Industry News

    Consumers Supplement Traditional TV with Video-on-Demand

    Manila, PHILIPPINES, 1 APRIL 2016 –With the rise of video-on-demand platforms where consumers have the power to select, watch or listen to video content whenever they want, broadcast TV still reigns supreme in the Philippines. In a new report from global performance management company, Nielsen, 59% of online Filipino consumers are subscribed to a cable provider and at the same time, 16% are subscribed to an online service provider.

    The Nielsen Global Video-on-Demand Survey polled over 30,000 online respondents in 61 countries to gauge worldwide sentiment about VOD viewing and advertising methods. The number of self-reported VOD viewers is significant. Eighty one percent (81%) of Filipino respondents subscribed to an online service provider claim they watch some form of VOD programming. This includes long-and short-form content, be it through TV, computer, tablet or a mobile phone.

    “The emergence of video-on-demand programming options is giving consumers greater control over what, when and how they watch content,” says Stuart Jamieson, Managing Director of Nielsen Philippines. “Viewers are now expanding their range of viewing platforms as well as the amount of media they’re consuming. We are seeing that online is supplementing traditional services.”

    In addition, 45% of online Filipino consumers watch VOD once a day or more often. When they access VOD, movies dominate the type of VOD content watched by Filipinos. In fact, close to nine in ten (89%) Filipinos say they view movies, followed by TV programmes (60%) and other genres such as comedies (52%), documentaries (44%), reality shows (40%), news shows (38%) and dramas (35%).

    Filipino consumers predominantly use computers (80%) and mobile phones (76%) to watch VOD programming.

    VIDEO-ON-DEMAND’S APPEAL TO CONSUMERS

    Given the fast-paced lifestyle of today’s consumers, convenience is an important consideration. Eighty-five percent of online Filipino consumers said they can view VOD at a time that is most convenient for them. Eighty-two percent (82%) of online Filipino consumers said they like to catch up on multiple episodes at one time. “We see that VOD is complementing TV by filling the gaps that come with traditional TV viewing. When Filipinos can’t get to their TV at a certain time, they now know that they have the ability to watch it at a later date that allows them to catch up,” observes Jamieson.

    Filipino consumers are also showing great propensity to be on social media while watching VOD, with 74% saying they like to use social media while watching VOD programming.

    CUTTING THROUGH THE AD CLUTTER

    Around three quarters (74%) of online Filipino consumers wish they could only see ads that are for products that interest them while close to 7 in 10 (69%) of Filipino consumers who watch VOD say online ads displayed before, during or after VOD programming are distracting and, 62% wish they could block ads.

    On the other hand, 63% of Filipino respondents who watch VOD somewhat or strongly agree that ads in VOD content give them good ideas for new products to try. Around two thirds (66%) say they don’t mind getting ads if they can watch free content. This sentiment is highest among Southeast Asian consumers.

    “Consumers can be open to advertisements but this has limits,” says Jamieson. “To engage and keep the attention of consumers, it is critical for advertisers and content providers to customize both content and advertising. Innovations such as programmatic and addressable advertising give the needed precision in reaching viewers.”

    He however cautions that: “Mass advertising via traditional TV is still compelling and effective in capturing the attention of audiences and should not be disregarded. It is always important to consider that traditional and digital models serve different purposes.”