NEW YORK (TheStreet) -- More people are staying with commercials when they watch video-on-demand as opposed to live network viewing, according to a study by Nielsen Holdings (NLSN) released today.
The thinking might seem contradictory but viewers of VOD appear more apt to watch more minutes of the allotted program time for a show such as "Walking Dead" or "Breaking Bad" if they're paying for it.
That's good news for pay-TV providers, the networks producing the content and the advertisers who pay for that viewing time. The success of Netflix, which is available in a mind-numbing 29% of all U.S. television homes, has troubled advertisers concerned that the trend in viewing away from live viewing to video-on-demand will mean fewer people are likely to be soaking up their commercials.
Nielsen found that on-demand watchers, eager to get their favorite shows when they're free to watch them. actually view more of the commercials shown within those programs. In the average 30-minute program, Nielsen found that on-demand watchers viewed an average of 28 minutes whereas a users of digital-video-recorders watched for 23 minutes and live-viewing for 20 minutes.
The study, which Nielsen says is ongoing, produced results that countered initial predictions that video-on-demand viewers, unable to access fast-forwarding available on a DVR, would tend to watch less of the overall programming.
The trade-off with video-on-demand appears to be that people are more likely to watch commercials in exchange for being able to access premium content when they want it.
--Written by Leon Lazaroff in New York.
>Contact by Email.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV