How would you prefer to watch your video. Currently it is the big screen; in fact, that is how 99% of us prefer to watch. "Nevertheless, video consumption among Web and DVR users is growing fast: On a monthly basis, minutes spent watching Internet video watching increased 35% in the third quarter and time-shifted TV viewing jumped 21%."
Why is online important. There are a number of reasons: 1. More offerings - in fact beyond the ability to catch up on current TV shows, there are shows that are no longer on TV or VOD that people seek out to watch. And for those looking beyond mainstream, alternative and short form programming exists only in this spectrum. 2. Search - ever try finding a program by hunting and pecking on VOD or searching a cable TV guide. It is horrific compared to the ease and flexibility of online. 3. Mobility - sometimes you can't get to a TV; how great that the TV can get to you. 4. Flexibility - think DVR and VOD to the nth level. Online lets you both find a show and go to a time spot in the show. Try fast forwarding VOD and ask yourselves why do I need to waste 5 minutes to move ahead to the 1 hour 10 minute mark. 5. Simple - try navigating the on demand platform and you wish it was simpler, faster, and better than what exists online. It's hard to sell cable as "advanced" when its functionality is so 10 years old.
So don't be too fooled by the percentages. Clearly TV is the dominant viewing experience, but online is not going away. Rather, it is only getting more convenient and user-friendly. It is time, however, for the cable box and its functionality, to emulate the online experience.