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Tracker

TelecomTV TRACKER

Sourced by TelecomTV's TRACKER platform
from Strategy Analytics Press Releases

Tracker

Content Remains King, But To Rule It Needs A Proper Throne: Strategy Analytics and Piksel Study Concludes

Via Strategy Analytics Press Releases

Sep 8, 2015

Reliability and Video Quality are Table Stakes Requirements

Boston, MA - September 8, 2015 – Once again content has proven to be king when talking about the choice drivers for online video services. According to a major study performed by Strategy Analytics and Piksel in Q2 2015, 52 percent of viewers are driven by a “content related” factor when looking for an online video service of preference. Such factors could be related to the type of content (whether the service includes full TV series and movies, live content, or user generated content) and the size of the content library. By contrast, price and pricing options account for only 39 percent of consumer choice.

Macintosh HD:Users:tarleyjordan:Dropbox:Piksel - Tarley's Files:Product:Services_Consumer Insights:PieChart_OTT_Factors_V3.png

Understanding the importance of these consumer-choice-drivers is key to minimizing risks when building a new OTT video service. But even more revealing is the importance of having a stable platform to provide a seamless and undisrupted user experience. The majority of viewers believe that user experience-related factors, such as reliability of the service (no buffering, no delays), ease of use (friendly user interface and broad device support), and video quality, are very important. These insights provide great visibility to service providers to prioritize what really drives choice for their audiences in order to satisfy and even anticipate their needs.

Macintosh HD:Users:tarleyjordan:Dropbox:Piksel - Tarley's Files:Product:Services_Consumer Insights:PieChart_OTT_Relative Importance of Factors v2.jpg

The findings are based on an online survey addressing over 1,200 US viewers between 16 and 59 years old who had watched online video services at least six months prior to the study. The research utilizes discrete choice modeling to uncover choices consumers make in often complex purchase decisions.

“Study participants are exposed to a simulated real-world “shopping” experience to help them make realistic and thoughtful choices in an often complex purchasing decision. Discrete choice modeling allows us to implicitly measure the role that various aspects of a product or service play in decision making,” says Arleen Denque, VP, Consumer Insights Practice at Strategy Analytics. “Utilizing a Market Decision Simulator, OTT video service providers can have a concrete framework on which to base critical planning decisions concerning the type and range of content they need to offer and the sorts of pricing models which will work best to drive revenues, profits, or subscribers.”

Fabrice Hamaide, President at Piksel comments, “It’s clear from our study with Strategy Analytics that this depth of insight is critical to building a successful online video business. Often overlooked, finding the sweet spot of your target audience’s preferences could represent the key differentiator to providing a service that matches a specific market’s needs and considerably reducing the risk involved in launching a new service. Leveraging our Consumer Insights services, both at launch and on a continuous basis, provides clarity around the nuanced effect that tangible and intangible factors have on consumer decisions. It is part of allowing online video providers to create robust and profitable offerings.”

Related Topics
  • AI, Analytics & Automation ,
  • Data & Analytics,
  • News,
  • North America,
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