The US consumer electronics industry is ready to start growing again in 2010. Following an estimated 7.7% decline in revenues between 2008 and 2009, to $165 billion, the Consumer Electronics Association (CEA) forecasts a slight uptick (up 0.6%) in 2010, to $166 billion in revenues.Among the hottest new products now available are Internet-enabled television sets (IETVs) that connect directly to the Internet, without the use of a media adapter. A CEA survey taken in December 2008 found that about one-half of online adult respondents said they were likely to buy in IETV. Manufacturers now include LG Electronics, Samsung and Sony. Behind them are content and hardware players such as Yahoo!, Intel, MySpace, Netflix and Amazon, all working to provide some form of acceptable interface and content.Americans are watching more TV than ever, and also more online video, Nielsen reports. Average TV consumption reached an all-time high in Q2 2009, to 141 hours per month, up 2.4% from Q2 2008. Timeshifted TV viewing continues to grow (up 57.9% in the same period), as does watching video online (up 62.7%). Attitudinal data from other surveys shows most respondents prefer to watch TV shows on TV sets, although they would give up their TV service if all their favorite shows were available online.Marketers must start planning for the convergence of TV and the Web, as it gathers steam into 2010 and beyond. Applications now working on smartphones can be reprogrammed for the biggest screen in the house. More importantly, consumers’ stated mistrust of online video advertising may dampen, if not dissipate, when they watch it on their TV set. The medium still influences the reception of the message.Key questions this report answers:What is the status of the digital home today' What technologies are the most prevalent' How common is multitasking between TV and the Internet' If consumers just watch YouTube on their televisions—how do brands advertise around that'   

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The Digital Home: Emerging Trends in TV/PC Viewership
Published on November 2009
Report Summary
The US consumer electronics industry is ready to start growing again in 2010. Following an estimated 7.7% decline in revenues
between 2008 and 2009, to $165 billion, the Consumer Electronics Association (CEA) forecasts a slight uptick (up 0.6%) in 2010, to
$166 billion in revenues.
Among the hottest new products now available are Internet-enabled television sets (IETVs) that connect directly to the Internet,
without the use of a media adapter. A CEA survey taken in December 2008 found that about one-half of online adult respondents said
they were likely to buy in IETV. Manufacturers now include LG Electronics, Samsung and Sony. Behind them are content and
hardware players such as Yahoo!, Intel, MySpace, Netflix and Amazon, all working to provide some form of acceptable interface and
content.
Americans are watching more TV than ever, and also more online video, Nielsen reports. Average TV consumption reached an
all-time high in Q2 2009, to 141 hours per month, up 2.4% from Q2 2008. Timeshifted TV viewing continues to grow (up 57.9% in the
same period), as does watching video online (up 62.7%). Attitudinal data from other surveys shows most respondents prefer to watch
TV shows on TV sets, although they would give up their TV service if all their favorite shows were available online.
Marketers must start planning for the convergence of TV and the Web, as it gathers steam into 2010 and beyond. Applications now
working on smartphones can be reprogrammed for the biggest screen in the house. More importantly, consumers’ stated
mistrust of online video advertising may dampen, if not dissipate, when they watch it on their TV set. The medium still influences the
reception of the message.
Key questions this report answers:What is the status of the digital home today' What technologies are the most prevalent' How
common is multitasking between TV and the Internet' If consumers just watch YouTube on their televisions—how do brands
advertise around that'
Table of Content
Executive Summary
Total Time US Consumers Spend per Month Viewing Video on TV, Internet and Mobile Phone, Q4 2008-Q2 2009 (% change*)
Key Questions
The eMarketer View
Technologies in the Home
Internet-Video-Capable Consumer Electronics* Shipments Worldwide, 2008 & 2013 (millions of units)
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Ownership Trends
Ownership of Consumer Electronics Devices Among US Internet Users, 2008 & 2009 (% of respondents)
Ownership of Consumer Electronics Devices Among US Internet Users, by Household Income, April 2009 (% of respondents)
Consumer Electronics Device Ownership Among US Households, Q3 2008 (% of respondents and growth index*)
Digital Communications Service Usage Among US Households, Q3 2008 (% of respondents)
US TV Households, 2000-2010 (millions)
Location of TV Set in US Households, September 2008 (% of respondents)
US TV Households, by Race/Ethnicity, 2009 & 2010 (thousands and % change)
US TV Households that Are Unable to Receive DTV Signals, by Race/Ethnicity, 2008-2009 (% of total TV households in each
group)
US HDTV Sales, 2008 & 2009
Next Trend for Online Video According to US Marketers, 2008 (% of respondents)
US DVR Households and Penetration, 2007-2012 (millions and % of TV households)
US DVR Households, by Number of DVRs, March 2009 (% of total)
US DVR Households, by Subscription Type, 2001-2014 (thousands)
US DVR Household Growth, by Subscription Type, 2003-2014 (% change)
Trends in Digital Services
US Broadband and Dial-Up Internet Households and Penetration, 2008-2013 (millions and % of total households)
Demographic Profile of US Adults with Home Broadband Access, 2006-2009 (% of respondents in each group)
US Broadband Households, by Access Technology, 2007, 2008 & 2009 (% of total)
US IPTV Subscribers, 2009 & 2013 (millions)
IPTV Subscriptions Worldwide, by Region, Q2 2008 & Q2 2009 (thousands)
IPTV Subscribers Worldwide, 2006-2013 (millions of units)
IPTV Subscribers Worldwide, 2008, 2009 & 2013 (millions)
US Video-on-Demand (VOD) Households, 2001-2014 (millions and % change)
US TV, Online Video and Mobile Video Viewers, Q2 2008, Q1 2009 & Q2 2009 (thousands)
Media Usage and Consumer Behavior
Share of Total Time US Consumers Spend per Month Viewing Video on TV, Internet and Mobile Phone, Q1 2008-Q2 2009 (% of
total)
Average Time Spent per Day with Select Media Among US Consumers, by Age, Spring & Fall 2008 (minutes)
Online Video Viewing
US Online Video Viewers and Penetration, 2008-2013
US Online Video Viewer Metrics, September 2009
Share of Unique Viewers at Top 10* Online Video Sites in the US, February-July 2009 (% of total)
Share of Unique Viewers at Top 10* Online Video Properties in the US, February-July 2009 (% of total)
Average Time Spent Viewing Online Video Among US Internet Users, by Age and Gender, November 2008 & April 2009 (minutes
per viewer and % change)
Top Five Online Video Sites Among US Internet Users Ages 35-49, Ranked by Time Spent Viewing, November 2008 & April 2009
(millions of minutes)
US Online Video Viewers* Who Find Short Professional Online Clips** Equally or More Entertaining than Full-Length TV Shows on
a TV Set, April 2009 (scale of 1-5)
US Internet Users Who Have Streamed TV Shows or Movies, September 2008 & April 2009 (% of respondents)
US Young Adult Internet Users Who Have Streamed TV Shows or Movies, September 2008 & April 2009 (% of respondents)
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Multitasking with Digital Media
Change in Time Spent Watching TV due to Online Video According to US Online Video Viewers, April 2009 (% of respondents)
US Internet Users Who Simultaneously Go Online and Watch TV, by Age, Q2 2009 (millions)
Time Spent Simultaneously Going Online and Watching TV According to US Internet Users, by Age, Q2 2009 (hrs:mins)
Behavior
TV Viewing Habits of US Internet Users, by Race/Ethnicity and Age, June 2009 (% of respondents)
Select Digital Media Habits of US Online Video Viewers and Nonviewers, April 2009 (% of respondents in each group)
Attitudes About Advertising
Advertising Tactics/Media Trusted* by Internet Users in North America, by Age, April 2009 (% of respondents)
Attitudes of US Online Video Viewers Toward Online Video Ads, April 2009 (% of respondents)
Attitudes of US Online Video Viewers Toward Network TV Online Video Advertising, 2008 (% of respondents)
US Online Video Viewers' Acceptance of Free, Advertising-Supported Online Video, by Type of Content, April 2009 (% of
respondents)
Frequency with Which US Internet Users* Skip TV Commercials While Using Their DVR, May 2009 (% of respondents)
Worst Problems with Video Advertising According to US Marketers, October-November 2008 (scale of 1-5*)
Conclusions
Endnotes
101307
US Broadband and Dial-Up Internet Households and Penetration, 2008-2013 (millions and % of total households)
105370
US Online Video Viewers and Penetration, 2008-2013
106624
US TV, Online Video and Mobile Video Viewers, Q2 2008, Q1 2009 & Q2 2009 (thousands)
Related Information and Links
Related Links
Contact
Report Contributors
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