On-demand TV revenues to climb by 54%

Wednesday, August 15th, 2012 
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On-demand TV revenues from movies and TV programs (and excluding revenues from other sources such as sports and adult and also excluding SVOD packages and the internet) will reach US$6.0 billion in 2017, up from US$3.9 billion in 2011 and US$2.3 billion in 2007, according to a new report from Digital TV Research.

The On-demand TV Revenue Forecasts report estimates that the US will contribute US$1.8 billion to the total in 2017 – or 30% of the global total. The US provided 46% of the 2007 total. Italy will be second placed by 2017; doubling its revenues from its 2007 total. China (US$550 million) will be third by 2017; having risen from only $30 million in 2007.

From the US$3.7 billion extra on-demand revenues to be added between 2007 and 2017, US$1.2 billion will come from the Asia Pacific region and US$1.0 billion from Western Europe. The USA alone will add US$750 million, followed by China (US$520 million) and Italy (US$327 million).

Digital cable will generate US$2.74 billion in 2017 (or 46% of the total), up from US$1.61 billion recorded in 2011. The USA will provide US$944 million in 2017, with China second with US$418 million.

DTH/DBS will remain the second largest contributor, with US$1.7 billion in 2017. The US (US$610 million) will again remain the leader. The UK will take second place, with US$193 million.

IPTV on-demand revenues will overtake DTT in 2012 to become the third largest on-demand revenues platform. IPTV on-demand revenues will reach US$946 million by 2017. `DTT on-demand revenues are mainly confined to Western Europe, especially Italy (US$572 million by 2017).

By region, North America and Western Europe will still supply two-thirds of global on-demand TV revenues by 2017, although this proportion is down from three-quarters in 2011. However, on-demand TV revenues will increase by 145% in the Asia Pacific region over the same period to reach US$1.38 billion in 2017. China will provide a lot of this growth.

Top 10 countries by on-demand TV revenues (US$ million)

              2011                2017
------------------  ------------------
USA          1,455  USA          1,793
Italy          515  Italy          648
UK             254  China          550
China          205  Japan          312
France         163  UK             283
Japan          137  Germany        266
Germany        132  France         188
Canada         128  Canada         186
South Korea     73  India          175
Spain           56  Russia         158

Source: Digital TV Research Ltd

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