• by Joe Mandese  @mp_joemandese, June 6, 2008

In a development that has implications for the greater world of media fragmentation, a new study find that percentage of TV channels actually watched has fallen to its lowest point ever since Nielsen began tracking the phenomenon in the 1980s. While the average number of channels received by American households hit an all time high in 2007 - 118.6 - the number actually viewed was only 16, only a fraction more than the 15.7 channels tuned to in 2006, the 15.4 channels tuned to in 2005, or the 15.0 channels tuned to in 2004. The finding suggests that while the supply of media options is expanding, consumer attention may have reached its limits.

The finding, which comes from Nielsen's annual "Television Audience" report, a compendium of statistics revealing how people watch the medium, shows that the number of channels tuned to by the average American household fell to just 13.5% in 2007, down from 15.1% in 2006, 16.0% in 2005 and 16.2% in 2004, the last year for which such trend data is available.

The finding is significant, because Nielsen's definition of the supply of channels "receivable" and "tuned" have served as a benchmark for understanding how fragmentation impacts consumer behavior as the number of media options expands. The reality is that the number of channel options has actually expanded exponentially if you factor in the supply of micro channels available online, from video-on-demand and pay-per-view services, and a variety of non-linear video platforms. The Nielsen report does not look at those phenomenon, but as Nielsen moves increasingly toward its so-called A2/M2 (Anytime/Anywhere) TV measurement model, it will likely have to grapple with those definitions soon.

TV Channels Receivable Vs. Tuned
	Receivable	Tuned	% Tuned
2000	61.4	NA	NA
2001	71.9	NA	NA
2002	79.7	NA	NA
2003	85.8	NA	NA
2004	92.6	15.0	16.2%
2005	96.4	15.4	16.0%
2006	104.2	15.7	15.1%
2007	118.6	16.0	13.5%

Source: Nielsen's "Television Audience 2007"