Netflix dwarfs digital movie rentals

NPD data shows little iTunes, Vudu uptake

The proliferation of devices for streaming video hasn’t driven much uptake of movies for so-called “iVOD” rentals, according to a new study.

NPD Group found that digital storefronts providing a la carte pickings including Apple’s iTunes, Amazon Instant Video and Walmart’s Vudu prompted only 5% of streaming-device owners to rent movies.

Connected TVs, game consoles, tablets, smartphones and other streaming gadgets are likely doing the majority of long-form viewing via Netflix and other subscription VOD options. They also may be bypassing over-the-top TV options entirely, renting titles on cable VOD.

To wit, 56% of iVOD movie renters are also Netflix subs and 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,” said Russ Crupnick, senior VP, industry analysis for NPD.

The data may also give an indication of where the growth of video streaming on gaming consoles is coming from, as Nielsen reported year-over-year increases Wednesday across XBox 360, Sony Playstation 3 and Wii. Microsoft Zune and Sony PlayStation Network are two virtual stores that offer iVOD options among other content offerings within their respective console’s content ecosystems.