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VOD Usage Grows, On-Demand Impact Flat

07 августа 2006
People may be watching more video-on-demand, but the technology's influence on overall television viewership has yet to create the impact many were expecting.

According to new information from the Leichtman Research Group, the number of digital video recorder (DVR) and video-on-demand (VOD) users have increased significantly over the past few years. The study says 60 percent of all digital cable subs have used VOD (up from 25 percent two years ago) and around 12 percent of United States households now have a DVR (up from 3 percent two years ago).

Even though the numbers are growing, Leichtman says the overall impact of DVRs and VOD on US television viewing remains small. The research firm estimates that less than four percent of all TV viewing in the country is from recorded DVR or on-demand content.

The findings come from the firm's study "On-Demand TV 2006: A Nationwide Study on VOD and DVRs."

Source: Leichtman Research Group

Stephen W. Struck, True North Consulting mediabiz.com, added:

For as long as I can remember, video on demand was going to be the "killer app" no matter how it was delivered. In the late nineties I was running an electronic packaging business that was enjoying the then current run up in demand for anything that was part of the fiber optic chain. My management wanted to know what was driving our business (and CAPEX).

I told them it was lots of factors and that VOD was going to be the Holy Grail.

Years later as a cable customer (who will return to satellite when HD locals are available) I do get VOD, but barely use it. Why? Because VOD offers the same second rate movie selection that has been available on HBO, Cinemax and such for many years.

The only thing that has changed is I can now watch B movies whenever I want instead of on a schedule. It turns out I don't want to watch them at all.

If content is king, the industry needs to improve the depth of the available libraries. Right now the king has no clothes.


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