Rising demand means half of funeral directors and crematoria can now live-stream services online.
But the trend is dividing mourners, with almost 50 per cent saying they would rather not watch at all than tune in to an online broadcast of a loved-one's memorial.
A discreet video camera can be set up to film a funeral, which is then broadcast online on a password-protected site for the benefit of mourners who couldn't attend.
The figures suggest that the trend is growing rapidly. Data released last October suggested that just one in five crematoriums could offer the service.
But the new survey, carried out by insurer Royal London, suggested that its popularity might be limited to younger people.
One in three millennials said they would be happy to watch an online livestream if they could not go to a funeral in person, compared to one in four people aged over 35.
More than half went so far as to say watching a funeral online would be "insensitive" or "morbid".
The practice has raised concerns that lazy mourners might use the technology as an excuse not to attend a funeral they would rather not go to.
Some funeral directors also say that sharing condolences with family members can be more important for the grieving process than witnessing the actual service.
But the online videos can be useful for older mourners who might find it difficult to attend, or for relatives who live abroad.
Some funeral directors will even offer family members a recording of the service on a DVD.
Mona Patel, Royal London’s consumer spokeswoman, said: “It is understandable that most people would prefer to attend a funeral in person wherever possible.
"But with so many people saying they have been forced to miss a funeral, live-streaming could be an option for those who would like to pay their last respects but aren’t able to attend in person.
"Many older people are not comfortable with this, but it is noticeable that younger people are much more open to paying their respects in a different way.”