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Cable Technology Feature Article

September 27, 2012

Cable Companies Still Lead in Video on Demand, Says NPD Group

By Rory Lidstone, TMCnet Contributing Writer

Media delivery has seemingly reached the absolute pinnacle of convenience, with services like Netflix bringing content directly to practically any Internet-connected device from smartphones to gaming consoles and tablets. Despite this freedom, and the many Web-based content providers competing in this space, cable companies have still managed to hold on to the video on demand (VOD) market.

Indeed, a new report from market research firm the NPD Group (News - Alert) states that 48 percent of all paid VOD movie rentals in the first half of 2012 came from the likes of Comcast and Time Warner Cable. Still, newer forms of media on demand services like those from telecommunications companies such as Verizon (News - Alert) and Internet-based services are growing in popularity; paid VOD rentals from telecommunications companies grew by 24 percent year over year, while Internet VOD grew by 15 percent.

The market breakdown is such that Comcast took up 23 percent of the VOD rental market for the first half of the year, followed by DirecTV (News - Alert), a satellite provider, at 14 percent, while Time Warner Cable managed to capture nine percent. Apple's iTunes, meanwhile, accounted for eight percent of video rentals, while Verizon and Dish Network, a satellite TV and Internet provider, sat at seven percent each.

"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," Russ Crupnick, senior vice president of industry analysis for The NPD Group, said in a statement. "Even as Internet VOD, and VOD from satellite-media companies and telcos grow in popularity, cable companies continue to dominate the VOD movie rental market."

According to another recent NPD Group report, the television may have a greater say in modern media than it is often given credit for. Apparently, the number of consumers who report their TV as their primary viewing screen for viewing Web content has risen from 33 to 45 percent compared to last year, while the PC dropped from 48 to 31 percent.

Want to learn more about how video is helping to transform the industry? Don’t miss Video World Conference & Expo, collocated with ITEXPO Austin 2012 taking place Oct. 2-5, in Austin, TX.  Stay in touch with everything happening at Video World Conference & Expo. Follow us on Twitter.

Edited by Rachel Ramsey

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