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Game Consoles Nibbling at OTT Video Market

Knowledge Networks announced that, according to its latest survey, videogame consoles have already taken a bite out of the Over-the-Top (OTT) video market.

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Unedited press release follows:

New KN Research Shows Videogame Consoles Have Already Taken a Bite out of “Over the Top” Market

One in five consumers use game systems to watch TV or movie content at least once a month

Menlo Park, CA; October 21, 2010: The boxes from hot tech companies may have the buzz – but videogame systems are already giving consumers on-demand access to TV and movie video in a variety of formats. According to a new report from Knowledge Networks, one in five (21%) viewers age 13 to 54 say they watch TV programs or movies using a videogame console system at least once a month; this includes viewing of DVDs and Blu-ray discs, as well using the system’s Internet connection to access content.

The new report – Over-the-Top TV: A Complete Video Landscape – takes an in-depth look at how consumers are accessing 23 types of TV and movie content outside of standard “live” TV viewing. As with many of the emerging sources we explored, usage of videogame systems to view video content is far higher among younger viewers than older ones (see Table 1) – which means it may be a harbinger of growing demand for other “over the top” devices.

Table 1. Use of Videogame System to Watch Movies or TV Programs by Age

Uses a videogame console system at least once a month to watch movies or TV programs using… All persons


13-31 32-45 46-54
DVDs 17% 27% 13% 7%
Blu-ray discs 6 10 4 2
Streamed or downloaded video 6 11 3 1
Overall use (viewing by any of the above means thru a game console) 21% 31% 17% 8%

Knowledge Networks also found that, despite the revenue pressures on the format, DVDs still dominate the alternate-to-telecast space by a wide margin, being used at least once a month to watch movie or TV content by 62% of 13-54 viewers; the next closest formats are DVR (with about half as much usage) and streaming through a PC.

“Digital delivery of TV and movie content is clearly growing in popularity – especially among young people – but most actual viewing still happens via more traditional formats,” says David Tice, Vice President and Group Account Director at Knowledge Networks. “The challenge to stakeholders in this space is to move into new digital formats while still leveraging existing technologies; videogame systems are proving to be an important transitional device in this space.”

Over-the-Top TV: A Complete Video Landscape leverages KN’s How People Use® Media methodology and was produced as part of The Home Technology Monitor™. The study puts into context the levels of use of most of the important ways the audience can watch long-form television and movie content apart from telecasts: physical media (DVDs or Blu-rays); Internet-sourced video on computers, connected TVs and TV devices; and viewing on mobile devices such as smartphones.

Other important topics covered in the report are

* Use of mail, kiosk, and Internet-based rental/on-demand services
o Including specific use of Netflix, redbox, iTunes, and Hulu
* Impact of viewing Internet-sourced TV and movie content
o Including cannibalization of regular TV viewing, and TV service “cord-cutting”
* Use of unauthorized or pirated online video content
o Including reasons why

The study was conducted in June 2010 among 1,005 persons 13-54 who are TV or movie viewers (by any method). All respondents are members of KnowledgePanel® – the only online panel based on a representative sample of the full U.S. population; KnowledgePanel® provides proportional representation of Internet non-users and cell phone-only households. The report is part of The Home Technology Monitor™, an ongoing program that tracks ownership and use of new and traditional media devices and services. The margin of error for questions asked of the full study sample is +/- 3%.

Knowledge Networks is passionate about research in marketing, media, health and social policy – collaborating closely with client teams throughout the research process, while applying rigor in everything we do. We specialize in innovative online research that consistently gives leaders in business, government, and academia the confidence to make important decisions.

KN delivers affordable, statistically valid online research through KnowledgePanel® and leverages a variety of other assets, such as world class advanced analytics, an industry-leading physician panel, an innovative platform for measuring online ad effectiveness, and a research-ready behavioral database of frequent supermarket and drug store shoppers.