VOD Ad Potential $1 Billion

April 19, 2012

According to a report from Rentrak, VOD is at the tipping point of becoming a major ad medium. The report indicates that free on-demand (FOD) content experienced 17% growth in 2011 to 6.8 billion transactions. With an average of 5 hours and 17 FOD TV shows or videos watched per month, the potential value of the ad inventory in these programs is at least $1 billion, Rentrak estimates.The report also indicates that:

VOD grew overall by more than 1 billion transactions from 7.8 billion last year to 8.8 billion in 2011.

77% of those transactions (6.8 billion) were for free content, providing opportunity for revenue growth as ad insertion technology becomes commonplace.

Each month, 33.8 million set-top boxes accessed free content.

Within FOD, major program viewership is now dominant. The TV Entertainment category, which includes programming from the top linear broadcast and cable networks, is now the top FOD category by transactions, up from No. 3 last year.