video-on-demand-2012

© Webcredible 2012 2
Contents
Introduction........................................................................................................................ 3
How has Video on Demand services changed since 2010? ............................................... 4
1. Archived content ......................................................................................................4
2. Film and non-native content.....................................................................................4
3. Advertising...............................................................................................................5
4. Simplification of navigation.......................................................................................6
5. Watch in High Definition (HD) or High Quality (HQ) .................................................6
6. Making full-length content available through other online platforms..........................6
New players in the market.................................................................................................. 8
Netflix...........................................................................................................................8
Blinkbox.......................................................................................................................8
LOVEFiLM Instant........................................................................................................8
NOWTV .......................................................................................................................9
The competitive landscape overall ...............................................................................9
Meeting the needs of the viewer ...................................................................................... 10
1. Viewers are loyal to particular shows .....................................................................10
2. Nature of content affects experience......................................................................10
3. Complete vs. incomplete content ...........................................................................11
4. Attitudes to illegal download...................................................................................11
5. Watching video can be both inactive and dynamic .................................................11
The future of Video on Demand ....................................................................................... 13
1. Simplifying access to content across a variety of digital channels ..........................14
2. Providing live broadcast experiences.....................................................................14
3. Making large volumes of content easy to access ...................................................14
References and related articles........................................................................................ 15
About Webcredible........................................................................................................... 16

Introduction
Since its conception online Video on Demand (VoD) has been a point of extreme interest
for us at Webcredible. We have produced a number of investigative and analytical blogs
and white papers (see the ‘our previous work’ section at the end of this document for links
to this content). This year’s no different, with new entrants into the online video streaming
market the competition is now greater than ever, making it a very interesting area to
research.
The viewing figures of Video on Demand services reflect a rapidly growing adoption rate.
The results of a YouGov poll earlier in the year revealed “that just over one in four (26%)
Britons claim to spend more time watching TV through 'on-demand' services, such as
BBC’s iPlayer and YouTube, than they do watching traditional 'linear' broadcast TV”.
This short report aims to review the user experience and digital implementation of the
newcomers’ platforms, analyse the changes in the market since 2010 and assess how
traditional broadcasters have updated their services since our last VoD analysis in 2011.
Importantly we’ll explore how well viewers’ needs are now being met since our 2010 report
which reviewed traditional broadcasters’ platforms in 2010 and expands upon the five
essential viewer requirements from Video on Demand services we identified in early 2011.

How has Video on Demand services
changed since 2010?
In our 2010 White Paper review “Video on Demand: Playing Catch Up” we found amongst
traditional terrestrial UK TV broadcasters BBC’s iPlayer lead the market in terms of viewer
experience due to:
 Free and easy access to content
 Options to engage audiences such as sharing via social networks and ‘favouriting TV
shows’
Since then the proposition of the main UK terrestrial TV providers has been simplified in-
line with that of BBC’s iPlayer (no longer in beta). ITV Player, Channel 4’s 4oD, and
Channel 5’s Demand 5 are now all straightforward TV streaming services. Viewers
accessing content on any of these websites can now simply click through to content and
start watching, without having to register for accounts (though for certain content viewers
will need to have a login). Bar iPlayer the interfaces of all main UK providers have had
major updates and now all appear startlingly similar to one another. The main differences
between them, and the ways in which they’ve developed most notably over the past few
years are:
1. Archived content
The BBC and Channel 4 have moved past simply offering viewers a ‘Catch-up TV’ service,
now giving access to programmes form their back catalogue. Both have made ‘archived’
content available (though Channel 4’s is much more exhaustive), including popular
comedy series and impactful documentaries, which were previously unavailable. Examples
include ‘The Devil’s Music’ a BBC documentary about the blues from 1982 or Channel 4’s
much loved ‘Father Ted’ which previously required a DVD purchase.
2. Film and non-native content
Again taking their service in a true Video on Demand direction the BBC and Channel 4
now give viewers the chance to watch and catch-up on Films. The BBC allows viewers to
watch a number of films recently aired on their channels (including some Hollywood
movies but not all). Whereas under their Film4 brand Channel 4 have partnered with
Filmflex (providers of Virgin Media’s movie on-demand cable TV service) to offer viewers
the chance to view latest film releases – however there’s a price to watch each movie,
reflecting Filmflex’s ‘movie rental’ style service.
The BBC, Channel 4 and Channel 5 now also allow viewers to watch content created by
other TV networks, most notably a number of the bigger US drama series can be accessed
via the catch-up TV options. Examples include the latest series of Homeland on 4oD, and
Heroes and Mad Men on the BBC iPlayer a number of years ago (though availability of
such content on the BBC appears to have dropped off over the past year).

3. Advertising
The format in which adverts are delivered by the independent providers (ITV, Channel 4,
Channel 5) has changed a number of times over the years, we now see content which is:
 Surrounded by banner ads – background and inline ad links now seem a standard part
of the design of these platforms (as in the 4oD example below)
 Introduced with adverts – Viewers experience on average 4-6 ads totalling around one
to two minutes. The ads can’t be skipped, though a countdown timer demonstrates to
viewers how long they’ll have to wait, as in the following example on the ITV player:
 Interspersed with adverts – Where there are breaks in the content for traditional TV
ads digital ads can now be found. The existence of the breaks is now highlighted to the
viewer on the programme’s progress bar, as in the following example from Demand 5:

4. Simplification of navigation
There has been a move away from more complicated service propositions such as
combinations of content available to ‘rent’ and ‘buy’. The interfaces of each service have
also been greatly simplified. Each of the Video on Demand services now looks sleeker and
more like their own standalone viewing platform (rather than a content rich area of their
website). Generally this provides viewers with a more simplified experience that appears to
make the access of content easier than ever. Though it is important to note these viewing
experiences have not been properly tested nor reviewed in depth to determine how well
they actually meet viewer’s needs.
5. Watch in High Definition (HD) or High Quality (HQ)
Currently likely to appeal the more tech savvy viewers, the option to watch in HD or HQ is
likely to grow in popularity, especially as high speed home broadband connections
continue to increase in availability, download capacity and become more competitively
priced. Although the option to watch in these formats is not yet the standard, with only the
BBC providing access to HD streaming content. Making content of this quality more freely
available will surely attract new viewers, and no doubt greatly impact sales of Blu-ray discs
and other more traditional viewing media.
6. Making full-length content available through other online
platforms
A number of providers have presences across a variety of digital devices and services.
These tend to offer viewers access to catch-up TV, with generally (though dependent on
the platform) reduced levels of content and viewing options. A summary of the availability
of each broadcaster’s content across the more popular online mediums is detailed in the
following table:
BBC iPlayer ITV Player 4oD Demand 5
PS3 X X X X
Xbox X X X X
Apple TV X X X X
Virgin Media X X X X
Sky X X X X
BT Vision X X X X
YouView X X X X
iPhone app X X X

iPad app X X X
Android app X X X
YouTube channel X
Traditional providers’ allowing access to full length content on popular digital
platforms
Moving away from traditional terrestrial broadcasters Sky’s ‘Skyplayer’ and ‘Anytime’
services have been replaced (respectively) with Sky Go which provides live streaming and
catch-up TV services on internet enabled devices (to those with a Sky subscription), and
‘On Demand’ which provides a similar service to those with a compatible Sky+ box and
broadband connection. Similarly realising the potential popularity, ‘on demand’ and ‘catch-
up’ services have become central to BT Vision and Freesat’s latest propositions, and have
seen new Freeview competitor YouView make easy access to this content as its core
selling point.
In terms of satisfaction it is clear that with the vast range of options and content now
available to viewers there are bound to be both technical and business decisions that will
have great effect on the overall viewer experience. Lengthy advertisements are one
example, and another is the range and depth of content available on the various platforms
(such as BBC iPlayer only allowing for one week of catch-up on the Xbox).

New players in the market
Historically it was the innovation by traditional broadcasters (think the original 4oD desktop
software that appeared in 2006 or the first iPlayer beta) in offering content both online and
on variety of digital devices that has driven such tight competition in the Video on Demand
market. The fight for market share now looks to get even tougher, with a number of new
competitors to traditional broadcasters providing new Video on Demand services, and
gaining traction in the UK market in the past year, most notably:
Netflix
The US giant initially launched with a lack of content but has slowly been growing its
subscriber base in the UK since its launch at the beginning of the year.
Blinkbox
A predominantly subscription free rent or buy service (though also offering ad supported
free content) recently had an 80% stake of its business acquired by Tesco. Blinkbox
positions itself with major selling points such as the ability to watch HBO TV shows, and
access new film releases much closer to their DVD launch dates.
LOVEFiLM Instant
A steady contender in the rental market LOVEFiLM made a game changing impact on the
major bricks and mortar rental stores which led to its acquisition by amazon.com. Pre-

empting the launch of Netflix in the UK it launched its online streaming only subscription
‘Instant’ service in late 2011.
NOWTV
Opening up their movie content to non-Sky TV customers (albeit at the still hefty price tag
of £15.99 per month) gives viewers streaming access to over 600 movies currently being
aired on ‘Sky movies’, and claims to have exclusive access to more 100 movies from the
UK box office for more than 12 months over rivals Netflix and Lovefilm.
The competitive landscape overall
Replacing the need for posh central London offices (reflected in the low subscription rates
and absence of advertising) the new online Netflix, Lovefilm and Blinkbox’s services offer
experiences, content and functionality designed purely for online audiences and rivals the
offerings of the traditional broadcasters’ digital presences. Though requiring access
through Payment (subscriptions or on pay-per-view), these platforms offer ‘premium’ digital
experiences and availability across the majority of digital devices (including mobile devices,
tablets, video game consoles and Smart TVs). It’s the aforementioned ‘premium’
experience combined with access to big budget and exclusive content which form the main
reasons for viewers to part with their hard earned cash. It’s easy to see why Sky, though
currently only offering movie content, feel the need to break in on this specific corner of the
market.
Whilst these services are generally popular as a means to cheaply watch movies
(replacing traditional rental services), they are gaining increasing popularity for making
available whole TV series from both the UK and US. This includes content originally
broadcast by the likes of the BBC , ITV and Channel 4 – with programmes, which in many
cases are not available through broadcasters’ own Video on Demand services (such as
ITV’s Prime Suspect on Netflix and not ITV Player). However, customer feedback suggests
there is still some work needed in making these services more popular via easier to use
interfaces and larger ranges of content.

Meeting the needs of the viewer
Resulting from a project investigating viewer’s requirements of online TV services in early
2011, our research (as detailed in the blog here) identified five major insights into viewer’s
behaviour that must be considered when designing Video on Demand services. In the
context of 2012, the following discussion suggests how taking these into consideration (or
not) has had major consequences on competitors in the market:
1. Viewers are loyal to particular shows
As detailed earlier in the article both traditional broadcasters and newer online streaming
service providers are now making available full back catalogues of popular shows (directly
alongside those ‘just released’ or recently broadcast). There is now a depth of content that
means that a savvy consumer no longer needs to go out a buy a DVD to both ‘dip-in and
out’ of, or sequentially watch their favourite shows.
2. Nature of content affects experience
We identified that it’s often the case that viewers will want to watch different shows in
different ways depending on their nature (e.g. a random episode of comedy versus a
chorological drama). For this reason they’ll need to know whether they’ve already seen a
particular episode (if watching at random), and which episode is next. The ability to access
viewing history has become standard functionality for registered users. For 4oD this is an
incentive to register (as shown in the screenshot below). This sort of service is attractive to
more casual viewers because they may find it difficult to keep track of what they’ve
watched, on which service and when.

3. Complete vs. incomplete content
In terms of viewer behaviour watching full-length TV shows or movies is a vastly different
activity to browsing short clips on YouTube or browsing trailers. Matching this split of
activities, the Video on Demand services referenced in this article tend to stick solely to
providing full-length content on each platform. Recognising this viewing tendency,
broadcasters with YouTube channels often upload trailers and other ‘best bits’ or clipped
content (though Channel 4 does provide full programme content).
4. Attitudes to illegal download
Internet service providers are now clamping down on and blocking access to illegal
download sites such as The Pirate Bay. There are also reports that ‘Torrent’ traffic is now
widely monitored’. With this in mind it is slowly becoming the case that people must
seriously consider the consequences of performing illegal download activities. This
development will make legitimate (and quite possibly monetised) on demand services
increasingly appealing.
5. Watching video can be both inactive and dynamic
The gap between viewers that are ‘inactive’ (sit back and watch) or ‘dynamic’ (create
playlists, and curate content) has widened with recent technological trends:
 Firstly advancements in the ease, and sheer multitude of ways that content can now be
accessed means that for even the laziest of online viewers the ability to watch full length
films or TV shows is now no longer more than one or two clicks away
 Secondly, there has been a marked increase in the popularity of so-called ‘second
screen viewing experiences’, directly related to the increased uptake of mobile devices
and the novel ways viewers are using them. Mobile device owners will regularly access
social media on these platforms to enhance their live TV viewing experiences with live
communication with their friends and the wider world on Facebook or Twitter during their
favourite shows
As with any new technological developments there will always be those willing to embrace
the latest technologies and those preferring to stay loyal to more traditional means of
viewing. Video on Demand providers wishing to cope with the changing habits of younger
more tech savvy viewers must also realise they’ll be another group who’ll have
reservations to overcome before accessing video content in this way. Based on
assessments of the success of recent launches in the media currently these might include:
 Amount of content/choice – the sheer amount of choice of programmes across Video
on Demand services means it’s often difficult to know exactly what exists, on which
platforms and with which provider. Even through iPlayer the availability of content can
differ on a platform to platform basis (e.g. between games consoles and online). Whilst

for NetFlix customers using the PS3 often the only way to find a specific film or TV
programme is with the search, due to the complex menu structure. Knowing exactly what
content is available to watch and where, needs to be made clear to potential viewers.
This is essential for Video on Demand providers to increase audience figures and
customer numbers.
 Platform availability, ease of access and viewing experience – For the tech savvy
consumer the wide variety of viewing options and channels comes as a blessing.
Individuals with an understanding of the limitations of the technology will no doubt
understand how best to make use of their options. However it is unlikely that newcomers
to Video on Demand or even more casual viewers will understand the ins and outs of
device specific capabilities.

The future of Video on Demand
This post has provided an insight into how quickly the Video on Demand market continues
to grow in popularity. Even since our predictions in late 2011 there have been vast
changes to the look of the Video on Demand market, including a wealth of new providers
and complete overhauls of existing services. Of note there has been a convergence in
both the proposition and design of the traditional broadcasters’ services. Nevertheless
competition is still rife with access to increasingly wider ranges of content and their
availability across numerous digital platforms.
With new arrivals to the online Video on Demand scene stiff competition to TV
broadcasters has come from a new wave of content providers. With interesting
subscription and revenue models, between the likes of NetFlix, Lovefilm, Blinkbox and
NOWTV viewers can now access the latest and most exclusive content. Interestingly in the
US Netflix have announced they are funding and filming original programme titles starting
with (amongst others) a new series of Arrested Development, and a remake of House of
Cards with Kevin Spacey.
Away from the online ‘pure plays’ over recent years Apple have continued to update and
lower the price of their Apple TV device, and Google have gone head to head, launching
their own Smart TV platform ‘Google TV’. Both these devices (as well as Smart TVs
themselves) take advantage of broadband connected homes to give you access to the
internet and a variety of apps (such as Netflix) via your TV.
UK Freeview and monthly subscription TV providers are also seeing the potential of getting
in on the Video on Demand game. BT Vision, YouView, Freesat and Virgin Media’s TiVo
are aiming to replace and enhance traditional Freeview/Cable boxes by now offering
simplified access to ‘On Demand’ services (such as iPlayer and YouTube) alongside live
TV broadcasts. Particularly highlighting the importance of building on the opportunity of
providing content in this manner, we now see BT Vision and Virgin Media including (paid)
access to other exclusively licenced video content such as movies and TV series through
their set-top boxes.

Finally, with 4G just launched via the Everything Everywhere (Orange and T-mobile)
network (with subscriptions likely to be available from next year), the potential for viewing
Video on Demand services whilst on the move or in locations where broadband
connections are unavailable looks set to further increase viewing figures. In producing this
article it has become apparent one thing is clear: the technology to entice viewers to Video
on Demand will continue to steadily develop over forthcoming years. What’s more difficult
to predict is how this will change and effect viewers’ behaviour. In this respect here at
Webcredible we’ll continue to see how well viewers’ requirements are being met, and will
be staying on the lookout for how both the traditional and latest Video on Demand
providers face the following challenges:
1. Simplifying access to content across a variety of digital
channels
Omni-channel strategies to identity and incorporate how best to create seamless viewing
experiences across channels. These will match viewing requirements and offer
propositions that content consumers can easily understand.
2. Providing live broadcast experiences
Traditional broadcasters will retain tech savvy viewers by continuing to provide live content
that creates socialised, communal and ‘second screen’ audience experiences via SmartTV
and mobile access to social networks. How will this viewing behaviour continue develop
and can this participation be matched in a Video on Demand environment?
3. Making large volumes of content easy to access
Over the coming years we’ll surely see Video on Demand services populated with more
movies, TV back catalogues and ‘made for streaming’ content than ever. How will features
such as ‘related content’, ‘recommended for you’ and the design of Video on Demand
interfaces themselves be updated to reflect the mammoth amount of stuff to watch over
the coming years?
As ever our team will be keeping an ear to the ground with the latest Video on Demand
developments. Stay tuned…!

References and related articles
Webcredible white paper: July 2010: Video on Demand: Playing Catch Up First
published: October 2010 http://www.webcredible.co.uk/user-friendly-resources/white-
papers/Video on Demand.pdf
Webcredible blog post: March 2011: Video on Demand: 5 key behaviours and attitudes
http://www.webcredible.co.uk/user-friendly-resources/web-usability/Video on
Demand.shtml
Webcredible blog post: October 2011: Will Video on Demand see the end to bitter format
wars?
http://www.webcredible.co.uk/blog/video-on-demand
Other references and related stories:
http://research.yougov.co.uk/news/2012/04/30/tv-demand/
http://artsbeat.blogs.nytimes.com/2012/10/04/netflix-sets-february-premiere-for-house-of-
cards/?ref=netflixinc
http://www.reghardware.com/2012/08/02/review_humax_youview_dtr_t1000_iptv_freeview
_pvr/
http://www.guardian.co.uk/money/2012/oct/19/itunes-blinkbox-which-better#start-of-
comments
http://www.pcadvisor.co.uk/news/broadband/3380432/everything-everywhere-launches-
4g-in-uk-with-new-brand/
http://www.guardian.co.uk/money/blog/2012/mar/30/lovefilm-netflix-which-
better?INTCMP=SRCH
http://www.bbc.co.uk/news/technology-19802192

About Webcredible
Webcredible is a user and customer experience agency, offering a range of experience
strategy, usability, design and training services for websites, intranets, mobile devices and
applications. Specific services include in-depth research, digital and brand strategy
development and information architecture.
Launched in 2003, Webcredible was one of the first specialist user experience agencies
and today is one of the UK’s leading agencies providing customer-led digital marketing
services. We’re comprised of true digital and user experience experts and focus heavily on
adding significant value to our clients.
Our work results in measurable improvements, for example:
 50% increase in sales and 70% reduction in customer service issues for Plumbworld
 44% conversion improvement and a 168% uplift in leads for Propertywide
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 80% increase in hotel ‘look-to-book’ conversions for Thomson
Webcredible is widely regarded as one of the most collaborative, innovative and respected
user experience consultancies in the UK. Our 200+ research articles and reports have
been re-published on 100s of websites and we receive 250,000 visitors to our website
each month.
Clients include Airmiles, Asda, BBC, eBay, EDF Energy, Hotels.com, JD Sports, Laura
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