Internet Video

Why Smaller Screens Take Bigger Video Bite

6/25/2012 12:01 AM Eastern

Is that a TV in your pocket? Tablets
and smartphones are becoming more popular for watching
paid video content, according to a survey conducted
by J.D. Power and Associates — while the number of people
viewing video on computers has dropped.

The study found that 18% of customers use tablets to
view paid video content, up from 11% in 2011, while 16%
of smartphone users do so, up from 14% a year ago. PC and
Mac viewing of paid content declined to 39% from 48% in
2011.

“Customers are becoming more comfortable viewing
their paid content on a smaller screen, such as a tablet or
mobile phone,” J.D. Power director of telecommunications
Frank Perazzini said. “The convenience of the device, as
well as the availability of the content, has made it much
easier to experience video on a variety of devices.”

J.D. Power’s 2012 U.S. Residential Pay-to-View Study is
based on an April survey of 4,097 households that evaluated
video-service
providers, including
Amazon, Apple TV,
Blockbuster, Google
TV, Hulu and Hulu
Plus, Netflix, Redbox
and local video stores.

The growing use of
smaller-screen devices
to view video comes
as they’ve proliferated
in recent years. Some
491.4 million smartphones
and 68.7 million
tablets shipped
worldwide in 2011, according
to IDC.

A separate study
from comScore released
earlier this
month found that
53% of iPad owners
and other tablet
users watch
video or TV content on their device at least once per
month, compared with 20% of the smartphone audience.
Of tablet users viewing video at least once per
month, 26.7% paid for content.

In J.D. Power’s survey, overall satisfaction with
pay-to-view video service providers was 750 on a
1,000-point scale, up from 743 in 2011. J.D. Power
measures customer satisfaction on seven factors: performance
and reliability; variety of videos/programming
provided; ease of use; cost of service; customer
service; billing; and offerings and promotions.

The study also found differences in consumption
patterns across different demographic groups. When selecting
a video service provider, 21% of Gen Y customers
(born between 1977 and 1994) consider mobility a factor,
compared with only 9% of baby boomers (born between
1946 and 1964).

Satisfaction with video service providers among Gen
Y customers declined to 752, down 18 points from 2011,
with J.D. Power citing increased dissatisfaction with cost
and customer service as factors. Baby boomers have grown
happier with video services, with an average rating of 748
(up 19 points from last year) based on higher ratings for
billing, ease of use and variety of videos/programming
provided.

April

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May

Multicultural TV Breakfast Panel

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