Study: On-Demand TV Slowly Beginning to Emerge

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New consumer research from Leichtman Research Group Inc. found that just over 3% of households in the United States have digital-video recorders and 10% of cable subscribers nationwide have used video-on-demand.

While these totals are relatively low, they are both more than double the levels from a year ago.

The findings are based on a survey of 1,350 households throughout the country and are part of an upcoming LRG study, “On-Demand TV 2004: A Nationwide Study on VOD and DVRs.” This is LRG’s third annual study on this topic.

Other key findings include:

• 56% of digital-cable subscribers said VOD is currently available in their area, up from 41% in an LRG study conducted 14 months ago.

• 45% of digital-cable subscribers with VOD available said they have used it, an increase from 28% last year.

• 74% of adults nationwide have heard of DVRs, up from 53% last year.

• 14% of adults expressed strong interest in DVRs, a total that is virtually unchanged over the past three years

“While on-demand TV has been slower to get out of the starting blocks than many had anticipated, as a result of increased efforts from cable and DBS [direct-broadcast satellite] providers, the services are beginning to hit their stride,” president and principal analyst Bruce Leichtman said.

“By 2008, VOD and DVRs will each be in over 30 million households, with about 15 million digital-cable subscribers having access to both services,” he added.

The data were derived from a telephone survey of 1,350 adults age 18-plus from throughout the continental United States, conducted in June. The random sample of respondents was distributed to best reflect the country’s demographic and geographic makeup. The overall sample has a statistical margin of error of plus or minus 2.7%.