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ThE MaStEr

Pennypinching consumers refuse to pay for video quality
By Julian Clover
Published: November 16, 2010 00.01 Europe/London

A new report has revealed a disparity between consumers’ expectations regarding improved video quality and delivery mechanisms and their willingness to pay.

The study produced by Forrester Research on behalf of Cisco, found that just 11% of consumers that were dissatisfied with their broadband speeds would be prepared to pay either for increases in broadband speeds or guaranteed increases in video quality online. 64% of consumers think that online video quality is poorer than that delivered via traditional broadcasting. Consumers hold both ISPs and content providers responsible for quality problems. 43% of those surveyed believe their ISP is responsible for ensuring good online video quality while 41% laid the blame at the door of the content provider. 72% say they experience stuttering and freezing of online video.

“With video predicted to make up more than 91% of all internet traffic by 2014, it is clear that the growth of online video represents the next significant stage in the development of the Internet,” Phil Smith, vice president and managing director, Cisco UK and Ireland. “The fact that consumers hold ISPs and content providers equally responsible for any drop in video quality is a clear sign that these industries need to work together to ensure that are able to deliver a consistently high quality service to consumers.”

When it came to television 57% of UK consumers now claim to own an HD television, a figure typically opposed to the take-up of HD subscriptions from the likes of Sky and Virgin. 43% of 16 to 24 year olds expressed an interest in 3DTV, as did 33% of those aged 25 to 34.

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Pennypinching consumers refuse to pay for video quality


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