Consumers 3X more likely to recommend OTT service than pay-TV

By jimoneill

Consumers in the United States are more than 3X likely to recommend their OTT service provider than their pay-TV service provider

Consumers in the United States are more than 3X likely to recommend their OTT service provider than their pay-TV service provider, according to Ericsson’s latest edition of its annual ConsumerLab TV & Media Report.

The report, in its fifth edition, measured consumers’ “Net Promoter Score,” the difference between “Promoters” and “Detractors,” and found OTT ranked a +39 compared to pay-TV’s +12.

The study’s authors said the difference in scores likely was related to consumers’ satisfaction with key TV and video attributes. They pointed out that not only were consumers more satisfied with the prices offered by OTT on-demand service providers but also their ability to ensure access to content from any device and place.

What was more surprising, however, it the consumer perception that the selection of content offered by OTT services is better than that offered by pay-TV services.

Ericsson said both OTT and pay-TV received high marks for video and audio quality, which was seen as more important than price or portability of content.

Ericsson posits that future TV viewers will be unwilling to pay for “inflexible managed TV packages in order to get access to the content they love.”

Some quick facts from the report:

  • The average US TV viewer spends USD 85 per month on managed TV, on-demand video and buying and renting DVDs.
  • US consumers spent 8% of their video entertainment budget on physical media, down from 21% in 2010.
  • On-demand spending has more than doubled between 2010 and today.
  • 60% of consumers said HD quality is very important; 43% said UHD is important, with one third of respondents saying they were willing to pay for 4K, despite the current lack of content in the format.

Also see:
Report: Streaming video watched as often weekly as traditional TV

Follow me on Twitter @JimONeillMedia

Categories:
Tags:

: Consumers 3X more likely to recommend OTT service than pay-TV

    

0