Fewer than 5% of connected device users access VOD
Despite 2011 seeing a huge explosion in the uptake of connected TVs, gaming consoles, streaming-media players, tablets, and smartphones only 5% of 134 million US consumers who own such iVOD-capable devices use them to do so.
Furthermore, according to research by The NPD Group, though iVOD receives category-leading scores for selection, search, and navigation, it still has not caught on with consumers even among owners of dedicated streaming media devices for whom only 14% reported making an iVOD rental transaction.
In the Movie VOD Monitor report, the analyst suggests that iVOD may also be struggling due to heavy competition from pay-TV operator’s VOD offerings, and subscription movie options, including Netflix. Indeed it calculated that just over half (56%) of iVOD movie renters are also Netflix subscribers and that 43% use their pay-TV provider’s movie VOD offering.
“The industry is teeing up excellent services for Internet movie rental, but they simply aren’t getting noticed by many consumers,” argued Russ Crupnick, senior vice president, industry analysis for The NPD Group. “It’s understandable that smartphone owners might be hesitant to watch a full-length movie with limited screens and battery life, but few of the other connected devices are showing strong uptake for iVOD, either.”
NPD believed that there are already enough connected devices in enough households to enable iVOD to grow well beyond early adopters. It suggested that iVOD providers needed to leverage their content selection and search advantages and work more like over the top (OTT) providers to introduce potential users to their services.