TV-Commercial Watching Up on VOD as Viewers Pay for Premium: Nielsen

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.

More from Stocks

Dow Futures Plunge, Global Markets Rocked as Trump Takes Trade War to Next Level

Dow Futures Plunge, Global Markets Rocked as Trump Takes Trade War to Next Level

Trump Issues New Trade Threats, Apple, ZTE, GameStop - 5 Things You Must Know

Trump Issues New Trade Threats, Apple, ZTE, GameStop - 5 Things You Must Know

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites

China-Focused Stocks Hit Hard as Beijing Responds to Trump Tariff Threats

China-Focused Stocks Hit Hard as Beijing Responds to Trump Tariff Threats

12 Stocks That Make Up the GLUM Index

12 Stocks That Make Up the GLUM Index