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NPD: Cable Still King Of Video-On-Demand

3/10/2013 08:00:00 PM Eastern

PORT WASHINGTON, N.Y. – Share of the $1.3 billion video-on-demand (VOD) revenue generated by multichannel video programming distributors (MVPD) in 2012 continued to be dominated by cable-TV operators, with 56 percent of the overall market, according to report issued Monday by The NPD Group.

NPD’s “2012 VideoWatch VOD Report” showed satellite-TV operators ranked second, with 27 percent share, while telecom operators had 18 percent through the year.

Telecom TV operators, including Verizon FiOS and AT&T U-verse, grew their VOD-movie-rental share 4 percentage points during the period, as cable providers watched their share dip little more than 4 percentage points. Satellite operators’ share of the VOD pie increased about 1 percentage point, NPD said.

The study included only movies for which a separate additional per-movie rental fee is charged, and not movies downloaded as part of a pay-TV subscription.

NPD estimated that in 2012 telecoms earned average per-subscriber VOD movie-rental revenue of $25.29, cable-TV operators garnered $13.83 per subscriber, and DirectTV and Dish Network netted an average of just $10.33.

“Verizon FiOS and AT&T U-verse still considerably lag cable operators in the number of service subscribers. However, they are actually growing their share of the MVPD VOD-movie-rental market,” said Russ Crupnick, NPD analysis senior VP. “Telecom operators are leading their competitors when it comes to earning additional revenue from VOD movie rentals.”

The data gathered for the “2012 VideoWatch VOD Report” did not include Internet VOD services, which NPD tracks in a separate study.

Subscriber volume was sourced from January through September 2012 data that is publicly available from the National Cable and Telecommunications Association (NCTA).

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