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Consoles leading Web-to-TV viewing surge - Report

  • By Matthew Peters, GameSpot
  • Posted Jun 17, 2009 10:55 am PT

Market analysis group In-Stat predicts US Internet-to-television users will hit 24 million in 5 years; 10.7 million game consoles providing the service domestically by 2013.

Although digital television has swept the US after the government's June 12 transition deadline, most Americans still rely on their cable provider for broadcast programming. However, millions may turn away from their cable provider for an online alternative. A new report predicts that Americans will increasingly view Internet video via their television sets in the coming years, with broadband-connected consoles leading the charge.

"The broadband connection is here."

On Monday, market-analysis group In-Stat announced the results of a study "Web-to-TV Video Changes Everything." In it, the group predicted that the number of broadband-connected American households using Web-to-TV content will grow to 24 million within five years, and by 2013, revenue from the Web-to-TV content will burgeon to $2.9 billion.

On the forefront of said growth will be such consoles as the Netflix-streaming Xbox 360 and the browser- and YouTube-enabled PlayStation 3. In-Stat found that 29 percent of US console owners aged 25 to 34 currently use their devices to watch streaming video off the Internet. By 2013, the company predicts more than 10.7 million consoles will be downloading Web video onto TVs. In-Stat believes that consoles will retain their dominance until that same year, trumping devices, such as digital media adapters (DMAs), Blu-ray players, HDTVs, media-center PCs, and pay-TV set top boxes.

"Currently Web video is largely additive to traditional TV revenue streams," says Keith Nissen, an analyst at In-Stat. "However, ultimately Web video to the TV will force a complete restructuring of today's video distribution ecosystem."

40 Comments

  • Melty123

    Posted Jun 18, 2009 3:40 am GMT

    I'd love to watch everything new on my Xbox 360 because TV industry in Latvia is way too bad to get the newest TV shows and films. And stuff like hulu is not available in Latvia.

  • tony382

    Posted Jun 17, 2009 8:51 pm GMT

    This is great, I rather watch everything on my console instead of having stacks of discs. The only problem I see is the High Speed providers, they don't give you enough bandwidth to cover watching streaming video, surfing the net, downloading things. I have a 10Mbit connection and I can't watch nothing on Netflix while I'm downloading. They need to up their bandwidth.

  • mrklorox

    Posted Jun 17, 2009 4:40 pm GMT

    Great... now let's start making sure the freaking consoles can play the internet TV. Still no Hulu app even announced for 360. PS3 just gained this capability thanks to the update that brought Flash 9 to the PS3 browser, allowing Hulu and more.

  • prioritymail

    Posted Jun 17, 2009 4:04 pm GMT

    I actually use my pc (connected to my tv) to watch hulu.So I definitely fall into these statistics. If microsoft teamed up with hulu like they did netflix, I would be in heaven.

  • Wula_

    Posted Jun 17, 2009 3:33 pm GMT

    I just got a call from my internet provider asking if I wanted TV. And I asked why would I pay for a service filled with ads when I can get free streaming videos with no ads over the net? *ad blockers for the win*

  • invictuslemming

    Posted Jun 17, 2009 3:32 pm GMT

    Sigh, yet here in Canada all we can watch is "This video is not available in your region"

  • alexLmx6

    Posted Jun 17, 2009 3:31 pm GMT

    my parents pay 200 bucks a month for cable... its the biggest rip off in the world, and theres still commerical after commercial after commercial and tv stations telling us to write to the government because theyre not making enough money.. everything worth watching is online with no ads

  • smbius

    Posted Jun 17, 2009 3:17 pm GMT

    Although the internet may help promote original content that may not reach mainstream networks, we are also left with a ton of garbage (i.e. pointless vlogs, video rants, etc.) that we have to sift through out there.

    Rad

  • ivanfred

    Posted Jun 17, 2009 3:14 pm GMT

    Bah, TV is only good for watching NFL games.

  • supermanrocs

    Posted Jun 17, 2009 3:13 pm GMT

    Cancel your cable everyone maybe they'll make it cheaper. cuz right now all i need is my ps3 and hulu. dats where all my fav shows are anyway.

  • firedrakes

    Posted Jun 17, 2009 3:12 pm GMT

    good idea but the pc already done that!!!

  • etai79

    Posted Jun 17, 2009 3:08 pm GMT

    I don't even have a cable connection anymore. The only thing I watch on TV is Spongebob and South Park, one of which is available comprehensively online.

    Netflak ftw.

  • shawnanthony

    Posted Jun 17, 2009 2:54 pm GMT

    I work for a cable company in sales... guess i need a new job!

  • rasterror

    Posted Jun 17, 2009 2:27 pm GMT

    I wish that my 360 could act a as tv tuner/dvr/internet media machine. My Ps3 does an okay job but I mostly play games on my 360 and would love to be able to watch ovguide.com while playing a game. Oh well, there's always netflix.

  • Ovirew

    Posted Jun 17, 2009 1:56 pm GMT

    @ ratm247

    It sounds like you really have no reason to say tv sucks, because you still watch it - just on the Internet. And you can't really even say you think it's commercials that suck, because you still have to watch through ads online. You could have gotten away with saying "I buy the show on DVD", but then again, how would you know the show is good enough to buy in the first place if it weren't for TV, and still, you are watching a television show.

    I do think that reality television is total garbage, but I support a good scripted drama or sitcom anyday.

    The final analysis? You are complaining about nothing, for the heck of it. People can call criticize television and the shows on it all they want, but the truth is, they are just placing the blame on someone else. There's nothing wrong with television - in fact, I think people like you would probably be the first ones to complain that society downgraded if we didn't have television anymore.

    EDIT: LMAO, I also just read that you play games while you are watching these shows? Is that right? Well then, you don't even try watching shows - what you are doing is pretty much mindlessly laughing at the immature antics of Homer Simpson. That isn't TV, that is potty humor. Maybe if you tried opening yourself up to more complex shows like LOST, or more informative shows like Mythbusters, you would see what the buzz is all about. But you have to make an effort... I guess it's not for everyone.

    ~ Ovirew

  • hatieshorrer

    Posted Jun 17, 2009 1:43 pm GMT

    Internet to TV? I wonder if this will result in the creation on a new format to replace HDTV.

  • ratm247

    Posted Jun 17, 2009 1:31 pm GMT

    tv sucks, i havent watched tv for close to 10 years. i am thankful for it, as i see tv at my friends places and wonder how i used to like that drivel, and your brain is less active than when youre sleeping. i download the shows i want to see like simpsons an hour after it airs, with no commercials, and watch them while i play games.

  • SchumiF1

    Posted Jun 17, 2009 1:30 pm GMT

    I often use my PS3's web browser to watch stuff online. I don't think it's gonna replace cable but it's nice to have the ability to. But it would be nice if they lowered the price of cable because it's really expensive

  • oussamaosm

    Posted Jun 17, 2009 1:18 pm GMT

    there is no replacement to TV

  • hdi67

    Posted Jun 17, 2009 1:16 pm GMT

    This is kinda scary... I feel like all this new technology is gonna become like SkyNet from the Terminator movies and become self aware and kill us all. Machines and tech ruling the world isn't really all that great of an idea. I don't like this at all....

  • Peaches1347

    Posted Jun 17, 2009 1:11 pm GMT

    tv is changing....forever

  • magicalclick

    Posted Jun 17, 2009 12:29 pm GMT

    The thought of TV services gone because of Netflix or Hulu online TV services really scares me.

  • Khasym

    Posted Jun 17, 2009 12:19 pm GMT

    I gotta be honest. As a 360 and Netflix customer, I rather like it. I don't worry about stacking and stocking DVD's, I don't have to think about returns, and if I don't like a movie, I jsut delete it instead of forever realizing i got screwed out of $20-$30 for a DVD.



    Right now, Netflix's setup doesn't have all of their collection for streaming, but frankly, I could definetly see paying the same price, for just the streaming videos. I'd like a little more selection in how I view them(right now, there's only one format and one language track for most movies, with no deleted scenes or extras) but even without those features, I'd still plunk down the $20 a month to watch movies on my 360.

  • Inconnux

    Posted Jun 17, 2009 12:09 pm GMT

    I couldn't imagine using the WWW on a console... webvideo's maybe, but average web surfing, no.

  • jdt532

    Posted Jun 17, 2009 12:06 pm GMT

    If I can watch all my favorite live TV shows, sports games and movies in HD through my console of choice which will allow me to dump cable/satellite and their ridiculous $80~ a month fees I'm all for it.

  • tonitorsi

    Posted Jun 17, 2009 11:58 am GMT

    This has happened already with me.

  • d3emondav3

    Posted Jun 17, 2009 11:52 am GMT

    The kid hugging the Tv is thinking "I see dead people!"

  • ptown58

    Posted Jun 17, 2009 11:50 am GMT

    Other than G4TV I dont ever watch normal tv and when they get their sht straight and go HD I'll most likely just watch that the same way I watch everything else...on my computer. Though my son does still watch normal tv sometimes and his mom watches normal tv all the time.

  • SkidRow18

    Posted Jun 17, 2009 11:50 am GMT

    wth, the picture is kinda creepy

  • ParisSun

    Posted Jun 17, 2009 11:48 am GMT

    I use my 360 to watch missed episodes of Lost and Heroes. I also love the live streaming of Netflx movies. I one of those people who don't like to have a living room cluttered with dvds. I do love extras and that doesn't usually come with live stream movies, so I'll buy disc for movies I really like until they start offering the extras online.

  • ptown58

    Posted Jun 17, 2009 11:45 am GMT

    Dont know about every one else but my computer has two video inputs, one for my 22" lcd and one for my 32" lcd, theres no need to use my 360 other than games.

  • ptown58

    Posted Jun 17, 2009 11:42 am GMT

    Stream to a console ? I have a perfectly fine computer why would I stream to my 360 ? too many steps.

  • smzee27

    Posted Jun 17, 2009 11:37 am GMT

    Cable and dish companies already over charge by making customers pay for packages (and in effect, channels that they never even watch). This seems like a good way to both save money and put pressure on cable and dish service providers to be more fair with their rates.

  • asian_pride69

    Posted Jun 17, 2009 11:36 am GMT

    I watch videos on the Internet. I only watch TV for the movies. Nothing good is on TV anymore these days anyway.

  • zaku101

    Posted Jun 17, 2009 11:27 am GMT

    I believe this has already started. Just about all of my friends don't watch TV anymore and they've got cable/dish. We spend more time watching and reading stuff on the computer than the TV.

    The computer also provides many of the channels you normal pay for and many more. Heck you can even hook your computer up to your TV.

  • AtlanticRock

    Posted Jun 17, 2009 11:23 am GMT

    I prefer to watch my movies on TV, I hate being on the CPU too long... but sitting back and streaming some videos(or DVDs) on the 360 is relaxing because i'm in my room... can't wait for the Facebook feature this august so I won't have to touch the family desktop other than for projects and deleting junk mail.

  • ItchyIsVegeta

    Posted Jun 17, 2009 11:18 am GMT

    The problem is, this is one of the primary reasons you see Cable companies putting a 100G or 250G cap on your internet. Instead of simply raising their internet rates, they have to get back at people watching their shows by putting limits on what they can do.

  • Simpsons13

    Posted Jun 17, 2009 11:14 am GMT

    Cable TV won't switch over to internet

  • johnrkinsey1

    Posted Jun 17, 2009 11:13 am GMT

    Wow...The media has something positive to say about gamers...

  • darth_hid3ous

    Posted Jun 17, 2009 11:08 am GMT

    wow...I guess I will be one of them soon...(nweheh heh)

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