Impact of VOD and PVRs on TV viewing very small in the near term: Nielsen

According to a study of VOD (video-on-demand) viewing in the U.S., consumers aren't into time shifting - at least yet. And, in fact, they actually spend more time staring at the tube than digital and basic cable subscribers. The study, from Nielsen Media Research and cableco Comcast surveyed 180 VOD households in the Philadelphia area between June and August last year, and combined Nielsen's local people meter data with data from the cable operator. The study found that VOD viewing has little effect on live TV viewing, while households that do use VOD services watch 9% more minutes of TV than other digital cable viewers and 38% more than basic cable subscribers. Those aged 18 to 34 watched 37% of all of the VOD minutes and 20% of traditional TV minutes. Children aged 2 to 11 watched 19% of the VOD minutes and 9% of the traditional TV minutes. What held their interest most? According to the study, free content such as short videos and music videos were the most viewed VOD material while shows on ad-free subscription nets such as HBO were the most watched VOD programming.

In another joint venture, Nielsen and Comcast will begin testing a VOD measurement system in the U.S. during the first quarter of this year. And last month in the U.S. Nielsen Media Research also began incorporating PVR viewing into its National People Meter reporting. It has found any declines in program ratings to be very slight and suggests the effect of PVRs on viewing in 2006 will be minimal.

Meanwhile in Canada, though Nielsen Media Research Canada currently captures VOD viewing and is able to discern that people are watching, as well as determine their demographic profile, the research firm is unable to determine what the content of the VOD is at this point. Nielsen makes VOD viewing information available to Canadian clients as a custom analysis product. The Markham, Ont.-based firm also says that due to low penetration of the devices, there currently aren't enough PVR households in the household panel sample to justify wide deployment of its PVR measurement technologies. The company estimates that Canadian PVR penetration is behind that of the U.S. by about 1% to 2%. The good news is that this lag time gives the Canadian market the luxury of benefiting from the lessons learned in the U.S. Nielsen Media has already deployed PVR measurement technology on a small test panel in Canada and is currently collecting viewing data for testing purposes.
By Staff 
February 14, 2006

According to a study of VOD (video-on-demand) viewing in the U.S., consumers aren’t into time shifting – at least yet. And, in fact, they actually spend more time staring at the tube than digital and basic cable subscribers. The study, from Nielsen Media Research and cableco Comcast surveyed 180 VOD households in the Philadelphia area between June and August last year, and combined Nielsen’s local people meter data with data from the cable operator. The study found that VOD viewing has little effect on live TV viewing, while households that do use VOD services watch 9% more minutes of TV than other digital cable viewers and 38% more than basic cable subscribers. Those aged 18 to 34 watched 37% of all of the VOD minutes and 20% of traditional TV minutes. Children aged 2 to 11 watched 19% of the VOD minutes and 9% of the traditional TV minutes. What held their interest most? According to the study, free content such as short videos and music videos were the most viewed VOD material while shows on ad-free subscription nets such as HBO were the most watched VOD programming.

In another joint venture, Nielsen and Comcast will begin testing a VOD measurement system in the U.S. during the first quarter of this year. And last month in the U.S. Nielsen Media Research also began incorporating PVR viewing into its National People Meter reporting. It has found any declines in program ratings to be very slight and suggests the effect of PVRs on viewing in 2006 will be minimal.

Meanwhile in Canada, though Nielsen Media Research Canada currently captures VOD viewing and is able to discern that people are watching, as well as determine their demographic profile, the research firm is unable to determine what the content of the VOD is at this point. Nielsen makes VOD viewing information available to Canadian clients as a custom analysis product. The Markham, Ont.-based firm also says that due to low penetration of the devices, there currently aren’t enough PVR households in the household panel sample to justify wide deployment of its PVR measurement technologies. The company estimates that Canadian PVR penetration is behind that of the U.S. by about 1% to 2%. The good news is that this lag time gives the Canadian market the luxury of benefiting from the lessons learned in the U.S. Nielsen Media has already deployed PVR measurement technology on a small test panel in Canada and is currently collecting viewing data for testing purposes.