Published: 22.51 Europe/London, June 22, 2011

Less than 5% of Telefonica O2’s on demand users in the Czech Republic opt for the entire range of such services offered by the incumbent telco.

These services, according to Daniel Vondracek, the company’s marketing manager, content services, consist of transactional VOD (TVOD), amounting to 600 titles a year; subscription VOD (SVOD), 150 titles, offered with HBO on Demand; and seven-day catch-up.

He added that 78% of on demand usage in its IPTV services was represented by free VOD.

In the case of TVOD, customers buy an average of 3+ titles a month, with local movies driving usage. Current movies cost €2.2, library €2 and adult €4.5, with the majority (40%) of viewing being of new titles.

The free SVOD is meanwhile a retention tool helping to create loyalty and reduce churn of the HBO premium package.

In its case, viewers watch on average nine titles a month.

Telefónica O2’s catch-up service is meanwhile experiencing licensing issues, limiting the value for IPTV customers.

The telco has also offered a network PVR since July 2010.

Vondracek also said that on demand in the Czech Republic is growing, with services now offered by (amongst others) Voyo, Prima, Czech TV, LG, Samsung, Seznam, and Topfun.