Video service providers and content makers expect consumers to pay up to 30% more for premium 4K UHD content, according to new research.
According to the Irdeto-commissioned study, 64% of video service providers – including pay TV and over-the-top operators – and 73% of content producers believe that consumers are willing to pay 10% to 30% more on their subscription for access to 4K UHD content
The SNL Kagan-conducted ‘A Clearer Picture of Growth: 2016 Global 4K UHD Industry Survey’ also found that 96% of video service providers and content producers believe that a “majority of consumers and operators” will adopt 4K UHD TV by 2020.
Some 88% of total respondents said they will launch 4K UHD content by 2020, while 78% said they will have launched content by 2018. The study said that 57% of respondents said a key business driver for 4K is to retain ownership of the home platform.
“Despite OTT services leading 4K UHD adoption currently, this result indicates that 4K TVs with broadcast set-top boxes will be a strong 4K UHD business driver for more traditional pay TV providers as well,” according to the report.
The survey found that 65% of both video service providers and content producers expect live sports to be the most popular 4K UHD content among consumers, while 59% of respondents ranked early-release movies as the highest 4K content consumption driver.
SNL Kagan polled nearly 500 video service providers and content producers for the survey.
