Red Envelope Madness!

Thursday, December 22, 2005

New Starz Study Shows its VOD Service Reduces DVD Sales and Rentals

Via Interactive TV Today:

Premium programmer, Starz Entertainment Group (SEG), has released a study that purports to show that 70% of customers of its subscription VOD service, Starz On Demand (offers around 100 titles at any one time), no longer rent or buy DVD's from their local retailers, and that 76% of those customers are more satisfied with their cable company because of Starz On Demand. The study, entitled the "Starz On Demand Satisfaction Tracker," polled 488 current Starz subscribers, aged 18 to 64, with the same digital cable service (Comcast's) in 10 major markets from September 26th to October 5th. The study was conducted, and its data processed, by OTX Research.

According to Starz, the study also found that 72% of Starz On Demand customers rent fewer DVD's, 60% buy fewer DVD's, 96% believe Starz On Demand is easy to use, and 81% are very satisfied with the service. "SEG has been aggressively promoting usage of Starz On Demand," Starz Entertainment Group EVP, Jerry Maglio, said in a prepared statement. "Because Starz is not ad-supported, we can do things with Starz On Demand that other networks cannot. SEG provides a separate satellite signal to cable companies that offer on-demand with messages reminding viewers that Starz On Demand comes at no additional charge and is easy to use. The company also premieres all its major theatrical movies in the on-demand format an average of 15 days before they appear on the linear services, and also includes bonus features on-demand that are not available on the linear channels."

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