Users are demanding more rich media as they access increasing amounts of
digital content on a range of devices, but research shows that they are still
reluctant to pay for the content.
The third annual Convergence Consumer Survey from business law firm
Olswang
revealed that consumers are willing to tolerate online ads which they would
normally try to avoid in order to secure free content.
Over 30 per cent of respondents are streaming or downloading movie and TV
content on a monthly basis.
Even greater numbers are watching a range of free content on websites such as
YouTube,
as well as accessing streaming music and podcasts.
However, users are far less willing to pay for audiovisual content. Free
content is being consumed by around three times as many people as paid content,
and those not yet consuming are around three times more interested in free
content.
While 84 per cent of respondents found online adverts 'intrusive', and 75 per
cent claim actively to avoid pop up adverts, consumers are prepared to suppress
this antipathy in their quest for free content.
"True convergence is starting to take hold in UK households as more people
network their devices to share content in the home and on the move," said
Matthew Phillips, a media, communications and technology partner at Olswang.
"This has intensified the demand for free content, as consumers want a full
range of content for these devices but are unwilling to pay for it.
"New challenges are facing broadcasters, rights holders and service providers
which are keen to target these consumers but need to overcome the issue of
reluctance to pay."
Advertising is likely to become the natural alternative as companies battle
to attract an audience willing to accept adverts with their content, as long as
the content is free.
However, the challenge is ensuring that consumers keep on the right side of
the law as they begin to download more and more material and use it on an
ever-increasing range of devices.
The lion's share of current regular viewing is free content from
user-generated sites, along with TV clips and movie trailers.
But the research found that nearly one in seven respondents download or
stream free TV programmes to keep, and even more consumers download or stream
free programmes for a limited time.
Even though advertising spend in online media is at an all time high and
growing fast, 84 per cent of respondents find online adverts annoying when it
intrudes on their activities.
But despite this dislike of online advertising, 44 per cent of respondents
with computers at home are happy to have some adverts included at the beginning
of a programme if it meant that the content could be free.
This indicates that consumers are open to different business model
propositions, and that companies need to consider alternatives to direct
consumer payments, according to the report.
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