& cplSiteName &

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        ADD A COMMENT
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.

Sarah Thomas
50%
50%
Sarah Thomas,
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.
More Blogs from Column
It's clear that SD-WAN is now seen as the enterprise networking architecture of the future, which is why this market will reach billions of dollars.
There is nothing wrong with large amounts of debt if you methodically expand a business, but what are these guys doing?
Market forces are working well in the business data services (BDS) market in the US, argues Bruce Mehlman, co-chairman of the Internet Innovation Alliance.
Mobile operators moving to virtualized networking for 5G infrastructure need to carefully consider the motivations behind the move and make the right choices at every step along the way.
Cheenu Seshadri, the managing partner at Three Horizon Advisors, looks at the market concentration risks of letting T-Mobile and Sprint merge.
Featured Video
From The Founder
John Chambers is still as passionate about business and innovation as he ever was at Cisco, finds Steve Saunders.
Flash Poll
Upcoming Live Events
June 26, 2018, Nice, France
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Telco Job Prospects Go From Bad to Worse
Iain Morris, News Editor, 6/22/2018
Larry Ellison Laughed at the Cloud, Now the Cloud Is Laughing Back
Mitch Wagner, Executive Editor, Light Reading, 6/20/2018
Mavenir's Billion-Dollar Blueprint
Ray Le Maistre, Editor-in-Chief, 6/18/2018
5G Transport – Where Do We Start?
Ray Le Maistre, Editor-in-Chief, 6/21/2018
Animals with Phones
Backing Up Your Work Is Crucial Click Here
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed