Users Prefer Ads to Fees for VOD

NEW YORK A new study found most consumers would prefer ads in on-demand programming, rather than the fees charged in current models by Apple, Google and others.

Points North Group, a researcher, and Horowitz Associates, a market research consultancy, both in Larchmont, N.Y., found 62 percent of respondents said they would rather watch a TV program later with ads. Seventeen percent said they preferred to pay $1.99, 21 percent were undecided.

Points North polled 800 consumers in a phone survey conducted in November.

The survey found younger consumers were at least more decided on the issue: 68 percent favored ad-supported on-demand content; 26 percent preferred pay; and just 5 percent were undecided.

Points North said programmers are likely to complement their fee-based programming with ad-supported content and subscriptions.