Content Remains King, But To Rule It Needs A Proper Throne: Strategy Analytics and Piksel Study Concludes
Reliability and Video Quality are Table Stakes Requirements
BOSTON, Sept. 8, 2015 /PRNewswire/ -- Once again content has proven to be king when talking about the choice drivers for online video services. According to a major study performed by Strategy Analytics and Piksel in Q2 2015, 52 percent of viewers are driven by a "content related" factor when looking for an online video service of preference. Such factors could be related to the type of content (whether the service includes full TV series and movies, live content, or user generated content) and the size of the content library. By contrast, price and pricing options account for only 39 percent of consumer choice.
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Understanding the importance of these consumer-choice-drivers is key to minimizing risks when building a new OTT video service. But even more revealing is the importance of having a stable platform to provide a seamless and undisrupted user experience. The majority of viewers believe that user experience-related factors, such as reliability of the service (no buffering, no delays), ease of use (friendly user interface and broad device support), and video quality, are very important. These insights provide great visibility to service providers to prioritize what really drives choice for their audiences in order to satisfy and even anticipate their needs.
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The findings are based on an online survey addressing over 1,200 US viewers between 16 and 59 years old who had watched online video services at least six months prior to the study. The research utilizes discrete choice modeling to uncover choices consumers make in often complex purchase decisions.
"Study participants are exposed to a simulated real-world 'shopping' experience to help them make realistic and thoughtful choices in an often complex purchasing decision. Discrete choice modeling allows us to implicitly measure the role that various aspects of a product or service play in decision making," says Arleen Denque, VP, Consumer Insights Practice at Strategy Analytics. "Utilizing a Market Decision Simulator, OTT video service providers can have a concrete framework on which to base critical planning decisions concerning the type and range of content they need to offer and the sorts of pricing models which will work best to drive revenues, profits, or subscribers."
Fabrice Hamaide, President at Piksel comments, "It's clear from our study with Strategy Analytics that this depth of insight is critical to building a successful online video business. Often overlooked, finding the sweet spot of your target audience's preferences could represent the key differentiator to providing a service that matches a specific market's needs and considerably reducing the risk involved in launching a new service. Leveraging our Consumer Insights services, both at launch and on a continuous basis, provides clarity around the nuanced effect that tangible and intangible factors have on consumer decisions. It is part of allowing online video providers to create robust and profitable offerings."
About Strategy Analytics
Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for digital media, emerging technology, mobile and wireless, and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success.
The Consumer Insights Practice is Strategy Analytics' center of excellence for custom research delivering cutting-edge methodologies and analysis to understand customer needs and their implications across the business planning process from Strategy and Front End Planning, Product Development, and Go-to-Market Performance. www.StrategyAnalytics.com
About Piksel
Piksel has been building successful online video businesses for over a decade. Our offering of strategic, professional and managed services is underpinned by the Piksel Palette's SaaS-based infrastructure. It's this recipe that enables our media and entertainment clients to prosper in today's video market.
Piksel's unrivaled expertise is in designing, building, managing, and investing in online video solutions for the likes of AT&T, BSkyB, Channel 4, Liberty Global, Mediaset, OSN and Transavia. Headquartered in New York City, Piksel offices can be found throughout Europe and the Americas.
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Media Contacts
Strategy Analytics Contact: Arleen Denque, +1 617 614 0755, adenque@strategyanalytics.com
Piksel Contact: Tarley Jordan, +1 646 801 4695, tarley.jordan@piksel.com
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