Report: VOD Pay-TV Service Unwell To Attain Its Potential

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Mar 14, 2012 3:43 PM

Video-on-demand service from pay-TV operators is descending partial of its prospective in conditions of spectator figures and ad revenue, according to a new inform from The Diffusion Group (TDG).

The report, " Making Ad-Supported VOD Work ," identifies unsound ad encouragement and ungainly module guides as the principal culprits. Both factors minister to tying the accessibility and observation of ad-supported video-on-demand content.

Due to the inattentiveness of pay-TV operators to ad-supported VOD, complete VOD use represents usually 1 percent of all U.S. TV viewing. Operators have unsuccessful to take value of VOD to erect subscriber satisfaction, produce ad revenues, and head off contest from over-the-top (OTT) providers similar to Netflix," mentioned Bill Niemeyer, TDG comparison researcher and writer of the report.

Comparing Netflix to pay-TV VOD in the United States during the fourth entertain of final year, Niemeyer estimates U.S. Netflix subscribers watched 80 percent more streaming video hours than noticed pay-TV VOD.

"Ad-supported VOD is a poignant longed for chance for pay-TV operators," says Niemeyer. "They are investing poignant resources in TV Everywhere (TVE) but have abandoned the fact they have a potentially viable ad- and revenue-generating on-demand stage already in place in over 50 million U.S. homes in the form of VOD," he said.

The inform records unwell to deed will place pay-TV operators at danger of descending even over at the back online and OTT video services.