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Rentrak: Nearly 75% of VOD Content Free

9 May, 2011 By: Erik Gruenwedel

Transactional VOD penetration increases slightly

Nearly three out of four movies or TV programs watched on demand is free, with VOD usage up 11% in 2010, according to a new Rentrak report.

With studios, cable and satellite TV operators aggressively pushing higher-margin transactional VOD movies (as opposed to packaged media), VOD consumers accessed about 17.1 (largely free) transactions per month.

Music, children’s programming and TV shows topped free VOD genres, with TV fare increasing 31% year over year.

The Portland, Ore.-based data measurement company said an average of 38 million set-top boxes accessed VOD content on a monthly basis, which included 44% of all enabled set-top boxes accessed on demand content in an average month.

“VOD continues to be an important revenue stream for both cable operators and content providers,” said Kristie Fortner, VP of analytical solutions at Rentrak. “Free-On-Demand growth represents an opportunity for advertisers to leverage these targeted and engaged viewers.”

Indeed, the transactional VOD business was up 9.1%, to almost $1 billion in revenue, according to Rentrak.

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