Rentrak Inks VOD Deal with Time Warner Cable5 Feb, 2008 By: Erik Gruenwedel
Rentrak Corp.'s media measurement business Feb. 5 received a boost when it signed a multiyear agreement with Time Warner Cable to quantify the second-largest cable operator's video-on-demand (VOD) services.
The pact brings to 23 the number of cable operators, incorporating more than 45 million set-top boxes, that use Rentrak's nascent advanced media information (AMI) segment, according to Cathy Hetzel, president of the AMI division.
“We are quickly approaching 90% market penetration in terms of census level measurement for on-demand television,” Hetzel said in a call with investors.
She said the company is attempting to secure a similar deal with Cox Communications.
The agreement comes at a fortuitous time as revenue from Rentrak's home video pay-per-transaction (PPT) fell nearly 15% in the third quarter (which ended Dec. 31) to $21.2 million, down from $24.7 million during the same period last year.
Portland, Ore.-based Rentrak said lower volumes of DVD shipments and rental transactions contributed to the decline.
As a result, net income totaled $547,000 on revenue of $23.9 million, compared to income of $815,000 and revenue of $26.7 million last year.
AMI revenue, which includes theatrical, TV, mobile and broadband video data tracking, increased more than 38% to $2.7 million, compared to $1.9 million last year.
“The media measurement landscape continues to evolve in a direction that validates our vision of capturing and reporting viewership data across multiple platforms,” said Paul Rosenbaum, chairman and CEO of Rentrak.
A trial program for network TV data collection is expected to launch in the first quarter of 2009.