In-Stat: Online video on TV gaining popularity

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The latest report from In-Stat found that more than 40 percent of U.S. households under age 35 viewed online video on their TVs at least on a monthly basis.

Silicon Alley Insider points out how dangerous this trend is for MSOs, as the proliferation of quality Internet TV offerings could eat into their profit center in the living room.

The report also predicted that 24 million households in the U.S. will view online video content on their TVs by 2014. While that is only a fraction of the U.S. TV audience, it still represents a disruptive trend that has the potential to rapidly accelerate with the right technological advances and content partnerships.

The cablecos haven't seen financial effects of the rise of online video yet, as several reports and the companies' recent quarterly earnings announcements show that only a small percentage of users have made the switch from cable to online video in the living room. There isn't a mass migration away from the current cable format yet, but it's clear the industry will have to innovate eventually to compete with over-the-top video solutions. Disney's deal with Hulu last week illustrates the urgency with which cable companies need to consider the changing competitive landscape.

For more:
- see the Silicon Alley Insider article here 

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