Comcast, TWC Lose VOD Movie-Rental Share

AT&T, Verizon Generate More Transactional VOD Revenue per Sub Than MSOs, Satellite Ops: NPD Group
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AT&T and Verizon Communications grew their share of the $1.3 billion U.S. transactional video-on-demand movie rental market in 2012 by four percentage points -- at the expense of Comcast and Time Warner Cable, according to research firm NPD Group.

Overall, VOD movie rental revenue grew 3% in 2012, according to NPD. Cable operators captured 56% of all VOD movie rentals last year, down from 60% in 2011.

Comcast’s share of the market declined from 29% in 2011 to 28% last year, while TWC’s take fell from 13% to 10% over the same period. The share for all other cable operators was flat at 18%, according to NPD.

Verizon FiOS had 10% (vs. 7% in 2011) and AT&T U-verse had 8% (up from 7%), according to NPD. Satellite-TV operators had 27% of the 2012 VOD movie rental market, with DirecTV at 18% and Dish Network at 9%. The numbers don't add to 100% because of rounding.

Part of share shifts are due to overall pay-TV subscriber trends. In 2012, for example, Comcast’s video subscriber base dropped 1.5%, while FiOS TV subscribers grew 13.3% and U-verse TV subs jumped 19.7%.

At the same time, however, Verizon FiOS and AT&T U-verse generated more annual VOD movie-rental revenue per subscriber than both cable and satellite operators, according to NPD.

The telcos earned average per-subscriber VOD-movie-rental revenue of $25.29 in 2012, compared with $13.83 per sub for MSOs and $10.33 per sub for DirecTV and Dish Network.

NPD’s measurement includes only movies for which a separate additional per-movie-rental fee is charged, and not, for example, movies downloaded as part of a pay-TV subscription. The firm used SNL Kagan’s subscriber estimates for each operator from January through September 2012.