Reportlinker Adds Video on Demand: Behaviour, Challenges and Future Directions

NEW YORK--(Business Wire)--
Reportlinker.com announces that a new market research report is available in its
catalogue.

Reportlinker Adds Video On Demand: Behaviour, challenges and future directions

http://www.reportlinker.com/p0148044/Reportlinker-Adds-Video-On-Demand-Behaviour-challenges-and-future-directions.html

Description

This report defines current and future behavioural patterns around long form
video on demand (VOD) in the UK. It then provides strategic quantitative and
qualitative projections around content consumed and users, implications and
recommendations for broadcasters, service providers, rights holders, product and
brand designers, marketers, advertisers, and any other organisation with an
interest in the future of VOD in the UK. VOD products and services researched
include: iPlayer, ITV Player, Demand Five, 4OD, Project Canvas, Virgin Media,
Sky Player, imminent launch of VOD via Sky TV; VOD via smart phones, laptops,
TVs, Blu Ray, DVD, DVR and Yahoo! Widgets; and social networking, including
Facebook, MySpace, Bebo and Twitter.

Executive Summary

- Report purpose: To define future behavioural patterns around long form video
on demand (VOD) in the UK, based upon current and emerging behaviour in order to
construct strategic projections, implications and recommendations for
broadcasters, service providers, rights holders, product and brand designers,
marketers, advertisers, and any other organisation with an interest in the
future of - - - VOD in the UK
- VOD products and services researched include: iPlayer, ITV Player, Demand
Five, 4OD, Project Canvas, Virgin Media, Sky Player, imminent launch of VOD via
Sky TV; VOD via smart phones, laptops, TVs, Blu Ray, DVD, DVR and Yahoo!
Widgets; and social networking, including Facebook, MySpace, Bebo and Twitter.
- Behaviour: Three types of behaviour emerge that will have significant
implications for the future of VOD across all platforms. Coda has termed these:
monogamous behaviour, polygamous behaviour and promiscuous behaviour
- Monogamous behaviour (faithfulness to broadcasters` channels and services)
forms 70% of current VOD behaviour, with the remaining 30% split equally between
the other two behaviours
- Polygamous and promiscuous behaviour are marked by heavy use of illegal video
sources. Coda estimates that UK internet users watch at least £1.3bn worth of
video content a year through illegal file sharing, and that video rights` owners
are losing at least £100m a year in lost revenue. Year on year increases in
these illegal behaviours are irreversible, but can be slowed.
- Meeting the challenge of illegal content: A central means for slowing the rise
in illegal behaviour, and meeting emerging consumer demands is the launch of
aggregated catch up, archive and film services online and direct to TV. Coda
sees Project Canvas as playing a vital role in this. If these launch, Coda
predicts:
- VOD via TV viewing will increase four fold, from 7m hours per day now, to 28m
- VOD via PC/laptop viewing will increase four fold, from 5m per day now, to 20m
Linear viewing will decline 15%, from 190m hours per day now, to 160m
- VOD via TV and online will impact PVR viewing, which will increase by only
30-40%, to 14m hours per day
- An overall increase in AV viewing of 3%, to 219m hours per day (across all
platforms)
- A decline in linear ad revenues of at least 10%, to £2.86bn
- Ad revenues from broadcast VOD via TV and online will hit £500m. Roughly three
fifths of this will be generated from VOD via TV
- Subscription revenues for a movie aggregator online and via TV will
approximate: £192m
Consequences if these do not launch: Coda predicts that illegal activity will
jump to at least two thirds of all VOD activity by 2015
- Thus, stakes for the vision industry are very high. Organisations must invest;
draw up business, legal, rights and distribution models; and open up current,
archive and film content, and monetise it. If they do not, they will see
revenues and terrestrial share decline significantly, thereby threatening the
sustainability of some major current services
- Project Canvas: Emerging behaviour shows that Project Canvas will not
significantly impact upon cable and satellite behaviour, and will actually help
drive take up of more advanced vision services
Blu Ray, DVD, DVR and Yahoo! Widgets: Opportunities around these need careful
consideration. However, VOD behaviour around aggregated services via TV will
significantly impact DVD purchase and rental, Blu-Ray, DVD recorder and DVR
behaviour.
- Film VOD services: Vital that aggregated services launch online and via TV
through Project Canvas. Should also launch with Virgin Media, however VOD via
Blu-Ray and Yahoo! Widget TVs have limited potential.
- Games devices: Opportunities for VOD behaviour via games devices are mixed,
with Wii having the most potential
- Mobile phones: After five years of expensive and fairly unsuccessful TV trials
in the UK, video behaviour via phones and similar portable devices will grow
significantly over the next six years to form 8% of VOD behaviour. However,
illegal VOD will dominate this. Service providers need to provide credible
alternatives beyond Wi-Fi
- Social networking: Broadcasters need to be much more fully engaged with
people`s drive to communicate, by employing social networks to facilitate
communicating about and through content. This includes content embedding,
automatic updates, recommendations, search and clipping. It is also vital that
partnerships are made with a range of social networking services before entering
the market
VOD will increasingly become a `layer` to the internet and to devices, rather
than `sites`, `destinations` or `channels`. Understanding this is vital for
extending VOD services to include: `VOD anywhere`, social networking, live
blogging, aggregation, embedding, applications, recommendations, RSS feeds and
automatic downloads
- Partnerships: VOD behaviour shows it is vital that organisations form a range
of `open` partnerships to meet emerging demands of consumers, make legal VOD
mainstream behaviour and compete with illegal services:
- Present and future services and products that limit consumers` choices do not
match increasing demands for choice and aggregated services, can be
prohibitively expensive for consumers, and will therefore tend to be
unsuccessful and unprofitable. Examples include VOD via only one or two brands
of Blu-Ray players, Sony TVs with Yahoo! Widgets and Blockbuster to 2Wire boxes
- Only services with a range of VOD partnerships already in place should now
enter the market
EPGs and other content navigation interfaces. These need to undergo significant
innovations in terms of content display, search and navigation, and to bring
multiple forms of vision content together.
Branding and communication: Improvements are vital to facilitate the passing of
value to broadcasters and rights holders, and to help drive linear viewing
- VOD subscription and pay per view models: These will tend only to work for
film, and not for archive or catch up
- Advertising: Advertisers need to be extremely critical of some of the
advertising formats that are emerging.
- VOD advertising revenues per viewing hour will be significantly lower than
that for linear TV advertising

Countries covered

UK

Companies mentioned

Amazon
Apple
BBC
Bebo
Blockbuster
Boxee
BSkyB
BT
Channel 4
Facebook
Five
Freesat
Freeview
Google
Hulu
Panasonic
ITV
LG
LiquidHD
LOVEFiLM
Microsoft
MySpace
Netflix
Nokia
Roku
Samsung
Sony
Sony Music
Sony Pictures
Tiscali
Twitter
Virgin Media
YouTube

To order this report:
Reportlinker Adds Video On Demand: Behaviour, challenges and future directions

http://www.reportlinker.com/p0148044/Reportlinker-Adds-Video-On-Demand-Behaviour-challenges-and-future-directions.html

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