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Pennypinching consumers refuse to pay for video quality

November 16, 2010 00.01 Europe/London By Julian Clover

A new report has revealed a disparity between consumers’ expectations regarding improved video quality and delivery mechanisms and their willingness to pay.

The study produced by Forrester Research on behalf of Cisco, found that just 11% of consumers that were dissatisfied with their broadband speeds would be prepared to pay either for increases in broadband speeds or guaranteed increases in video quality online. 64% of consumers think that online video quality is poorer than that delivered via traditional broadcasting. Consumers hold both ISPs and content providers responsible for quality problems. 43% of those surveyed believe their ISP is responsible for ensuring good online video quality while 41% laid the blame at the door of the content provider. 72% say they experience stuttering and freezing of online video.

“With video predicted to make up more than 91% of all internet traffic by 2014, it is clear that the growth of online video represents the next significant stage in the development of the Internet,” Phil Smith, vice president and managing director, Cisco UK and Ireland. “The fact that consumers hold ISPs and content providers equally responsible for any drop in video quality is a clear sign that these industries need to work together to ensure that are able to deliver a consistently high quality service to consumers.”

When it came to television 57% of UK consumers now claim to own an HD television, a figure typically opposed to the take-up of HD subscriptions from the likes of Sky and Virgin. 43% of 16 to 24 year olds expressed an interest in 3DTV, as did 33% of those aged 25 to 34.

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Filed Under: Newsline, Web TV Tagged With: Cisco, Forrester Research Edited: 16 November 2010 08:28

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About Julian Clover

Julian Clover is a Media and Technology journalist based in Cambridge, UK. He works in online and printed media. Julian is also a voice on local radio. You can talk to Julian on X @julianclover, or by email at jclover@broadbandtvnews.com.

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