More than 100 million homes worldwide now buy on-demand films and this is forecast to triple to 327 million homes (a third of global TV households) by 2010, says a new report from Informa Media Group.
These homes are reported to generate an estimated $12 billion in on-demand film revenues, compared to 91 million homes providing $3.7 billion in 2003 and 109 million homes generating revenues of $4.4 billion in 2004.
This second wave of on-demand TV enthusiasm follows the hyperbole created in 2000/01 that ended abruptly with the recession. As a result, Informa Media Group claim their on-demand forecasts are muted.
In 2004, Informa estimate North America will take half the global on-demand film revenues and account for half the VOD/NVOD households. By 2010 however, Informa predicts North America and Europe each accounting for around 43% of global on-demand revenues. Asia Pacific will have 116 million homes in 2010, overtaking North America as market leader, but will only account for 11% of global film revenues.
The US alone will have 100 million on-demand households by 2010, up from 44 million in 2003.
It is thought that true VOD will not come to the fore for another five years, until then 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. True VOD will be delivered via cable, DSL and even newer systems such as fibre-to-the-home and powerline TV.
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