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TV Use to Grow Faster than Internet Leisure Time through 2012

7:30 am on December 9, 2007 | Category: Internet, Television, Web Services

Hours spent watching television will grow faster than leisure time spent on the internet over the next few years, according to a study released by Bain & Co. late last month.

On average, U.S. users will spend nearly two more hours per week watching television in 2012 than they do today. This growth will be fueled by the growing popularity of Video On Demand services and Digital Video Recorders. Time spent on the internet outside the office is expected to increase by less than half an hour per week in the same time frame.

This information could be sobering for TV networks and other media companies, which have been investing heavily in internet video websites in the past couple of years, assuming that online media is poised to supplant traditional television.

Bain & Co. executive, David Sanderson, however, believes that internet video will not become a viable alternative to broadcast, cable, or satellite TV services for at least another five years.

“There are capacity constraints, the technology isn’t quite there … and frankly the business models for the content owners, all of that still needs to be worked out,” Sanderson said at last month’s Reuters Media Summit in New York. “Until that’s worked out and until the Internet can deliver that same experience, then it’s still going to be delivered over the traditional multichannel video providers.”

Although the internet is gradually becoming a more robust video distribution platform, most people today are only using it to watch clips of shows that they missed on TV.

“People are spending time watching YouTube videos, but the amount of time they’re spending is … almost negligible relative to the time they’re spending watching professionally generated television,” Sanderson explained.

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Although watching programs on the internet may not have as large an audience as TV, video has become a better medium for business to advertiser their products and services. Due to the popularity of Digital Video Recorders, giving the TV viewer the ability to “skip over” the commercials, advertisers are learning a hard lesson: a high Neilson rating for a program doesn’t guarantee that their commercials are being watched.
Companies, on the other hand, are finding that if their content is interesting enough, they can capture viewers on the internet where the cost of “airing” a video is negligible.
Here’s some examples of how businesses are using video on the internet
http://www.tvwebpro.com

Comment by norris hall — December 10, 2007 #

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