Content availability, pricing forge FOMO fears for on-demand users | VOD | News | Rapid TV News
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The lockdowns implemented across Europe may be driving a surging VOD sector but consumers believe they are missing out on video-on-demand content due to lack of availability and price, according to new research from Rakuten Advertising.
Rakuten AVOD 10JUne2020
The AVOD: The Time Is Now study surveyed more than 4,500 adults across Europe and found that as the world has faced restrictions on their normal daily routines, the demand for content has grown exponentially. Just over three-quarters of 77% of consumers were watching one or more hours of video-on-demand during the pandemic and lockdown habits were also driving consumers to view VOD content across multiple devices including laptop/desktop (27%), smart TV (25%) and mobile (20%).

The average person was personally paying for up to two VOD platforms. Yet, 64% of people still felt they are missing out on sport (32%), documentaries (26%) and comedy (25%) content in particular during lockdown. Currently 37% of UK consumers were aware of AVOD offerings with 74% believing their use of AVOD would remain at the level established during lockdown and 60% say they are likely to sign up to AVOD offerings when the service is described to them.

Rakuten Advertising said that for those consumers watching major sporting events, the current climate presented an exciting moment as the broadcast of football, golf and horseracing starts again with the easing of lockdown. Across Europe, 26% would be interested in streaming sport on an AVOD service, placing this ahead of all other streaming options, including pay-per-view and monthly subscription services.

Price was the main reason for discontinuing a VOD service, highlighting that paying for content is a barrier for some consumers. Just over a quarter (26%) said they have cancelled because the price was too high and 35% would cancel an existing subscription to pay for a new one. The cost of home entertainment is also preventing users from watching the shows they want. In the UK, this is the case for sport (42%), followed by sci-fi/fantasy (26%), drama (23%) and comedy (19%).

This increased appetite has caused a surge in consumers streaming content illegally. However, the research reveals 41% of UK consumers believe it’s unlikely or very unlikely illegal streaming would continue if content was more readily available. Only 27% of consumers believe it’s likely illegal streaming would continue if content was more readily available on AVOD platforms in particular.

Commenting on the key findings of the AVOD: The Time Is Now report, Rakuten Advertising international managing director Anthony Capano said that more than ever it was important to offer a variety of solutions that stop consumers being priced out of watching video and sourcing illegal content.

“Offering alternative VOD models is key to meeting these consumer demands and responding to changing viewing habits,” he said. “Consumers want access to more entertainment and research suggests they are happy to watch ads in return for it. During this lockdown period it is crucial for brands to continue advertising and stay connected to their customers in ways that resonate. 41% of consumers in the UK want brands to communicate with them in a realistic fashion during this time of uncertainty, and 39% believe brands that emotionally understand people will succeed post pandemic. AVOD can associate brands with enjoyable content that is helping people escape today’s challenges.”