Despite industry hype, video-on-demand (VoD) usage remains low, with few new subscribers and those signing up doing so viewing it as a “last resort for television.”
According to a new study from consumer research company, E-Poll, more than three quarters of consumers surveyed reject the idea of paying for content.
E-Poll asserts that VoD’s main appeal is that is allows users to watch feature-length movies at more convenient times. However, the Video on Demand: Attitudes and Opportunities report notes that VoD is not most viewers “first stop” after turning on their TV’s, in contrast to the interactive program guide which is considered an invaluable “go-to”.
A large number of respondents clam that VoD content was “sub-par”, with 18 percent saying they can’t find anything they want to watch, and 18 percent saying not enough programs were available. Meanwhile, 22 percent said they “already have enough programs available,” and 24 percent said they saw no reason to pay for content they could get for free “in a few months”.
More than 75% of users said that a free VoD service would increase its appeal, with E-Poll finding that respondents would accept a 60 second pre-roll commercial if it meant that VoD was free, signalling good news for advertisers.
A recent report from Nielsen Media Research and Comcast found that the VoD audience is biased towards the young. The study showed that 18-24 year olds comprised 37% of all VoD viewed minutes, compared to 20% of all traditional television minutes. In contrast, viewers over 54 accounted for only 3% of VoD minutes compared to 30% of all traditional television minutes (see VoD Complements Traditional TV Viewing).
According to Informa Telecoms and Media one-third of homes worldwide will be VoD enabled by 2010, generating $10.7 billion in revenues (see VoD To Reach One Third Of Homes Worldwide By 2010).
By the end of the decade 350 million homes will take VoD services, with North America taking 50% of revenues and accounting for more than half of VoD households.
The Asia Pacific region is forecast to have 125 million on-demand homes by 2010, overtaking the US as market leader, which is predicted to have 103 million on-demand homes by the same time.
The US leads VoD uptake with eMarketer estimating that there are 24 million VoD enabled homes, increasing to 47 million by 2007. Elsewhere, Magna Global is less optimistic, forecasting the figure to be much lower, at 33.5 million (see Emerging Technologies In The TV Marketplace).
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