VOD Market ResearchVideo-on-demand (VOD) “has come of age over the last two years,” according to Nielsen’s “Q1 2014 Cross-Platform Report,” spurred on in large part by the availability of online content and mobile device penetration.

Americans watched more than five hours of traditional TV per day on average in 1Q – “a statistic that has remained close to flat over the same quarter for three years running.” They’re spending more time watching time-shifted content, however, as well as viewing more TV content via the Internet and computers, smartphones and tablets. Smartphone penetration has reached 70 percent in the U.S., Nielsen notes, and is highest among Asian-Americans (81 percent).

Recently Telecast VOD
VOD is currently available in 60 percent of U.S. households, according to Nielsen. Recently telecast VOD (RTVOD) is now “a legitimate choice for consumers who might not have a DVR or simply missed recording last night’s episode,” Nielsen notes. Moreover, RTVOD contributes 4-5 percent of viewing among the “coveted 18-49” demographic, and appeals to younger age groups and Asian-Americans, among whom VOD accounts for 8 percent of viewing.

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Nielsen found encouraging news for advertisers in that “RTVOD users of all race/ethnic profiles actually watch more TV – live or time-shifted – than non-RTVOD viewers. “Composite RTVOD homes, for instance, watch an hour and five minutes of live primetime television per day, compared with 54 minutes of live TV time that non-VOD homes log,” Nielsen highlights.

RTVOD viewers have other attributes attractive to advertisers, Nielsen found. For one, ad-skipping functionality is usually disabled for RTVOD viewers. RTVOD viewers also have high device penetration levels across multiple devices. They’re also more likely to have four or more years of college and to make over $100K per year.

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