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Rentrak: Active Users Buy Two VOD Movies a Month

13 May, 2010 By: Erik Gruenwedel

Despite studio efforts to spur higher margin video-on-demand (VOD) consumption of new release movies, a new report claims that active users on average purchased just two VOD titles per month in 2009.

In its “State of VOD” report, Portland, Ore.-based Rentrak Corp. said VOD viewers watched 3.1 billion hours of on demand content, which included 16.4 free programs per month and 8.7 subscription programs.

Rentrak, which tracks VOD usage via third-party cable set-top boxes, found that viewers placed 5.1 billion orders for free on demand content and spent nearly 1.6 billion hours watching free VOD.

Subscription-based VOD had 1.6 billion transactions and more than 1.1 billion hours of playtime. Transaction-based VOD for new-release movies had more than 208 million orders totaling in excess of $963 million dollars in gross revenue.

That's a little more than what supposedly staid Blockbuster generates — in three months.

In addition, sales and rentals of Blu-ray Disc movies topped $1.5 billion in 2009, according to DEG: The Digital Entertainment Group. Sales and rentals of DVD, the format VOD is supposed to supplant, hit $16.4 billion.


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