Digital entertainment behaviour the key to UK SVOD uptake | VOD | News | Rapid TV News
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netflix UK 18Feb2018Research carried out by Kagan has indicated that when assessing where likely growth in the subscription video-on-demand market will be, digital entertainment behaviour, rather than demographics, will best identify the profiles of current and future users.

The online survey consisted of 1,001 adult internet users in the UK and was completed during the fourth quarter 2017. The UK has one of the most developed digital entertainment markets in Europe. Kagan’s Consumer Insights survey found that three-quarters of internet adults watch previously broadcast TV programmes using online catch-up TV services, such as BBC iPlayer.

Kagan defined an individual's digital entertainment behaviour as encompassing the overall use of online activities, as well as how frequently digital entertainment activities are carried out. Fundamentally, the analyst believes that the two key behaviours facilitating SVOD adoption appear to be comfort with online video viewing and a willingness to pay for supplemental video content.

The study found that overall, over three-quarters (76%) of frequent catch-up TV users also subscribe to an online video service and among those who access an online catch-up TV service at least once per week, that is a frequent user, almost three-fifths were also frequent users of online subscription video services. By contrast, among those who never view previously broadcast TV programmes online, only 19% have an SVOD subscription. Nearly three quarters of TV everywhere (TVE)  users also frequently access SVOD services while those who did not access pay-TV operators’ video content online in such a way also tended not to have an SVOD subs (29%).

The make-up of SVOD users tend to skew towards the younger populace, at 50% under 40, while 30% SVOD users are adults over 50, a contrast, said Kagan, to the overall internet population where the 50+ group make up 45% of users.

Transactional video services that offer online video rentals and purchases showed an even stronger correlation with SVOD use. The Kagan survey showed that 86% of adults who rent online videos at least once a week, and 52% of those who are infrequent renters (less than once per week) were also frequent SVOD users. Only 38% of internet adults that never rent videos online report using an SVOD service.
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