Streaming of TV shows has generally brought good news for those TV brand names. But there is a possible thorn in the side of TV show makers:
Consumers seem to be watching less traditional TV.
Consumer research company GfK says 42% of consumers "think more highly" of TV networks that make shows freely available via streaming platforms -- up from 31% seven years ago.
Twenty-seven percent of those who stream or download video now say they “watch a greater number” of shows because of streaming options. That is more than double the 2006 figure of 12%. In addition, 21% say they spend more time watching TV content, thanks to digital viewing options.
But the downside is that new digital viewing could be eroding traditional TV viewing -- the viewing that TV networks sell to advertisers reaping high-priced, big revenue. GfK results also show that 33% of those surveyed say they watch less "regular" TV. This compares to 24% who say they watch more TV.
David Tice, senior vice president of media and entertainment of GfK, stated: “Traditional ad-supported TV remains the networks’ biggest revenue source -- so anything that impinges on that viewing is a concern. While greater time spent with TV content is certainly good news, the notion of ‘digital nickels versus analog dollars’ clearly applies. TV networks need to begin to make the underlying value of digital viewers pay off more consistently."
The research comes from a GfK report, TV’s Digital Connections 2013 -- the seventh year it has produced this survey.