Dive Brief:
- While some in the industry are claiming the demise of TV because of online video, a study from Simulmedia shows otherwise.
- According to the study, 238 million Americans watch TV every month for a total of 146 hours, compared to 155 million monthly viewers and an average of six hours for online video.
- The real disparity comes in ad spend with TV pulling in $74 billion and online video with only 5% of that at $3.5 billion.
Dive Insight:
Until the difference in ad spend is closer between TV and online video, the competition will not be fierce. Many TV broadcasters and creators are investing in online programs to ward off the threat preemptively. If that continues to occur, online video is not likely to put TV out of business anytime soon.
