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MOST SUBSCRIBERS WOULDN’T LEAVE THE SVOD BECAUSE OF THE ADVERTISING

23. 11. 202223. 11. 2022
56% of users of paid VOD services would not stop using them even if they newly included advertising, research by Atmedia has shown.

A majority of users of paid VOD services (56%) would not stop using them even if they newly included advertising. The Atmedia index results show that the vast majority of them made this conditional on a reduction in subscription fees for the services.

Of these 56% of users, 2/5 of them would not stop using paid VOD services with advertising if their price was at least 50% lower than currently, and another 2/5 of them would not stop using them if the subscription price was reduced by at least 75%. The rest would demand at least a 25% discount, or would continue to use paid video services even if they newly included advertising at the same price as at present.
"The results of the atmedia index showed a definite correlation - the greater the subscription discount, the greater the willingness to watch video content with advertising. And the older the user, the lower the willingness to consume advertising,"

Pavel Müller, Head of Research & Marketing at Atmedia, summarises the results of the atmedia index.

In the research, Atmedia asked specifically about those users who used paid VOD services in Q3 of this year and at the same time paid directly for the service, for example by bank transfer, credit card or standing order.

For 44% of users of paid VOD services, the absence of advertising is so important that they would stop using these video services if they newly included advertising. However, as Pavel Müller points out, there can be a difference between the declaration and the actual behaviour of users. "It also depends on how the individual paid VOD services would work with the advertising space. With a larger volume of advertising, the willingness to pay for these services would decrease, with a smaller volume of advertising and a higher discount for subscription, the opposite would be true. In today's context, high inflation rates may also play into this, with people looking for ways to save money."

Users in younger age categories are more open to advertising on paid VOD services, according to the atmedia index results. For example, of users aged 15-24, 71% would not stop using paid VOD services if they newly included advertising. In other age categories, the willingness to pay for video services with advertising decreases and ranges from 47% to 56%. Moreover, for all age categories, if paid VOD services were to newly include advertising, subscription fees would have to be lower than at present.

About the research: The research was conducted by Atmedia based on a questionnaire survey of 2,172 respondents (internet population aged 15-69) from the Czech National Panel. Data collection was carried out by Nielsen Admosphere using the CAWI method.

Source: mediaguru.cz
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