Apr, 2003 : RampRate Study Evaluates Streaming Audience
📅 - According to the results of a study released this week by technology advisor RampRate (ramprate.com), the online audience for streaming media continues to dislike the prospect of paying for the content, even as the sites providing paid streaming content proliferate.
Conducted by Synovate on behalf of RampRate, the survey polled 1,383 online Americans to determine attitudes about paying for streaming Internet audio and video content. RampRate says the study reveals that 68 percent of respondents dislike paying for streaming audio and video, with 47.5 percent of the opinion that the Internet should be free, and 20 percent agreeing that paying is ?cumbersome and a turn-off.?
Just 2.5 percent of those surveyed said they paid for premium streaming content willingly, with a slight increase to 4 percent saying they would pay if the content were better. If compelled to pay, 11 percent would prefer pay-per-view to a monthly subscription.
Despite the apparent objection to paying, says RampRate, recent reports indicate that Internet users have demonstrated a willingness to spend. In the Online Publishers Association's latest US Market Spending Report, consumer spending for online content in the US totaled $1.3 billion in 2002, a 95 percent increase over 2001. Jupiter Research predicts that the paid online market will grow 20 percent annually until 2007, reaching approximately $5.4 billion.
"While paying for online streaming video and audio content appears to be an unstoppable trend, our survey clearly shows that if consumers had their druthers, they wouldn't buy it," said Tony Greenberg, CEO, RampRate. "That said, it's clear from consumer behavior that they are buying, perhaps because content providers are giving them a choice ? some streaming content for free, and even better content for a small fee. That will likely prove to be an intelligent way to grow the market, incentivize content providers and educate consumers."
Conducted by Synovate on behalf of RampRate, the survey polled 1,383 online Americans to determine attitudes about paying for streaming Internet audio and video content. RampRate says the study reveals that 68 percent of respondents dislike paying for streaming audio and video, with 47.5 percent of the opinion that the Internet should be free, and 20 percent agreeing that paying is ?cumbersome and a turn-off.?
Just 2.5 percent of those surveyed said they paid for premium streaming content willingly, with a slight increase to 4 percent saying they would pay if the content were better. If compelled to pay, 11 percent would prefer pay-per-view to a monthly subscription.
Despite the apparent objection to paying, says RampRate, recent reports indicate that Internet users have demonstrated a willingness to spend. In the Online Publishers Association's latest US Market Spending Report, consumer spending for online content in the US totaled $1.3 billion in 2002, a 95 percent increase over 2001. Jupiter Research predicts that the paid online market will grow 20 percent annually until 2007, reaching approximately $5.4 billion.
"While paying for online streaming video and audio content appears to be an unstoppable trend, our survey clearly shows that if consumers had their druthers, they wouldn't buy it," said Tony Greenberg, CEO, RampRate. "That said, it's clear from consumer behavior that they are buying, perhaps because content providers are giving them a choice ? some streaming content for free, and even better content for a small fee. That will likely prove to be an intelligent way to grow the market, incentivize content providers and educate consumers."
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