Special Feature | Video on Demand
NAVIGATING THE TV CROSSROADS
VOD market share is growing rapidly as cinema revenues remain static and DVD declines. Doug Sylvester, president of Vubiquity, examines recent research and offers advice for a successful deployment.
On April 10 Sky Atlantic’s fl agship programme, Mad Men, premiered its sixth season in the UK. Devoted fans tuned in via their TVs, iPads, games consoles, and any other connected devices they could get their hands on.
Doug Sylvester, President, Vubiquity
Unfortunately, anyone not watching through Sky’s set–top boxes was greeted with a holding screen saying that ‘rights issues’ prevented them from watching the content. The next day, Sky apologised, stating that it does in fact hold the rights to show Mad Men across any connected device, and there had simply been an error with the system.
In this recent example, Sky – one of the most capable and sophisticated operators in the industry – demonstrated the complexity and operational challenge of providing a successful VOD offering accessible from any device. Getting this right is the biggest issue - and opportunity - facing providers in the modern TV ecosystem.
Building a VOD offering from the ground up
It’s clear that VOD has value. Today’s viewers no longer accept watching a programme at the prescribed time or else missing it. Vubiquity regularly conducts consumer research, and in our most recent US-based study, we found that many viewers value VOD above premium channels and DVR access. And for those that use the service regularly, satisfaction levels are very high. Content owners and service
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providers who are just starting to build a VOD offering have an advantage over those with established services. They are in a position to build a true ‘TV Everywhere’ VOD offering from the ground-up. Without legacy set-top box issues, pre-established content rights agreements and prescribed menu structures, they are in a unique position to talk about the promise of video on demand on any screen – right at launch.
So which elements are key to a successful service? And what must content and service providers keep in mind as they begin their planning?
Working on both sides of the aisle – with content and service providers – we’ve learned that four areas are crucial: selection of content; aggressive and consistent marketing campaigns; the user experience; and plans to meet technology and operational challenges.
Compelling content
Typically, to get into the VOD game, a service provider will start with a transactional (TVOD) service offering movies. For the studios, VOD provides a very profi table release window to monetise their movie assets soon after theatrical release. As VOD grows at the expense of DVD sales, the studios continue to shift their support even more favourably to VOD in the form greater marketing and shorter release windows. In most parts of the world, movies are available On Demand on the
day the movie is available on DVD – or even earlier. TVOD movies allow the service provider a hook for marketing their service and attracting viewers: the best known, most highly marketed movies and Hollywood stars available on your service.
Subscription VOD (SVOD) services are a key component of a VOD service and outside the US, typically, the next step for service providers. If transactional VOD introduces subscribers to the service, SVOD keeps them engaged. We have partnered with service providers in major markets around the work and all have seen success offering SVOD bundled with additional video, telephony or broadband products. Content mix is the key to successfully engaging consumers in an SVOD offering. The right mix offers something for everyone in the family – from library movie titles to children’s programming to music videos. The addition of TV content is the engine that keeps the VOD service moving.
Our most recent consumer survey revealed that 76 percent of respondents report watching three of more episodes of a programme consecutively, in one sitting. This phenomenon of “binge viewing” is driving the highest levels of satisfaction with VOD, and in many cases, helping viewers make choices about which programmes they view when they air live. More than 40 percent report that they are more likely to watch a programme regularly if they know they can “catch-up” on VOD if they miss any episodes.
Doug Sylvester | Vubiquity
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