Streaming video set to outrate network TV

The report finds the percentage of people globally streaming video from services such as Netflix had increased from around 30 per cent in 2010 to more than 50 per cent this year. Photo / iStock

The number of people streaming video online could pass the number of people watching traditional TV in the next year, according to research by communications company Ericsson.

The latest TV and Media report released by the company showed the percentage of people globally streaming video from services such as Netflix, Lightbox or YouTube had increased from around 30 per cent in 2010 to more than 50 per cent this year.

Over the same period, the number of people watching traditional TV had dropped by around ten per cent.

In New Zealand, online TV viewing has grown 25 per cent in the last year with 51 per cent of households saying they watched TV or movies online.

From its launch until July this year, more than 7.4 million hours worth of content had been streamed through the service, with some of the most popular shows being Suits, Breaking Bad, Dance Moms, Justified, Vikings, Outlander and Better Call Saul. Despite the popularity of services such as Netflix and Lightbox, YouTube is still watched more than all other video services both in New Zealand and globally.

Anders Erlandsson, the senior advisor for Ericsson's Consumer Lab who led the study told tech news website Tech Insider that although the number of people watching video online would surpass those watching TV in the near future, it would be roughly another five years before more hours were spent watching video online compared with regular TV.

"Ericsson's media vision says that by 2020 on-demand and [regular TV viewing] will be on the same level when it comes to hours spent watching," he said.

The survey was conducted globally with more than 20,000 people surveyed. Results showed on average people spend six hours a week watching streamed television series, programmes and movies on demand - which has more than the estimated 2.9 hours a week reported in 2011. According to Ericsson, binge watching had changed the way video content was consumed, pushing viewers towards streaming services.

"Bingeing, the watching of multiple episodes of TV and video content in a row, has rapidly become a key part of the TV and media experience," it said. "This habit is prominent among Subscription Video-on-demand users, where 87 percent binge view at least once a week." The survey also found gender and age differences between viewing preferences with men spending more than three hours a week on average watching live sport compared with just one hour for women, who tended to spend more time watching TV series. Consumers aged between 16 and 34 spent more than half of their video viewing time on a smartphone, laptop or tablet.

Since 2012 the number of consumers across all age groups who watch video on their smartphones has increased by 71 percent.

The average time spent watching video on mobile devices is up 3 hours a week compared to 2012.