Tiscali Press Release - Consumers predict the end of traditional TV

4th January 2007

Tiscali TV Trends Report 2007 reveals consumer hunger for TV freedom

British consumers will be trading in the traditional broadcast model of TV scheduling in favour of on-demand TV over their broadband connection, according to new, independent research commissioned by Tiscali, the broadband and media company.

The Tiscali TV Trends Report 2007 reveals that despite not knowing what the term 'IPTV' means, 63% of UK adults would prefer to watch on-demand programmes on their TV sets, via their broadband connection.

Brits want TV freedom
Such is the British population's confidence that broadband delivered television on-demand is the way forward that 42% believe today's traditional television schedules will be a thing of the past in ten years' time. The research shows that choice is key and will have a significant impact on who succeeds. A further one in four people believe that the big commercial broadcasters, like ITV, will be struggling to survive amidst a myriad of small, fast-moving independents who can give consumers what they want, when they want it.

However, the choice and lifestyle freedom that on-demand television provides will not turn Britain into a nation of square-eyed couch potatoes. 42% of those who view on-demand content actually watch less TV as a result, and a further 41% watch about the same amount. The implications for television advertisers are significant and broadcast campaign planners will have to become much more specific in their targeting.

Sport alone is not enough
Remarkably, almost one in five (17%) of UK adults have already downloaded content on-demand to their television sets and the good news for employers is the majority (97%) are viewing this content at home and not on a work PC. The remaining 83% said that movies on demand were the most compelling reason to try out a broadband television service (71%) followed by TV shows or soaps (49%) and sports (32%).

Being able to watch the right movie at the right time is so important to British consumers that more than half (51%) would prefer to rent a movie by downloading it through their broadband connection rather than go to a video rental store.

Londoners shown to be early adopters
28% of Londoners watch on-demand content via their internet connection making them the UK's early adopters, in sharp contrast to Wales and Northern Ireland where just 12% of people have viewed on-demand content via their internet connection. When it comes to the battle of the sexes, men are watching the most on-demand content via broadband - 21% compared with 16% of all women.

Tiscali, which bought Video Networks International Ltd earlier this year, conducted the research as part of its preparation for its TV product rollout in early 2007.

Neal McCleave, managing director of media services for Tiscali UK says, "There is obviously a big demand already among British consumers for the freedom and choice IPTV will give them, even if they don't know the jargon yet. Conventional broadcasters should heed the warning and will need to adapt significantly in the coming years to retain their market share.

"IPTV will create a whole new force in broadcast and digital entertainment distribution and Tiscali's TV service will be the broadest and most flexible. It's all about choice."

"The good news for consumers is that with all the extra choice and freedom, we're not all going to become couch potatoes. While the growing adoption of IPTV may mean we watch less TV overall, the time we spend in front of the box will be of a higher quality."

Research methodology
The survey commissioned by Tiscali was conducted by research specialist Tickbox.net and polled a representative sample of 1,465 adults in the UK.