Netflix beating US pay TV VOD, says study

Netflix’s US subscribers watched 80% more streaming video hours in the fourth quarter of last year than were viewed on all pay TV video-on-demand systems taken together, according to a study by research group TDG.

TDG said that pay TV operators’ lack of attention to advertising-supported VOD meant that total VOD use still represented only 1% of all US TV viewing.

“Ad-supported VOD is a significant missed opportunity for pay TV operators,” said Bill Niemeyer, TDG senior analyst. “They are investing significant resources in TV Everywhere but have ignored the fact they have a potentially viable ad- and revenue-generating on-demand platform already in place in over 50 million US homes in the form of VOD.”