Online TV to reach three-fifths of households by 2012
Joseph O'Halloran ©RapidTVNews | 23-11-2011 A surge in next-generation connected devices will drive online video uptake to 60% of households by 2014.
According to a study of 3,000 consumers in Europe, the United States and Asia, 'Connected devices and services: Reinventing content' by global consulting firm Bain & Company, consumers are generally inclined to increase their adoption of online content for video consumption, video games, live entertainment and cultural activities.
Bain found that the biggest shift in what it calls the connected content experience will come in video. It noted that half of respondents in the US and UK intend to rely more on search engines to find content, while a third plan to use their network of friends to choose their favourite TV shows. Moreover, a majority of consumers expressed an interest in Internet video at the expense of traditional TV channels.
"The permanent media revolution continues," said Patrick Behar, head of Bain's Media & Entertainment Practice in Europe and lead author of the study. "But media and entertainment companies must pursue aggressive content development and diversification strategies to unlock new consumer spending."
Indeed, the study warns that media companies and cultural institutions will face stiff competition for incremental consumer spending unless new business models and what it calls "ambitious content" are created. It goes on to suggest that a high degree of consumer enthusiasm may have limited incremental profit potential for businesses unless new innovative ways for experiencing content are developed.
The report also warns that a lack of infrastructure, in countries such as India and China, may well limit the ability of many to view video on connected devices