Internet TV the next challenge for viewers

6Dec09

Source: Lara Sinclair, The Australian

ONLINE video viewing and social networking are set to dominate internet use over the coming year, according to two studies into new media and technology.

But whether — and how much — Australians will pay for the privilege remains a vexed question.

Four out of five Australians now watch video online, compared with just 25 per cent three years ago, according to Universal McCann’s annual Wave report that tracks internet usage.

Over the same period, creating a profile on a social networking site tripled to about 60 per cent, making it the second most popular activity, the research showed.

The data coincides with the findings of a Telsyte study into digital content that found social networking was the fastest-growing online activity, although email remained the most common reason for using the net.

Meanwhile IPTV — internet protocol TV — emerged as a new technology this year for Australians, the Telsyte data showed.

Six per cent of people have streamed TV and video on their PC unmetered by their internet service provider, while much higher numbers have watched video on sites such as YouTube.

Telsyte research director Warren Chaisatien said the survey also showed people would opt to receive content free of charge if given a choice, but were willing to pay for targeted, high-quality content.

“Although when given an option, most Australians would prefer cheap or free content subsidised by ads, the survey also shows a willingness to pay for content that reflects their particular interests or concerns,” Mr Chaisatien said.

IPTV delivered over the net to the TV set is tipped to be one of the most hotly contested media sectors of 2010, with a string of key players comprising telcos, TV networks, computer and games console makers and others taking part in a land grab for IPTV customers.

Universal McCann national strategy director Nathan Brown said free-to-air TV networks, which were already promoting their online catch-up TV websites to viewers, would drive consumer demand for IPTV services.

Gaming consoles are already in 45 per cent of homes, according to Telsyte, giving internet-connected consoles such as Sony’s PlayStation 3 and Microsoft’s Xbox 360 an advantage over IPTV rivals such as digital video recorder brand TiVo.

Most people who have a DVR only use it to record shows to watch later and to skip ads, with few paying for extra content such as movie downloads.

Despite the reluctance to pay for existing download services, the study showed there was a willingness among consumers to pay $5 to $10 a month to their broadband providers — many of which are exploring ways to launch set-top boxes that can deliver IPTV content over the net to the TV set — for the right content.

“A mix of monetisation — pay per view, subscription and advertising subsidy– models will remain in future while ISPs are still looking for killer portal contents,” the report found.

“For those willing to pay for content (39 per cent), average maximum price points were $10.30 for a monthly subscription per content category and $5 per use for on-demand (content).”

US media academic Jeffrey Cole said while viewing IPTV was not yet a meaningful pastime in the US, the launch of a national broadband network in Australia would boost IPTV, teleconferencing and education services.

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