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Digitalsmiths: Transactional VOD Use Declined Nearly 5% in 2015

17 Mar, 2016 By: Erik Gruenwedel

Redbox led all rental service declines, with usage dropping 5.3% in the fourth quarter

The number of people using transactional VOD and electronic-sellthrough services in the fourth quarter (ended Dec. 31, 2015) declined 4.8%, according to new data from Digitalsmiths, which is owned by TiVo.

More than 65% of 3,120 respondents (aged 18 and older) in the North America survey said they didn’t use the following services: Amazon Video, Redbox, iTunes, Google Play, YouTube Movies, Vudu, CinemaNow or Flixster. That was up from 63.9% in Q3, 61.7% in Q2 and 60.8% in Q1.

The trend differs from reports from DEG: The Digital Entertainment Group, which saw transactional VOD revenue (excluding Redbox) increase minimally (0.26%) to $517.9 million, from $516.6 million, during the previous-year period. For the year, transactional VOD revenue declined 2.51% to $1.93 billion, from $1.98 billion in 2014. Digital sellthrough increased 18% to $1.89 billion.

Regardless, Redbox appeared to see the largest rate of decline among survey respondents. Slightly more than 13% of respondents said they used Redbox in Q4 compared to 18.4% in Q1, which ended March 31, 2015. Amazon Video usage, which generated the largest percentage of respondents (16.2%), saw usage increase 2.5% in the quarter compared with Q1.

The remaining services failed to generate double-digit survey respondents. Apple’s iTunes (7.7%) saw usage decline 15%; Google Play (4.9%) dropped 8%; YouTube Movies (3.1%) increased 19%; Vudu (2.1%) dropped 23%; CinemaNow (1.4%) increased 27%; while Flixster remained flat at 1%. 

Indeed, 35.8% of respondents spent from $3 to $11 monthly on transactional VOD and EST, with weekly viewing dropping 11.4%.

Meanwhile, 55.4% of respondents (40% marketshare in the U.S.) used an over-the-top video services such as Netflix, Amazon Prime Video and Hulu Plus.

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