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24 Percent of Households Have Internet Connected TV

Leichtman Research Group, Inc. (LRG) announced that its research shows 24% of all households have a television connected to the Internet. These connections vary from linking through a video game system, a Blu-ray Disc (BD) player, or the TV set itself. While Internet connectivity has become a common built-in feature in many products, consumers are just beginning to use this feature to watch video from the Internet.

According to the statement, 1% of all adults watch video from the Internet via one of these devices daily, and 5% weekly. And usage is heavily skewed to young men, with 16% of men ages 18-34 watching video from the Internet via one of these connected devices weekly, compared to 3% weekly use among all others.

These findings are based on a survey of 1,250 households throughout the United States, and are part of a new LRG study, Emerging Video Services IV.

Other findings include:

* 20% of households have a video game system connected to the Internet, 8% have an Internet-connected TV set, and 6% have a Blu-ray player with an Internet connection (some households have more than one of these)

* 55% of Netflix subscribers report that they used the “Watch Instantly” feature in the past month — overall, 1% of all adults use Netflix’s “Watch Instantly” daily, and 4% weekly

* Overall, 3% of adults watch a full length TV show online daily, and 11% weekly

* 5% of those online at home strongly agree that they would be willing to pay $9.95 per month to watch TV shows online from a service like Hulu, while 81% strongly disagree

* Among all individuals online at home, 4% strongly agree that they would consider disconnecting their TV service to just watch video online — compared to 3% last year, and 4% two years ago

* In total, 0.3% of the overall sample are current non-subscribers to a multi-channel video service who disconnected their service in the past year and agree that they don’t need to subscribe because most of what they want is available online (these respondents represent 1.6% of the cell phone-only sample)

“Despite speculation that consumers are “cutting the cord” to cable, satellite or Telco video services and choosing to watch video exclusively online or through other alternatives, there remains little evidence of this being a trend,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Emerging video services do not necessarily create either/or scenarios in decisions to subscribe to a video service or not. Rather, they create opportunities and trade-offs in how, when, what, and where to consume the increasing video entertainment options.”

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