VOD shows us the money

A new research report from Informa Telecoms & Media shows that in 2012, 909 million homes will have access to true video-on-demand (VOD) or near-video-on-demand (NVOD) technology, equivalent to 78% of the world’s TV households. These services will generate revenues of more than US$10 billion.

The sixth edition of Informa’s On-Demand TV & PVRs report forecasts that North America and Europe will account for a combined 83% of global on-demand revenues by 2012 – with North America leading the way with close to a 50% share. In 2007, North America accounted for 56% of revenues but only 25% of the world’s VOD/NVOD universe. Asia Pacific will account for more than half of on-demand homes by 2012, but will take less than 12% of global on-demand revenues.

Global on-demand household forecasts by region

VOD/NVOD Households (000)     2007      2012
                           -------   -------
Europe                     144,329   197,239 
North America              159,578   193,813 
Rest of the World          330,795   518,447 
  TOTAL                    634,702   909,499

Source: Informa Telecoms & Media

The Informa research has found that operators are continuing to demonstrate the importance of on-demand services, through ongoing investments in expensive upgrades to their networks in preparation for widespread on-demand activity. The fact that consumers are readily embracing digital TV and high-speed Internet also adds to the positive feeling. Telcos are also entering the entertainment arena via DSL and fibre.

Adam Thomas, author of the report, said: “While true VOD operators still use a free-content model to promote high customer awareness of the technology, there are now signs that these services are successfully converting users into revenue-generators. This is often at the expense of NVOD services, which are either being phased out, or reduced in size.”

In Europe, the UK is the on-demand leader, and is forecast to generate US$677 million in 2012, with France and Germany some way behind in second and third places respectively.

Global on-demand revenue forecasts by region

Revenues (US$ million)        2007      2012 
                           -------   -------
Europe                       1,559     3,305 
North America                2,684     5,047 
Rest of the World              533     1,747 
  TOTAL                      4,776    10,099

Source: Informa Telecoms & Media

On-Demand TV & PVRs (6th edition), is published by Informa Telecoms & Media, which produces several media business publications, including Television Business International, New Media Markets, Converging Media and TV International.

About On-Demand TV & PVRs (6th edition)

On-Demand TV & PVRs (6th edition), has been updated and completely revised from the previous edition, to focus on the substantial advancements that have been made in the on-demand television market over the last 12 months. Operators are successfully evolving their VOD services from a predominantly free content proposition to a paid-for service. This ability to monetize services is a crucial step forward and this edition of On-Demand TV & PVRs includes data and forecasts illustrating this changing dynamic, while also highlighting the growing synergies between the On-Demand and personal video recorder sectors.

For more information or to order your copy please visit www.informatm.com/ondemandtv?src=itmpr