Age Of Content On Demand Approaches Says Strategy Analytics

The group says that ‘after years of unfulfilled promised, the age of content on demand is finally approaching.’ The report estimates that more than 8 million US homes are currently passed by VOD-capable cable networks and forecasts that this number will rise to nearly 50 million by the end of 2003.

Activated VOD homes (those with set-top boxes loaded with VOD software) currently number around two million and this will rise to 7.6 million by the end of this year.

Revenue will flow more slowly Despite the strong growth in the VOD user base, revenues will not be quite as forthcoming, according to Strategy Analytics. This is because the services are still in their infancy, users are not familiar with what they offer and will need to be educated in what VOD has to offer.

The group estimates that only 2.4 million homes will actively use VOD this year, or fewer than 10% of those passed.

VOD revenues are forecast to reach $287 million for 2002, but will then rise rapidly to reach $3.5 billion by 2005, and $8.2 billion by 2008. By 2008, VOD will be taking revenues from existing video rental as well as premium pay TV channel markets, say the report.