Light Reading

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.
More Blogs from Column
There is an impressive array of technology that is planned for the transition to 5G that will enable many new possible services.
5G could shape up to be a stunningly expensive fiasco.
The Swedish vendor has undergone a significant transformation during the past few years, adjusting to the demands of next-generation communications companies.
Wi-Fi Alliance members have created Wi-Fi Aware technology to bring local experiences to life -- without requiring access to the Internet or GPS.
Bamboozled by the flood of abbreviations and acronyms that SDN and NFV have inspired? Here's a guide to some of the key standards bodies whose initials you will need to know.
Flash Poll
From The Founder
The Swedish vendor has undergone a significant transformation during the past few years, adjusting to the demands of next-generation communications companies.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
LRTV Huawei Video Resource Center
Accounting for Better Solutions

4|10|15   |   02:31   |   (1) comment


Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
LRTV Huawei Video Resource Center
What's in Store for Huawei & DataCore?

4|10|15   |   05:44   |   (0) comments


At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
LRTV Huawei Video Resource Center
Du Puts Its Faith in Huawei's Routers

4|9|15   |   3:42   |   (0) comments


Adnan Masood, director of Enterprise MS Solutions Marketing at du, the United Arab Emirates (UAE) operator also known as Emirates Integrated Telecommunications Company, explains why his company chose to use Huawei's multifunctional AR routers as part of its managed enterprise services.
LRTV Huawei Video Resource Center
Huawei Gets Active in the Data Center

4|9|15   |   3:17   |   (0) comments


With enterprise users looking to maximize the use of their data center assets, Huawei’s Chief Architect & Technical Director of IT Data Center Solutions, Bruce Su, explains how the company's six-layer active-active data center solution is eradicating the need to deploy passive, redundant data center assets.
LRTV Huawei Video Resource Center
Blue Consult & Huawei for a Better Solution

4|8|15   |   4:01   |   (0) comments


Martin Rott, CEO, and Marc Metzler, head of sales virtualization, from Germany's Blue Consult discuss their collaboration with Huawei and TrendMicro to develop a secure, scalable IT platform that can meet the needs of the most demanding enterprise users.
LRTV Huawei Video Resource Center
Beach Petroleum on eLTE & Mining

4|8|15   |   3:09   |   (0) comments


Network systems integrator Jeremy Hamlyn explains how Huawei's secure packet-based trunking communications system, eLTE, can help remote communities and companies in the mining, oil and gas sectors, deploy efficient communications networks that are perfect for video and data as well as voice.
Upcoming Live Events
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Network Instruments, a JDSU division, shares results from its 2015 State of the Network, a global survey on security.
Hot Topics
Verizon Scores New OTT Content Deals
Mari Silbey, Independent Technology Editor, 4/16/2015
Can WiFi Calling Find Its Voice?
Iain Morris, News Editor, 4/13/2015
Senator Proposes New 'Title X' for Net Neutrality
Carol Wilson, Editor-at-large, 4/13/2015
Nokia, Alcatel-Lucent in Merger Talks
Iain Morris, News Editor, 4/14/2015
Nokia & Alcatel-Lucent: What's Going On?
Ray Le Maistre, Editor-in-chief, 4/15/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Cats with Phones
Steve's Phone Click Here
Steve Saunders's personal phone.