The recent growth in popularity of online video sites like Hulu, Netflix and Megavideo and Google’s recent announcement about Google TV all point to a future teeming with online video. The question remains, what will happen to live broadcast television as online video becomes more and more popular? According to a recent report by The Diffusion Group (TDG), online video will surpass broadcast TV in the United States by 2020.
NewTeeVee reported TDG’s findings. Online video is relatively new, with most viewers in the United States watching a mere 22 minutes of Internet programming a week. However, this number will continue to rise as online television becomes more diverse and accessible. In the next ten years, TDG expects online video consumption to rise from 22 minutes a week to over two hours a day, for the average viewer, leaving television broadcast in the dust.
NewTeeVee spoke with TDG analyst Colin Dixon, who said that one of the driving factors in the 2020 forecast is the fact that more and more devices will be capable of delivering Internet TV directly to your television screen. Google TV, for instance, combines broadcast television programming with Internet television programming. He says, “Consumers won’t be thinking ‘I’m watching online video’; they’ll be thinking, ‘I’m watching TV’.”
As the Internet video industry continues to grow and expand, more and more television broadcasters will turn to the web. Consumers are becoming more willing to pay for online video subscriptions and one day may decide to throw their cable subscriptions to the wayside in favor of Internet video shows and channels.
There has been chatter for years about the web making paper newspapers obsolete. However, although newspaper subscriptions have gone down in number there are still a solid base of consumers having newspapers delivered to their homes every day. Do you think this will be the case with television, or do you agree with TDG that online video will overtake broadcast television by the end of this decade?