Consoles leading Web-to-TV viewing surge - Report

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.

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."