There is little doubt that awareness and availability of video on-demand services is rising but the technology is still a long way from achieving widespread consumer acceptance.
A recent US study from
Leichtman Research Group determined that 80% of cable subscribers have heard of video on-demand but many are unaware that it is available in their area and the majority of subscribers have yet to use the service.
The research, which was carried out in four markets where VOD is currently available, found that 90% digital cable subscribers had heard of the systems. This compares with 69% of digital cable subscribers nationwide.
However, one in four digital cable subscribers and half of all analogue cable subscribers in the featured markets were not aware that VOD could be accessed in their region.
Despite the obvious advantage of being able to watch programmes as and when convenient, use of VOD remains moderate with only 30% of digital cable subscribers in the four markets claiming to have paid for services.
“VOD is now potentially available to nearly 40% of cable subscribers, yet making VOD available is just the first step in building the business,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group. “Intensified marketing efforts, along with increased content offerings, will be significant factors in growing consumers’ use and appreciation of VOD.”
An overview of the video on-demand sector is available INSIGHTanalysis: Video On-Demand Remains On Hold.
