Study: Paid Content Viewing on Tablets, Mobile Phones Increased From 2011

J.D. Power and Associates pay-to-view study shows PC/Mac viewing down
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As options for mobile viewing of paid video content
increases, so does overall tablet and wireless-phone viewing, according to the
J.D. Power and Associates 2012 U.S. Residential Pay-to-View Study released Thursday.

The study, which examines attitudes, viewing preferences,
behavior patterns, awareness and experiences among pay-to-view customers of
major television and video service providers in the U.S., also shows that
PC/Mac-viewing has decreased from 2011.

Viewers most often use tablets to watch paid video content,
with 18% of customers using the handheld device, up 11% from the previous year.
Wireless phone users increased 16%, up 14% from 2011. Of all paid content viewing,
29% of video service customers used mobile devices to watch the content.
Conversely, PC/Mac viewing declined 39% from 48% in 2011.

"Customers are becoming more comfortable viewing their paid
content on a smaller screen, such as a tablet or mobile phone," said Frank Perazzini, director of telecommunications at J.D. Power and Associates. "The convenience of the
device, as well as the availability of the content, has made it much easier to experience
video on a variety of devices. However, the desire to watch events and video content
as it happens is still prevalent, as more than 50 percent of viewers watch live
television programming."

The study also showed that Gen Y and baby boomer customers have
vastly different usage and viewing practices, but fewer differences in
satisfaction levels. Satisfaction among Gen Y customers declined to 752, down
18 points; baby boomer customers' satisfaction increased 19 points to 748. Gen
Y customers' cite cost and customer service for their lower satisfaction, while
baby boomers' say that billing, ease of use and the variety of the service's
programming increased their satisfaction.

Only 9% of baby boomer customers take mobility into
consideration when choosing a video service provider, compared to 21% of Gen Y
customers.

"Baby boomers are more becoming more comfortable with paid
video technology and, as a result, are becoming more satisfied with the
services available," said Perazzini. "Conversely, Gen Y customers are already
familiar with the technology and not only demand a high level of service from video
service providers, but also are quick to seek alternatives when they believe
they could have a better experience elsewhere."

Gaming consoles have also become more prevalent as a paid content-viewing
option, with 23% of customers using those devices, closing the gap with
customers who use handheld devices (29%). Those who use gaming consoles watched
the most paid content per week at 6.3 hours, while PC/Mac users watched 5.3 hours.
Wireless phone users watched 4.9 hours, with 4.5 hours spent on a music
player. Tablet users watched the least amount at 4.4 hours.

The 2012 U.S. Residential Pay-to-View Study, completed in
April 2012, uses responses from 4,097 U.S. households that assessed video
service providers, including Amazon, Apple TV, Blockbuster/Blockbuster Express,
Google TV, Hulu/Hulu Plus, local video stores, Netflix and Redbox.

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