Claritas Convergence Audit Finds That Video-on-Demand Is Increasingly in Demand

When it comes to cable-based video-on-demand, the viewing public's demand for it continues to steadily increase with 54 percent of all digital cable households reporting that they make use of this offering versus 41 percent in 2005, according to the 2006 Claritas Convergence Audit(TM).

The Audit, which surveyed approximately 35,000 respondents both online and through the mail, is conducted by Integras, the advanced analytical services division of Claritas Inc.

The numbers for movies-on-demand were also virtually the same, as 53 percent of digital cable households said they use that service compared to 40 percent in 2005.

Related Results

Taking a closer look, the Audit found that more than one out of 10 digital cable households are ordering an on-demand movie at least once a week, and nearly 30 percent of these households are ordering movies-on-demand once a month or more. Further, 39 percent are renting from video stores less than once a month, and another 30 percent said they never rent movies from a video store, which is a slight increase over the 28 percent of households that responded this way in 2005. "Clearly, consumers are responding to the appeal of not driving to the store or worrying about returning movies," said Kristen Borgman, Director of Primary Research for Integras.

See Graph: Frequency of Ordering Movies 'On-Demand' vs. Other Sources http://www.claritas.com/eImages/marketing/pr/ordering-movies.gif

Another set of findings from the Audit further emphasized this growing trend towards what is known as "time-shifting" of TV viewing, or being able to watch programming at a desired time as opposed to regularly scheduled programming. The Audit showed that DVR/TiVo subscriptions have increased significantly over the past year among both digital cable and satellite users, both of whom subscribed at a fairly equal rate -- 24 percent and 27 percent respectively, compared to 18 percent for cable subscribers and 17 percent for satellite households in 2005.

As for alternative delivery platforms for on-demand content, such as the Internet, the Audit findings suggest that adoption is still low when compared to the seemingly endless stream of new products and services. For example, despite the advent of Internet television shows, movies and live programming, only 18 percent of Internet households reported having ever watched Internet television. And, for those that have downloaded and/or purchased movies or TV shows over the Internet, the number was even lower at 14 percent.

"This seems to indicate that this type of viewing activity is still largely being done by early adopters," said Borgman. "This could also be pointing to the fact that the predominate delivery vehicle is still the TV, and that most consumers prefer to watch video entertainment lounging on the sofa as opposed to sitting in front of a computer," she added.

Watching video on mobile devices, such as cell phones and portable MP3 players, is also still the domain of the early adopter, the Audit results showed. Market penetration for most of these devices is less than 20 percent. "This underscores the importance of finding out more about the early users of these products and services and keeping a pulse on the industry as it evolves," Borgman said.

See Graph: Currently Have Product/Service in Household http://www.claritas.com/eImages/marketing/pr/currently-have.gif

About Claritas

Since 1971, San Diego-based Claritas has been the pre-eminent source of accurate, up-to-date marketing information about people, households and businesses within any geographic area in the United States. Its target marketing services are aimed at reducing the cost of customer acquisition and growing customer value. Claritas offers industry-leading consumer segmentation systems, consulting services and software applications for site analysis, advertising sales and customer targeting. Claritas is a division of VNU, a world-leading information and media company that includes ACNielsen, Nielsen Media Research, Spectra Marketing Systems, and Scarborough Research, among others. To learn more about Claritas and VNU products and services visit their web sites at www.claritas.com and www.VNU.com .

About Integras

A division of Claritas Inc., Integras combines sophisticated quantitative analysis with the broadest array of consumer and business data available in the United States to help companies make better strategic decisions. In addition to conducting five syndicated surveys (Convergence Audit, Restaurant Audit, Insurance Audit, Market Audit and Consumer Electronics Monitor), the Customer Research and Targeting business unit of Integras conducts custom primary market research on behalf of its clients. To learn more about Integras products and services, visit its web site at www.integrasconsulting.com .

Contact: Stephen F. Moore Claritas Inc. (858) 677-9634 Email Contact