VOD Market ResearchCable companies remain viewers’ first choice when it comes to ordering movies on-demand on a per-use basis despite inroads being made by telco and Internet video-on-demand (iVOD) providers, according to the NPD Group’s 1H 2012 “VideoWatch VOD” report.

Comcast led the per-use cable VOD market in the first six months of 2012, garnering 48% of all paid VOD movie rentals.

Telco VOD rental orders, meanwhile, is the VOD market’s fastest growing segment, having risen 24% year-over-year (YoY). IVOD rental orders grew 15% YoY in 2012’s first half, according to NPD’s research. Subscription video rentals and video purchases aren’t included in these figures.

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Paid-VOD move rentals from Comcast represented 23% of the VOD rental market, followed by satellite TV services provider DirecTV at 14% and Time-Warner Cable at 9%.

Apple iTunes’ iVOD made up 8% of paid video rentals, followed by Verizon and Dish Network at 7% each. AT&T garnered the highest customer ratings across a number of criteria, including site organization, navigation and title availability.

Tech-savvy early adopters are the likeliest iVOD demographic, with men predominating (70%). Men aged 25-44 accounted for 44% of iVOD movie rental orders in 1H 2012, as compared to 21% of cable VOD rental orders.

“When it comes to paying for on-demand movies on an a-la-carte basis, cable companies are by far the primary conduit, due in large part to their widespread penetration and usage in Americans’ homes,” said Russ Crupnick, senior vice president of industry analysis for The NPD Group. “Even as iVOD, and VOD from satellite-media companies and telcos grow in popularity, cable companies continue to dominate the VOD movie rental market.”

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