Wednesday, July 11, 2012

Consumers Opt For Netflix Over VOD and Premium Cable

What are the advantages consumers see in Netflix over pay-TV VOD and premium broadcast TV? Low cost and flexibility, says Parks Associates in a new study covering consumer video viewing. Titled “Choosing Content: Viewing Video,” the report found that the Watch Instantly service from Netflix rated higher in customer satisfaction than premium broadcast TV because of those aforementioned factors, and topped pay-TV VOD in terms of cost. Watch Instantly may also play a part in cannibalizing pay-TV offerings, as 16% of U.S. broadband consumers, when watching movies on VOD, consider using an online subscription service as an alternative, while 17% of those watching premium channels like HBO feel the same. Pay-TV providers have tried to fight Netflix by offering their own OTT services, but consumer awareness of these options is low and few providers offer subscription services.

From the article, "Consumers Opt For Netflix Over VOD and Premium Cable."

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