15 Million U.S. Households Consume Online Content through Gaming Consoles: Report

Video game consoles have quietly become the device of choice for streaming movies, TV shows and other Web programming on televisions, according to a new report.

Market research firm Strategy Analytics (News - Alert) found that a whopping 15 million U.S. households rely on their PlayStation 3 or Xbox 360 console to stream online content to their big screen, representing a larger percentage (12 percent) than those who connect a PC to a TV via HDMI.

Although the PC is still the preferred method for online viewing overall, the research firm suggests that the delivery of online content to televisions is a "key driver" in the migration toward IP-based entertainment consumption.

Perhaps even more eye-opening is the fact that the upcoming generation – those under the age of 25 – prefer accessing online content via gaming consoles more than they do PCs. A staggering 65 percent of US-based weekly Xbox 360 users rely on their console more than their PC for online media viewing.

Strategy Analytics speculates that this trend will only continue, especially considering Microsoft (News - Alert) is on the verge of launching its Xbox TV offering for the holiday season.

"Xbox Live content expansion addresses the desires of an increasingly demanding customer base and offers more reasons than ever to use the Microsoft box as opposed to its myriad alternatives," Ed Barton, Director of Digital Media Strategies at Strategy Analytics, noted in a statement. "Competition will intensify through 2012 as rival opportunities are brought to market."

Xbox Live TV is an interesting service because it doesn't replace a consumer's existing cable subscription. It simply allows Verizon (News - Alert) FiOS TV and Internet subscribers to be able to view live TV through their existing Xbox 360, giving users another reason to never stray from their console.

The service also includes 40 TV stations and “entertainment providers” from across the globe, including the BBC in the U.K. and Telefónica in Spain, TMC reported earlier.

Beecher Tuttle is a TMCnet contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.

Edited by Rich Steeves