Technology | Media | Telecommunications

Friday, March 12, 2010

Pay-TV and Over-the-Top Video can Coexist

Consumers want their Internet TV, and they want it now, according to the latest market study by In-Stat. Already, based on In-Stat's new multi-client research study, 26 percent of U.S. consumer respondents report viewing Internet TV more than once per week.

However, rather than a substitute for traditional pay-TV services, consumers want their Over-the-Top (OTT) Internet video to complement their traditional TV offerings.

At least, that's the trend at this moment in time -- meaning, it's likely subject to change over time, as people gradually choose to abandon the legacy linear TV experience.

"Consumers want the best of both worlds: Pay TV and Over-the-Top Video," says Keith Nissen, In-Stat analyst.

Nearly 40 percent of consumer broadband household respondents want a combination of linear TV and on-demand TV, and nearly three quarters want to acquire all their video content from their pay TV service provider.

In-Stat's market study also found the following:

- While PCs remain the primary devices used for viewing Internet TV, consumers are increasingly using multiple devices, including internet TVs, and mobile devices.

- Consumers use a variety of devices to get internet video to their TVs, including PC-based media adapters, dedicated media adapters, gaming consoles, Blu-ray players, and Internet-enabled TVs.

- As of Year End 2009, there are an estimated 24 million web-enabled devices in operation in the U.S. market. This is expected to grow to 102 million by 2013.