Internet VOD challenges pay TV

Number of iVOD users reached 7 million in 2011

The video-on-demand market for paid rentals is currently ruled by pay TV services, but the Internet-on-demand market is growing in strength, according to the NPD Group.

Pay TV VOD services hit $1.3 billion in revenue for 2011, according to the market research company, while the iVOD market reached $204 million. The report found that 4 million fewer pay TV users paid additional fees to watch movies in August 2011 vs. a year earlier.

Including the services of iTunes, Amazon, Vudu and others, iVOD reached 7 million users compared to 40 million for pay TV VOD. Internet VOD also poses a possible challenge for pay TV’s non-movie services.

“IVOD users reduced their time spent watching TV shows, news and sports via pay TV companies by 12% between August 2010 and August 2011,” said Russ Crupnick, senior veep of industry analysis for the NPD Group. “Pay TV operators now must not only defend their movie VOD revenues but also counter an emerging threat to basic programming.”

According to NPD, users perceive iVOD as offering a better value and better movie title selection than pay TV.

All findings are based on NPD’s VideoWatch tracking service, which does not consider free or paid viewings of TV shows, subscription services such as Netflix streaming or free movies included in pay TV subscriptions.

More Digital

  • Reed Hastings, Netflix CEO

    Netflix CEO Says U.S. Rollback of Net Neutrality Rules Is No Big Deal

    The video-on-demand market for paid rentals is currently ruled by pay TV services, but the Internet-on-demand market is growing in strength, according to the NPD Group. Pay TV VOD services hit $1.3 billion in revenue for 2011, according to the market research company, while the iVOD market reached $204 million. The report found that 4 […]

  • Netflix Reed Hastings

    Netflix Falls Short of Q2 Subscriber Expectations Worldwide, Stock Dives

    The video-on-demand market for paid rentals is currently ruled by pay TV services, but the Internet-on-demand market is growing in strength, according to the NPD Group. Pay TV VOD services hit $1.3 billion in revenue for 2011, according to the market research company, while the iVOD market reached $204 million. The report found that 4 […]

  • NewFronts West - Streamys Brand Awards

    IAB's NewFronts L.A. Edition to Feature Streamy Brand Awards for Advertising

    The video-on-demand market for paid rentals is currently ruled by pay TV services, but the Internet-on-demand market is growing in strength, according to the NPD Group. Pay TV VOD services hit $1.3 billion in revenue for 2011, according to the market research company, while the iVOD market reached $204 million. The report found that 4 […]

  • Roku TV Wireless Speakers

    Roku Launches Wireless Speakers for Roku TVs

    The video-on-demand market for paid rentals is currently ruled by pay TV services, but the Internet-on-demand market is growing in strength, according to the NPD Group. Pay TV VOD services hit $1.3 billion in revenue for 2011, according to the market research company, while the iVOD market reached $204 million. The report found that 4 […]

  • USA Today - Kate Gutman

    A+E Exec Kate Gutman Joins Gannett's USA Today Network as Head of Content Ventures

    The video-on-demand market for paid rentals is currently ruled by pay TV services, but the Internet-on-demand market is growing in strength, according to the NPD Group. Pay TV VOD services hit $1.3 billion in revenue for 2011, according to the market research company, while the iVOD market reached $204 million. The report found that 4 […]

  • Netflix Logo

    Netflix Extends Unreleased Korean Series ‘Kingdom’ for Second Season (EXCLUSIVE)

    The video-on-demand market for paid rentals is currently ruled by pay TV services, but the Internet-on-demand market is growing in strength, according to the NPD Group. Pay TV VOD services hit $1.3 billion in revenue for 2011, according to the market research company, while the iVOD market reached $204 million. The report found that 4 […]

  • France fans with painted facesFrance v

    France Celebrates Soccer World Cup Triumph

    The video-on-demand market for paid rentals is currently ruled by pay TV services, but the Internet-on-demand market is growing in strength, according to the NPD Group. Pay TV VOD services hit $1.3 billion in revenue for 2011, according to the market research company, while the iVOD market reached $204 million. The report found that 4 […]

More From Our Brands

Access exclusive content