Cablecos Overwhelmingly Lead in Rentals of Shows & Movies – OTT Services Trail Badly

Despite the much ballyhooed efforts of OTT rental services
such as iTunes, Vudu and Amazon Instant, the pay TV companies
still rent many more shows, according to the research house
The NPD Group. It is not including monthly sales online or
subscription services such as Netflix, Hulu Plus or Amazon

In the first half of 2012, 48% of all paid video-on-demand
(VoD) movie rentals were from cable TV companies’ VoD
services. OTT rental services are growing only about 15% a
year. VoD from telcos is growing about 24% year-over-year.

“When it comes to paying for on-demand movies on an à la carte
basis, cable TV companies are by far the primary conduit, due
in large part to their widespread penetration and usage in
Americans’ homes,” said Russ Crupnick, SVP of industry
analysis for The NPD Group. “Even as VoD from OTT services and
VoD from satellite-media companies and telcos grow in
popularity, cable companies continue to dominate the VoD movie
rental market.”

Comcast by itself accounted for 23% of the total VoD rental
market. DirecTV was second at 14% and Time Warner Cable third
at 9%. Apple’s iTunes was fourth with 8%. Verizon and satco
Dish each had about 7%.

The NPD information was based on 11,773 VoD rental
transactions generated from NPD’s VideoWatch Digital Tracker
and tested for statistical significance at 95% percent
confidence level.

The advantage that the pay TV services have in VoD services is
that they are available within the viewer’s EPG. Users of OTT
services have to exit the pay TV service and load an app from
their smart TVs, gaming consoles or smart TV adapters. Many
viewers don’t have those devices and many others don’t know
how to use them or don’t have those devices connected to the

About the Author

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