SOURCE: BURST! Media

November 15, 2005 10:22 ET

BURST! Media Study Finds Market Emerging for On and Off Line On-Demand Programming

One-in-Five Ready to Purchase Online On-Demand Programming

BURLINGTON, MA -- (MARKET WIRE) -- November 15, 2005 -- A recent BURST! Media survey of over 3,300 web users 18 years and older, has found a market emerging for on demand programming offered online or by a cable or satellite TV provider.

One-in-five (19.1%) respondents said they would probably purchase online on-demand programming such as television programming, movies, concerts or sporting events that could be watched on their computer. About a third (32.9%) said they are unsure whether they would purchase, and 48.0% say they would not purchase online on-demand programming.

Men are significantly more likely than women to say they would purchase online on-demand programming (23.3% v 15.0%). Among age/gender segments, men under the age of 34 years are most likely to say they would purchase online on-demand programming -- 24.3% of men 18-24 years and 31.4% of men 25-34 years. Among income segments, the greatest level of demand is found among respondents reporting household income of $35,000-$74,999 (23.8%). As might be expected, potential demand of online on-demand programming is also greater among respondents with a broadband connection (22.5%) than with those using a dial-up connection (13.2%).

One-in-Five Respondents Has Paid for Online Content During the Past Year

One-fifth (19.2%) of study respondents say they have purchased/paid a subscription fee for online content during the past year. Among gender segments, men are significantly more likely than women to say they have purchased/subscribed to online content (22.9% v 15.5%). As might be expected, the higher a household's income the greater the likelihood they have purchased/paid a subscription fee for online content -- peaking with one-quarter (25.4%) of respondents reporting household income of $100,000 or more.

One-in-ten (11.9%) respondents who have not purchased/paid a subscription fee for online content during the past year say they are likely to do so in the future. Among current non-purchasers, men are more likely than women to say they would consider purchasing/ subscribe to online content (13.6% v 8.2%).

"Technology has transformed content consumption into an experience no longer tied to device, time and place; consumers now dictate the terms on how, when, and where they will consume content. This reshapes our notions of networks and portals," says BURST! Media CEO & President Jarvis Coffin. "Today, consumers are their own portals. They have customized their own media network, and that has obvious impact on marketers trying to reach them. Marketers cannot be satisfied to sit around the media waterholes of the past waiting for consumers to arrive. They must seek them out."

One-third Have Purchased Video On-Demand Programming in the Past Year

Overall one-third (34.1%) of respondents who subscribe to a home television service (cable or satellite) say they have purchased on-demand programming during the past year. Women are slightly more likely than men to say they have purchased on-demand programming (35.2% v 32.9%). Among age/gender segments, purchase of on-demand programming peaks with women 25-34 years (39.0%) and 35-44 years (43.6%), as well as with men 45-54 years (39.6%).

Purchase of on-demand programming increases as respondents' reported household income increases; in fact, whereas only one-quarter (27.0%) of respondents with household income less than $35,000 say they have purchased on-demand programming, 43.1% of those with household income of $35,000-$74,999, and 40.4% of respondents with household income of $75,000 or more say they have purchased on-demand programming during the past year.

Frequent Internet Users and DVR Owners Purchase On-Demand Programming

Purchase of on-demand programming varies among Internet usage segments. Respondents who use the Internet 20 hours or greater per week are more likely (45.9%) than all other Internet usage segments to say they have purchased on-demand programming during the past year. Interestingly, respondents who own a Digital Video Recorder (DVR) are also heavy consumers of on-demand programming, with 59.3% saying they have done so.

Current Purchasers of Content Are Market or Online On-Demand Programming

Nearly one-third (29.3%) of respondents who have purchased content during the past year (on-demand television programming or online content) say they are likely to purchase online on-demand programming -- 30.6% are unsure, and 40.1% said they would not purchase. This compares to only 14.6% of respondents who have not purchased content during the past year.

BURST! Media (www.burstmedia.com) is the most reliable online network for discriminating publishers and advertisers who value integrity, performance, and personalized support. BURST! reaches approximately 1 in 3 people online across 2,000 websites, delivers more than 4 billion impressions every month, and is among the 20 largest online media properties in terms of unique visitors and reach.* By providing thousands of web publishers with tools and expertise from ad sales to email newsletter tools and community forums for learning, BURST! helps publishers generate sustainable revenue. BURST! also markets AdConductor™, a suite of ad management solutions that helps web publishers securely forecast, target, serve, track and report the performance of online advertising campaigns. The company, founded in 1995, is based near Boston, and was recently named the 11th fastest growing private company in Massachusetts by the Boston Business Journal.

*(according to comScore Media Metrix)

Contact Information

  • George H. Simpson Communications
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