Age is Key Determinant for Adoption of VOD Services

  • by February 19, 2002
Younger men show the most interest in purchasing video-on-demand movies, according to results from the digital home entertainment survey recently conducted by the Yankee Group.

Overall, 31% of cable and satellite subscribers say that they are very likely or somewhat likely to order a video-on-demand (VOD) movie costing $3.95. Male teenagers 16 to 17 years of age are the most likely to order VOD, with 59% of those surveyed expressing interest in VOD.

Response rates for men declined slowly with age, with 39% of those ages 18 to 34 and 30% of those ages 35 to 49 saying that they are "very likely" or "somewhat likely" to buy a VOD movie. For females, interest among those in the 16-to-17 age group was low at just 13%. However, those saying they are likely to buy a VOD movie rose to 40% for women ages 18 to 34 before dipping to 29% for those 35 to 49 years of age.

The survey results help identify the audiences that cable operators and satellite service providers should first pursue in marketing nascent VOD services. Content choices by MSOs and content aggregators should be made specifically to cater to men 16 to 34 years old and women 18 to 34 years old.

"With little variance across different income groups, age will be the primary determining factor for consumer adoption of this service," said Adi Kishore, analyst with the Yankee Group's Media & Entertainment Strategies research and consulting practice. "Developing advertising and promotion programs to target these audience groups will help to quickly grow the usage of video-on-demand."

Next story loading loading..