The Czech viewers’ interest in streaming platforms does continue to rise. According to the Atmedia Index survey research conducted by the media representative of thematic TV channels, Atmedia, it reveals a notable 5% increase in the number of Czechs using VOD services compared to the same period last year. A potential game-changer in the evolving landscape could be the introduction of a more economical subscription model featuring advertisements. The survey suggests that almost 60% of VOD service users are open to ad-supported content, with a significant portion expecting a subscription discount of up to 75% or more.
‘In contrast to numerous international markets where global streaming giants like Netflix, HBO Max, and Disney+ do offer cost-effective subscription alternatives inclusive of advertisements, the Czech market presents a distinct scenario, as the majority streaming service providers in this region do not currently extend advertising-based pricing options to their clients,’ explains Pavel Müller, Atmedia’s Head of Research & Marketing. He further emphasises that, unlike the saturated markets for paid VOD services in the USA and Western European countries, the Czech market has not yet reached its full potential.
As revealed by the Atmedia Index survey findings for Q2 and Q3 of this year, the Czech Republic witnesses a noteworthy 43% of individuals aged 15–69 using at least one paid VOD service on a monthly basis. This marks a notable increase of five percentage points when compared to the figures from Q3 of the previous year. ‘As the Czech Republic steadily approaches the 50% milestone, it’s worth noting that foreign markets boast even higher figures. Take, for example, the United Kingdom, where an impressive 67% of households used paid VOD services solely in Q3 of this year,’ describes Pavel Müller, while asserting, ‘It is reasonable to anticipate that as the growth rate of the Czech streaming service market slows down from the rapid pace of recent years, individual players will likely introduce some more affordable subscription options that’ll include commercials.’[1]
Advertisements? It Better Come With a Lower Subscription Fee
‘In the context of a potential introduction of advertising tariffs, it becomes paramount for individual players to gauge the willingness of viewers to use streaming services that include advertisements,’ notes Pavel Müller, while pointing out that this particular matter is regularly being addressed in the Atmedia Index survey research. As per its results for the Q2 and Q3 of this year, a significant majority of VOD services’ users are quite to open to advertising. To be precise, 58% of users who directly pay for these services have expressed their willingness to continue using the streaming platforms even despite the introduction of advertisements. However, the overwhelming majority of them stipulate this on the condition of a reduced subscription fee. More than two-fifths of these users would demand a subscription discount of at least 75%, while another two-fifths would consider using paid VOD services with ads if the subscription cost were at least 50% lower than the current price. Merely 10% of users would find satisfaction with a modest minimum 25% discount.
Those Who Do Not Yet Use Streaming Services Are More Likely to Be the Ones to Decline or Dismiss Advertisements
While 58% of current paid VOD services’ users are not categorically opposed to advertisements, the stance toward ads tends to be more stringent among individuals who have not yet engaged with any streaming services. ‘Close to half of prospective users of paid video streaming services assert that they would be unwilling to subscribe to services that do incorporate advertising,’ asserts Pavel Müller revealing the Atmedia Index survey results. At the same time, he underscores that the respondents’ stance on this matter does significantly vary based on their age. ‘The aversion to paying for premium streaming services with ads sees a notable uptick with age. In the 55–69 age group, 55% adhere to this sentiment, while among individuals aged 15–34, the percentage stands at 41%.’
About the Research
The survey research for Atmedia – sales house of thematic TV channels – was carried out by the ResSOLUTION research company / Nielsen using the CAWI method. 4,175 respondents (online TV population aged 15–69) from the Czech National Panel entered the questionnaire survey. The survey took place in two waves for the first and second quarters of 2023 (3rd–31st July 2023, 2nd–16th October 2023).
Atmedia introduced the Atmedia Index in mid-2021. It offers TV channels, media agencies and other interested parties a comprehensive data, information and insight into three researched areas: (1) TV channels’ quality evaluation through the eyes of their viewers, (2) use of Pay-TV and Free-to-Air TV, (3) use of paid video on demand (VOD).
About Atmedia
Atmedia Czech s.r.o. is a media sales house of almost 30 thematic TV channels, which has been active on the Czech market since 2008. Atmedia does handle the selling of TV advertising, and it currently represents many local as well as most of the international TV channels and TV groups on the Czech TV market, in particular AMC Networks, Warner Bros. Discovery, The Walt Disney Company, Antenna Group, or the Slovak JOJ group. At the beginning of 2010, Atmedia introduced the market to a very unique way of selling the advertising space via sales packages. Since 2021, has been regularly publishing the Atmedia Index, a valuable resource providing extensive data, information, and insights in three key domains: (1) the evaluation of television channels’ quality through the eyes of their viewers, (2) adoption and usage of Pay-TV and Free-to-Air services, (3) adoption and usage of subscription Video-on-Demand (SVoD) services.
[1] BARB, Barb releases Q3 2023 SVOD subscriptions data from its Establishment Survey, 26. 10. 2023, https://www.barb.co.uk/news/barb-releases-q3-2023-svod-subscriptions-data-from-its-establishment-survey/
