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Report: VOD Awareness, Use Low

15 Feb, 2011 By: Erik Gruenwedel

While video-on-demand has been around for decades — its profile heightened recently by studios, cable and satellite TV operators — consumer adoption remains lagging, according to a new report.

In a Centris Research survey of 40,000 adults, 62% had either never heard of VOD, never used it or were unable to access it. And while 24% of respondents said they had used VOD in the past month (free and transactional), another 13% said they had not used the option in the past month.

The results mirror 2010 year-end results from DEG: The Digital Entertainment Group, which found that despite a 20% increase in VOD revenue to $1.8 billion, market penetration remained relatively unchanged at around 20%.

“Respondents’ self-reported usage of free and paid VOD usage has remained relatively constant over the last six quarters,” said William Beaumont, president of Fort Washington, Pa.-based Centris.

Indeed, the report found that while free VOD usage increased 1.2% last November to 25.6% from 24.4% during the previous-year period, transactional VOD usage declined 1% to 14.5% from 15.5%.

Not surprisingly, cable and satellite have upped marketing and promotional efforts surrounding transactional VOD, with DirecTV this week offering vouchers for free new-release movie rentals (in standard definition).

Both services aggressively tout new release availability 28 days ahead of Redbox and Netflix.

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