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Report: Cable king of paid VOD movie rentals

Tue, 09/25/2012 - 2:29pm
Mike Robuck

NPD chartDespite all of the ongoing chatter about the threat that over-the-top video providers pose, cable operators are still the kings when it comes to video-on-demand movie rentals.

According to NPD Group, cable operators, led by Comcast, accounted for 48 percent of all paid VOD movie rentals in the first half of this year. Internet VOD (iVOD) has made inroads at 15 percent of the paid movie rentals, but telco VOD was the fastest-growing segment of the market with a 24 percent rental growth rate year-over-year. The NPD Group study focused solely on movie rentals that were paid for upon rental; subscription video rentals and video purchases weren’t included.

“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 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, paid VOD movie rentals from Comcast accounted for 23 percent of the VOD rental market, followed by DirecTV at 14 percent and Time Warner Cable at 9 percent. Apple iTunes’ iVOD service comprised 8 percent of paid video rental transactions, followed by Verizon and Dish Network at 7 percent each. AT&T received the best customer ratings across a number of criteria, including site organization, navigation and title availability.

Consumer audience demographics for iVOD movie rentals skewed toward tech-savvy early adopters, primarily men (70 percent). The study found that 44 percent of iVOD movie rental orders were made by men from the ages of 25 to 44, compared with only 21 percent of cable VOD rental orders.

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