Paid Video Usage Climbs On Tablets, Smartphones: J.D. Power

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As tablets and smartphones have proliferated, the number of consumers paying for video to watch on the devices has grown over the last year -- while viewing on computers has dropped, according to a survey conducted by J.D. Power and Associates.

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

About 23% of customers view paid content via gaming consoles. And customers who view content on a gaming console watch 6.3 hours of video per week, compared with 5.3 hours on computers, 4.9 hours on a wireless phone and 4.4 hours on a tablet.

"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 in announcing the survey results. "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."

Netflix on iPad

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 just 20% of the smartphone audience. Of tablet users viewing video at least once per month, 26.7% paid for content.

Overall satisfaction with pay-to-view video service providers averaged 750 on a 1000-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 that 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 Boomer customers (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. Meanwhile, 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.

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.

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