While millions of Americans have internet video-on-demand-capable devices, only a fraction of them are actually being used for that purpose, it seems. According to a new report from the NPD Group, only five percent of Americans with internet VOD-capable devices are actually using them to rent movies.
Russ Crupnick, SVP of industry analysis for The NPD Group, offered the following on the curious phenomenon:
“The industry is teeing up excellent services for Internet movie rental, but they simply aren’t getting noticed by many consumers . . . It’s understandable that smartphone owners might be hesitant to watch a full-length movie with limited screens and battery life, but few of the other connected devices are showing strong uptake for Internet VOD, either.
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NPD speculates that competition from the likes of Netflix and pay-TV VOD are stifling consumer interest in internet VOD. Said Crupnick:
“The various connected devices needed to enable Internet VOD are already found in enough households to allow this distribution channel to grow well beyond early adopters . . . To move the needle forward, though, Internet VOD providers must now leverage their content selection and search advantages and perhaps take a page out of Netflix’s playbook by offering more free trials to introduce potential users to their services.
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Do you rent movies on your internet VOD-capable device? If not, what would persuade you to do so?
(via Home Media Magazine)
My needs are already met, price, availability, quality of image – all reasons why I don’t bother @ this time.
I don’t watch because the rental prices are too high.
This. My barrier is Redbox prices for video on demand of new release movies. Amazon has 99 cent movies all the time. I will go $1.99 for a must see movie.
Why pay $5 for a movie on the internet that you can get for $1.20 at your local Redbox? Makes no sense to me.
What I get from Netflix, Blockbuster I’m not going to pay as much as $6.99 which DirecTV is charging for it’s 3D VOD. Naturally I can’t get 3D Blu-Rays to view yet from a service like Netflix or BB by I bet that will all chance in the near future as 3D sets go down in price. I had Amazon Prime and did not keep my membership when it came up for renewal simple because when I signed up last year I thought ALL video’s were included for viewing from it’s internet app NOT! Just some old stuff thats not worth the $79 a year unless you are going to be buying lots of stuff from their site. You only get “PRIME VIDEOS” from their collections nothing new. The only way is to pay for the VOD’s on their internet app for new releases which I get from either Redbox or Netflix, and BB. So, I say “Let it died” Not going to be miss by many…
Not going to pay these prices when I get get elsewhere much cheaper.
Price. Just yesterday I was looking through movies to rent through Direct TV and then decided that I just didn’t want to spend that much money to rent one….I’d just wait and see it later for cheaper.
“NPD speculates that competition from the likes of Netflix and pay-TV VOD are stifling consumer interest in internet VOD.”
SERIOUSLY??? That’s the reason you guys came up with? That’s the best you got?? Hooo,boy…All the statement does is solidify the belief that these people are sooo far out of touch with us consumers.
I really need to get a job as an analyst or speculator, just for the fun of not having to do any research or work and just make stuff up!
Rental prices are the culprit. For examples, Vudu has new releases that rent for $3.99 to $5.99….way too high to just be able to see a movie that was just released on DVD. I’ll wait my 28 days or so and rent it from Redbox. I don’t have to watch a ”new” movie the moment it’s available.
To echo the previous comments: PRICE, PRICE, PRICE seems to be the answer. If Redbox can make a profit renting movies for $1.20 with the overheard expenes of the machines, the dvd disc, cases, employes to stock the machines, maint., utilities, and location expenses, I just don’t see why VOD on the internet couldn’t do the same. I would love to save the trip to the local redbox but I’ll continue until the cost becomes comparable. I do have my touchpad tablet with hdmi connection to my big screen ready for the day to come. REDBOX, why don’t you make this possible with a giant step forward in order to maintain your long term profitablity and to prevent your demise like Blockbuster and other brick and mortar rental outlets. I believe VOD over the internet will become the preferred method of the near future. It’s here now just waiting on the company with the vison to corner the market by offerring the customers what they want at the PRICE that they are willing to pay.
Heck no! Far too expensive and a lot of the movies being released are brain-dead and/or sequels and aren’t worth watching – in fact, it’s been a few weeks since I even bothered to pick up a Redbox DVD. VOD? LMAO – it’s ridiculously over-priced for the convenience aspect and so are movies at the theater. No thanks, I’ll stick with my 65″ widescreen with Dolby 5.1 sound.
prices way too high
I agree, prices are waaaaaaaaaaaaaaaaaaaay too high. I love the quality of VUDU but refuse to pay $6 for a HD streaming video when I can rent the Blu-ray for $1.50. Wake up video industry, get competitive. If they want my $$ they need to drop streaming prices below $2.
Hollywood(VOD) is not using the most basic of marketing strategy. Initially rent cheap, get customers used to you, then gradually raise prices. Works most of the time. I prefer netflix. Best price. Best selection,