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HDTV Households Watch More TV
08 Jul 2010 Posted by Market and Main Media
High-definition TV has swept the country, with 51.7% of all U.S. residents watching their TV programs in HDTV. The rate of adoption has been very rapid, calling to mind the VCR craze of the 1980s. For consumers, the switch to high definition from standard definition is relatively seamless, but it does impact the time they spend watching TV. Nielsen reports that households with high-definition sets watch about three percent more prime-time programming than those who watch standard definition sets. In addition, HD households are more affluent and more likely to own DVRs and video game consoles.
As a result of the rapidly growing demand for HDTV, networks are faced with a choice: spend millions on upgrading cameras, studios and control rooms geared for high-definition broadcast or lose the growing HD audience who, the Times suggests, will be less likely to watch TV programs not in HD. The rush is on with both big and small channels making the former choice. According to a Nielsen report for The New York Times, the networks that have gained the most from HD’s growth are ESPN, HBO, Nickelodeon, Showtime and the NFL Network, though ratings increases aren’t limited to larger, national stations. For example, some local news stations that have made the switch are also finding ratings increases.
Peter Rice, chairman of Fox Broadcasting commented, “While wonderful new gadgets are introduced all the time, research shows that the consumer’s first purchasing choice is a big, beautiful flat-screen HD television.” He added, “These sets bring the audience closer to the action, and closer to the emotion.”
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Online Tv Viewing Growing, Cable Tv Seeing Declines
11 May 2010 Posted by Market and Main Media
In the last two years, an estimated 800,000 U.S. homes have canceled their cable TV or satellite subscriptions, according to Convergence Consulting Group. Though this number represents a relatively small percentage of the 101 million subscribers, analysts say this could double to 1.6 million by the end of next year. The growing trend is attributed to the increase in quality viewing options online: Hulu, Netflix, broadcasters’ sites and others.
TechCrunch reports that this small niche of “cord cutters” won’t put a serious dent in the $84 billion cable/satellite/telco TV access industry, but argues its existence speaks to the growing momentum of online TV viewing.
But for most, watching TV online is in addition to their current TV watching. In fact, less than 3 percent of those watching full episodes online are those who fit into this category of “cord cutters.” For now, advertisers will continue to put the bulk of their money into traditional TV options. Last year, only about $1 billon was spent on online TV viewing venues while $62 billion was spent on traditional TV advertising.
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