ource: SyFy Portal
Feb-16-2007

Whether it be iTunes or some illegal torrent stream catalog, "Battlestar 
Galactica" by many accounts is making a huge dent in the digital 
download market. But how much of an effect is this alternative medium 
having on the overall television industry? Not much, says ratings giant 
Nielsen Media Research.

Representatives from Nielsen told national clients Thursday in Orlando, 
Fla., that while more people watch television on computers or portable 
devices than ever before, it's still only a niche part of the market. 
The good news is, however, that many who choose to watch television 
shows online don't necessarily need a video iPod or other device, and 
are quite comfortable in doing nothing more than vegetating in front of 
their computer.

According to statistics compiled by Nielsen over a three-week period 
last month, just 19 percent of households have at least one form of 
personal video device, the majority being a portable DVD player. A much 
smaller market use video-enabled cellular phones while only 4 percent of 
the total household base in the United States have a video-enabled iPod 
or MP3 player, Nielsen officials said.

"Playing video on a personal device has not yet become an ingrained 
habit," officials said in a release. "Even among PVD owners, about 
two-thirds say that it has been more than a week since they watched 
something on their portable player."

When iPod owners were surveyed, 40 percent of them said they watched 
video downloaded through the Internet, but not on their iPods 
themselves, meaning they watched through iTunes or their personal 
computer instead. Even worse for television shows, the average iTunes 
user plays video files for only two and a half minutes per day on 
average, while they may spend more than 50 minutes per day listening to 
audio files.

If advertisers were to start hitting this market, however, they would be 
hitting some key demographics. Nielsen reports that the users of 
personal devices tend to have higher incomes, more education and larger 
families -- aspects that are near and dear to many advertisers' hearts. 
That is no surprise, however, since such niche trends tend to attract 
more of those types of people anyway.

As far as digital video recorders, or DVRs, a vast majority of recorded 
shows are watched the same day, whether it be news and sports, daytime 
dramas, or sitcoms and primetime dramas. And while households with DVRs 
watch significantly less live television than households without DVRS, 
most of that difference is made up after seven days of DVR playback, 
Nielsen said.

Like iPod users and such, DVR owners tend to be younger, better educated 
and have higher incomes than the average U.S. household. But don't count 
VCRs out yet. They contributed 2.4 percent of toal broadcast primetime 
ratings in January, but continue to fall, as it sat at 3.1 percent in 
January 2006.

What does that mean for shows like "Battlestar Galactica" and even 
"Lost"? It's more likely episodes will be recorded by DVR and played 
back later than downloaded on the Internet. However, numbers showing 
viewers who did DVR the show, but watch it soon after the broadcast, 
could actually be converted into extra income for networks, as Nielsen 
officials believe that the sooner the DVR plays back the episode, the 
more likely viewers are to watch some of the commercials.


 
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