VOD Awareness Growing, Usage Limited - Multichannel

VOD Awareness Growing, Usage Limited

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Leichtman Research Group Inc. announced Monday that consumer awareness of
video-on-demand's availability is rather limited and digital-cable subscribers'
use of VOD is "moderate."

Citing its latest research on digital-cable subscribers in four unidentified
markets where VOD is now available, the Durham, N.H.-based research firm said
90% of those subscribers have heard of VOD, versus 69% of digital subscribers
nationwide.

But Leichtman added that 25% of those digital-cable customers and 50% of
analog subscribers in those same four markets were not aware that VOD is now
available in their markets. (The research firm estimated that VOD now is
available to "nearly 40% of cable subscribers" nationwide.)

As for those digital-cable subscribers who have VOD in the four markets,
Leichtman found that just 30% have made use of the capability. VOD-usage rates
varied among the four markets, ranging from 27%-45% of the digital
customers.

Leichtman based its findings on a telephone survey among 1,400 total
households in four markets where VOD is now available. Additional national
results were based on a survey of 1,250 U.S. households in areas where cable is
available.

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