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CZECH VIEWERS DEMAND LOCAL CONTENT, ARE PRICE SENSITIVE

15. 2. 202415. 2. 2024
The biggest drivers for subscribing to and choosing a VOD service are viewing flexibility and content offering. The Czech viewer is sensitive to the price model and responds to special offers and promotions, the Know.vod study shows.

The preferences and behaviour of viewers of traditional linear TV and users of video-on-demand (VOD) services differ, and differences can also be seen between different groups in the Czech Republic and abroad. This is according to a Know.vod study by Knowlimits, which focused on the key factors and trends shaping the transformation of media consumption in Czech society. It took into account the growing popularity of VOD (and subscription video on demand - SVOD).

While in classic linear broadcasting viewers appreciate unpretentious passive viewing, local content, current and close to them events in the Czech Republic, nostalgic content and "harmless" programmes for children, in VOD they expect flexibility and independence in content selection, personalisation, recommendation, interactivity and quality of production and content. According to the study, the biggest drivers are exclusive and original productions offered by VOD platforms.
"While global blockbusters top the ratings charts on foreign VOD platforms, formats that are the biggest hits on traditional linear TV top the popularity charts on local VOD platforms. Next in the ranking are Czech exclusive shows created only for SVOD viewers,"

Zdeněk Kubena, Research Director at Knowlimits, summarises the key findings.

One of the primary differences between group TV viewers and viewers of VOD services is generational. VOD platforms are more popular among younger generations. These viewers are looking for flexibility, personalization and on-demand content that reflects their interests and lifestyle. "They are predominantly people with higher education, which is linked to a higher willingness to pay and better technology skills. VOD users are more likely to be from larger cities, which may be related to better access to high-speed internet and greater penetration of technology options. Viewers tend to be more active in selecting and sharing content, and are greater consumers of social networks, which also reflects a higher level of interactivity with digital VOD platforms," Zdeněk Kubena further describes.

Compared to the US and Western countries, the share of viewers of classic linear TV in the Czech Republic is high. Even so, the preference for linear TV among older generations is visibly higher than among the younger generation. Older viewers are less inclined to adapt new technologies. "They do not want to solve the 'paradox of choice', they just want to passively relax while watching linear content. They are traditionally sociable, with classic TV viewing being the focus of social contact between family or group activities with friends. These viewers watch programmes at set times, which encourages social interaction. Another group is parents with young children, where classical TV acts as clear time of day pillars such as bedtime, weekend morning viewing, etc.," he adds.

In order to understand the behaviour of VOD service users, the study then identifies four basic groups according to different characteristics and consumption preferences. Each segment profiles differently in terms of the number of pay platforms and growth potential. Specifically, the segments are: the passive phlegmatic, the relaxed pragmatist, the TV family and the discerning viewer. The differences between the segments are described in detail in the paid part of the study.

According to the study, the shift from traditional linear TV viewing to digital content consumption is driven by several key factors that have accelerated the development of VOD over the past five years. These include technological advancements, increasing penetration of smart TVs, changes in viewer lifestyles and preferences (these changes have been accelerated by the covid-19 pandemic), increasing digital literacy, and simplification of functionality and user experience.

In the United States and many Western countries, the market for VOD services is highly competitive and saturated. "In the U.S., consolidation of individual platforms is already occurring and the process of 'monetization' of content investments is underway. In the Czech Republic, we are at a different stage of VOD adaptation in society. We have not yet reached the extreme limit of saturation in the use of VOD services, which provides room for the entry of new players and greater competition. The potential viewer will have more choices. In terms of overall media behaviour, the Czech population is more conservative with a higher proportion of linear TV viewing, which is a consequence of the strong tradition of public service broadcasting and slower adaptation to digital innovation compared to the rapidly changing media environment in the US and some Western EU countries. There are a number of other differences, such as the lower willingness to pay of Czechs, the economic situation, lower content supply and a 'weaker' competitive environment, technological literacy and equipment of households, a stronger tradition of passive viewing and a greater emphasis on local production," Zdeněk Kubena summarises the trends.
"In the Czech Republic, we are in a different phase of VOD adaptation in society. We have not yet reached the extreme limit of saturation in the use of VOD services, which provides room for the entry of new players and greater competition. In terms of overall media behaviour, the Czech population is more conservative with a higher proportion of linear TV viewing."

Zdeněk Kubena



Source: mediaguru.cz
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