Nearly three-quarters of UK SVOD subscribers deem advertising on platform unacceptable | VOD | News | Rapid TV News
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A study from research consultancy Differentology has found clear appetite for subscription video-on-demand services in the UK but 72% of users do not consider any form of sponsorship or advertising as being acceptable.
VODyyssey differentology 28May2019
The VODyssey study was conducted surveyed over 2,000 UK consumers to explore consumer sentiment on SVOD services. Over a fifth (23%) of Netflix subscribers surveyed said they would upgrade to an ad-free premium model, should Netflix begin to show ads. 39% of the same group said they would either cancel their subscription or switch to another paid service that did not carry ads.

The study unveiled low churn in the market, with 66% of SVOD subscribers claiming to have never cancelled their subscriptions. Just under a third (32%) said they wait less than three months to re-subscribe to the same platform. Some 37% of current subscribers said they are likely to take up another service in the next six months, 65% of whom said the new service would be in addition to their existing one.

One in six of those surveyed said they always go to an SVOD service first when deciding what to watch. The figure rises significantly for 16-to-19-year-olds, with over half (53%) never going to live TV first, while 17% of the age groups claim the number of paid SVOD customers in their household will increase over the next three years.

Over two fifths (44%) of UK consumers said they would be likely to subscribe to a service like Britbox, with the figure rising to 60% for those under 35. More than half (55%) of those who would be likely to subscribe said the new service would be an addition to the services they already have.

“While advertising on SVOD services is currently not seen as acceptable by the majority of consumers, 43% of those who expressed a preference agreed that they accepted and enjoyed advertising on video-on-demand and catch-up services, such as ITV Hub,” noted Differentology head of insight Dan Brilot. “Models for future SVOD services need to understand legacy relationships with existing broadcasters and their ‘permission’ to advertise on their VOD platforms. The mix of low-rolling monthly subscriptions, in addition to episodic content, means SVOD has unusually high levels of loyalty as a category.”