April 21, 2015
According to the Interactive Advertising Bureau, one-third of Americans now own connected TVs, while one-third of those consumers stream video content to their televisions daily. On average, owners of connected TVs spend 2.4 hours per day streaming to their televisions. Streaming video is beginning to affect viewing patterns in a way that may concern the traditional TV industry. Nielsen recently reported that TV viewing dipped 4 percent in the third quarter of 2014 and streaming jumped 60 percent compared to Q3 the previous year.
“All these numbers taken together clearly indicate that people like video content and are inclined to stream a lot of it to their TVs,” reports The Wall Street Journal. “However, the $70 billion-plus TV business has been built on people watching live linear TV — and all this streaming momentum can be seen as a major threat to that dynamic.”
The IAB study, conducted with researcher Vision Critical, found that 38 percent of connected TV-owners indicate streaming Internet video comprises half of their screen time, and 19 percent are watching less traditional television content than they did the previous year.
“The good news for brands is that while a big chunk of TV streaming is via Netflix — a no-fly zone for advertising — the IAB’s research found a growing diversity of connected TV content sources, ranging from YouTube to Hulu to Yahoo to Crackle,” notes WSJ. “The bad news? Half of the respondents in the survey that use connected TVs say they like streaming video to their TVs because there are fewer commercials.”