Report: ‘No Cause for Panic’ Over Nonlinear Viewing

ENGLEWOOD: New data from IHS indicates that linear TV will remain dominant through 2015, when DVR, on-demand and other forms of nonlinear content will only account for 15.8 percent of all TV viewing in the U.S. and just 12.7 percent in the U.K.

According to the IHS Screen Digest TV Intelligence Service, nonlinear viewing stood at 9.9 percent in the U.S. and 7.8 percent in the U.K. as of last year.  “The rise of nonlinear television has struck panic into the television industry, with broadcasters dreading the impact of new technologies on their revenue streams,” said Richard Broughton, senior analyst for television at IHS. “However, even in the leading countries for nonlinear television viewing—the United States and the United Kingdom—linear will account for the vast majority of television viewing through 2015. This means that for the television industry, DVR and on-demand viewing may not be as much of an imminent threat to profitability as feared.”

The report also indicates that usage of on-demand services is trailing that of DVRs. By the end of 2015, DVRs will be used in almost half of all American households. Use of on-demand services, meanwhile, will be hampered by content fragmentation and restrictions across different portals and services.