Consumers in China and India are interested in Internet video and losing interest in traditional TV channels, according to a newly released study by global consulting firm Bain & Company.
The research firm expects an increase in the household penetration of next generation Internet-connected devices and forecasts increased adoption of online content for video consumption.
However, new business models and innovative content is required to benefit from the forecasted consumer spending.
Based on a survey of 3,000 consumers in Europe, the United States and Asia, Bain & Company has predicted Internet television to be in 60 percent of households by 2014.
"The permanent media revolution continues," said Patrick Behar, head of Bain's Media & Entertainment practice in Europe and lead author of the study. "Significant change lies ahead for the media and entertainment industry as content platforms, new entrants and incumbents battle for profits and market share."
Reliance on search engines
About 45 per cent of consumers in India and China will rely on search engines to find content, according to "Connected devices and services: Reinventing content".
However, lack of infrastructure will limit the ability of many consumers, particularly in India, to view video on connected devices.
About three-quarters of those surveyed in India and China expressed interest in webisodes or short episodes which are aired on Internet television.
In contrast, 30 to 45 percent of those surveyed in Western markets are interested in such formats on connected devices but about two-thirds are not willing to pay for these webisodes.
Bain & Company's study also shows that while video games are fertile ground for creating innovative content experiences, other cultural and entertainment activities, such as live entertainment and visual arts, currently have limited online options.
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