40% US broadband users watch TV online

Weekly incidence of going online or using a handheld device to watch TV content rose from 34 per cent in 2009 to 39 per cent among broadband users in the US, according to a Horowitz Associates’ study.

The study revealed that a full quarter (25 per cent) of broadband users watch TV content online or on handheld devices daily/almost daily—a number that increases dramatically among younger broadband users. Over one-third (37 per cent) of 18-34 year-olds and over four in ten (44 per cent) of 15-17 year-olds watch TV on an alternative platform on a daily/almost daily basis.

Despite growth in incidence of watching TV on alternative platforms, consumers report, on average, only about 3 per cent of total viewing on these platforms, while the lion’s share of viewing still happens in front of TVs. At the same time, this survey reveals that already one in every fifteen young people (7 per cent of 18-34 year-olds) is currently considering cancelling their TV service. An additional 19 per cent of 18-34 year-olds would consider canceling their TV service if more of their favorite content became available online. This translates to 22 per cent of broadband users overall who could, potentially, abandon pay TV in favor of alternative platforms.

“The data clearly show that when it comes to the next generation of multichannel customers, we should be concerned about the ongoing and future value of the video/pay-TV elements of our service offerings, and the strategies in place to deal with it,” notes Howard Horowitz, President of Horowitz Associates. “The penetration and usage of alternative viewing technology is reaching a tipping point, and the measurable impact on how the TV product is viewed will inevitably follow.”

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