Video-on-demand (VOD), the so-called ‘killer app’ for interactive TV will be worth an estimated $1.98 billion by 2005, say The Yankee Group.
The rollout of VOD has been hampered by factors such as expensive set top boxes and costly streaming. The Yankee Group, however, now believes that infrastructure requirements for streamed video have “finally begun to achieve the critical mass required for commercial deployment.”
“A host of services have been bundled under the term ‘interactive TV,’ and this has resulted in a lack of clarity regarding both the deployment and the practicality of interactive TV,” commented Adi Kishore, analyst with the Yankee Group.
“Now we are beginning to see a focus on individual iTV services by MSOs, and a decision to selectively deploy those that offer a clear revenue stream, reduce subscriber churn, and are difficult or impossible for satellite operators to match. Video-on-demand best fulfills these criteria, and will be rapidly deployed by cable operators over the next two years,” Kishore said.
| |
2001 |
2002 |
2003 |
2004 |
2005 |
| Video-on-Demand Revenues ($ billion) |
0.07 |
0.42 |
0.97 |
1.43 |
1.98 |
Source: The Yankee Group, June 2001
