IPTV providers "must do more" to drive uptake of pay per view and VOD

June 27, 2008 - IPTV providers are finding it a challenge to encourage consumers to order and regularly view pay per view (PPV) and video on demand (VOD) content, according to a recent study by research firm Gartner.

In a survey conducted in the fourth quarter of 2007 across 18 countries and territories, the company found that around three quarters of worldwide respondents had some form of pay-TV in their home, yet less than a quarter of all respondents had purchased either PPV or VOD content within the past year. The research also indicated that the average consumer spends 22 hours per week watching entertainment on the TV, of which 16 hours is spent watching broadcast TV and six hours is spent watching DVDs or videotapes. Additionally, 39% of respondents had downloaded some form of video content in the period.

Gartner posits that tapping into this "established behaviour" and providing alternate solutions to satisfy demand is essential for operators to earn incremental revenue for IPTV. "Consumers already value DVD and videotape purchases and rentals, so getting them to transfer this behavior or habit over to IPTV subscriptions is a key strategy in developing revenue,” said Amanda Sabia, Principle Research Analyst at Gartner. “Providers need to ensure that ordering and navigation processes for PPV and VOD are easy to understand and user friendly. They should also offer competitive pricing, free trials and a wide range of titles, making sure they include various unique and most-recent versions.”

The company also found that the top five global markets for PPV and VOD, based on the combined highest access and content scores, are likely to be China, the US, Canada, Germany and South Korea.