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U.S. Consumers Still Seeking Content As OTT Pricing Starts To Rise: The Shifting Economics Of Content

A new study commissioned by Amdocs, a leading provider of software and services to communications and media companies, reveals that even with all the disruption in the media landscape, exploding content and delivery options, customers are getting frustrated with the TV options they have today and show they are willing to spend more for personalized approaches to TV content bundling and service provisioning.


Cord Cutters and Cable Watchers Alike Are Missing Content

68 percent of U.S. viewers aren’t satisfied with the range of TV and video content they currently have, despite spending an average of USD 85.71 per month on TV, movie and video subscription services per household. In order to access all of the TV shows, films and live sports they want to watch on a regular basis, TV viewers believe they would need to pay almost 50 percent more than they’re currently spending, meaning a total of USD 126.59 per month or over USD 1500 per year, on average.

Darcy Antonellis, Head of Amdocs Media and CEO of Vubiquity said: “This survey highlights the consumer’s perspective that even with the disruption within media creating new consumption services, two out of three are frustrated by their à la carte options and not getting everything they want to watch.  That said, everything from subchannel, community-specific content and programming to innovative payment options and hyper-personalized advertising can offer value.”

The Battle for Viewers Must Get Personal, Without Eroding Trust

The research revealed that the average U.S. consumer has two subscription TV, movie or video content services across cable and OTT which can be complex and costly; highlighting the need for a fresh approach to broadcasting based on personalized content and aggregated services.

Around 70 percent of U.S. respondents stated that they would be prepared to pay for a single provider that could package all of their preferred content into a dedicated service bundle. 69 percent of consumers said that they would be happy to ditch their current providers if this type of personalized content package was available on the market.

In addition, U.S. consumers revealed the types of personalized services they’re looking for from TV and video providers. In their ideal, perfect bundles:

  • 84 percent would include a binge-worthy TV series (e.g. Game of Thrones)
  • 68 percent would include access to live concerts and events
  • 68 percent would include access to all sports games from one specific team
  • 27 percent would include access to deleted scenes/blooper reels
  • 18 percent would include access to augmented reality (AR) and virtual reality (VR) enhanced content in films and TV shows

The loyalty of younger U.S. viewers, aged 14-35, is driven even less by pricing.  Around two fifths (38 percent) of U.S. respondents in this age group said content variety, delivery options, searchability or powerfully engaging experiences, like AR and VR, were their most important driver when selecting a provider. Plus, over 80 percent of this age group said they would be willing to accept more advertising if they could select the timing of delivery or content therein – seeing only sports-related ads and only Mondays, for example.

The research covered2500 TV, film or video-watching consumers, who were interviewed between October and November 2018 by research firm Vanson Bourne. 1000 consumers were interviewed in each of the U.K. and U.S. markets and 500 in Brazil. ―BCS Bureau

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