Accenture published a study called “Heart, Minds and Wallets – Winning the Battle for Consumer Trust”. It unveils some very interesting statistics.
While technology is a key component of creating relevant and appealing offers, it is by no means the sole criterion for success. Success will hinge more on the ability to anticipate, understand and satisfy consumer behavior, which is constantly evolving and shifting at an ever-faster pace driven by the seemingly unlimited possibilities of the IP world. [via Accenture Consumer Survey 2012].
Very true. Let’s look at some of the data. Smart TVs, as well as set-top boxes, are clearly dominating as a preferred way to access internet video on TV.
Interesting as well are the frustrations, lead by advertisement and quality of service.
Advertisement and cost of video content are slightly contradicting issues (advertisement often eliminates the viewer costs, while paid content mostly doesn’t include ads), but the top issues can be addressed by initiatives like Project Primetime. Ads often can’t be avoided, but improving the video and playback experience adds clear value. Not surprisingly, the survey also indicates that free is the preferred way to consume content.
In addition, 69% of viewers would be willing to pay a subscription fee, and ideally less than $10 (90%), if they would get higher quality video (35%), reduced advertising (35%), or premium content (32%).
43% of viewers prefer to consume a “video over the internet service” via their telecommunication/ISP/broadband company, while 33% prefer the traditional TV broadcaster.
Which leads to Accenture’s conclusion.
Telcos and cable providers are currently more likely to be seen by consumers as a trusted provider for Internet video services. This status offers them the potential to become the mainstream distribution networks in the future, opening up considerable possibilities to conceive, design and launch innovative convergent services across devices that provide a new, compelling consumer experience. [via Accenture Consumer Survey 2012].
Does this mean MVPD applications like the Cablevision/Time Warner/XFINITY mobile streaming offerings will become the premium destination rather than beautifully designed (and authenticated) broadcaster branded destinations like WatchESPN, HBO GO, and others? It’s hard to tell, with likely a lot of parties and interests involved, and potentially depending on the content/brand. But no matter what the outcome is, competition results in one winner – the existing cable subscribers.