• by Jack Loechner , Staff Writer @mp_research, September 4, 2004

Cable VOD Best as a Separator From Satellite

According to a recent In-Stat/MDR survey, cable Video-on-Demand (VOD), though not a huge revenue generator, it can still serve as an important service "differentiator" in terms of comparing digital cable TV services to satellite TV services. Even as the number of VOD users is on the rise, consumer interest in VOD service remains lukewarm due to concerns about pricing and a continued lack of compelling content.

80% of surveyed U.S. households are now familiar with VOD service. The survey also showed that, among the percentage of cable TV households who were regular VOD users, the so-called "take rate," was only 8%. This percentage indicates that VOD service will likely remain somewhat of a niche cable service over the next few years. The report also found that:

• Cable-based VOD service remains scarce outside of North America. Although the first significant service trials and deployments occurred in the past year in Europe and Asia, over 99% of all cable VOD users are still in North America.
• By 2008, worldwide cable VOD subscribers are forecasted to reach 17 million.
• As of mid-2004, approximately 50% of all US cable TV systems were offering VOD, and over 5 million US cable TV households were regularly using the service to watch movies, SVOD programming, and even "free" shows and events.

You can find out more here.