Wednesday, May 20, 2009

Nielsen: Almost 99 Percent of Video Watched on a TV Screen

With so much talk about online video and its threat to broadcast and cable, it seems to be overblown. TV usage is at an all time high while online video watching represents a mere 1% of total viewership. That translates to over 153 hours of TV a month versus 3 hours of internet viewing. "DVR use is becoming more mainstay as well, with the number of time-shifted hours watched jumping 40 percent from the same time last year to more than eight hours per month." Consumer preference continues to be to watch their shows on their big screen TV.

And while there is no short term need to worry about TV consumption for the cable industry, there should still be a concern about the trend.From Q4 '08 to Q1 '09, TV consumption grew less than 2% while internet viewing grew by a whopping 53.2% That growth should tell Hulu, Joost, and other online video distributors that their platform is growing rapidly. "Nielsen stats have come under fire recently in both the old and newteevee worlds. Online, Hulu expressed frustration over its audience numbers, and TV networks are increasingly critical over whether their ratings are accurate. However, these latest stats reaffirm previous studies touting TV’s strength."

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