Online TV Viewing Becoming a Must-Have for TV Networks.

 

The availability of TV programming online has gone from being a nice-to-have to an expect-to-see option in the minds of most Americans, raising major implications for networks and potential new opportunities for advertisers, according to the most recent installment of an ongoing tracking study of the Internet’s effect on TV viewing. Knowledge Networks’ annual “TV Web Connections” report shows that over the past four years Americans have shifted from thinking of online viewing as a novelty to an expectation.

It’s a big question for television networks, How do they monetize the digital side without cannibalizing the mother ship? The good news is that TV programmers seem to have strong demand from advertisers for their digital ad inventory — and so far, reasonable acceptance from users to view it — but the amount of ad inventory online is still a fraction of what they get with conventional television.

In the short term, television programmers can look at online access as an opportunity to expose viewers to shows they might not have otherwise seen, so there is a promotional value. Data from KN and Nielsen show that the growth in online viewing of TV programs has not hurt conventional TV viewing levels. Nielsen, recently began integrating online viewing of TV shows into its core TV ratings services, as it expects the behavior to become an increasingly important factor in total TV viewing levels.

One thing that does not yet appear to be occurring due to the availability of online access to TV shows is so-called “cord-cutting,” or people cutting their conventional TV subscription services, because they can access some or all of the same content online.
Both smartphones and tablet computers — increasingly are becoming a factor for viewing TV programs online, but the No. 1 source still is an Internet-connected personal computer.

The biggest developing factor is the shift in consumers expectations surrounding social sharing. Apps that enable consumers to share TV shows they are watching with friends have become a significant factor — and consumers increasingly expect those features too.