A multi-nation study released today says more than two-thirds of respondents use international online providers (like Netflix or YouTube) for viewing video content over the Internet on their televisions, PCs, smartphones and other mobile devices. However, a healthy percentage (36 percent) indicate they still use traditional local broadcasters and video Website providers.

Accenture’s online survey polled more than 7,500 consumers in eight countries: Argentina, Brazil, France, Germany, Italy, Spain, the U.K. and the United States. ?

While younger viewers are turning to new provider brands in greater numbers, a significant number of consumers continue to trust traditional brands. Asked to name their preferred provider of video-over-the-Internet services, respondents ranked telecom and broadband providers first, at 43 percent. Traditional TV broadcasters ranked second (33 percent), with TV and gaming-console manufacturers and new Internet companies tied for third at 12 percent apiece. Not too surprisingly, gaming console manufacturers received the highest ranking from the younger (18-to- 24-year-olds) demographic. ??

“The survey results suggest that, given their control of networks and access gateways, telcos and cable providers today have the edge in terms of acting as a trusted provider for consumer Internet video services,” notes Francesco Venturini, Accenture’s global broadcast lead. “However, established broadcasters are fighting back to earn consumer trust in the online world.”

He continues, “They are investing heavily in this space to provide new services across multiple devices, showing that they are not prepared to relinquish their control of the content value chain. And with the arrival of new players such as device manufacturers and Internet businesses, the competition for digital consumers’ hearts and minds has truly started.” ??

Willingness To Pay ?

More than two-thirds (69 percent) of those surveyed said they are prepared to pay a subscription fee to watch video content over the Internet, with 43 percent already paying for some of the content they access. About half (49 percent) indicated they would pay between $5 and $10 per month, and 10 percent say they would pay a monthly fee of more than $10. The remaining respondents (41 percent) indicated they might be willing to pay a fee if it were $5 or less. The caveats are that the content must be of high quality and commercial advertising must be minimal.

The frustration with advertising was especially noticeable in the youngest demographic (those between 18 and 24 years of age), with 65 percent of them citing it. This is significant because 79 percent of this age group expressed a willingness to pay for content — the highest rate of any age group. ?

?One Screen Does Not Fit All

Some significant trends have emerged as OTT matures as a platform. Those surveyed had specific viewing preferences, linking particular devices with specific forms of content. When it comes to viewing high-quality video of longer lengths, screen size matters. ??For watching full-length videos and TV series, 72 percent of those surveyed prefer the traditional TV. The PC/laptop (41 percent) came in second, followed by tablets (25 percent) and smartphones (12 percent). For viewing live content – sports, news and TV programs – the device choices followed in the same order: TV set (50 percent), PC/laptop (37 percent), tablet (25 percent) and smartphone (20 percent). ??

But the survey also reveals a lack of consumer awareness of options for viewing Internet-based video content on the TV. While more than a third (36 percent) of those surveyed chose a connected television as their preferred device, the second-largest group (23 percent) of respondents was unsure of the choices, indicating that the market remains open to new, compelling propositions. ?

The Daily


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