Report Finds Surge in Internet Viewing

NEW YORK, September 4:
Online TV viewing has doubled in the last two years, according to a study from
The Conference Board and TNS, with nearly one-fifth of American households who
use the Internet watching content on the web.

TV channel websites (65
percent) and YouTube (41 percent) are the leading destinations for online
content, the report reveals. Other services used for access include iTunes,
Hulu, file-sharing sites, social-networking sites and Limewire. The report
found that few consumers are willing to enroll in pay per download and
subscription services.

Viewers are flocking to
the Internet because they want to watch content on demand, and so that they can
avoid commercials and watch TV on the go. Nearly 72 percent of online
households log on for entertainment purposes on a daily basis, and one in ten
list entertainment as the most important Internet activity.

"Most consumers are
pressed for time and require flexibility in their daily schedules and TV viewing
habits," said Lynn Franco, the director of The Conference Board Consumer
Research Center. "Being able to watch broadcasts on their own time and at
their convenience are clearly reasons why we are seeing a greater number
turning to the Internet. And, it is the reason why we would expect to see this
trend continue."

The leading genres are
news (43 percent), drama (39 percent), sitcom/comedy (34 percent), reality
shows (23 percent) and sports (16 percent), followed by user-generated content
(15 percent). Of online viewers, 90 percent watch content at home, and 15
percent watch Internet broadcasts at work.

"The shift from
appointment TV to content on demand is well under way," said Michael
Saxon, the senior VP of brand and communications at TNS. "Fundamentally,
consumers expect content to be available when they want it, and on the screen
of their choice—TV, PC or mobile. For consumers, PCs enhance content on
demand from simply time-shifting to place-shifting. Online content can be
viewed in any room in the house, or at work or school."

Online streaming was the
most popular method for Internet viewing, at 68 percent, while 38 percent of
respondents cited the use of free downloads.

—By Mansha Daswani