The average Verizon (NYSE: VZ) FiOS and AT&T (NYSE: T) U-verse TV subscriber spent $25.29 on video-on-demand movies in 2012, outspending cable and satellite TV subscribers, NPD Group said Monday.
Image source: NPD Group
Subscribers from Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC) and other cable operators spent $13.83 on average last year on VOD movies, while DirecTV (Nasdaq: DTV) and Dish Network (Nasdaq: DISH) customers spent an average of just $10.33, NPD said in its 2012 VideoWatch VOD Report.
Cable operators controlled 56 percent of the $1.3 billion transactional VOD market, followed by DirecTV and Dish, which had a 27 percent share of transactional VOD revenue combined. While AT&T and Verizon had an 18 percent share of the transactional VOD market combined in 2012, NPD said the telcos are growing at a faster rate than other multichannel providers.
Comcast's share of the VOD business dropped from 29 percent in 2011 to 28 percent in 2012, and Time Warner Cable dropped from 13 percent to 10 percent, NPD said. DirecTV increased its share from 16 percent in 2011 to 18 percent last year, and Dish dropped from 10 percent in 2011 to 9 percent in 2012. NPD said Verizon increased its share from 7 percent in 2011 to 10 percent last year, while AT&T increased from 7 percent in 2011 to 8 percent in 2012.
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