Free on Demand VOD continues growth in U.S.

Video on Demand Broadcast Primetime Viewing Grew 22 Percent According to the Rentrak “State of VOD: Trend Report”

PORTLAND, Ore. — Rentrak (NASDAQ: RENT), the leader in precisely measuring movies and TV everywhere, today announced the release of its latest “State of VOD: Trend Report.” Rentrak is the only company with complete census measurement of all VOD transactions in the US. The new report, which includes two years Video on Demand (VOD) analysis and year-to-date metrics from Rentrak’s OnDemand Essentials measurement service, shows that the total time spent viewing Free on Demand (FOD) television content in the Broadcast Primetime category increased 22 percent compared to the previous year, with 32.8 million more hours per month watched in Q1 2015 than two years ago. Since Rentrak started issuing the report five years ago, findings show that time spent watching Broadcast Primetime on Demand has doubled.

Insights from the new Rentrak “State of VOD: Trend Report” include:

• Free on Demand (Broadcast Primetime): Transactions are up 19.8 percent
• Free on Demand (Cable Series Content): Transactions are up 8.2 percent
• The majority of primetime viewing On Demand happens after day 3, with more than 50 percent occurring day 7 and beyond

“Much has been written about the movement from TV to digital viewing, however, Rentrak shows that while live TV viewing is slightly down, television viewership is largely unchanged as more viewership is occurring on DVR and VOD over 28 days,” said Rentrak’s Corporate President Cathy Hetzel. “With 100 percent of all primetime series shows now available on VOD, consumers know that favorite shows will be available when they want to watch. The water cooler effect is also driving higher usage as consumers now have the opportunity to watch shows they hear about, from the first episode on.”

“It is no surprise that Free on Demand continues to see growth,” said Rentrak Chief Executive Officer and Vice Chairman Bill Livek. “On Demand is truly the ultimate engagement medium. No commercial avoidance for primetime content available on FOD makes On Demand one of the most effective platforms on which to target your most desirable consumers. Our recent ‘Report’ proves that VOD advertising should be sold at a premium price.”

Previously released once per year, the Rentrak State of VOD: Trend Report will now be available as a PDF or via an interactive Tableau dashboard on a quarterly basis, as part of an annual subscription.