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Web Video Chips Away at TV

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More evidence that online video is cannibalizing television consumption is due Monday, courtesy of an IBM study. Plus, online viewers don't mind the commercials too much.

After polling 2,800 people in six countries, IBM says 76 percent have viewed video online and 45 percent do so regularly. Of those who have watched online video, 15 percent say that as a result they watch "slightly less" TV, while 36 percent said they watch "significantly less" TV.

"Place-shifting alternatives may be changing consumer couch-potato behavior," according to the study.

Of those who watch online video, 70 percent prefer the ad-supported model over consumer-paid models. They specify, though, that they prefer watching a commercial before or after an uninterrupted online video, and they're not crazy about product placement.

Almost 60 percent of the respondents said they were willing to provide to advertisers some personal information about themselves in exchange for something of value, such as access to high-quality music videos, store discounts or airline frequent-flyer points.

"The industry must find appealing ways to monetize new content sources or risk a similar fate as that of the music industry where value shifted away from core players," said Saul Berman, the study's co-author.