Dealer Data: Retail-Based Video-on-Demand Struggles
The relatively new sector of retail-based Internet video-on-demand has struggled out of the gate, mostly due to high prices, competition from cable boxes and other more established delivery methods, and customer confusion. That’s according to ABI Research, which estimated that 1.2 million of the devices will be shipped next year.
ABI saw some optimism, however, with the Vudu device offering a strong library, but cautioned that competition from cable-based on-demand systems, as well as the “live” functions available on the Xbox 360 and PlayStation 3 consoles, could prevent Vudu, or the Apple TV product from Apple, from gaining a foothold.
The study concludes that “compelling content offerings” are the key to one or more of the on-demand products gaining traction, if they can offer their product at “compelling pricing.”