When it comes to mobile video apps like YouTube, Hulu or
Netflix, consumers say the best things in life are free. According
to a new study released by the Cable & Telecommunications Association for
Marketing(CTAM) and Nielsen, 63 percent of survey respondents
said that "free or low subscription rates" is the most important
attribute for a video app.
In fact, as long as consumers can get the video app for free, or
at a low cost, more than half (56%) of respondents said they don't
mind mobile advertisements on video apps-especially if it allows
them to access content for free.
In addition, 65 percent of video app users surveyed said that
word-of-mouth plays an important role in deciding which video apps
The study also showed that video app usage increases consumer
engagement with TV programs, networks and related websites. Roughly
85 percent of video app users surveyed said they watch the same
amount or more of regularly scheduled TV since they began using
video apps, and nearly half (46%) reported being more engaged with
the programs or networks associated with the video apps after
accessing them. In addition, 35 percent report that video app usage
causes them to visit the network or program website associated with
the video app more than they had before they started using the
Nielsen and CTAM also conducted the first-ever qualitative study
of "sync-to-TV" apps which found these apps increase consumers'
engagement with television programming rather than distracting from
it. Sync-to-TV refers to a second screen app on a tablet device
that recognizes audio codes embedded in a program as it's broadcast
through a TV set, and launches interactive and social networking
features on the device that correspond with the programming on the
Study participants reported that the sync-to-TV experience made
them more likely to pay heightened attention to the program, thus
increasing their engagement with the program and advertising, and
keeping them tuned in longer.
The report Roadmap to Video Apps is available for
purchase via CTAM.