Viewing television over the internet is poised to overtake the regular box in the U.S. according to the latest finding from the Consumer Electronics Association (CEA).
While the traditional broadcasting industry attempts to maintain its stronghold on centralised TV viewing, IPTV and mobile consumption is tipping the battle in favour of digital at an accelerated pace.
The report from the CEA, “The Market for U.S. Household Television Services”, states that the percentage of U.S. households relying exclusively on an antenna for television programming reception is about to be eclipsed for the first time by the percentage of households relying exclusively on the internet for TV content. The report, also revealed that nearly half (46%) of TV-user households reported that they watched video on either a portable computer or Smartphone in the last year , significantly up from the previous year which was 38%. While more than a third (34%) are watching on either a tablet or desktop computer, up from 30% the previous year.
“We are at a pivotal point in consumer behaviour, as fewer and fewer American homes are now using only antennas to watch their favourite television programs, and more and more households turn to the Internet as a source of TV content,” said CEA president and CEO Gary Shapiro.
Shapiro forecast that within the next year, we should expect the number of U.S. households relying exclusively on the Internet for TV programming to equal or surpass the total of those relying only on antennas.
The CEA report found that the number of households relying exclusively on antennas had dropped to 6%, while those getting their video entertainment exclusively online had increased to 5% in the past year.
The study also shows that the percentage of U.S. TV households consuming at least some TV programming via the Internet has nearly doubled. Almost half of U.S. TV households received at least some television programming from the Internet in the last year, up from 28% a year ago.
The TV set still has the highest household penetration of any viewing device (97%) and strongest video content viewership (93%), especially now that Internet-enabled televisions have reached mainstream consumers.
Stimulating further growth, CEA data has also found that confidence in the economy is at its highest in the US since 2012 which they anticipate will translate into bigger spending on tech such as Ultra HD sets.
The CEA Index of Consumer Technology Expectations (ICTE), which measures consumer expectations about technology spending found that over the past month it has increased by 4.1 points to 95.3 -- the highest level since the 2012 holiday season.
Stop Press: In local news, a new OTT entrant and just launched in the Australian market from the cinema realm, Dendy Direct. The video-on-demand service will offer 800-1,000 films to rent or buy online and will debut on August 6. The service is an offshoot of Australian independent cinema chain Dendy and the company has announced licensing deals with Walt Disney Co, 20th Century Fox, ABC Commercial, Beyond Home Entertainment, Entertainment One Australia, Madman Entertainment, Pinnacle Films, Roadshow, Transmission and Umbrella Entertainment.
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