March 09, 2009
Study Measures Recession's Impact on TV, Broadband, Mobile Services
By Patrick Barnard, Group Managing Editor, TMCnet
A report from market research firm In-Stat (News - Alert), “U.S. TV Viewers Response to Economic Turmoil,” reveals that about 15 percent of U.S. consumers plan to cut back their spending on subscription TV, broadband and mobile services in 2009, due to the economic downturn. As a result, these three segments could see nearly a $5 billion decrease in revenue during the next year, the firm estimates.
Interestingly, the study finds that a lot of consumers like to surf the Internet while watching TV. That’s good news for operators because the marriage of television and the Internet presents some powerful new marketing opportunities.
Interestingly, the study finds that a lot of consumers like to surf the Internet while watching TV. That’s good news for operators because the marriage of television and the Internet presents some powerful new marketing opportunities.
“Some male age groups had 40% to 50% of respondents using a PC while watching TV, and about 30% of females under the age of 40 are also using a PC while watching TV,” said Gerry Kaufhold, In-Stat analyst, in a statement. “New approaches using online Web portals synchronized to a TV program will continue to develop, because they present no new costs. Cable TV operators also face increasing competition from lightweight services that deliver popular cable programming, supplemented by content delivered via broadband.”
Even children are doing Internet surfing while watching television: For example, Cartoon Networks’ “Star Wars: The Clone Wars,” is doing an effective job getting children to check out the Website for clips of upcoming shows while the current show is on air. Home shopping networks such as QVC are also finding new ways to drive viewers to the Web. And television news programs are pushing viewers to their Websites by encouraging them to participate in online opinion polls and surveys.
The study finds that this “multitasking” while watching TV varies significantly depending on demographic characteristics.
As television programming and the Internet become more intertwined, consumers will be less likely to choose between one or the other to save money -- rather they will be more likely to switch their premium services over to more basic services. The biggest decrease in spending on mobile, broadband and subscription TV services will come from households with income below $35K, the study finds.
Even children are doing Internet surfing while watching television: For example, Cartoon Networks’ “Star Wars: The Clone Wars,” is doing an effective job getting children to check out the Website for clips of upcoming shows while the current show is on air. Home shopping networks such as QVC are also finding new ways to drive viewers to the Web. And television news programs are pushing viewers to their Websites by encouraging them to participate in online opinion polls and surveys.
The study finds that this “multitasking” while watching TV varies significantly depending on demographic characteristics.
As television programming and the Internet become more intertwined, consumers will be less likely to choose between one or the other to save money -- rather they will be more likely to switch their premium services over to more basic services. The biggest decrease in spending on mobile, broadband and subscription TV services will come from households with income below $35K, the study finds.
The study covers the impact of the current economic downturn on consumer TV viewing, broadband use, and spending across mobile, broadband and subscription TV and includes an examination of consumers’ interest in Internet TV services. It also covers the new hybrid “Lite” subscription TV services.
For more information on this research, visit www.instat.com/catalog/mmcatalogue.asp?id=212.
Patrick Barnard is a contributing writer for TMCnet. To read more of Patrick’s articles, please visit his columnist page.
Edited by Patrick Barnard
