The number of Internet users regularly watching video online has finally risen above the halfway mark, suggests a new survey by the research group Horowitz Associates. Whereas 45 percent watched video weekly in 2006, and 71 percent watched monthly, these figures have jumped to 61 and 86 percent in 2007, respectively. 27 percent of Internet users are also said to have a cellphone or media player with video abilities, such as an iPod; of these though, only 35 percent watch video weekly, while 62 percent do so monthly.

The bulk of videos viewed are said to be either news clips or "user-generated, non-professional" content, likely referring to sites such as YouTube. Following this are movie previews, music videos, and previews or portions of TV shows.

A slender 16 percent of Internet users are watching complete TV shows weekly, according to the Horowitz report. Of these 70 percent are doing so only because they missed an episode on broadcast; 20 percent are stumbling across them, accidentally or through a friend, and 18 percent say they want to see some episodes again. 13 percent view content exclusively on their computers.

Although the market for online TV is comparatively small, the survey may not bode well for Apple and its iTunes Store. ABC's Grey's Anatomy is the most popular show in digital format, but the most sought-after network is NBC, which recently pulled its videos from iTunes as a result of a pricing dispute. At one point, 40 percent of the video on the iTunes Store belonged to NBC Universal. The company has since turned to NBC.com and its Hulu joint venture as online outlets.