multichannel connect
careers
all access

Internet Video

Time-Shifted TV Goes Mainstream

10/17/2011 12:01 AM Eastern

About 40% of American TV households now
have at least one digital video recorder, up from 8% in
2005, and 62% of digitalcable
subscribers now
use video-on-demand at
least monthly versus 52%
a year ago, new consumer
research indicates.

About 90% of all TV
viewing in the U.S. is still
via live TV, though, as reflected
in the consumer
survey by Leichtman Research
Group.

VOD SATISFACTION UP

Overall, 73% of all digital-
cable subscribers
have ever used VOD, with
87% of this group having
watched an on-demand
program or movie in the
past month.

Satisfaction with cable
VOD also has risen,
with 62% of cable VOD
users rating the service
8-10 (on a 10-point scale, with 10 being the highest
rating), compared with 60% last year and 55% two
years ago.

In addition, 74% of premium on-demand users give
VOD an 8-10 rating, compared with 54% of users who
don’t use premium VOD.

About 86% of Netflix households also subscribe to a
multichannel-video service, and 43% with a multichannel-
video service subscribe to a premium service. That’s
similar to all households in the sample and similar to
Netflix households last year, according to LRG.

“On-demand TV viewing in the forms of
DVR and VOD, as well as Netflix streaming,
have significantly increased in terms of usage
and popularity over the past few years,” LRG
president and principal analyst Bruce Leichtman
said. “Yet these on-demand TV platforms
remain largely complementary to traditional
TV services and viewing.”

NETFLIX PARITY

Satisfaction with Netflix’s Internet-streaming
service is similar to cable VOD, with 63% of all
Netflix customers rating the feature 8-10 compared
with 48% last year and 37% two years
ago. One-fifth of Netflix members use Watch
Instantly daily and 57% use it weekly.
LRG also found that one-third of DVR households
have more than one DVR, representing
14% of all households having multiple DVRs.
The report is based on a telephone survey
of 1,347 adults 18 and older from across the
continental U.S. in households with a TV set,
conducted in August and September 2011.
The sample has a statistical margin of error
of 2.7%.

September