Online Viewing of TV Shows & Movies Doubles in 2009

DALLAS: The number of U.S. broadband households watching premium online content, including movies and TV shows, doubled in the last year, according to a new study from Parks Associates.

The report, Broadband, Communications and Entertainment Bundles, shows that more than 25 million U.S. broadband households regularly watch full-length TV shows online, while more than 20 million watch movies online. The growing popularity of online portals such as Hulu.com indicates that viewers are increasingly turning to the Internet to watch long-form and premium content. The report also says that service providers will have to embrace online video services, including the ability to deliver content across multiple platforms, if they are to remain competitive and attract new subscribers.

"Consumer interest in time-shifting content through online portals has increased significantly," said Jayant Dasari, a research analyst at Parks Associates. "Close to 40 percent of broadband households today watch full-length television shows over the Internet. Enabling access to content anytime through any broadband-enabled device will be a significant challenge for the service providers. However, broadband video opens new revenue channels and opportunities to upgrade subscribers into higher tiers of services."

The next step, according to Dasari, is for content owners and distributors to embrace new business models so they can monetize consumer interest in online media.