Cablecos generating almost half of all paid VOD orders

Despite the progress being made by Internet-delivered VOD (iVOD) services, cable companies are still US consumers’ first choice when renting video-on-demand movies on a per-use basis, according to new research from the NPD Group.

Led by Comcast in the first half of 2012, 48 percent of all transactional video-on-demand movie rentals are believed to have been generated from cable VOD, according to the study.

With a 24 percent rental-order growth rate year-over-year, telco VOD is the fastest growing segment of the VOD market, outpacing even the growth rate of iVOD services, with 15 percent.

“When it comes to paying for on-demand movies on an a-la-carte basis, cable companies are by far the primary conduit, due in large part to their widespread penetration and usage in Americans’ homes,” said Russ Crupnick, senior vice president of industry analysis for The NPD Group.

“Even as iVOD, and VOD from satellite-media companies and telcos grow in popularity, cable companies continue to dominate the VOD movie rental market.”

According to NPD’s report for the first half of 2012, paid-VOD movie rentals from cable company Comcast represented 23 percent of the United States’ VOD rental market, followed by satellite TV provider DirectTV at 14 percent, and Time-Warner Cable at 9 percent.

Apple iTunes’s iVOD service comprised 8 percent of paid video rental transactions, followed by telco company Verizon and satellite TV provider Dish Network at 7 percent each. AT&T received the best customer ratings across a number of criteria, including site organisation, navigation and title availability.

Consumer audience demographics for iVOD movie rentals skew toward tech-savvy early adopters, primarily men (70 percent). In fact 44 percent of IVOD movie rental orders were made by men aged 25 to 44, compared to only 21 percent of cable VOD rental orders.

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