Video-on-Demand: The Road to Revenues
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1 By John Barrett, Director, Consumer Analytics; and Yilan Jiang, Manager of Consumer Research, Parks Associates SYNOPSIS Video-on-Demand: The Road to Revenues analyzes the obstacles to VOD revenue growth and status of the competition. This consumer research project also identifies the strategies that will make VOD a success for pay-tv service providers. 80% 40% Use of Device for Video over Time "In the past 30 days, have you watched video on a " (U.S. broadband households) Q4/10 Q1/12 Q1/13 0% Parks Associates Computer Tablet Mobile phone ANALYST INSIGHT A significant portion of the pay-tv population is unaware of available VOD services. Pay-TV providers need to educate their subscribers on the availability, cost, and use of pay-tv VOD offerings, through marketing initiatives and perhaps even free TVOD trials. John Barrett, Director, Consumer Analytics, Parks Associates The Bottom Line About the Research Video on Demand Taxonomy Previous Research Key Findings Recommendations
2 Pay TV Services Overview Pay-TV Service Subscription ( ) Pay-TV Service Subscription by Age ( ) OTT Service Subscription ( ) OTT Service Subscription by Age (Q1/13) Netflix Service Subscription (2012 vs. 2013) Reasons for Canceling Netflix Subscription (Q1/13) Pay-TV vs. Non Pay-TV Service Subscription ( ) Previous Pay-TV Subscription Period ( ) Pay-TV Service Subscription by Age (Q1/13) Cancelled Pay-TV Service in the Past 2 Years vs. OTT Service Subscription by Age (Q1/13) Pay-TV providers continue to expand VOD offerings Premium TV Services ( ) Pay-TV Feature Usage ( ) Use of Pay-TV Features (Q1/13) Premium Movie Channel Subscription (Q1/13) Average Monthly Cost of Home Services ( ) Average Monthly Cost of Unbundled Pay-TV Service by Age (2012 vs. 2013) Monthly Cost of Bundled Home Services ( ) Changes to Pay TV Services Pay-TV Subscription Trends ( ) Likelihood of Upgrading Pay-TV for Expanded Free VOD Service (Q1/13) Reasons for Canceling Pay-TV Service (Q1/13) Reasons for Canceling Pay-TV by Time of Cancellation (Q1/13) Important Sources of Video if Pay-TV Service is Canceled (Q1/13) Re-Connectors (2012 vs. 2013) Reasons for Cancelling Pay-TV Service (2012 vs. 2013) Video Consumption Consumer Electronics Adoption ( ) Use of Device for Video ( ) Frequency Use of Device for Video ( ) Video Consumption by Platform ( )
3 Video Consumption on Computers by Source ( ) Internet Video Use ( ) Sources of Home Video Video Viewing Habits ( ) VOD Availability/Awareness (Q1/13) SVOD Availability/Awareness by Premium Channel (Q1/13) Sources Used to Watch Movies at Home (Q1/13) Movie Viewing Sources by Age (Q1/13) Number of Video Sources Used to Watch Movies at Home (Q1/13) Top Sources Used to Watch Movies at Home (Q1/13) Pay-TV Subscribers: Top Choices for Home Movie Viewing (Q1/13) Pay-TV Subscribers with VOD: Top Choices for Home Movie Viewing (Q1/13) Premium Movie Channel Subscribers: Top Choices for Home Movie Viewing (Q1/13) Sources Used to Watch a TV Program at Home (Q1/13) Number of Sources Used to Watch a TV Program at Home (Q1/13) Top Sources Used to Watch TV Programs at Home (Q1/13) Pay-TV Subscribers: Top Choices for Home TV Viewing (Q1/13) Pay-TV Subscribers with VOD: Top Choices for Home TV Viewing (Q1/13) Premium Movie Channel Subscribers: Top Choices for Home TV Viewing (Q1/13) VOD Drivers & Inhibitors Motivations for VOD Use by Service (Q1/13) Reason to Watch Free Online TV Programs (Q1/13) Reasons for Watching Programs Online (Q1/13) Reasons for Not Watching TVOD (Q1/13) Reasons for Not Watching SVOD (Q1/13) Reasons for Not Considering TVOD as Alternative to FVOD (Q1/13) Reasons for Not Considering SVOD as Alternative to FVOD (Q1/13) Reasons for Not Watching Free On-Demand Programs (Q1/13) VOD Use Use of VOD Services (Q1/13) Number of Movies Viewed by OTT Services (Q1/13) Number of TV Shows Viewed by OTT Services (Q1/13)
4 Number of Episodes of TV Programs Viewed by Service (Q1/13) Descriptions of Programs Viewed by OTT Service (Q1/13) Time When On-Demand Programs are Viewed by Service (Q1/13) Alternatives Considered When Watching On-Demand Programs by Service (Q1/13) Online Alternatives Considered When Watching On-Demand Programs by Service (Q1/13) Reasons for Not Considering Paid VOD as Alternative by Online Video Service (Q1/13) Reasons for Not Considering SVOD as Alternative by Online Video Service (Q1/13) Premium Movie Channel Subscribers & FVOD: Considered Alternatives (Q1/13) Strongest Attributes of On-Demand Service by Service (Q1/13) Attribute Ratings by Online Video Service (Q1/13) Discovery of TVOD Programming (Q1/13) Increasing VOD Use & Revenues Pay-TV Subscribers with VOD: Expected Use of Hypothetical TVOD Services vs. Current Use (Q1/13) Pay-TV Subscribers: Expected Use of Hypothetical TVOD Services vs. Current Use (Q1/13) Preferred VOD Options: Cheaper VOD (Q1/13) Preferred VOD Options: Netflix vs. Alternatives (Q1/13) Potential Incentives to Watch TVOD Programs (Q1/13) Intention to Pay $9.99/Month for New VOD Services (Q1/13) Intention to Pay $9.99/Month for New VOD Services by Service Provider (Q1/13) Willingness to Pay Additional Fees for Netflix with Expanded Content (Q1/13) Additional Research from Parks Associates
5 ATTRIBUTES Parks Associates N. Dallas Pkwy Suite 575 Dallas TX TOLL FREE PHONE FAX parksassociates.com Authored by John Barrett and Yilan Jiang Executive Editor: Tricia Parks Number of Slides: 112 Published by Parks Associates 2013 Parks Associates Dallas, Texas All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Printed in the United States of America. Disclaimer Parks Associates has made every reasonable effort to ensure that all information in this report is correct. We assume no responsibility for any inadvertent errors.
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