Study Shows Demand for VOD Service


Video-on-demand service would be a strong lure to sign up for digital cable,
according to a nationwide survey released Wednesday.

Leichtman Research Group Inc. surveyed 1,200 households, plus 600 more
respondents in markets where on-demand service is offered. It found more than 46
percent of the respondents said they would be more attracted to digital cable if
premium and VOD services were part of the package.

The survey found that digital households are 45 percent more likely to be
interested in subscription VOD, and 70 percent of customers interested in
getting digital-cable service said the draw would be stronger if VOD services
were included in the mix.

About 52 percent of cable subscribers said they would order pay-per-view
movies more if they were offered in a VOD format at $3.95 apiece.

Cable customers most likely to switch to rival satellite providers were also
70 percent more likely to be interested in SVOD than their fellow cable peers.

And customers interested in SVOD spend 22 percent more per month than the
average cable customer, according to the survey.