Changes will have to be made (video rentals, anyone?) but a new study shows that there is a demand for viewing alternatives to the TV. According to ChoiceStream’s "2007 Survey of Viewer Trends in TV & Online Video," 65 percent of consumers who watch video on their computers, mobile devices or digital media players are watching professionally-produced TV programming, including network- and cable-produced shows, news and sports.
This number exceeds the 39 percent of consumers watching user-generated video by 67 percent and is expected to increase over the next six months as traditional TV viewers begin to shift their viewing behavior towards other devices. In addition, the survey finds that when searching on a computer, mobile device or media player, 62 percent of consumers say that it takes at least a few minutes to find something interesting to watch. Not surprisingly, the discovery process is similarly frustrating for consumers watching programming on their TV sets with 72 percent of all television viewers indicating that it takes at least a few minutes to find programming of interest.
The difficulty finding shows and movies to watch on the TV set is clearly costing TV service providers lost revenue as 43 percent of consumers indicate that they would watch more Video-on-Demand and Pay-Per-View if they could find more content of interest. This number is up 19 percent from 2006. What company is better prepared than Apple to solve this problem?
"The survey shows that there is an inefficient video discovery process that over time will slow the pace of change in consumers’ viewing patterns," says Toffer Winslow, EVP of ChoiceStream Sales and Marketing. "Consumers, especially those in the younger demographic, have grown accustomed to watching TV programs, sports, news and video at their own convenience and do not want to spend time searching for meaningful content every time they turn on their TV, PC or mobile device. It’s imperative that companies and advertisers embrace this shift and implement personalization strategies that will put relevant TV programming and video content at the consumers’ fingertips wherever they choose to watch it."
Again, there seem to be a chance for the iTunes Store in the area of video rentals here. And Apple could obviously have some "hooks" into the Apple TV with such a venture.
What's more, the ChoiceStream survey showed that 55 percent of all consumers are watching some type of video (e.g., television programs, user generated content, or music videos) on their computers, mobile devices or digital media players (e.g., iPods). Sixty-six percent of these consumers are watching at least one hour per week through these alternatives. Not surprisingly, video-watching on alternative devices is more popular among younger viewers (66 percent) than older viewers (36 percent).
In addition, the findings indicate that this younger demographic is also leading the shift in watching traditional TV programming (e.g., network- and cable-produced shows, news, sports) away from their television sets. Nearly 70 percent of younger viewers watching video on alternative devices indicate they watch traditional TV programming, compared to 46 percent who indicate they watch user generated video. Overall, 20 percent of consumers, and 24 percent of 18 to 24 year olds, indicate they will watch more television programming on a device other than a television in the next six months and more than half of them say it will come at the expense of watching television on a traditional set.
That expense will benefit Apple via the iPod line-up and, over time, the Apple TV. While we're on the subject, let me say that by next spring Apple will unveil version 2.0 of the Apple TV -- and will integrate a TV tuner. In other words, Jobs & Company are far from giving up on their "hobby" (as CEO Steve Jobs once described the Apple TV).
