Sixty-two percent of consumers prefer free on-demand TV programs with commercials rather than commercial-free VOD programs that cost $1.99, writes MediaBuyerPlanner, citing new research from Points North Group and Horowitz Associates. Seventeen percent would choose to pay $1.99 without commercials. Twenty-one percent are undecided.
Among consumers 18-34 years old, 68 percent want free - ad-supported - VOD, versus 26 percent who favor paying; 5 percent are undecided.
"Video downloads for $1.99 will have limited appeal. Consumers will grow tired of having their credit cards charged $1.99 every time they download a rerun of CSI," said Craig Leddy, a Points North Group analyst.
He cautioned that the advertising must fit the unique characteristics of on-demand video, the internet and portable devices - and not impede consumers' viewing experience. "In time, consumers will see a mix of free, ad-supported, pay-on-demand and subscription options," he said.
