67% get Hooked on Lovefilm's Streaming Service

ALMOST seven in every ten people that try Lovefilm's online streaming service go on to become regular users, according to a new report.

The online DVD rental service had the highest success rate of any streaming service when it comes to converting first timers to old hands.

63% of those who tried out BT Vision went on to use the service regularly while Apple iTunes converts 58% of users.

The British Video Association's (BVA) 'Trends in Digital Content' report found that over half of the UK population had accessed online video content, legally, of course.

In the main, consumers are taking advantage of free and easy online browser services such as BBC iPlayer and 4oD from Channel 4 although on-demand through set-top boxes and with other providers also saw significant growth.

Engaging viewers

The report found that a strong connection with a consumer engagement with a site and their ultimately go on to download video from that that site.

Lovefilm certainly has that: its million or so customers in the UK are already paying to receive its DVD by post service.

Those with DVD rental packages that cost more than £5.99 a month get some use of the company's online streaming service for free as part of their deal.

Those with unlimited DVD rental deal - £9.99 with DVDs only and slightly more with games to rent too - also more or less unlimited access to Lovefilm's online streaming service.

According to the report, those looking to stream films saw price and convenience as the most important factors when choosing on online streaming service, which perhaps also explains Lovefilm's success to some degree.

Spontaneity and portability are more likely to drive TV viewers towards digital viewing indicating that the rental service, which is overwhelmingly identified with feature films, will need to continue developing more convenient services such as its PS3-based platforms to get those box-set guzzling viewers.

Speaking to Marketing Week, Sarah Owen, Head of Marketing at Channel 4, said that free and pay per view streaming services could help stem the tide of users going to illegal services.

"The best way of dealing with this is to provide free, legal quality content, accessible from a plethora of places, alongside education and enforcement work," she said.

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