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Netflix, VOD Spur Q3 Ecommerce Spending

9 Nov, 2011 By: Erik Gruenwedel

Subscription video-on-demand services such as Netflix, Hulu Plus and Amazon Prime, coupled with transactional VOD and electronic sellthrough, contributed to a 13% increase in e-commerce consumer spending in the third quarter, according to a new report.

E-commerce spending in the period topped $36.3 billion, compared with $32.1 billion during the previous-year period, according to new data from comScore.

The 13% increase in the quarter primarily was a function of an increase in the number of buyers (up 22%), with 74% of all Internet users making at least one online purchase in the quarter. In addition, 40% of e-commerce transactions included free shipping, down from a peak of 49% in Q4 2010. Free shipping rates tend to peak during the holiday season.

Top-performing product categories included digital content and subscriptions, event tickets, jewelry and watches, consumer electronics and computer software.

Each category grew at least 15% compared to a year ago.

Digital content and subscriptions also include music and music-related subscriptions, and popular on Web-based music services such as Pandora, Rhapsody and Slacker Radio, among others.

Digital and subscription-based online spending included transactional VOD movies, Netflix, Hulu Plus and Apple iTunes, according to Andrew Lipsman, VP of industry analysis with comScore.

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