Less Televisions?

Nielsen announced that the number of households with televisions dropped for the first time in 20 years. Currently 96.7% of households have televisions compared with the previous level of 98.9%. There seem to be two primary reasons for this. First is the down economy and the growing poverty levels across the country. Households that are struggling are not likely to buy televisions or haven't been able to afford sets that run on the new digital signals. The last time a drop like this occurred was in 1992 when the nation was had also been subject to a prolonged recession. If the current economic climate continues, it will effect networks, studios and advertising.

The second reason that they offer for the decline is the rise in online video. Unlike the households that can no longer afford television or cable, these viewers often have internet access and have "cut the cord". Younger people have gown up more accustomed to getting their entertainment and news online and seem to be more willing overall to access content through other mediums than television. This group can be bloated right now as a result of the economy, but it is not known if they will return to television if things turn around or if this is the beginning of a larger shift to online viewing. Overall, consumers are viewing more video content across all platforms, which just underscores the importance of seeking new revenue channels for traditional providers and marketers.

http://www.nytimes.com/2011/05/03/business/media/03television.html?src=tp