January 11, 2021
The number of consumers looking to rent movies online increased in the fourth quarter ended Dec. 31, 2020, according to new data from Reelgood.com. The platform says it analyzes 32 million streaming video and movie interactions from 2 million monthly average users in the U.S. across 150 streaming services.
Transactional VOD market share increased to 15% in the quarter from 14% in the third quarter, which ended Sept. 30, 2020. That compared with an 8% share for TV Everywhere, down from 9%. Ad-supported VOD (AVOD) declined to 27% from 28%, while subscription streaming VOD (SVOD) increased to 50% from 49%.
“This year  brought a significant growth to the rent/buy market with titles like Trolls World Tour and Onward being made available early via on-demand channels due to the pandemic,” read the report. “Streaming shares of TVOD have been on a steady incline since Q1 2020.”
Indeed, consumer spending on transactional video-on-demand, or electronic rental, ticked up slightly to an estimated $459 million, from $447.6 million in the third quarter of 2019, according to DEG: The Digital Entertainment Group. For the first nine months of the year, electronic sellthrough spending was up 15.8% to an estimated $2.2 billion, while electronic rental was up nearly 24% to an estimated $1.8 billion.
Speaking last November on a virtual panel during the American Film Market, Cameron Douglas, VP of home entertainment at Fandango, said that even though SVOD and AVOD grabbed most of the press in 2020, “transactional sort of quietly had a moment.”
Premium VOD has certainly been a focus of services such as FandangoNow and sister TVOD outlet Vudu (both are owned by Fandango) as theaters have closed and new releases have rushed to digital, but catalog has been rising to the occasion as well.
“Our No. 1 library title today is Friday the 13th, because it’s Friday the 13th,” Douglas noted. “Sometimes the audiences find their own catalog.”