New research from GfK shows that, despite larger user bases, VOD offerings from pay-TV providers are losing their war against streaming services like Netflix, Hulu Plus, and Amazon Prime.
The report, “How People Use Media: TV Everywhere/VOD,” shows that 56% of consumers in homes with cable, satellite, or telco TV service say they use VOD or a “TV Everywhere”-type offering from their TV provider. By contrast, 41% of the same group say they use a subscription streaming service.
In terms of customer satisfaction, however, streaming services are the clear favorite, rated “better” than VOD by 44% of those who use both; by comparison, 27% prefer VOD, and 29% say the two are equal.
But there is a silver lining for TV service providers: Those who use VOD more often like it much better. Among users of both service types who turn to VOD at least once a week, on-demand becomes the favorite – preferred by 43%, versus 30% for streaming services.
Similarly, perceptions of the “variety and choice” of programming available via VOD are dramatically more favorable among those who use it more frequently. Among the once-a-week-plus user group, VOD is perceived as essentially equal to Netflix and similar services in terms of viewing choices; 57% cite VOD as having “excellent” or “very good” variety, versus 55% for paid streaming. But those who use VOD less than once a week see the streaming services as highly superior in choice – 67% versus 28%.
In contrast, another type of service, TV Everywhere, is having a notable and growing impact on subscriber churn for pay TV providers. Among users of TV Everywhere in pay-TV homes, 28% feel more satisfied with their pay-TV service (up from 24% last year), and 33% are less likely to change pay-TV providers (up from 25% last year).
This positive assessment is even more striking among those who are users of subscription streaming services – a group considered more at risk of becoming “cord-cutters.” 35% of this contingent are more satisfied with their pay-TV service, and 39% say they are less likely to change providers.