Washington, D.C. (March 5, 2013)
DIRECTV and Dish continue to have problems persuading
subscribers to order Video on Demand movies, according to new
data released by the NPD Group.
The research firm estimates that DIRECTV and Dish generated an
average of just $10.33 per subscriber in Video on Demand revenue
in 2012. That's an average of just slightly more than two HD
films for the entire year, considering that DIRECTV and Dish's VOD cost
for HD movies start at $4.99.
The low total perhaps should not come as a major surprise
although both satcasters have invested heavily in promoting
their Video on Demand services. Unlike cable and telco TV
services, neither DIRECTV or Dish are Internet Service Providers
as well as video providers. Without an Internet service to
offer, the satcaster have had more difficulty getting their
subscribers to connect their set-tops to the Net to access Video
on Demand films.
In contrast, Verizon and AT&T, both of which offer Net service
as well as video service, averaged $25.29 in VOD revenue per
subscriber in 2012. Cable operators, which also offer both Net
and video services, averaged $13.83.
In overall market share, cable TV operators captured 56 percent
of the $1.3 billion market while satellite got 27 percent and
the telcos received 18 percent. The telcos' market share is
lower than their 'average-per-subscriber' number because they
have fewer subscribers. Likewise, the satellite and cable
services' share is higher because they have more subscribers.
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