers.”

The survey also found:
•Broadcast TV viewing is age-related, with only 42% of 18-34 year olds watching TV shows daily during their normal broadcast time, versus 60% of those 35 and older.

•16% of 18-34 year olds watch full TV broadcast episodes on the Internet daily, versus only 6% of those 35 and older. Overall, 10% of survey respondents say they watch full TV episodes on the Internet daily versus only 5% in a similar 2009 study.

•More online TV watching has not yet translated into cord-cutting – only 3% of 18-34 year olds have cancelled their cable service. However, 25% of 18-34 year olds “have seriously considered dropping my subscription TV service because Internet video services meet most of my needs.”

•Despite Internet video viewing and potential cord-cutting, younger segments prefer HD just as much as other segments. Spending level on TV service is a significant driver of HD interest with the highest-spending segment being twice as likely to say they are “tremendously” bothered by a lack of HD, than as the lowest-spending segment.

•Interest in 3D is high across all segments. Of those who have seen movies in 3D, 34% agree that 3D is “significantly better,” and more than 50% plan to purchase a 3D-capable TV set in the next three years.

•Mobile video usage has grown significantly since 2009, with 13% of 18-34 year olds viewing video on a mobile phone daily versus 5% in 2009.

RBR-TVBR observation: Yes, internet viewing is up, but one thing we didn’t see in the report was the limited level of subscribers for live mobile television. Qualcomm is currently shopping its FLO TV division because of it. The service offers about 20 channels of live mobile TV, including ESPN, ABC, Comedy Central and CNN. But despite a marketing effort, including advertising as part of last year’s Super Bowl, FLO TV doesn’t have a large subscriber base, according to analysts. As we’ve stated, there could be a flaw in the subscription mobile TV business model. First of all, most consumers are already paying for TV in the home, post-DTV transition. The ones that aren’t are not likely to pay for it on a mobile device; the ones that are, are likely not willing to pay more monthly than they already are. As well, much of this content, whether it be delivered live or not, is already available by going directly to the broadcaster’s/content providers’ website or app.

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