Primetime and scheduled TV are losing their impact as consumers create their own entertainment lineups, according to a report from eMarketer.
Digital video recorders (DVRs) and video-on-demand (VOD) allow viewers to create their own schedule while at the same time, the slowing economy drives advertisers to demand the greatest return on their advertising investments.
VOD would seem well-positioned to capture a rising share of ad spending, but the way consumers use it may limit its potential as an ad medium.
Most cable TV operators offer free VOD content in combination with pay-per-view options, but time-shifting with DVRs is proving more popular.
An August 2007 study by IBM indicated that only 48% of US adult Internet users had used VOD. However, eMarketer estimates that VOD is available in one-third of TV households today, and will reach over 60% of households by 2012.
| US Video-on-demand Enabled Households and Penetration, 2007 2012 (millions and % of TV households) |
| |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
| Video-on-demand |
36.3 |
43.4 |
50.8 |
57.7 |
64.2 |
70.9 |
| TV Households (1) |
111.4 |
112.8 |
113.9 |
115.1 |
116.2 |
117.4 |
| Video-on-demand penetration of TV households |
32.6% |
38.5% |
44.6% |
50.1% |
55.2% |
60.4% |
| Source: eMarketer, June 2008; (1) Magna Global, ‘Magna Global On-demand Quarterly’ with company reports, June 2008 |
Content is the big driver of VOD usage said eMarketer. ChoiceStream data from December 2007 shows there would be greater viewership of VOD of there were “more content of interest”. Notably, however, 57% of respondents said they would not watch more VOD even if the content were better.
Accenture recently published its inaugural Global Broadcast Consumer Survey which found that consumers are more loyal to programmes than TV channels (see Viewers More Loyal To TV Programmes Than Channels).
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