Online content paywalls

KPMG report highlights reluctance to pay for content

KPMG’s Media Barometer surveyed a total 4,312 UK consumers from YouGov’s panel in September, for its Media and Entertainment Barometer. (KPMG report here)

Among the main findings:
—27 per cent own a smartphone. “This rose to 44 per cent and 43 per cent amongst the 18-24s and 25-34s respectively.”
—35 per cent have downloaded paid apps in the last year – a tenth of those had spent more than £10
—Just two per cent own tablets
—”Subscribers most commonly paid for music (23 per cent), online gaming (21 per cent), business news/analysis (19 per cent), online newspapers/magazines (19 per cent) and TV (19 per cent).”
—”Nine per cent (of people who don’t currently subscribe to online content) indicated they would possibly become a paid subscriber (in the next 12 months).
—”Only 2 per cent would be prepared to pay for unrestricted access to a website they use regularly if a paywall were introduced. 79 per cent would seek similar content elsewhere. ”
—”86 per cent of consumers said they preferred to consume media offline rather than online. The most popular reason was a preference to reading physical copies.”

KPMG’s media head David Elms commented: “Whilst the appetite to pay for web content is moving slowly, the pace of spending money to download content on mobile devices is moving much more quickly, particularly in the crucial 18-34 demographic.

“A key question is whether consumers, increasingly used to paying for premium content on their mobiles and tablets, will become more willing to pay for online content to their desktop – but, at the moment, it is too early to identify any discernible trends.”

“Whilst the availability of tablets and smartphones is providing consumers with wider access to media, the gap between the time spent on new media and traditional activities has not narrowed over the past year. In fact, traditional media still remains more popular particularly reading books (68 per cent) and watching TV (93 per cent).”

Category :IPTV
Post Tags: content, online, paywall, survey
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Connected TV and the future for STB’s

What can the STB manufacturers do to manage the threat from Connected TV’s

The last 12 months have seen a deluge of Connected TV’s dropped into the shops and peoples homes. All major CE vendors have a Connected TV offering with little to differentiate between them (as all content offerings appear to be similar). STB manufacturers are assessing their position in this new marketplace, and if they’re not then perhaps they should be.

Connected TV’s (providing Over the Top TV) are not the first threat to STB manufacturers and they have traditionally provided a vital interim solution until the new technologies become adopted by the TV manufacturers and consumers. They will continue to fulfill this important role.

But where next, what other tactics could they adopt to manage this threat from Connected TV’s. In essence they could derive more margin in the following ways:

Compete directly – the STB manufacturers could diversify into providing Over the Top Tv services via their own product. This could be through a 3rd party platform or they could own/operate their own

Landgrab – securing a place in the market will help grow an earlier consumer base. A large and mature base will be the key a potential spin off/sale later

Ship more product – by getting into the Over the Top TV space the STB manufacturers will be able to address traditional markets and sell to the new OTT TV markets

      BCi continues to provide services and thought leadership in the Over the top TV market. We provide a number of related white papers via our website.