Accenture Video-Over-Internet
Consumer Survey 2012

Accenture’s Video-Over-Internet Consumer Survey 2012 finds that digital consumers of all ages are embracing over-the-top TV as the medium goes mainstream.

Overview


Digital consumers of all ages are embracing Over-the-top (OTT) TV as the medium goes mainstream. Winners in this fast evolving space will be those players that can earn consumer trust.

Video over Internet is nothing short of an industry revolution. Many operators around the globe are making significant investments to position themselves for success in this new space.

And while technology is a key component of creating relevant and appealing offers, it’s by no means the only thing that matters. That will hinge more on the ability to anticipate, understand and satisfy consumer behavior that is constantly evolving and shifting at an ever faster pace, driven by the seemingly unlimited possibilities of the IP world and the digital ecosystem.

To give all players insight into how their strategies should respond to consumers’ emerging behavior and preferences Accenture has conducted its second global online survey, covering more than 7500 consumers in Argentina, Brazil, France, Germany, Italy, Spain, the United Kingdom and the United States.

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Background

As the video over Internet platform matures it is raising key questions, opportunities and challenges for providers (both broadcasters and cable/telco operators), content owners, consumer technology manufacturers and new internet businesses looking to capitalize on the move from niche to mainstream. These issues revolve around the type of experience and services that consumers are looking for; the range of devices that they see as most suited to particular types of content; their willingness to pay for the quality of service they expect; and the level of trust which they place in the different players trying to target this highly valuable space. And trust in this fast-developing market is going to be an essential quality to secure competitive advantage.

Understanding what the customer wants in a market that represents nothing short of the future of the industry is essential. The winners will be, above all, those that can build consumer trust — and that derives from the ability to propose and offer multi-device services that appeal to and meet consumer expectations.

This battle for consumer trust is moving to a new global stage. IP is breaking down local barriers so that what we see today is increasingly a competition between global and local, and that battle has particular relevance for broadcasters and ISPs as they seek to establish themselves as the trusted provider for a single market.

Key Findings

The 2012 Accenture Video-Over-Internet Consumer Survey results give companies insight into how consumers are embracing the use of a range of devices to view content, their specific requirements in terms of quality, their willingness to pay and what they expect in return:

•  Although the PC remains the most used way to access video over Internet, other devices are catching up fast, with connected TV (either directly or through a set-top box) the second most popular option.

•  The nature of the device also tends to dictate the frequency of viewing particular types of OTT-TV content. Full-length content is more likely to be watched on a connected TV than any other device. Short clips and user-generated content are dominated by PCs, though mobile devices are used frequently (at least three times a week) by more than half of consumers.

•  Digital consumers find advertising the largest single source of frustration (53 percent), but the time required to download or buffer content (51 percent) and the quality of the picture (45 percent) are near rivals for their dissatisfaction. Only 19 percent rate the cost of video content as a major frustration.

•  Forty three percent of respondents already pay for at least some of the video content they watch over Internet and 69 percent say that they would be prepared to pay for content.

•  Multi tasking continues to rise—the majority of consumers say that they use at least one other device when watching TV. Use of tablets in front of the TV, while still relatively low at 11 percent, has nearly trebled since last year.

Recommendations

The survey findings point to several key considerations for players in the Internet video marketplace:

•  Achieving consumers’ trust is critical to helping them navigate the choices they face and in doing so become a preferred provider. While telcos and broadband providers have a strong hand today, there’s everything still to play for.

•  Digital consumers’ enthusiasm is tempered with some confusion about the best ways to engage in this new space. Those players that create compelling, convergent services across multiple devices that make it easy for consumers will be able to steal a march on the competition.

•  While willing to pay for content, video consumers are not prepared to settle for any dip in quality. Providers need to ensure that the experience they offer can meet those needs—a task made complex by the open nature of IP.

•  International brands have established a strong market position, but local providers are by no means out of the picture. In this space, allegiances can shift fast.