The internet is severely eroding TV viewing time, claims a consumer survey released yesterday by the IBM Institute for Business Value. But while consumers are spending increasing amounts of time online, their viewing behaviours may be shifting to the web or mobile devices.
The 38-question internet survey of around 2,400 consumers around the world, almost half of which were aged 18 to 34, found that:
- 81% said they’d watched video via the internet
- 19% were spending six or more hours of personal time per day on the internet, v. 9% reporting equivalent time in front of the TV
- A quarter of U.S. respondents said they owned a DVR and watched recorded programmes at least half of the time; though a third claimed they are watching more TV as a result of having a DVR. But in spite of DVRs, Australians prefer to watch 75% of TV live.
- Nearly a third of U.K. respondents who watched mobile TV reduced their viewing via a traditional TV set as a result
- Australians are the world’s greatest contributors to social networks, trailed by the U.S. and U.K.
Video interviews of consumer attitudes reflected by the survey can be found here:
Wired has today [23 Aug] followed up with a great interview with IBM’s Bill Battino, communications sector managing partner for IBM Global Business Services, in particular points on how the coming bandwidth crunch will be managed:
Wired News: If most TV moves to the Internet, do you think the infrastructure/pipes can handle such increased data traffic?
Battino: The question is when, not if. Delivering all but the most basic digital content services over networks that were originally designed for voice communications and Web browsing is challenging, and telecom, cable and satellite operators will, in all likelihood, have to upgrade their networks to compete. Even with higher compression technology like MPEG-4, delivering HDTV, multi-room TV and the like, as well as voice, gaming, Internet surfing and other communication services means that every home must have a bandwidth of 20 megabits or more.
As demand for high-definition television (HDTV), real-time video on demand (VoD) and other next-generation services increases, we are heading toward a bandwidth crunch in many countries with the possible exception of parts of south-east Asia including Singapore and Korea, where 95 -100 percent of households can obtain very high speed access. To deliver bandwidth-intensive content services and the experience consumers demand, telcos and distributors will have to make major investments in upgrading their networks. We anticipate that the investments going into IPTV through Fiber-TV, will accelerate bandwidth dramatically, as well as VC investment in wireless technologies.
Wired News: We hear a lot of talk about the Internet democratizing content distribution, but what are the real chances that other YouTube-like networks (not owned by major corps) will be able to compete with YouTube and the major studios rolling out their own mini-online networks (such as ComedyCentral’s Motherload)?
Battino: Never underestimate the creativity that can come from the VC and private equity community. Just as people thought MySpace had a monopoly, you saw other entrants (e.g. Facebook) generating interest levels. We may see some backlash against the big players, which will open up the window for new entrants. Also, our survey found that the majority of individuals visited sites based on recommendations from their peers; this also leaves an opening for new entrants. Finally, keep in mind that many of the sites now owned by major corporations started as independents and were then acquired.