Survey: Over Half of Viewers Watch TV Shows, Movies Online

Significant consumer demand for smart TVs also seen in the annual survey of consumer video consumption habits by Frank N. Magid Associates

By George Winslow -- Broadcasting & Cable, 11/22/2011 3:55:56 PM

An annual study of consumer video consumption habits conducted by Frank N. Magid Associates reveals that more than 50% of online consumers watch TV shows and movies online at least occasionally. Yet as online viewing becomes more widespread, the usage of on-demand, DVR and DVD platforms also continues to grow.

In fact, the survey found that the more alternative platforms that consumers use to watch video, the more they tend to spend on traditional TV subscription services. 

The survey also found that satisfaction with HD service is at an all-time high among customers of pay television providers, including cable, satellite, and telco TV.

Despite ongoing economic problems, consumer plans to purchase new TV sets have climbed back to pre-recession levels and that they were particularly interested in smart TVs that have an internet connection for accessing content, Magid researchers report.

Forty percent of consumers indicate they will shop for a new TV set in the next year, up significantly from a low of 23% in 2009.

Superior display, wide-screen format, and Internet connectivity topped the list of TV set features that consumers are most interested in, while interest in 3D declined from last year.

An impressive 62% of TV shoppers said Internet connectivity is an important factor in their decision to purchase a new TV.

"Consumers have been streaming TV shows and movies to the TV screen enabled by a very diverse set of devices, including game consoles, computers, streaming specific devices like Apple TV and Blu-ray players, so an Internet-connected Smart TV is the desirable next step", noted Maryann Baldwin, VP of Magid Media Futures and author of Magid's tenth annual survey of consumer video entertainment behaviors and attitudes towards traditional and emerging delivery platforms.

Consistent with the demand for high-quality displays, the intention to purchase HDTV sets continues to run strongest, while the proportion of those who plan to buy a 3D set has dropped significantly over the past year from 67% to 49% of all TV shoppers. Three percent of households now own a 3D TV set.

The study is based on a nationally representative sample of 1,530 online consumers aged 12 years and older in late October.