Video on-Demand presents US$1 billion in advertising opportunities

Free Video on-Demand (VOD) represents at least US$1 billion in advertising possibilities, according to a trend report by the measurement service Rentrak. In a report entitled Rentrak State of VOD: Trend Report 2011, Rentrak record Video on-Demand usage at 6.8 billion transactions in 2011, and increase of 17% from 2010. Including free On-Demand The report calculated that the number of transactions reached about 8.8 billion in 2011. Approximately 55 million households in the US have access to Video on-Demand, with the average household watching about eight hours per month. “We like to think about VOD as the power of eight-plus! In the eight years since VOD has taken off, homes now watch eight hours of VOD per month and 80% of that is free TV programs, with more than 80% of the free TV program viewing occurring after the first three days of availability on-demand” said Cathy Hetzel, corporate president at Rentrak. “Combine that with the potential ad sales of a billion dollars and you have one powerful medium.”