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Parks Associates: Consumption of PC video is increasing, but TV still main video source for households (24/8/2010)

TV still rules U.S. households despite proliferation of connected CE and online premium video

More U.S. households are watching online video and on a wider variety of devices now than two years ago, but they are not sacrificing their TV viewing to do so, according to international research firm Parks Associates. The firm's study Digital Media Evolution II found 40% of all U.S. broadband homes now regularly watch long-form video on a computer. However, service providers can allay their fears of cord cutting for now as high use of PC video does not yet correlate with decreased TV viewing.

"People are using online video to fill in the gaps," said Kurt Scherf, VP, principal analyst, Parks Associates. "When it comes to watching TV shows and movies, nobody's first choice is the computer. People will watch this content on a computer when it is not convenient or feasible to watch on a TV."

Parks Associates found households with a high incidence for viewing PC video are also heavy DVD users. "Both DVDs and the Internet are non-linear video sources," Scherf said. "That makes them somewhat similar from the consumer's perspective. They don't care about the distribution method so much as the experience, which will be enhanced through the ability to view premium content on a variety of devices. Service providers and other video retailers that offer high-quality, consistent multiplatform viewing experiences will come out ahead in the battle for consumers' eyeballs."

Digital Media Evolution II quantifies and analyzes the market demand for emerging media platforms, features, and services.

www.parksassociates.com