Decipher ResearchPay TV homes generally consumer more content across more devices than non pay homes, and are significantly more likely to own and connect a connected TV, according to research conducted for MediaBug, Decipher Research‘s bi-annual study. However, the growth of VOD options on the main TV set is beginning to cannibalise VOD use on other devices.

Director of Decipher Media Research Dr. Hamish McPharlin said:  “It’s the trade-offs that are most interesting. Based on what we have learned from MediaBug this year, we are now looking at 2013 and both the disruptive potential of the roll-out of Catch Up programming in Sky and YouView homes, and the emerging conflict between set top box VOD and Smart TVs across all segments.”

Findings from the report include:

  • In homes that have TV VOD, it the preferred way to watch content on demand. Decipher say the rapid expansion of TV VOD services is set to cannibalise VOD use on other devices as consumers move their online VOD viewing onto the main screen in their lives.
  • TV VOD is emerging in two potentially conflicting systems – on set top boxes (via Sky, Virgin Media, and Youview) and on Smart TV screens (eg Samsung & Sony). And homes frequently have both.
  • While Smart TV’s are in only 1 in 10 broadband enabled homes, ownership is highly correlated with pay TV homes – around 1 in 2 Smart TV owners have Sky.
  • Connection rates of Smart TV’s are growing every year. Initial figures indicated around 40-50% of Smart TV’s were being connected to the Internet, but 2011 and 2012 Smart TV models are achieving around an 85% connection rate.
  • Pay TV homes consume more media across all devices than non Pay homes. They are more likely to own, consume, and pay for content on mobile devices, and are more likely to have a Smart TV.
  • As of Q4 2012, 1 in 5 broadband enabled homes have heard of new TV VOD service ‘YouView’, however penetration levels and expectations to purchase are currently negligible.

Research Methods

The bi-annual tracker is based on an online consumer survey of 3000 UK consumers, and follows a structure and approach that allows unique insights to be drawn from the data. While there are a variety of research tools monitoring basic take up of new platforms and devices, MediaBug builds on, and extends, the traditional approach for technology trackers looking at the inter-connectedness of device and service use.

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