Close to 16 percent of American households who use the internet watch television broadcasts online, The Conference Board and TNS report. The number of consumers viewing entire episodes/shows on the internet has doubled from a year ago. Nearly 73 percent of online households use the internet for entertainment purposes on a daily basis and an additional 15 percent search for entertainment several times a week.

Online viewers cite personal convenience and avoiding commercials as their top two reasons for watching TV broadcasts on the Internet. Four out of every five online viewers say that watching these programs online has not changed their television viewing habits, but a small percentage claim that their traditional television viewing has decreased.

Watching TV Has Replaced News as the Most Widely Viewed Content Online

More than three out of five online TV viewers cite personal convenience as the major reason for watching TV broadcasts online. More than a third chooses online viewing in order to avoid watching television commercials. Other reasons cited include portability and a preference for computer viewing.

Says Franco: "One reason that personal convenience is the top reason for online viewing is that much of the same content available for television viewers is also available online." Online users catching up on missed content have increased to 42 percent from 30 percent a year ago. Consumers viewing entire episodes on the internet have doubled, and now approximately half watch their favorite shows online. This has replaced the news as the most widely viewed content online. Other online viewing preferences include sports, entertainment, previews and additional content.

"Over the next few years, the growing popularity of viewing TV episodes/shows online is going to have a huge impact on the way brands and advertisers communicate with viewers," says Shari Morwood, E.V.P. of Technology, Telecommunications and Media at TNS. "If advertisers can effectively leverage the online video platform, we should see much more interactivity and emotional connection between brands and the online TV viewing audience. On a broader scale, we will also see changes in viewing preferences, including TV on mobile devices, as media, telecom, and technology increasingly converge."

Few Consumers Pay for Online Television Downloads

The top methods for viewing broadcasts online are streaming and free downloading. Consumers also enroll in pay per download and subscription services, though this is much less prevalent. About two-thirds of viewers stream online content, and more than 40 percent download content for free.

The Consumer Internet Barometer is based on a quarterly survey of 10,000 households. A unique sample is surveyed each quarter. Return rates average 70 percent, which ensures highly representative data. Data is weighted as well to reflect the latest U.S. household demographic information. The latest survey was conducted during the third quarter of 2007.