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UK VOD market ‘saturated’

New research from pollsters YouGov suggests that the UK market for content-on-demand services across digital films, TV and music is reaching saturation point, meaning that service providers need to shift strategies and maximise their income from existing customers.

After polling 3,600 consumers across the country, the study finds that nearly half (48%) of people have used catch-up TV in the last three months, with a third viewing digital films and a similar proportion accessing digital music.

Of those who have not used on-demand services, only a tiny proportion (4%) are likely to use music providers, while a slightly larger proportion will use digital film services (5%) and or start watching catch-up TV (7%).

Shaun Austin, Associate Director for media consulting at YouGov, said:  “Among converts there is clearly a huge appetite for content on-demand services in the UK.

“However, those who don’t currently access content have a limited interest in doing so in the future. Therefore, the focus for digital content providers needs to be on working out ways to get the most out of the existing current user base rather than expanding into new audiences.

Young internet users are consistently more likely to have shared files and downloaded unauthorised content. They are also less likely to understand the consequences of accessing content illegally.

There is thought to be low awareness of the cloud-based licensing system UltraViolet. However, while just 15% having heard of it, those who have used it are likely to use it again.

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