MRG Conference 2008:Understanding the Age of Video-on-Demand

Helen Croxson, head of commercial research at Channel 4, spoke at today’s MRG Conference about how Video-on-Demand is helping consumers make sense of overwhelming levels of choice.

4oD launched around the time of the last MRG conference two years ago and has gone through many changes over that time in terms of the technology it uses and the content it provides. Helen explained that Channel 4 has used research from 4oD’s inception, providing insight into its potential market size, through to understanding customer needs, commercialisation and advertising effectiveness. Helen claimed that VoD is helping viewing evolve, giving the example of how 14% of FoneJacker‘s total audience in September 2008 came via the platform.

Figures from Virgin illustrate that VoD is no longer niche; over 50% of Virgin’s households have used it. Channel 4’s own research shows that 13% of all adults in the UK have used either TV or PC VoD in the past week. There have been 108 million transactions on the 4oD TV and 4oD PC platforms since January 2008 and the profile of VoD users is young, upmarket and male.

Glenn Gowen, Channel 4’s group head of ad innovation research, went on to talk about how 4oD’s viewers are responding to advertising. Their research has shown that 90% of its users claim that the key motivator for using 4oD is for “catch-up”. In exchange for free content, viewers generally accept advertising as long as it’s short, entertaining and relevant. Consumers also recognise how impactful advertising via VoD can be as they are completely engaged.

Further reports from the MRG conference will appear on MediaTel.co.uk’s NewsLine service over the next three days.

MRG: www.mrg.org.uk