Skip to main content

Demand Grows for Low-Cost Pay-TV Option in U.S.

In a recent market study, Ipsos looked at usage scenarios with the most common Over-the-Top (OTT) video offerings -- assuming free ad-supported content wasn't available -- in an attempt to predict the growing demand for low-cost pay-TV service models in the U.S. market.

To make the scenarios as realistic as possible for study participants, the Netflix subscription was priced at $9 per month, Apple iTunes downloads were priced at $1 with no advertising support, and Hulu streams were priced at $1 with advertising support.

When analyzing differences by age, it was clear that young adults (18-34 years old) were driving growth in paid viewership through OTT video platforms -- with over half (51 percent) interested in viewing their regularly watched programs through a low-cost pay-TV option.

"While Hulu has set a precedent for free post-airing streams with ad support, growth continues to be driven by the 18-34 year old audience as more post-broadcast content is moved into payment models such as monthly subscriptions and pay-per download or stream fees" said Brian Cruikshank, Executive VP at Ipsos.

According to the Ipsos assessment, for both Apple and Hulu, the per stream payment model will fuel the strongest growth in OTT video viewing. Not surprisingly, Apple's pay per download/stream follows the model it established with music. Meanwhile, Netflix has a rapidly growing customer base who prefer to receive OTT video bundled via a monthly subscription.

The strength of a per download/stream model is particularly acute for the 18-34 year old audience who are coveted by advertisers. Among this age group, a Hulu TV show streamed for $1 with ad support rivals the Netflix monthly subscription and iTunes per stream options.

Ipsos found the share of preference results were consistent across Hulu, Netflix and iTunes among those who selected a fee-based digital viewing option for their regularly watched TV shows.

Study participants were asked to classify 20 popular TV shows ranging across genres, into different involvement categories. It appeared that consumers are more likely to regularly re-watch comedies online than the other genres, and that reality TV show viewing is more of an occasional activity.

Furthermore, while genre had very little impact on share-of-preference for Hulu, U.S. consumers are more likely to choose the Netflix monthly subscription model for dramas than comedies -- particularly to catch up on the entire missed season.

TV show preferences can impact whether someone chooses to watch online. Most shows had 40-50 percent of regular viewers willing to select one of the post-broadcast OTT video options. In contrast, approximately 60 percent of those who regularly watch documentaries and niche shows will choose one of the OTT options.

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

The Fastest-Growing Mobile Opportunity in 2022

The number of mobile communication subscriptions worldwide is currently estimated at 8 billion, with 6 billion on smartphone connections, from a user base of 5.9 billion unique subscribers among a global population of 7.9 billion. Fifth-generation (5G) mobile service subscriptions using a compatible device significantly grew during the COVID-19 pandemic, but 4G connections remain the dominant force within the global telecom service provider sector. While the use of mobile phones is common throughout developing nations, 4G services are still an emerging technology in many parts of the world. Overall, 5G subscriptions will likely grow from 580 million at the end of 2021 to 3.5 billion by the end of 2026. 5G Mobile Market Development According to the latest worldwide market study by Juniper Research, revenue generated from 5G mobile services will reach $600 billion by 2026 -- representing 77 percent of global network operator-billed revenue. The adoption of 5G services across consumer and

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d