Monday, November 1, 2010

Video on Demand: After 25 Years, Still Not that Big a Deal

Despite all the attention now paid to online delivery of movie and video programming, after 25 years, consumers globally still show an overwhelming preference for renting shows using some form of physical media.

Video-on-demand services, which have been available for 25 years, continue to lag other methods of delivery, DVD rentals and purchases being the dominant method.

The other significant issue is that demand for all forms of on-demand video seems to have flattened out, globally. That suggests displacement, not growth, is the strategic imperative. For VOD providers, the issue remains: can VOD grab more share of the market than developing online delivery methods?

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