Potential new audiences for on demand music, TV and films are limited.
The UK market for content on demand services across digital films, TV and music is reaching saturation point, meaning providers should shift strategies and persuade consumers to buy rather than try digital entertainment services.
YouGov’s first Content on Demand study, which assesses the market every 6 months, surveyed over 3,600 people. It found that that:
- Nearly half (48%) of the online population in the UK have used digital catch-up TV services in the last three months. The most popular services are BBC iPlayer (56%), YouTube (9%), Virgin Tivo (6%) and Sky Sports (6%)
- A third (33%) of the online population in the UK have used digital film services in the last three months. The most popular services are Lovefilm (27%), Sky Movies (19%), Netflix (12%) and YouTube (10%)
- More than three in ten (31%) of the online population in the UK have used digital music service in the last three months. The most popular digital music providers are iTunes (47%), YouTube (23%), Spotify (13%) and Amazon Cloud Player (5%)
However, the research shows that the potential new audience for content on demand services is limited. Of those who do not currently use content on demand services for music 84% are unlikely to access digital music services in the next 12 months. The numbers for digital film and digital catch-up TV are 83% and 79% respectively. By contrast, just 4% think they will use content on-demand music services in the next 12 months, only 5% will use digital film services and 7% will consider catch-up TV.
Shaun Austin, Associate Director for media consulting at YouGov, said: “Among converts there is clearly a huge appetite for content on-demand services in the UK. However, those who don’t currently access content have a limited interest in doing so in the future. Therefore, the focus for digital content providers needs to be on working out ways to get the most out of the existing current user base rather than expanding into new audiences.
“As newspaper paywalls have shown, this will not be easy. The popularity of YouTube and iPlayer show that the services that are used most are usually the services that are free. For providers looking to grow their businesses the challenge will be convincing current users that they offer services worth paying for and services like Spotify are currently leading the way in this area.”
Tackling the threat of piracy
Consumers’ desire to get content for free is also shown in the study’s findings about piracy. Young internet users (12-15 year olds) are consistently more likely to have shared files and downloaded unauthorised content. The results also show they are also less likely to understand the consequences of accessing content illegally.
When it comes to combating digital theft, the Content on Demand study found that awareness and familiarity for the cloud- based licensing system UltraViolet is low, with just 15% having heard of it. However, YouGov’s research shows that those who have used it are likely to use it again meaning the challenge for the industry is boosting awareness of and familiarity with the initiative.
Shaun Austin continues: “The findings from our youth sample should set off alarm bells for providers. This emerging cohort of consumers is clearly used to enjoying content for free, and so for companies hoping to convert current users into paying customers this poses a serious challenge. Initiatives such as UltraViolet offer hope to content providers in this area as consumers who have used it like it. It is now up to the industry to work together to move this into the mass market.”
