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U.S. Consumers Still Seeking Content as OTT Pricing Starts to Rise: The Shifting “Economics of Content” Revealed in Survey from Amdocs

Majority of U.S. viewers not happy with their content options, expect to pay more each month to get the personalized bundles they want, and open to personalized advertising

BURBANK, Calif., Feb. 07, 2019 (GLOBE NEWSWIRE) -- A new study commissioned by Amdocs (DOX), a leading provider of software and services to communications and media companies, reveals that even with all the disruption in the media landscape, exploding content and delivery options, customers are getting frustrated with the TV options they have today and show they are willing to spend more for personalized approaches to TV content bundling and service provisioning.

Cord Cutters and Cable Watchers Alike Are Missing Content
68 percent of U.S. viewers aren’t satisfied with the range of TV and video content they currently have, despite spending an average of $85.71 per month on TV, movie and video subscription services per household. In order to access all of the TV shows, films and live sports they want to watch on a regular basis, TV viewers believe they would need to pay almost 50 percent more than they’re currently spending, meaning a total of $126.59 per month or over $1,500 per year, on average.

Darcy Antonellis, Head of Amdocs Media and CEO of Vubiquity said: “This survey highlights the consumer’s perspective that even with the disruption within media creating new consumption services, two out of three are frustrated by their à la carte options and not getting everything they want to watch. That said, everything from subchannel, community-specific content and programming to innovative payment options and hyper-personalized advertising can offer value.”

The Battle for Viewers Must Get Personal, Without Eroding Trust
The research revealed that the average U.S. consumer has two subscription TV, movie or video content services across cable and OTT which can be complex and costly; highlighting the need for a fresh approach to broadcasting based on personalized content and aggregated services.

Around 70 percent of U.S. respondents stated that they would be prepared to pay for a single provider that could package all of their preferred content into a dedicated service bundle. 69 percent of consumers said that they would be happy to ditch their current providers if this type of personalized content package was available on the market.

In addition, U.S. consumers revealed the types of personalized services they’re looking for from TV and video providers. In their ideal, perfect bundles:

  • 84 percent would include a binge-worthy TV series (e.g. Game of Thrones)
  • 68 percent would include access to live concerts and events
  • 68 percent would include access to all sports games from one specific team
  • 27 percent would include access to deleted scenes/blooper reels
  • 18 percent would include access to augmented reality (AR) and virtual reality (VR) enhanced content in films and TV shows

The loyalty of younger U.S. viewers, aged 14-35, is driven even less by pricing. Around two fifths (38 percent) of U.S. respondents in this age group said content variety, delivery options, searchability or powerfully engaging experiences, like AR and VR, were their most important driver when selecting a provider. Plus, over 80 percent of this age group said they would be willing to accept more advertising if they could select the timing of delivery or content therein – seeing only sports-related ads and only Mondays, for example.

The research covered 2,500 TV, film or video-watching consumers, whom were interviewed between October and November 2018 by research firm Vanson Bourne. 1,000 consumers were interviewed in each of the U.K. and U.S. markets and 500 in Brazil. 

Supporting Resources

  • For additional resources, visit our Research: The New Viewer page here. Content includes:
    • Vanson Bourne Executive Summary
    • Full research report with complete findings
    • Executive blogs, including insights from Darcy Antonellis, Head of Amdocs Media and CEO of Vubiquity
    • Animated infographic with research highlights
    • Infographics with U.S. and U.K. specific findings
  • Keep up with Amdocs news by visiting the company’s website
  • Subscribe to Amdocs’ RSS Feed and follow us on Twitter, Facebook, LinkedIn and YouTube

About Amdocs

Amdocs is a leading software and services provider to communications and media companies of all sizes, accelerating the industry’s dynamic and continuous digital transformation. With a rich set of innovative solutions, long-term business relationships with 350 communications and media providers, and technology and distribution ties to 600 content creators, Amdocs delivers business improvements to drive growth. Amdocs and its 25,000 employees serve customers in over 85 countries. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.0 billion in fiscal 2018. For more information, visit Amdocs at www.amdocs.com.

About Vanson Bourne

Vanson Bourne is an independent specialist in market research for the technology sector. Their reputation for robust and credible research-based analysis is founded upon rigorous research principles and their ability to seek the opinions of senior decision makers across technical and business functions, in all business sectors and all major markets. For more information, visit www.vansonbourne.com.

Amdocs’ Forward-Looking Statement

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2018 filed on December 10, 2018 and our quarterly 6-K form furnished on November 9, 2018.

Media Contacts:

Linda Horiuchi
Amdocs Public Relations
Tel: +1 (201) 631-6810
E-mail: linda.horiuchi@amdocs.com

Jennifer Headley
Hotwire PR for Amdocs
Tel: +1 (609) 744-6365
E-mail: jennifer.headley@hotwirepr.com or AmdocsUS@hotwireglobal.com

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/d4adc319-fd54-4bb2-942d-cceac185332e