When it comes to time-shifting broadcast, cable, satellite, or online video, 39% of Americans prefer to view via DVR, 23% have no preference, and 6% prefer to stream video via the Internet (the remaining portion does not view time-shifted video), according to Nielsen Company. That preference carries through across all age groups, with more than 70% of those who view time-shifted video preferring to do so via DVR. Nielsen suggests the preference may be due to the limited availability of legal streaming video programming in the U.S.; in other global regions, streaming is widely preferred to a DVR.
In an examination of four hour-long programs, viewers who watched a program live saw 38% to 45% of the program, while they watched a greater proportion (up to 54%) when they accessed it via DVR or streaming. The researchers surmise that when viewers put in an extra effort to record or access the program online, they are more dedicated to watching it.
The method by which viewers access a program also significantly affects audience retention. The graph of audiences that tune in live is a steady flat line, showing strong audience retention throughout the duration of the program. The graph of those who viewed via DVR — both the same day and a full week after the program had originally aired — is a jagged but steady line, showing audience drop off and reintroduction before and after commercial breaks.
The graph of audience retention for streaming video is a gradually declining slope, with significant drop offs during each commercial break. Unlike DVR audiences, streaming audiences are unable to return to their programs where they left off due to streaming technology, which requires viewers to restart the program from the beginning if they leave during a commercial.
Despite limitations, 24% of households have connected their TV to the Internet via a gaming system, Blu-ray player, or the set itself, according to Leichtman Research Group. However, just 5% of households that use such devices watch video from the Internet in an average week. Such activity is heavily skewed to young men aged 18-34, 16% of whom watch online video via such devices weekly, compared to 3% of the rest of the population. [Ed note: This broad difference may be attributed to the fact that 18-34-year-old men are more likely than the rest of the population to have a gaming console or Blu-ray player.]
Americans’ usage of online pay-for-video services remains low; only 4% use Netflix’s “Watch Instantly” service weekly. Only one in 20 (5%) would be willing to pay $9.95 to access Hulu’s full video library. Similarly, a mere 4% would strongly consider disconnecting their TV in favor of online video services.
Weekly viewing of online video in any capacity — whether via TV set or computer screen — rose to 50% in 2010, up from 43% in 2009, according to Frank N. Magid Associates. In addition, 12% of Americans intend to increase their use of online video in the coming year, compared to 7% who intend to spend less time with it, for a net increase in online video viewership.
Those younger than age 45 dominate usage of online video, particularly those aged 18-24. Suggesting a strong future potential for online video, 53% of boys aged 8-11 and 41% of girls the same age already watch online video, and about two thirds of 12-17 year olds (68% each of boys and girls) do so as well.
Consumer-generated clips are the most popular genre of online video, with 41% of online video viewers watching them. However, 79% regularly watch professionally-filmed online videos, including 40% who watch full-length TV shows and movies. Viewership of web-only programming significantly lags behind viewing of traditional video online.
While Americans are watching online video, they still prefer their TV screen; 38% are interested in connecting their computer to their TV to watch online video. In addition, their use of online video does not affect their viewing live TV; only 14% report spending less time with live TV due to their use of online video, while 10% say they watch more live TV as a result.
The vast majority of TV viewers (89%) are interested in using interactive television applications such as accessing online directories, weather, or financial information; voting for a reality show; or connecting to a web page to learn more about products featured in a show or commercial, according to FourthWall Media. Two thirds of viewers (66%) believe such services would change the way they view TV. In addition, of the 82% who multitask with their computers while watching TV, 31% expect they would spend less time doing so if they had interactive TV applications. [Entertainment, Online]
Sources: “Comparing The Consumption Dynamics Of TV And Online Program Viewing” (presentation at Advertising Research Foundation’s Audience Measurement Conference), Nielsen Company, Jon Gibs, VP Analytics, 700 Broadway, New York, NY 10003; 646-654-5000; jon.gibs@nielsen.com; www.nielsen.com. Price: Call for information.
“Emerging Video Services IV,” Leichtman Research Group, Bruce Leichtman, President, 3 Ellison Ln., Durham, NH 03824; 603-397-5400; info@leichtmanresearch.com; www.leichtmanresearch.com. Price: Call for information.
“Magid Media Futures 2010,” Frank N. Magid Associates, Mike Vorhaus, President Magid Advisors, 1775 Broadway, #1401, New York, NY 10019; 212-974-2310; mvorhaus@magid.com; www.magid.com. Price: Call for information.
“Interactive Television Applications Survey,” FourthWall Media, Ellen Dudar, Chief Product Officer, 5800 Granite Pkwy., #480, Plano, TX 75024; 972-464-5880; edudar@fourthwallmedia.tv; www.forthwallmedia.tv. Price: Call for information.
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