Despite the raging recession, Internet TV and TV on demand is increasingly popular with the consumer.

Reports that over 65% of US consumers have adjusted their spending habits during the last quarter of 2008, a study has shown that paying for entertainment has declined in the usual events – Eating out, buying electronics and going to the movies and replaced with internet delivered TV on demand.

Parks Associates who conducted the report says that consumer spending on electronics will reduce by a whopping 50% because of the recession and instead of purchasing DVD’s viewers are moving to movie rentals and ad supported catch up tv and TV on Demand (VOD).

Because consumers have reduced spending on expensive outside entertainment like restaurants and movie trips, there is a greater demand for less expensive options such as stay at home entertainment.

Principal analyst of Parks, Kurt Scherf said:- “For household services such as the Internet and pay TV, recessionary concerns have less impact. Consumers are more likely to cut back on outside entertainment expenses before trimming household services such as home telephone, pay TV and the Internet.”

This may explain why broadcasters are jumping onto the online tv bandwagon as they know that is where the public are heading in these dark days.

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