Paid Content Preferred Over Free Services, Says Motorola Report

LIBERTYVILLE: Motorola Mobility has released new research indicating that consumers prefer subscription TV services—cable, satellite or online—over free-to-air platforms, "even in markets where free programming is more readily available."

The Global 2010 Media Engagement Barometer surveyed the video-consumption habits of 7,500 consumers in 13 markets: Australia, China, France, Germany, Japan, Nordics, Russia, Singapore, South Korea, Turkey, United Arab Emirates, the U.K. and the U.S. It found that while free-to-air services are available to 67 percent of global viewers, compared to 57 percent for paid-for services, the most preferred TV services are subscription only. Further, just over two-thirds of said it was either quite or very important to be able to access free content on devices other than the main television set in the home; compared with 39 percent when asked a similar question for subscription content.

Other key findings include that 42 percent of viewers globally have had an email conversation, engaged in an instant message chat or used a social network to discuss a program or video while they were watching it. Plus, 75 percent own or plan to own an HD television in the next 18 months and 25 percent are expected to upgrade their TVs to include 3D in the same timeframe.

"The research clearly shows a changing television landscape, one where subscription services are becoming mainstream, augmented by social activities revolving around Internet chat and networking channels," said Bill Ogle, chief marketing officer at Motorola Mobility. "As we advance further into the Internet era of TV, the ability for service providers to differentiate their offers will become even more crucial as consumers look for extra value from their subscriptions. The good news is that, based on these findings, consumers are willing to pay for the services providing the value."

He continued, "The findings suggest that the huge increase in the availability of video content is leading to viewers tiering their viewing habits in terms of preference, notionally based around payment. Yes, they’re watching content on laptops and other devices, but they are still staying loyal to the television set. This is a powerful message for the service providers. Stickiness does exist, providing all parts of the offering are attractive to subscribers."

The report also notes that individuals spend an average of 13 hours a week consuming content. North America and Japanese viewers watch the most (21 hours each). South Koreans watch the least (13 hours). The research was conducted on behalf of Motorola by an independent agency, Vanson Bourne.