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Telcos Stealing VOD Market Share From Cable
AT&T and Verizon's VOD Market Share Climbs
by Karl Bode 12:35PM Tuesday Mar 05 2013
AT&T and Verizon have expended their share of the video on demand market, stealing that market share from companies like Comcast and Time Warner Cable. Todd Spangler at Multichannel News notes that cable operators saw their VOD total market share drop to 56% in 2012 from 60% in 2013. For some context however, keep in mind that video on demand comprises about 1% of all video viewing according to a study released last year. That study blamed "inadequate advertising support and awkward program guides" for cable's recent stumbles in the VOD market, something telcos -- who are hungrier upstarts in the pay TV sector -- are clearly doing a better job with. What's your primary reason for not renting VOD titles? Quality? Selection? Price?

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FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

1 edit

Price prevents most rentals

Why pay $3 to $5 per VOD rental from Comcast when I get free movies & series from Amazon as part of my yearly Amazon Prime membership(which I would have anyway for free 2 day shipping). And also movies using an $8/mo Netflix subscription.

The latest Comcast on screen TV guide which Comcast just rolled out in my area(A30) does a much better job of providing info on VOD titles. And the new "Queue" feature of A30 does a nice job of highlighting series you may be interested in. But even the easier access to VOD titles can't offset the cost issues.

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I will be perfectly happy if the budget cuts specified in the Budget Control Act go into effect. 3 cheers for the sequester. Take the money from the drunken federal spenders.

swintec
Premium,VIP
join:2003-12-19
Alfred, ME
kudos:5
Reviews:
·Time Warner Cable
·VoicePulse
·Sprint Mobile Br..
·RapidVPS

1 recommendation

Re: Price prevents most rentals

said by FFH:

Why pay $3 to $5 per VOD rental from Comcast when I get free movies & series from Amazon as part of my yearly Amazon Prime membership(which I would have anyway for free 2 day shipping). And also movies using an $8/mo Netflix subscription.

Exactly. I can always seem to find something to watch between the two services, even if the movies are older run titles.

Besides, if I had the desire to watch a new release I think I would just give my money to Amazon instead and watch it through them versus the cable company as I think new releases are more or less the same price.
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MovieLover76

join:2009-09-11
kudos:1

Re: Price prevents most rentals

You already answered your question, new releases.
While it may not sell a huge amount cable and telco VOD is still the easiest for most people, my parents still rent new releases from Comcast.

When it comes to new releases it costs about the same amount for any VOD no matter where you go and cable and telco VOD doesn't require extra hardware you may not already have.
mogamer

join:2011-04-20
Royal Oak, MI

Re: Price prevents most rentals

said by MovieLover76:

You already answered your question, new releases.
While it may not sell a huge amount cable and telco VOD is still the easiest for most people, my parents still rent new releases from Comcast.

When it comes to new releases it costs about the same amount for any VOD no matter where you go and cable and telco VOD doesn't require extra hardware you may not already have.

I sub to both Netflix and Amazon Prime but I use Redbox for new releases. Unless you're housebound, you'll always run into a Redbox while doing something else. At less than 1/3 the price of a VOD release, it's well worth the little extra trouble to pick one up and return it. The only times I use VOD is when Vudu has a 99 cent "Deal of the Day" that I want to watch.

uwotm8

@sbcglobal.net

"Stealing" ??

Isn't that a bit harsh. How about Cable losing VOD business to Telcos? Stealing has such a negative connotation.

Bill Neilson
Premium
join:2009-07-08
Arlington, VA

Re: "Stealing" ??

said by uwotm8 :

Stealing has such a negative connotation.

I am sure the ISP's don't mind when they steal any and all ability to compete with them in local and state jurisdictions by writing their own laws

cableties
Premium
join:2005-01-27

Re: "Stealing" ??

Not unlike Cable cos stealing traditional landline phone subscribers with their triple play...

Do services like:
-Netflix
-Amazon Prime
-Xbox Live
-PSN
count?
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Splat
xsquid40

join:2010-03-18
Staunton, IL

Stand alone VOD market?

How are telcos are "taking" a larger share of the VOD market? Cable or Telco versions of VOD aren't stand alone products.

For both Cable and Telcos, VOD is an add on product. You have to have cable to get cable VOD and you have to have Telco video to get Telco VOD. Normally over a set top box.

So is "inadequate advertising support and awkward program guides" causing people to dump cable for telco video?
elefante72

join:2010-12-03
East Amherst, NY

Re: Stand alone VOD market?

The problem with me is that I use W7MC, so I don't have any VZW boxes. So although flexview will allow me to watch on a mobile device, it's not as easy on a TV.

I can see the same problem w/ others who use CC or tivo for instance.

Their prices are high anyways, and I'd rather give my money to amazon or Redbox IF I'm going to get a new movie. My roku or Xbox organizes the movies WAY better than when I had a HD box.

I think it's a crime to ask $5 and put a 48 hour window on watching. What's the big deal to give a week, especially if I can go to Redbox and get the movie for $1.25. The 2 times I bought streaming we started to movie on Fri eve, wifey tired, and then we sit down on Sun to finish, and guess what you timed out. Bulls**t.

So ever since then, I make it a point NOT to give one penny to VOD/Streaming until they rectify this 48 hour BS.

I don't think $5 is expensive, but compared to Redbox it is, and the viewing windows are downright obnoxious.

So they took 5% of 1%, big whoopie, that's probably 10 movies.
BiggA

join:2005-11-23
EARTH
Yeah, this article doesn't make a whole lot of sense. It's totally out of context... like how many video subs in general have gone to telco versus cable, and what the VOD uptake on each system looks like.
Ahuacamolli

join:2001-11-30
Rancho Santa Fe, CA
Reviews:
·Charter
·Pacific Bell - SBC

Cost, inferior quality, and buffering of streaming video

The primary reason why I don't rent VOD is that my 30Mbps cable internet service from Charter Communications in Riverside, California is apparently unable to adequately handle streaming video without overly frequent buffering, and service outages which last from a few seconds, to several hours at a time.

I'm told by the Charter technicians who have repeatedly come to my house to test my connection to their service that there is nothing wrong with my wiring or the service at my home, but with Charter's infrastructure, and provisioning providing their service to my area of Southern California.

Charter is the ONLY cable television and broadband internet service available in my area. AT&T won't upgrade their buried copper wire, which currently can provide no more that 768Kbps uVerse internet service, to fiber optics.

I blame the the US Congress for taking away my City's oversight of the cable industry by my city. After that change took effect, Charter quickly became a monopoly in my area, and the level of their service has deteriorated. My only recourse is to cancel their services and live without cable television and broadband internet, or accept.
Jowmu

join:2009-05-04
Lubbock, TX

Re: Cost, inferior quality, and buffering of streaming video

you stated: "The primary reason why I don't rent VOD is that my 30Mbps cable internet service from Charter Communications in Riverside, California is apparently unable to adequately handle streaming video without overly frequent buffering, and service outages which last from a few seconds, to several hours at a time."

I don't know if this is true for ALL cable company VOD setups, but the internet or your speeds have nothing to do with VOD. It isn't streamed to you thru the internet like Netflix or simular services... VOD uses a standard digital 256QAM channel on the cable system to deliver the program to you. You don't have to have internet to get VOD.

Michail
Premium
join:2000-08-02
Boynton Beach, FL
kudos:1

AT&T?

Someone found actual VOD content on U-verse?
chgo_man99

join:2010-01-01
San Jose, CA
Reviews:
·AT&T U-Verse
·Mediacom

much ado about nothing

The only times I buy PPV movies is when the release is new but not available on redbox yet. It cost $5 to rent movie in SD and $6 in HD through U-Verse.

I find similar VOD services like Xbox Live Marketplace, Sony Entertainment, run equally expensive. iTunes and Amazon Instant Video are $1 cheaper. I never rent movies from iTunes, because they prevent from displaying HD movie on my large TV screen with stupid HDCP restrictions.

If you subscribe to premium movie channels or get $5 a month screen-pack you can have unlimited access to some older titles like with Netflix. In case of premium movie packages, the titles are actually little newer and more recent but of course you won't find as recent as on VOD or redbox.

The point of VOD is not price but convenience. I live in Chicago area and its been snowing outside all day. Why bother with snow to go to a nearest redbox half mile away from you 2 times, when you can have a convenience to rent movie straight from your couch.

In addition, in practice you are more likely to spend money if you go to a redbox location which is often in Walgreens, supermarkets or gas stations. You have movie for $1.50 for 24 h great, but while there why not get beer case for $10 or pizza for $6. You do not travel all that way from home just to get a movie, do you?