Tuesday, November 30, 2010

For-Fee Online Video Demand Still Nascent

A new study by Ipsos finds that some viewers are willing to pay for online video, though much depends on the payment model and the actual type of content.

In a survey of 18-to-34-year olds, Ipsos found that 51 percent of respondents were interested in fee-based models from Hulu, Netflix or iTunes.

Ipsos OTX MediaCT created a scenario where free alternatives were not available and TV was available from Netflix at $9 a month, iTunes at $1 a download with no ads, and Hulu at $1 with ads.

While 17 percent of the younger demo was interested in a pay-per-episode Hulu model, only 11 percent of those 35 and older wanted to buy that way. Overall 49 percent of youth had no interest in pay models while 70 percent of the 35+ group suggested they were not interested in such fee-based offerings.

Eagerness to use the Web to catch up on or re-experience TV content varies a bit from genre to genre and even more from show to show. People are more likely to want to re-watch comedies than other genres, but a subscription service like Netflix was more appealing for its run of dramas since viewers wanted access to whole season.

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