Pay VOD Up Slightly For Traditional TV Providers

Almost 70% of TV consumers do not make pay video on demand purchases (PVOD) on a monthly basis, movies and other content -- though there has been some improvement in this area in recent years.

TV search company Digitalsmiths, in a first quarter survey, say 69.8% of TV viewers don’t make these VOD purchases. Good news for pay TV providers: These figures are down from the first quarter 2013. where 78.5% of respondents did not make PVOD purchases.

The survey says there was a 2.5% increase of those who paid for VOD who purchased one or more pieces of content -- and an 8.7% increase since the first quarter 2013.

This research does not include results from Netflix, Redbox, iTunes and other similar services. Virtually all of these purchases come from traditional pay TV providers -- cable, satellite or telco providers.

In a related survey point, research shows in the first quarter of this year 10.9% of respondents purchased pay-per-view events from their pay TV providers service. Within this group, nearly 70% ordered between one to four pay per view events each year. Pay-per-view content is typically delivered through separate channels on one’s pay TV service.

Digitalsmiths analysis suggests pay TV providers continue to selling and promoting these revenue-generating pay TV content to keep growing their average monthly revenue per user numbers.

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