Rentrak Report: The state of Video on Demand & movie streaming

Market researcher and performance analyst Rentrak released the "Rentrak State of VOD: Trend Report 2010" this week. The blandly titled missive, which tackles video on-demand's annual performance, thankfully found something a bit more exciting among the source material: growth within the still burgeoning video on-demand market, and some proof which supports the notion that the convenient method is becoming a staple in mainstream home entertainment.

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The report found 11% more people (38 million VOD-enabled boxes) watched VOD programming last year than in 2009. The bulk of that increase comes from free on-demand content, which made up nearly 75% of the yearly transaction tally. The average consumer used their set-top box a little over 17 times per month.

Overall, VODs movie branch racked in nearly $1 billion in 2010, says Rentrak - a 9% jump from the previous year.

Though the lopsided numbers speak more to the fact that everyone loves free stuff, it's likely content providers and movie studios are just glad consumers are finally getting around to using the feature.

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Netflix maintained its dominance in streaming VOD despite some setbacks this year from content providers, while other companies such as Amazon have entered the market, fresh-faced and eyes alight with dollars signs.

The propagation of internet-ready TVs and all-in-one set-top boxes means more competition - and more options for consumers. However, it's not just TV shows people are watching on-demand.

Movie studios, while historically (and perhaps understandably) hesitant to fully back VOD services, have made some progress recently.

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Disney's planned digital content locker (named "Keychest") is still on, and the company has said it isn't necessarily against a move into controversial premium VOD delivery - a market many other studios are split on, thanks in part to theater owners pounding their chests over the perceived negative impact it would have on their bottom line.

Regardless, some studios have ignored the warnings and dipped their toes in the water: 2011s "The Resident" was available to rent on-demand the same day it released in theaters, and DirecTV recently announced plans to offer movies just weeks after they debut on the silver screen for $25-$30 per film - the latter prompting theater execs at Regal Entertainment to threaten to pull trailers for any film tapped for the roster.

One analyst suggested theatrical Premium VOD will not have a major impact on ticket sales, making the reaction seem disproportionate.

Remtrak's Vice President of Analytical Solutions Kristie Fortner doesn't see VOD (free or otherwise) going away any time soon.

"Video-on-demand continues to be an important revenue stream for both cable operators and content providers," Fortner said. "Free-On-Demand growth represents an opportunity for advertisers to leverage these targeted and engaged viewers." (Via Home Media Magazine)

Do you watch more content via On-Demand than more traditional means? Let us know in the comment section.

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