VOD behavioural study
March 6, 2009
The Coda Research Consultancy has released findings from its three month market and behavioural study of UK Video on Demand via TV and online.
Coda’s project “Video on Demand: Behaviour and Trajectories” shows that the launch of Project Canvas, and the launch of an aggregated subscription based VOD service by the middle of 2010 will have significant impacts upon behaviour and revenues.
If the above occurs, Coda predicts a transition in viewing behaviour in the UK, which will result in the following by 2015:
– VOD via TV consumption will increase four fold, from 7 million hours per day now, to 28 million
– VOD via PC/laptop consumption will increase four fold, from 5 million per day now, to 20 million
– Linear viewing (i.e. broadcast via TV) will see a decline of 15 per cent, from around 190 million hours per day now, to 160m
– VOD via TV and online will impact PVR viewing, which will increase by only 30-40 per cent, to 14 million per day
– An overall increase in AV viewing of 3 per cent, to 219 million hours per day (across all platforms)
– Ad revenues from VOD will be hit £500 million. Roughly three fifths of this will be generated from TV VOD
– Ad revenues from linear TV will decline by 10 per cent, to £2.86 billion
– Subscription revenues for a movie aggregator online and via TV will approximate £192 million
Coda’s research also shows that UK Internet users currently consume at least £1.3 billion (E1.46bn) worth of illegally sourced video content per year. This will continue to increase despite warnings about prosecution, unless rights owners work closely with service providers to open up current and archive broadcast and movie video by way of aggregated services.