Tepid Interest in Video-on-Demand - ResidentialSystems.com

Tepid Interest in Video-on-Demand

Even as the number of video-on-demand users rises, consumer interest in the service remains lukewarm.
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Scottsdale, AZ--According to high-tech market research firm In-Stat/MDR, even as the number of video-on-demand (VOD) users rises, consumer interest in the service remains lukewarm due to concerns about pricing and a continued lack of compelling content.

From the perspective of potential VOD users, a recent In-Stat/MDR survey showed that cable-based VOD services enjoy a high level of consumer awareness; 80 percent of surveyed U.S. households are now familiar with VOD service.

The survey also showed that the percentage of cable TV households who were regular VOD users, the so-called "take rate," was only eight percent. This percentage indicates that VOD service will likely remain somewhat of a niche cable service over the next few years.

As of mid-2004, approximately 50 percent of all U.S. cable TV systems were offering VOD, and over 5 million U.S. cable TV households were regularly using the service to watch movies, SVOD programming, and even "free" shows and events.

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