Tuesday, November 25, 2008

Is TV Getting Cannibalized or Not?

A new IBM study reveals that online video is cannibalizing television consumption. Another study by Nielsen says U.S. TV watching actually has climbed. Maybe there are key differences between U.S. and global TV viewing that could account for the differences. But the Nielsen report also notes that “TV use is at an all-time high, yet people are also using the Internet more often; 31 percent of which is happening simultaneously,” Susan Whiting, Nielsen vice chairwoman says.

That's a potential way of harmonizing some of the difference. People could be watching online video while the TV is on in the background.

The IBM poll of 2,800 people in six countries found that 76 percent have viewed video online and that 45 percent do so regularly. About 15 percent of those who watch online videos say they watch "slightly less" TV than they used to, while 36 percent say they watch "significantly less" TV as a result of their online video viewing. Indeed, "place-shifting alternatives may be changing consumer couch-potato behavior," the study claims. IBM polled 2,800 people in six countries for the study.

In the third quarter of 2008, the average American watched approximately 142 hours of TV per month, five hours more than they watched in a typical month during the same period a year ago, Nielsen says. During the 2007 to 2008 television season, the average U.S. household consumed eight hours and 18 minutes of TV per day, a record high since Nielsen started measuring television in the 1950s.

Americans who used the Internet were online 27 hours a month, and people who used a mobile phone spent three hours a month watching mobile video. Men were more likely than women to watch via mobile phone, while women were more likely then men to watch video online.

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