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Report: VOD Boxes Compete With Next-Gen Consoles

By Chris Tribbey | Posted: 02 Dec 2008

Recently released video-on-demand set-top boxes are facing an uphill battle against next-generation video game consoles, according to a new report from The Diffusion Group.

With a larger install base than any of the boxes meant solely for VOD, the Xbox 360 and PlayStation 3 both are growing their video libraries fast, and of the 190 million households expected to own one or the other by 2012, 80% of those will be connected to the Internet. The study says three out of four Internet-connected console users will use video services more than once a week.

“There is a bit of a ‘value vacuum’ developing around today’s pay TV offerings,” said Colin Dixon, TDG’s practice manager for broadband media. “Rising dissatisfaction with service value, the lack of flexibility implicit in tiered strategies, and a growing interest in watching online video on the TV have combined to create a unique opportunity for alternative video services — an opportunity not at all lost on console vendors.”

For more information about the report, visit www.asktdg.com or call 469-287-8050.

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