Video-on-Demand Usage on the Rise
VOD Users Express Less Likelihood to Switch From Digital Cable
Durham, NH – February 8, 2005 – New consumer research from Leichtman Research Group, Inc. (LRG) finds that, in four markets where the leading cable company has offered Video-on-Demand (VOD) service for over a year, 56% of digital cable subscribers have used VOD. The percent of digital cable subscribers who have ever used VOD is nearly twice the rate found in a similar LRG study conducted seventeen months earlier, and now ranges from 50%-69% in these four markets.
In addition, while 15% of digital cable subscribers who have not used VOD report that they are likely to switch from their current cable provider in the next six months, just 9% of digital cable subscribers who have used VOD say that they are likely to switch.
These findings are based on a survey of 1,400 total households representing four markets in the United States where VOD is available, and are part of a new LRG study, Consumer Opinions in Four VOD Markets. This is LRG’s third annual study of this type.
Other key findings in the four markets include:
- 64% of VOD users would strongly recommend their cable company’s on-demand service to a friend
- 92% of digital cable subscribers are aware that VOD is currently available form the cable provider in their area
- 65% of analog cable subscribers are aware that VOD is available
- 58% of DBS subscribers in these markets are aware that the cable provider in their area offers VOD
- 46% of DBS subscribers in these markets believe that satellite TV offers VOD services
- 20% of cable subscribers believe that DBS offers VOD
“The findings in these four markets demonstrate the evolutionary nature of on-Demand TV and the progress that is now taking place in this area,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Use of VOD services is clearly growing, and evidence of the ‘stickiness’ of the service is beginning to emerge. Yet converting subscribers from DBS to cable to get these services may be more difficult, as many DBS subscribers feel that they are already getting VOD.”
About Leichtman Research Group, Inc.
Leichtman Research Group, Inc. (LRG) specializes in research and analysis on broadband, media and entertainment industries. LRG combines on-going surveys and analysis with years of hands-on industry experience to provide companies with a richer understanding of the potential impact and adoption of new products and services. For more information about LRG, please call (603) 397-5400 or visit www.LeichtmanResearch.com.
Consumer Opinions in Four VOD Markets is based on a telephone survey of 350 adults age 18+ in four markets in the US where the leading cable operator has been offering VOD for over a year, for a total of 1,400 participants. The survey was conducted in December, 2004. The overall sample has a statistical margin of error of +/- 2.6%, the sample for each market has a statistical margin of error of +/- 5.2%.
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