Light Reading
Those consumers who watch the most video on mobile devices may actually be willing to pay for it too.

Downloads Keep Highest-Value Customers Consuming

Laurie Lawrence
4/7/2014
50%
50%

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

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
4/8/2014 | 3:42:18 PM
Re: Money matters
But aren't "the kids" the ones opting out of conventional video services?
VubiquityLaurie
50%
50%
VubiquityLaurie,
User Rank: Lightning
4/8/2014 | 3:36:38 PM
Re: Money matters
The data surprised us as well.  For most viewers, the TV is still the dominant platform for watching video, but younger viewers are changing that through their comfort with viewing on any device.  To take that trend a step further, we're talking about leveraging content rights for which viewers have already paid, and and allowing them to access the content even without an internet connection.  That is a very competitive -- and compelling -- feature compared to the standard OTT offering.  We believe this represents an opportunity for more traditional TV providers to continue to add value.

SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
4/7/2014 | 6:29:57 PM
Re: Money matters
Yeah, I just don't see it happening, especially with younger users, who are apparently more likely to pay for it. Sure they want and expect content on any screen, but they are also quite adept at finding ways around paying for it. It'd have to have some value-add on top of the same content to get many to pay for it, IMO.
danielcawrey
50%
50%
danielcawrey,
User Rank: Light Sabre
4/7/2014 | 1:05:28 PM
Re: Money matters
I am surprised that people would want to add to already ridiculous cable expenses. Of course, you've got to have broadband.

But adding cable TV to that costs a fortune in comparison to Netflix for a few bucks a month or Amazon Prime which has instant video tied to other services.

I just think that cable operators offer too many channels with relatively nothing on. 
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
4/7/2014 | 10:37:18 AM
Re: Money matters
Yes, money does matter. I think eventually there will be a shakeout of content that makes sense to deliver over all devices, and the content that makes sense to deliver only to select devices.

You saw a version of that the last couple of weeks with the NCAA basketball tournament. It used to be CBS would carry all of the games once the field was whittled down. But last games this year shifted to TNT and TrueTV. CBS apparently felt ratings were better with it's traditional Saturday night fare.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
4/7/2014 | 10:05:56 AM
Money matters
At some point -- and I'm sure you've thought about this -- the cost of delivering content to all these different devices using different means of connectivity has to factor into whether it makes sense to chase users with content. If the cost of multidimensional product delivery is a lower profit margin, then this makes less sense from the service provider side, sophistication of the end-user notwithstanding.
Educational Resources
sponsor supplied content
Educational Resources Archive
More Blogs from Column
Open is possible, definable and important, because an environment of freedom is a superior construct.
Every component of the smart home ecosystem is changing, creating new opportunities – and challenges – for service providers.
Don't let new technologies and whizz-bang gadgets keep you from respecting those speaking to you and giving them the full attention they deserve.
Defining SDN realistically will help carriers cut through the hype, says Sunil Khandekar, CEO of Alcatel-Lucent's Nuage Networks.
They can go from also-rans to leaders -- if they don't mess up.
Flash Poll
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Hot Topics
Rogers, Shaw Take Aim at Netflix
Mari Silbey, Independent Technology Editor, 8/26/2014
Utilities to Pump $11.2B Into Smart Grid – Study
Jason Meyers, Senior Editor, Utility Communications/IoT, 8/26/2014
Verizon Launches QR Code Security Solution
Carol Wilson, Editor-at-large, 8/26/2014
Fiber Revival at Deutsche Telekom
Iain Morris, 8/25/2014
M2M's In Fashion: Wearables Play the US Open
Sarah Reedy, Senior Editor, 8/25/2014
Like Us on Facebook
Twitter Feed