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11/04/2001

RESEARCH SHOWS MAJOR OPPORTUNITIES FOR PPV

UK digital broadcasters have major revenue opportunities for PPV (pay-per-view) services beyond movies and sports events, according to consumer research conducted by Gallup for Pace Micro Technology.
While movies remain, overwhelmingly, the most popular type of pay-per-view programming, the research suggests strong potential for the introduction of pay-per-view services covering news, music and education.
The Pace research found that 71 per cent of respondents would be likely to purchase movies on a pay-per-view basis. Amongst 16-24 year olds this figure rose to 91 per cent, whilst over three-quarters of those aged 25-34 expressed interest in purchasing movies in this way. Even amongst the age group where pay-per-view is least popular (those aged over 65), a majority 58 per cent said they would be likely to buy movies in this manner.
Interestingly, there was little difference in opinion across all socio-economic groups. Pay-per-view movies would appeal most to C1s 76 per cent and least 66 per cent to A/Bs, although even amongst this group, a large majority would be likely to request services in this way.
Significantly, the Pace research found that services not currently available in a pay-per-view format, such as news, music events and educational programming, would be likely to have a ready audience should digital broadcasters and network operators choose to launch such facilities. Some 57 per cent of respondents say they would be likely to request news programming in a pay-per-view format. The strongest preference is seen amongst the over 65s, where three-quarters of those questioned indicated that they would consider paying separately for this type of service.
Over half of those aged 65 plus stated that they would be likely to request music events via a pay-per-view service. This figure was exceeded only by the traditional music buying age group - 16-24 - where 76 per cent would consider using such a service. It may be concluded from this result that strong opportunities exist for music events featuring artists outside of the current 'pop charts'.
One of the most interesting findings of the Pace research is the potential of educational programming in a pay-per-view format. Half of all respondents said they would be likely to select such a service with the strongest demand seen amongst 35-44 year olds.
Andrew Wallace, Marketing Director for Pace, said: "Traditional views state that consumers will only pay for additional services such as first run movies or major sporting events," comments Andrew Wallace. "Our research strongly suggests that with the right quality of programming, consumers would be likely to select a far wider range of services, such as news and education.
"It is clear that digital television is not simply changing viewing habits, it is also leading a quiet revolution in the way in which consumers use TV and, in particular, the ways they would pay for these services." (CD)
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