10% growth in UK internet TV viewers - By: Paddy Chang

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Comscore has released new figures showing the UK internet tv and video watching audience has increased by a 10% margin during the last 12 months to an impressive 29.6 million unique viewers. This is an impressive figure for a country with a population of around 61 million.
The most viewed websites are shown below. The figures show the top 10 online video sites for broadband users in the UK during January 2009. Ranks shown by number of unique viewers during this timeframe:-
1st – YouTube – 23,523,000
2nd – BBC’s iPlayer – 6,771,000
3rd – Microsoft (MSN) – 4,344,000
4th – Facebook – 3,582,000
5th – Yahoo – 2,998,000
6th – Amazon – 2,945,000
7th – Fox Interactive Media – 2,587,000
8th – AOL – 2,198,000
9th – Megavideo.com – 2,189,000
10th – Metacafe – 1,940,000
A massive 4 billion videos views for January 2009, in the UK. Nearly 100 million of these were viewed on the websites of the top five TV networks (BBC, ITV, Channel 4, Channel 5, and Sky TV).
Of these most were viewed using the BBC’s iPlayer which has been a resounding success capturing 54.7% of the market amongst the networks, next came Channel 4 with 23.8%, ITV websites with 13.6%, Sky TV 6.8% followed by Five with 1.1%.
The research also found that of the entire UK internet users, 80.1% have watched internet tv and video, this equals around 280 million hours of video streaming for the month.
Now time for a nice cup of tea in time for the next stream.

The big TV networks around the world are feeling the pinch as the recession bites, but it is predicted to get much worse over the coming years.
It has been predicted that The major networks could lose as much as 75% advertising revenue over the next 10 years. The research by London based Generator Research, predicts that the traditional television advertising market in the US could shrink from the existing $58 billion to a mere $13 billion.
The driving force behind the shrinking revenue will be a switch of viewing away from TV sets to internet streams, including consumers watching TV as normal but the signal is delivered through an internet connection.
The research group estimates that 25 percent of TV viewing will take place on the internet by late next decade and that ultimately half of all viewing of TV quality video will take place on the internet, equal to the time viewers spend watching TV.
The projections are based on past trends where consumers replaced one technology with another, says Andrew Sheehy, head of research at Generator.
“We’ve benchmarked the rate that this market will probably develop by looking at similar markets, such as how long it took DVD players to replace VCRs and for CDs to replace vinyl,” he says. “We’re looking at a 15- to 20-year cycle, so we’ve got a rough time scale for how long the internet [TV] market will develop.”
Says Sheehy: “We are aware that all the TV manufacturers are planning to produce internet-enabled TV sets. In the long term, it’ll be a direct connection. But in the interim it’ll be through a separate box.”
But the broadcast networks can stave off this trend and in fact could boost ad revenue by adapting to and leading the shift to internet TV. In place of a single source revenue model the networks would evolve to a model with several streams.
In 10 years, under this new model, traditional TV spots would account for some 25 percent of TV dollars years but a second stream would come from internet connected TV sets. Internet connected TV content alone could be generating nearly $18 billion in ad revenue by 2019, according to Sheehy.
A third potential source of ad revenue would come from TV content, complete with ads, that the networks deliver to platforms such as cell phones.
Finally, the fourth source of revenue for traditional TV networks would come from internet-based ads plugged into traditional TV broadcasts, where the ad can be tailored to the demographics and interests of specific consumers.
“If the networks choose to embrace the change and try to manage the transition from purely broadcast to broadcast plus internet, then we’re projecting that the advertising revenues enjoyed by companies like Fox and NBC will actually go up in the long term, not down,” says Sheehy.
He says it’s likely the networks will work with electronics companies and ISPs to fully take advantage of the future TV marketplace.
“We’re envisioning the major networks sort of becoming the head of the joint venture,” he says. “What they’ll have is lots of value and lots of growth.”
The networks need to adapt now instead of pretending a worldwide internet TV market does not exist. Adapt and survive or stay still and die.

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