VOD revenues to break $10 billion in 2010

Informa: In 2010, 350 million homes will take VOD or NVOD services, equivalent to one-third of the world's total TV households. These homes will generate revenues of $10.7 billion. On-Demand TV (4th edition) forecasts that North America and Europe will account for a combined 86% of global on-demand revenues in 2010, with North America leading the way with a 44% share. So much of the content available through VOD is free of charge and many of the more successful operators are looking to expand their free offerings. Although this doesn't generate much in the way of revenues at the moment, it adds value for subscribers and has become a really useful tool for reducing churn. Within a few years subscribers will be migrated to paid content and then significant revenues will be generated."

By the end of 2005, North America will take 50% of revenues and account for more than half of the VOD/NVOD households. Asia Pacific will have 125 million on-demand homes by 2010 (as the market leader, having overtaken North America in 2010), or 36% of the total, but will account for only 10% of the global on-demand movie revenues. The U.S. alone will have 103 million on-demand homes by 2010.

Despite continuing caution with regards to making forecasts, many operators have made progress in upgrading their networks and consumers continue to embrace digital TV as well as high-speed internet. Moreover, telcos have continued to embrace the entertainment sector via VDSL and FTTH.

It is important to note how the public will receive their on-demand TV signals. The more traditional methods of delivery - pay-per-view for sports and near-video-on-demand for staggered movie screenings via digital cable and DTH - are set to dominate the on-demand sector for the next five years. Thereafter, true VOD, whereby subscribers can purchase movies or events when they want, will come more to the fore.

On-Demand TV (4th edition) Publ 20051128 On Demand TV? Wikipedia Release publ. in: NetImperative