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Study: more couch potatoes parked in front of PC to watch TV

2008.04.26

 

Convergence estimates that 9 percent of all full-episode TV viewing was done online in 2007—a 3 percent jump from 2006. The firm predicts that the numbers will grow even further this year and next, to 14 percent in 2008 and 19 percent in 2009. As of 2010, Convergence expects 23 percent of broadcast and cable TV to be viewed online.

Shorter clips, however, are still the most popular things to watch online. Five times as many viewers watch clips of shows as those who watch full episodes, said the report, with 75 percent of the clip content originating from broadcast or cable TV content. Convergence estimates that this gap will get smaller as time goes on, but will still remain more popular than full shows. The firm expects clip-to-full-episode views to decline to a rate of three to one by 2011.

TV advertising revenue has not yet made quite as big an online jump as TV viewing. Only 2 percent of TV ad revenue was made online in 2007, and Convergence estimates that it will grow to 8 percent by 2011. (The firm did not count non-TV-related ad revenue in its estimations.) The report says that the online ad market was $22.5 billion in 2007, and will more than double by 2011 to $47.5 million.

Convergence goes on to say that online movies (both rentals and sales) may not fare so well, due to "revenue split with the Studios, movie distribution window and other impediments including the cost of purchasing a separate box for delivery from the computer to TV." The company says that rentals only make sense for Apple, Amazon, and Microsoft because they all sell products that bring their services to the TV screen (the Apple TV, the TiVo, and the Xbox 360, respectively). Convergence also cites Movielink after having been bought by Blockbuster as a possible player. "We forecast these four players, led by Apple, will have the largest revenue market share."

For now, though, Convergence says that networks have no reason to abandon traditional TV yet, or even to try and accelerate the transition to online. "To do so would put $66 billion in traditional TV advertising revenue and $30 billion in cable, satellite, telco TV provider programming fees at risk," says the firm. "Broadcast and Cable Networks aim to grow online advertising revenue without negatively impacting their traditional TV advertising and programming revenue."

Forrás: http://arstechnica.com/news.ars/post/20080404-study-more-couch-potatoes-parked-in-front-of-pc-to-watch-tv.html

 

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