Report: VOD Represents $1 Billion Ad Opportunity

PORTLAND: VOD is the fastest growing alternative TV platform, according to Rentrak, which estimates potential ad sales opportunities of at least $1 billion.

In the Rentrak State of VOD: Trend Report 2011, research finds that VOD is at the tipping points of becoming a major ad medium. Free on-demand content saw growth of 17 percent last year, reaching 6.8 billion transactions. This marks an average of 5 hours and 17 shows or videos watched per month.

More than 55 million U.S. homes have access to VOD. The average home spends 8 hours per month watching on-demand content. The majority of that viewing is spent on free programs, which the report says have the greatest ROI for advertisers and agencies.

"We like to think about VOD as the power of eight-plus!" said Cathy Hetzel, the corporate president at Rentrak. "In the eight years since VOD has taken off, homes now watch eight hours of VOD a month and 80 percent of that is free TV programs, with more than 80 percent of the free-TV program viewing occurring after the first three days of availability on-demand. Combine that with the potential ad sales of a billion dollars and you have one powerful medium."