Blog | Content & Streaming Providers
February 12, 2015

Video quality is becoming an essential ingredient in brand loyalty

Bill Calton, Executive Director, Finance

A number of factors are contributing to the increased importance of a video viewer’s quality of experience (QoE) to brand loyalty.

First, a growing number of non-media brands are becoming media companies, as exemplified by initiatives such as BMW films and the GoPro Network. Secondly, the shift to a TV Everywhere (TVE) ecosystem has required traditional media brands to become more involved in the video delivery process. As a result, a growing number of organizations are challenged with assuring a quality experience of their video productions across a myriad of new content delivery platforms and devices.

To give you an idea on how important video quality is to consumers, just 20 percent of those surveyed for a market study by Accenture cited broadband cost and content cost as areas of frustration and concern, while twice as many cited video quality (42%) and more than half (51%) had experienced problems with stream downloads. As the study pointed out, “Consumers are getting more sophisticated in their choices and expectations. [They] are telling us that viewership quality is more important than cost or range of content.”*

With respect to loyalty, the study found that traditional media brands have the upper hand, with 53 percent of those surveyed saying they would prefer to receive their TVE content via a traditional TV broadcaster compared to just five percent saying they would prefer getting their video from a TV or video game console manufacturer. When compared to the survey’s 2012 results, those stats show growing favor for traditional media brands. In the prior year’s study, just 32 percent of respondents preferred a traditional media provider and 13 percent said they favored getting their online video through a TV or game console manufacturer.

Video quality matters even more to brands that rely upon advertising revenue.  Consider these findings from online video optimization firm Conviva: viewing time for live action TV drops from over 40 minutes in HD to just 1 minute, if the viewer encounters buffering. “By reducing buffering, a live content provider could improve revenue (from more viewed advertising) by as much as 8.5%. The revenue uplift from improving video quality is even greater; upward of 11.4%. Combined, the potential total uplift reaches 20%,” its analysis determined.**

These research studies help to underscore the importance of extending the quality assurance practices that we follow in the digital television space to the IP platforms that we now use for reaching TVE viewers. As Accenture’s research reminds us, online consumers are becoming more sophisticated and expect the same level of quality for a video asset regardless of the platform used for delivery or the device used for viewing.

From an economic perspective, Conviva projects that failing to address the quality issues affecting online video amounts to $2.6 billion in aggregated revenue per year and could total as much as $20 billion over the five year period of 2013- 2017. With numbers that large, it won’t take very long to get a good return on the investments your organization and its TVE suppliers are making to ensure an optimal QoE for your video content wherever, whenever and however it is consumed.

Click here for our helpful QoE infographic that illustrates the importance of quality to the customer experience.