Skip to main content

How Cable Companies still Dominate Movie Rentals


According to The NPD Group, although viewing movies through new low-cost Internet video on demand (iVOD) subscription services is making significant inroads with a savvy group of informed Americans, legacy cable TV companies are still the first choice for on-demand per-use movie rentals.

Led by Comcast in the first half of 2012, 48 percent of all paid video-on-demand (VOD) movie rentals were generated from traditional cable TV service providers.

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 iVOD growth rate of 15 percent.

Note, the NPD research refers only to movie rentals that are paid for upon rental -- subscription video rentals and video purchases were not included in this market study.

"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 -- at least for the time being.

According to the NPD VideoWatch VOD report, for the first half of 2012, paid VOD movie rentals from Comcast represented 23 percent of the VOD rental market, followed by DirectTV at 14 percent, and Time-Warner Cable at 9 percent.

The Apple iTunes video on-demand 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.

Video 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.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Secure Microcontroller Market to Reach $2.2 Billion

In spite of the volatile global semiconductor industry being plagued by ongoing macroeconomic and political disruption issues, the secure microcontroller (MCU) market should continue to prosper. While the forecasted total available market has contracted -- especially in the smart home, retail, advertising, and supply chain spaces -- secure MCU shipments will likely be temporarily affected.  According to the latest worldwide market study by ABI Research, the secure microcontrollers market will grow to reach $2.2 billion by 2026. Secure Microcontroller Market Development "In part, this is due to the niche nature of security demand which commands a higher value proposition," says Michela Menting, research director at ABI Research . In the short term, potential supply chain issues due to trade embargoes and global COVID-19 pandemic quarantines at manufacturing sites will affect availability. Yet, demand for security, especially in general purpose microcontrollers, will ensure the