Starz: 70% of Net's VOD Users Forgo Rentals
[FONT=Arial, Helvetica, sans-serif]Anthony Crupi[/FONT]
[FONT=Arial, Helvetica, sans-serif]DECEMBER 12, 2005 -
[/FONT][FONT=Arial, Helvetica, sans-serif]If video killed the radio star, then video-on-demand is about to put a bullet in the head of the corner Blockbuster.
According to a recent study commissioned by Starz Entertainment Group, 70 percent of TV viewers who use the Starz on Demand VOD service said that they no longer go to the video store to rent movies. Likewise, 72 percent of Starz subscribers reported that they rented DVDs less frequently than before they signed on for the VOD service.
The study, conducted among nearly 500 Comcast customers who subscribe to the Starz Encore premium movie package, also suggests that VOD gives cable a boost over its satellite competition. According to the study, 76 percent of users said that the Starz VOD package makes them “more satisfied” with their cable company.
There are other advantages to VOD, said SEG executive vp Jerry Maglio. “Because Starz is not ad-supported, we can do things with Starz On Demand that other networks cannot,” Maglio said. This includes premiering all major theatrical titles in the on-demand format about two weeks before they appear on the linear services, and offering users bonus VOD features such as behind-the-scenes interviews and director’s-cut footage that are unavailable on the linear networks.
Starz On Demand offers more than 100 movies each month. Out of a total subscriber base of 14 million Starz Encore households, some 3.6 million regularly access the company’s VOD offerings[/FONT]
[FONT=Arial, Helvetica, sans-serif]Anthony Crupi[/FONT]
[FONT=Arial, Helvetica, sans-serif]DECEMBER 12, 2005 -
[/FONT][FONT=Arial, Helvetica, sans-serif]If video killed the radio star, then video-on-demand is about to put a bullet in the head of the corner Blockbuster.
According to a recent study commissioned by Starz Entertainment Group, 70 percent of TV viewers who use the Starz on Demand VOD service said that they no longer go to the video store to rent movies. Likewise, 72 percent of Starz subscribers reported that they rented DVDs less frequently than before they signed on for the VOD service.
The study, conducted among nearly 500 Comcast customers who subscribe to the Starz Encore premium movie package, also suggests that VOD gives cable a boost over its satellite competition. According to the study, 76 percent of users said that the Starz VOD package makes them “more satisfied” with their cable company.
There are other advantages to VOD, said SEG executive vp Jerry Maglio. “Because Starz is not ad-supported, we can do things with Starz On Demand that other networks cannot,” Maglio said. This includes premiering all major theatrical titles in the on-demand format about two weeks before they appear on the linear services, and offering users bonus VOD features such as behind-the-scenes interviews and director’s-cut footage that are unavailable on the linear networks.
Starz On Demand offers more than 100 movies each month. Out of a total subscriber base of 14 million Starz Encore households, some 3.6 million regularly access the company’s VOD offerings[/FONT]
