1 in 4 U.S. Homes Watch TV Online

September 9, 2009 World Screen

NEW YORK: A new report from the research association The Conference Board and TNS, surveying 10,000 homes across the U.S., reports that nearly one out of four U.S. households watches TV online, up from 20 percent last year, with Hulu.com as one of the main beneficiaries of this trend.

The number of households visiting Hulu.com has increased almost fourfold in the last year, according to the Consumer Internet Barometer. The quarterly study also notes that nearly 80 percent of consumers log on to the Internet daily for entertainment.

"Online viewing allows users to watch TV on their own schedule, catch up on missed content and focus on their favorite programs," says Lynn Franco, the director of The Conference Board Consumer Research Center. "As a result, about 20 percent of consumers say their traditional TV viewing has declined."

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News dominates in terms of popularity, with the genre being watched by about 43 percent of online TV viewers. About 35 percent enjoy sitcoms, comedies and dramas, while 19 percent of online TV viewers indulge in reality shows and 18 percent follow sports. Surveying attitudes towards the different business models available, two-thirds of all online TV viewers access their favorite programs through streaming video, while 41 percent utilize free downloads. 

Asking respondents about where they go to access content, the report found that more than two-thirds of online TV viewers access television content through the official TV channel’s homepage. YouTube.com still retains second place, accessed by 42 percent of online TV viewers. Hulu.com’ usage has grown from 8 percent of households in 2008 to 32 percent today.

"The rise of Hulu is not just a coincidence," says Bernard Brenner, the senior VP of innovation and product development at TNS. "Hulu and other online TV viewing options have created a user experience equivalent to how people self categorize content—sorting by brand, genre and popularity. This user experience, along with a deep library of branded content, has created a service that continues to resonate with users."