Consortium Renews Commitment to Movies On Demand Campaign

LOS ANGELES/NEW YORK: A total of 12 U.S. cable companies and 10 studios are teaming to invest $10 million this year to drive usage of the Movies On Demand service.

The consortium of entertainment companies first came together last year to promote the Movies On Demand feature on cable, which delivers feature films the same day as they hit the DVD shelves—and 28 days before those titles reach Netflix and other services. The theme of the campaign is “Push It”—referring to the button on the digital cable remote that customers use to access On Demand services.

“An increasing number of consumers are interested in renting movies at home on demand on cable," said Michele Edelman, VP of worldwide marketing, programming and acquisitions at Warner Bros. Digital Distribution and the Movies On Demand initiative co-chair. “So we plan to be there with the hottest titles at the earliest opportunity. We’re excited to communicate about it in such a unique way.”

The number of paid VOD transactions increased by 11 percent in 2010 to 116 million, with revenues up 15 percent in the first half of the year over the comparable period in 2009, according to Rentrak data. In response to last year’s Movies On Demand campaign, there was a 36-percent increase in average monthly revenue among light users, an 18-percent increase among new purchasers to the category, and sustained elevated usage rates among both groups.

“Cable companies and movie studios have demonstrated we can provide customers with a product they want, when they want it and at a price they can afford,” said Joe Rooney, senior VP of branding, advertising and social media at Cox Communications and co-chair of the Movies On Demand initiative. “The current movie rental climate is a pivotal time for us to join together and promote a long list of hit titles to avid movie fans and frequent On Demand viewers, along with light users and customers who are still unaware of the service.“

The cable companies in the initiative include Atlantic Broadband, Armstrong, BendBroadband, Bright House Networks, Charter, Comcast, Cox, Insight, iO TV, Mediacom, Suddenlink and Time Warner Cable. The studios include 20th Century Fox, Image Entertainment, Lionsgate, NBC Universal, Paramount, Relativity, Sony/Columbia, Summit Entertainment, The Walt Disney Studios and Warner Bros. Entertainment.