Study: One in ten watching TV shows online

Cory Bergman October 25th, 2006

A study by the Conference Board concludes that 10 percent of U.S. online consumers are watching TV broadcasts via the internet. The top TV programming watched online are news (62 percent) and entertainment (50 percent). The reasons to watch? Convenience and fewer commercials. Three out of four say watching TV online has not changed their television viewing habits. Press release with a few more details…

PRESS RELEASE — 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.

About This Survey:

The Consumer Internet Barometer is based on a quarterly survey of 10,000 households. A unique sample is surveyed each quarter. Return rates average 70 percent, which ensures highly representative data. Data is weighted as well to reflect the latest U.S. household demographic information. The latest survey was conducted during the third quarter of 2006. For more information, please email f.tortorici@conference-board.org or lynn.franco@conference-board.org.