Advanced Television

Flexible models for premium video delivery raise interest

October 22, 2012

In advance of TelcoTV, the largest conference and expo focused on video broadband network service providers in the US, a preview of results from the annual Heavy Reading State of the Video Consumer Survey have been released. Complete findings from the 2012 survey will be presented during a keynote address by Aditya Kishore, Senior Analyst, Heavy Reading on Wednesday, October 24, 2012.

Heavy Reading’s State of the Video Consumer Survey, now in its fifth year, is an annual report that reveals consumer opinions about video consumption across device platforms, provider perceptions and satisfaction levels with video services.

Highlights of the 2012 survey include:

  • 12 per cent were willing to pay up to $10/month for a premium video tier; another 26 per cent would pay $5
  • 16 per cent would pay for a boost button @$1 per use
  • 31 per cent would pay for white listed site which would always offer high QoE @$1/site/month.

Other key findings:

  • Cost sensitivity remains very high, consistent with previous years since 2008
  • Satisfaction is comparatively high for most service attributes and more than 40 per cent of subscribers are staying with their pay TV providers for five years or more
  • But ISPs are in a sensitive position with regard to subscribers’ Over-the-Top (OTT) experience: More than 1 in 8 would definitely switch providers for a better online video experience
  • Interest continues to be fairly high for various multiscreen/connected services; although mobile video and videoconferencing ranked lower than other options
  • Nearly 10 per cent fewer respondents said that pay-TV and OTT services were not competitive compared with last year – a notable shift, although not in itself suggestive of sudden imminent changes in the pay-TV landscape.

“The findings from this survey illustrate that there is a willingness by consumers to pay for flexible models for premium video delivery services. In fact, there is more interest in these models for in-home usage rather than mobile,” says Kishore, a 15-year veteran of the consumer media industry. “It’s fitting that a key theme at this year’s TelcoTV is profitable services, as the survey results reinforce the opportunity for broadband network service providers to generate revenue through premium video delivery services.”




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