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81 Million People in U.S. Watch Broadband Video at Home or Work, According to Nielsen and CTAM

  Little Impact on Traditional Television Viewing From Broadband Video Use

    ALEXANDRIA, Va. and NEW YORK, July 17 /PRNewswire/ -- An estimated 81
million people, or 63% of the 129 million people who access the Internet
over broadband in the U.S., watch broadband video at home or at work,
according to new research conducted by The Nielsen Company for The Cable &
Telecommunications Association for Marketing (CTAM). This number increased
from 70 million in September 2006 to 81 million in March 2007, a jump of
16% in just six months.
    The analysis also showed that traditional home television ratings are
minimally, if at all, affected by broadband video viewing over the
Internet, because broadband viewing was found largely to be incremental new
viewing rather than a substitute for traditional television viewing.
    The multi-phased study -- A Barometer of Broadband Content and Its
Users -- provides the first comprehensive look at the relationship of
broadband video consumption at home and at work to traditional television
viewing behavior. It also presents a detailed analysis of specific
television network viewing preferences among broadband video users across
all key demographics.
    Commissioned by CTAM and conducted by Nielsen Entertainment and
NielsenConnect, the multi-faceted research effort integrates analysis from
across The Nielsen Company. Findings were derived through online research
based on the Nielsen//NetRatings MegaPanel and NetViews services, extensive
interviews conducted in the Nielsen Entertainment digital lab, and a
"fusion" of the quantitative online survey data with television viewing
data from Nielsen Media Research's National People Meter sample.
    "Nielsen was delighted to work with CTAM on this report, which reflects
the value we can create by integrating data and analysis from across our
company," said Susan Whiting, Executive Vice President, The Nielsen Company
and Chairman, Nielsen Media Research. "This approach allows us to deliver
new insight into our clients' customers and markets."
    Key findings from the report include:

    -- Online Video Usage Supplements Traditional Television Viewing Overall:
       Online video (including broadband video at work and in the home) was
       shown to add to overall video viewing more frequently than it replaced
       traditional television viewing in the home, representing a net audience
       gain to total television viewing.  Thirty-three percent of those
       surveyed indicated that watching video over broadband Internet
       increased their television viewing time, vs. 13 percent who indicated
       it decreased their traditional television viewing.

    -- Potential Upside for Increased Television Program Viewing Online is
       High Among Current Broadband Video Users:  An additional thirty-two
       million lighter broadband video users report being open to more TV
       programs via the Internet.  Further, consumers indicate that greater
       awareness of where to find the videos they're seeking, better
       navigation interfaces, and the increased availability of more
       high-profile television programs online could significantly drive
       future broadband video content use over the long-term.

    -- TV Set Access is the Tipping Point for Widespread Broadband Video Use:
       Based on respondent feedback, widespread consumer use of broadband
       video seems to be contingent on Internet platform video content
       becoming more easily accessible via home television sets.  At that
       point, consumers say, Internet video fare could assume its place as
       another source for content on demand.

    -- Broadband Video Use is Dominated by the Top Brands: ABC.com was the
       leader across all broadband viewer visits to television network Web
       sites, while Yahoo! Movies was the leader in the movies category.
    "The growing popularity of broadband video programming makes it vital
to better understand its true impact on the viewership of and engagement
with television," said CTAM President and CEO Char Beales. "This research
provides an unprecedented look at how consumers are making television
viewing decisions as well as which consumers are more likely to embrace
broadband content in the future."
    "Linking television viewing data with Internet usage behavior goes far
beyond what traditional survey-based research methods can offer to help
content providers best manage the growth of television and broadband video
platforms," said Paul Donato, Chief Research Officer of The Nielsen
Company. "The fusion of these discrete Nielsen data sets into a single,
unified analysis provides the most complete benchmark of broadband content
viewing behavior to date."
    "There have been major changes over the last 30 years in how television
is consumed-the remote control, portable TV, time shifting DVRs-but one of
the most dramatic promises to be television via the Internet," said Tim
Brooks, Research Committee liaison to the CTAM Board of Directors and
Executive Vice President, Research, Lifetime Television. "This new study
helps us understand the impact of this radically new method of distribution
both as it is now, in its infancy, and how it is likely to unfold over the
next few years."
    Scope and Methodology
    This television industry study is comprised of four distinct phases
that integrated research assets from across The Nielsen Company, as
coordinated by Nielsen Entertainment and NielsenConnect. They include:
    -- Penetration Analysis:  Internet usage data from Nielsen//NetRatings
       identified the broadband video user universe by Heavy, Moderate and
       Light usage levels both at home and at work.  These data served as the
       study's underlying survey sampling framework, distinguishing it from
       earlier studies conducted in this arena.

    -- Live Online Video Digital Lab Sessions.  In phase two, eight live
       Internet-linked group sessions were conducted to explore how different
       video formats and advertising tactics contribute to the long-term
       growth of television and broadband video platforms while minimizing and
       controlling TV audience erosion. Thirty-two consumers participated in
       these sessions, which were conducted by Nielsen Entertainment
       Television Group at the CBS TV City facilities in Las Vegas on November
       29 and 30, 2006.

    -- Quantitative Online Segmentation Study.  From December 2006 through
       February 2007, 2,267 online interviews were conducted to gather data on
       primary online video usage via broadband connections in home and work
       environments by Heavy, Moderate and Light users as well as non-video
       users.  Broadband behavioral metrics provided by Nielsen//NetRatings
       were also captured to generate enriched market segment profiles
       typically not possible in consumer survey research settings.

    -- Fusion Analysis: Respondent level survey results were linked to
       National People Meter (NPM) television viewing data for January and
       April 2007, using identical household metrics in the segmentation study
       as those employed to capture NPM data by Nielsen Media Research. This
       created a comprehensive benchmark of the programming preferences that
       characterize the six broadband video user segments.
    A Barometer of Broadband Content and Its Users is available on the CTAM
Web site at http://www.ctam.com/research/form-06-broadband-email.pdf.
    About The Nielsen Company
    The Nielsen Company is a global information and media company with
leading market positions and recognized brands in marketing information
(ACNielsen), media information (Nielsen Media Research), trade shows and
business publications (Billboard, The Hollywood Reporter, Adweek). The
privately held company is active in more than 100 countries, with
headquarters in Haarlem, the Netherlands, and New York, USA. For more
information, please visit http://www.nielsen.com.
    About CTAM
    CTAM, the Cable & Telecommunications Association for Marketing, is
dedicated to helping the cable business grow. As a non-profit professional
association, CTAM provides marketing education and networking opportunities
to more than 5,500 members, through conferences, consumer research,
publications, http://www.ctam.com, a network of regional chapters, and the CTAM
Executive Management Program at the Harvard Business School. CTAM also
facilitates unified, national cooperative marketing efforts on behalf of
its corporate members, such as the Cable Movers Hotline (SM), Business
Services Initiative, and On Demand Consortium. Consumers can learn about
cable's advanced services and see offers from their local providers at the
CTAM-supported http://www.ThisIsCable.com (SM).


SOURCE The Nielsen Company




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Related links:
  • http://www.nielsenmedia.com
  • http://www.ctam.com
  • http://www.ThisIsCable.com
    CONTACT:
    Diana Cronan, of CTAM, +1-703-837-6575; Anne
    Elliot, of The Nielsen Company, +1-813-366-3556