Downloads Keep Highest-Value Customers Consuming
It turns out TV is hot again. And people who love watching it really love watching it.
Vubiquity recently surveyed 1,600 consumers who own and/or use smartphones and tablets and found out that there is a significant group of people out there who watch a lot of video on a lot of devices, and are willing to pay for multiple subscriptions.
Nearly half of all people surveyed (48%) were interested in downloading content to which they already subscribe to a device, and 63% of those were willing to pay between $1-5 extra per month to do it.
So who are these "downloaders," and why should service providers focus on feeding their need for content-on-the-go as part of their business strategy?
For one thing, downloaders watch more content across all platforms than typical users: 60% watch video on their smartphone at least weekly (compared to 43% of the total sample); 66% watch on their tablet (vs. 51%); 84 percent on their computer (vs. 60%), and 91% on their TV (vs. 83% ). They also are more likely to subscribe to premium channels such as HBO and Showtime, and to subscription streaming services such as Netflix, Hulu, or Amazon Prime Instant Video in addition to paying for a traditional MVPD (multichannel video programming distributor) service.
So what's the opportunity?
For traditional pay-TV providers, the ability to offer a compelling subscription video-on-demand service -- with download-to-play rights -- positions them to retain, attract, re-engage, and up-sell the high-value subscribers who willingly pay for the ability to watch more video. And because they offer Internet access as well, they are able to bundle video streaming and downloading services with faster speeds for subscribers to higher-tier services. As the current debate around net neutrality grows, this will be an issue worth watching.
For all the concerns about cord-cutters, at least half of viewers are adding to their traditional pay-TV subscription, rather than replacing it. As the younger demographics continue to move from device to device with relative ease and don't necessarily want to be tethered to the Internet to view their content, those service providers who can provide a seamless TV experience (whether the viewer is at home, in the air, or somewhere else) will continue to engage with the most voracious video consumers -- those who are willing to pay for more access to more titles.
In a hyper-competitive industry, doesn't it make sense to focus efforts on those customers who provide the clearest path to revenue growth? Forward-thinking providers will make the ability for subscribers to "download to play" a key component of their strategy over the coming year.
— Laurie Lawrence, CMO, Vubiquity