Video On Demand Boosts Linear Live TV and Network Loyalty

written by: Gianluigi Cuccureddu

Details

Published on Friday, 24 December 2010 12:15

A new survey measuring consumer behaviors and attitudes toward Video on Demand (VOD) by Avail-TVN, conducted by Frank N. Magid Associates, finds that "nearly two-thirds of consumers – 63 percent – say that availability of television program episodes on-demand make them more likely to watch those television shows on a regular basis. The data shows that availability of free television programs on demand increases loyalty, helps consumers discover new shows, and actually increases viewing when shows air live."

The new survey shows that free television programs on demand increase viewer loyalty, helps consumers discover new shows and programs and increases viewing when shows air live.

Brian Matthews, CMO, Avail-TVN, said:

“A lot has been made of consumers’ shifting viewing habits to on demand programming but until now, little was known as to how VOD affected linear viewing. This study illustrates VOD’s power as a promotional tool for programmers, an enhancement to their core linear offering, which serves to build audience and brand loyalty.” 

Other Findings

• VOD ranks as the top-rated service among consumers who have access to on-demand programming, higher than DVRs and HD channels. Fifty-five percent of respondents rated VOD highest, followed by DVRs at fifty-one percent and HD at forty-nine percent
• Advertisers also benefit from VOD viewing of TV programs. Commercials in free VOD programming are thirty-one percent less likely to be skipped than commercials in recorded programming
• Nearly half of respondents interested in a sport say they are interested in full-length sports events from the previous week being offered On Demand. Interest is much higher for younger males (18 to 34) than older males (35 to 64)

Do the outcomes of this survey suggest a reinforcing effect and not neccesarily a cannabilizing effect? If and when more researches point out to the intertwined effect, broadcasters are offered new insights and opportunities, combining the two channels and not nessecarily put off live TV.

What do you think?