03.14.2012 03:43 PM
Report: VOD pay-TV service failing to reach its potential

Video-on-demand service from pay-TV operators is falling short of its potential in terms of viewer numbers and ad revenue, according to a new report from The Diffusion Group (TDG).

The report, “Making Ad-Supported VOD Work,” identifies inadequate ad support and awkward program guides as the main culprits. Both factors contribute to limiting the availability and viewing of ad-supported video-on-demand content.

Due to the inattentiveness of pay-TV operators to ad-supported VOD, total VOD use represents only 1 percent of all U.S. TV viewing. Operators have failed to take advantage of VOD to build subscriber satisfaction, generate ad revenues, and head off competition from over-the-top (OTT) providers like Netflix," said Bill Niemeyer, TDG senior analyst and author of the report.

Comparing Netflix to pay-TV VOD in the United States during the fourth quarter of last year, Niemeyer estimates U.S. Netflix subscribers watched 80 percent more streaming video hours than viewed pay-TV VOD.

"Ad-supported VOD is a significant missed opportunity for pay-TV operators," says Niemeyer. "They are investing significant resources in TV Everywhere (TVE) but have ignored the fact they have a potentially viable ad- and revenue-generating on-demand platform already in place in over 50 million U.S. homes in the form of VOD," he said.

The report notes failing to act will place pay-TV operators at risk of falling even farther behind online and OTT video services.



Comments
Post New Comment
If you are already a member, or would like to receive email alerts as new comments are
made, please login or register.

Enter the code shown above:

(Note: If you cannot read the numbers in the above
image, reload the page to generate a new one.)

No Comments Found




Thursday 10:05 AM
NAB Requests Expedited Review of Spectrum Auction Lawsuit
“Broadcasters assigned to new channels following the auction could be forced to accept reductions in their coverage area and population served, with no practical remedy.” ~NAB


 
Featured Articles
Discover TV Technology