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Usage Patterns Hint at Market for Next-Generation VOD

18 Dec, 2001 By: Hive News


Much like the technology to make it happen, the real audience for video-on-demand (VOD) is just coming into its own, the results of a Yankee Group survey indicate.

"A whole generation of consumers is being conditioned to tap into media when they want it, where they want it," said Steve Vonder Haar, director of the Yankee Group's Media & entertainment Strategies Planning Service. "As the disposable income of this group grows, demand for services that can deliver video at the touch of a button will mushroom as well."

More than 70 percent of viewers under the age of 35 in addressable homes have purchased pay-per-view programming, according to the Yankee Group's recently completed Technologically Advanced Family (TAF) Survey. Pay-per-view usage among these younger viewers is significantly higher than in older groups.

Almost 52 percent of viewers between the ages of 35 and 44 have sampled pay-per-view programming, while use among senior citizens (65 and older) in homes equipped with the set-top boxes required to receive pay-per-view movies via cable or satellite drops to 22 percent.

The survey results illustrate the willingness of younger users to sample new media options, and highlight the potential for cable and satellite operators to create new revenue streams by offering impulse VOD programming that can be delivered via advanced versions of set-top boxes just now being deployed. While many add-on services offered by multichannel video operators--such as premium movie channels--historically have generated higher penetration rates among high-income households, pay-per-view options appear popular even among younger users likely to be earning less.


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