A new report confirms what we’ve suspected all along—watching TV is just too passé.

Nielsen found that 88 percent of tablet owners in the US use their devices while watching TV at least once a month.  And almost half of tablet owners do so on a daily basis. And about  41 percent of people used a smartphone while watching the boob tube.

So, what are people doing on these second screens? Checking e-mail according to Nielsen. Next in popularity was checking content related to the programming or products being advertised around it.

Now that sounds like opportunity.

I recently attended a Social TV Summit in San Francisco where companies big and small talked about some of the best platforms for increasing the big E: engagement. Vendors like Shazam are building apps and betting that exclusive content will drive engagement. Media companies like AOL are experimenting with social media and broadcast news with the Huffington Post Streaming Network.  Google is trying to extend Google + “Hangouts” to TV broadcasts.

But, one has to wonder if the space is already too crowded and ripe for consolidation.

Google Ventures’ Joe Kraus offered some perspective. He indicated that 70 percent of social TV startups will disappear, 20 percent will “toil in obscurity” and a mere ten percent will be breakouts.