In the first half of 2006 there were nearly 26.2 million VOD capable homes, according to new a new report from Kagen Research.
This equates to 86% of the 30.4 million digital cable homes in the US, says Kagen in its
Video On Demand: A Strategic and Economic Analysis report.
According to the report, growth in cable VOD homes will mostly be due to growth in digital subscribers rather than from new systems adding VOD to their offerings.
The report also reveals that there were 10.5 million subscription VOD homes in 2005, and this figure is predicted to reach 16.3 million by the end of the year.
Recent research from Magna Global said that VOD is expected to reach 65.6 million US households by 2010, compared with 26.5 million VOD households at the end of Q2 2006 (see VOD To Reach Over 65 Million US Households By 2010).
In addition, Kagen says that VOD from telco TV initiatives will generate about $22 million in combined pay-per-view and on-demand revenues.
Kagen said: “Network-based on-demand services continue to reach a broader audience using a combination of free, pay and subscription-based models.”
“The increased reach and reliance on free content has resulted in robust usage trends, making the use of advertising models increasingly viable though still technically limited.”
At the start of November, Leichtman Research Group published consumer research which showed that 60% of all digital cable subscribers in the US have used VOD, up from 25% two years ago (see VOD Now In 25 Million US Cable Homes).
Meanwhile, iSuppli has forecast that the overall global VOD market will grow from below $2 billion in 2006 to nearly $13 billion in 2010 (see VOD Market To See Massive Growth).
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