Video-on-Demand Viewers Still Buy DVD’s

Video-on-Demand Viewers Still Buy DVD's 1Most movies do not hit the video-on-demand services offered by cable companies until about a month after they come out on DVD — because, naturally enough, movie studios do not want to dent DVD sales, their chief moneymaker.

But a recent study by Forrester Research, a technology consulting firm, suggests that on-demand movies hardly cannibalize DVD sales. Households where someone recently watched an on-demand movie bought only 1 percent fewer DVD’s each year than they had before they discovered the cable service, which amounts to about one-tenth of a disc. The survey contacted 4,581 households in late 2005; 321 said they had watched an on-demand movie within the last three months.

Many of these households apparently do not consider video-on-demand a substitute for owning DVD’s, said Josh Bernoff, an analyst at Forrester. ”Just because it’s available on demand and they can see it once doesn’t mean they no longer want to purchase it,” he said.

But the story was different for DVD rentals. Video-on-demand watchers said they rented about 11 percent fewer movies than before.