A mere fifth of pay-TV subs order VOD, claims report

A startlingly low proportion of pay-TV subscribers in North America are paying to use their service provider’s video-on-demand library, according to a new study from Digitalsmiths.

The survey was conducted with 2,000 pay-TV subs and found that just 22% of them order at least one VOD movie per month, compared to 50% of them using an over-the-top (OTT) service such as Netflix.

Reasons cited for this disparity in usage include over half (63%) saying that it is cheaper to use OTT services rather than pay-TV providers’ own VOD offerings, while 43% identify greater convenience, 33% say that OTT services have a better selection, and 28% state that it is easier to find what you are looking for.

A majority (61%) of respondents don’t even use their pay-TV provider’s VOD search function, with 57% saying they would use it if it were easier to navigate, and 87% said that their pay-TV provider doesn’t recommend TV shows or movies to them.

Despite all this however, the study did find that more than 81% of respondents describe themselves as either “satisfied” or “very satisfied” with the value they receive from their pay-TV provider.

Editor’s view: This is all grist for the mill of North America’s pay-TV operators: issues clearly linger regarding the user interface of many operators’ VOD services, and there appears to be a communication issue at stake here too.

Netflix, Hulu Premium et al are by no means the only VOD providers to be recommending new titles to watch to their customers – and the statistic about nearly 90% of pay-TV subscribers not being fed recommendations seems unlikely to be true – but one thing the OTT players are clearly doing better is pushing relevant content to their customers in a compelling way.

We welcome reader discussion and request that you please comment using an authentic name. Comments will appear on the live site as soon as they are approved by the moderator (within 24 hours). Spam, promotional and derogatory comments will not be approved

Post your comment

Facebook, Instagram and Sky case study: Game of Thrones

BT at IBC: 'unlocking the power of fibre IPTV'

IP&TV News tries out 4G Broadcast at the FA Cup Final

Thomas Riedl: “Google TV has evolved into Android TV”

Tesco and blinkbox: what went wrong?

Reed Hastings and 2030: is he right?