“What is now seen as a predominately younger pastime will spread to encompass a wider group of people, in part due to the aging of current online video viewers, but also as a result of word of mouth, spread of services, growth of in-home networks, and new network-connected consumer electronic devices,” said In-Stat analyst Gerry Kaufhold in a statement, Information Week reported Wednesday.

According to the report, 54 percent of respondents said they like physical disks more when they buy movies or TV shows. “Over half of consumers actually still prefer packaged goods, which bodes well for Blu-ray discs,” Kaufhold added. “Surprisingly, younger people who regularly watch online were the group that expressed the highest interest in owning a package goods bundle that includes artwork and extra content.”

In-Stat predicted that advertising-supported video from major TV networks will continue bringing in strong revenues throughout 2012.

Moreover, the study found that 90 percent of U.S. households will have broadband access by 2012, with 94 percent of that sample planning to watch videos online, Information Week reported.