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Cloudy with no chance of paying?

Consumers want cloud storage, but not necessarily if they have to pay for it, according to a recent report from PriceWaterhouseCoopers, ‘Storing Entertainment Content in the Cloud’. Or, as the report stated more bluntly, “Until there is mass consumer adoption of digital lockers, it is critical that digital locker offerings remain free.” The UltraViolet concept appeared not to be perceived as a particularly key benefit of digital lockers.

Based on a digital locker description provided by the survey, respondents ranked eight potential benefits by importance, with a free service being the top benefit. Viewing content wherever consumers wanted, and on whatever device they wanted ranked second, followed by the ability to view content by downloading, streaming, or on physical media.

Other benefits in order of importance included unlimited content in a digital library, all content stored and available in one place, protection of content from damage, digital library free with the purchase of a disc, and in last place, being able to share content with up to 6 UV-registered household members.

Key findings of the report included the fact that most consumers surveyed felt confident about their awareness and understanding of the concepts of digital storage (66%) and cloud storage (61%). However, the report stated, there is a discrepancy between the consumer perceived versus actual knowledge.

While nearly 90% of respondents very somewhat to very interested in the concept of storing and accessing content from a digital library, only a small percentage (18%) of respondents currently use a digital locker for video storage. That percentage is skewed slightly to the 35-49 age group. Movies and TV shows were ranked as the two most likely forms of content to be stored in a hypothetical digital locker.

While awareness of cloud-based services has increased, consumers still lack a strong understanding of the benefits of video content digital lockers or the rights that come with ownership. Consumers also need educating on the issues of rights ownership and management.

The report includes both quantitative findings from an online survey conducted among a geographically dispersed sample of 502 men and women aged 18-59 in October 2011, as well as qualitative discoveries gleaned from focus groups conducted in November 2011 in Los Angeles among mixed groups of men and women aged 21-49.

www.pwc.com

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