A new report from Informa Telecoms & Media forecasts that by 2012, 909 million homes will have access to true video-on-demand (VOD) or near-video-on-demand (NVOD) technology, representing 78% of the world’s TV homes and generating revenues in excess of US$10 billion.
The report, entitled
On-Demand TV & PVRs, projects that North America and Europe will account for a combined 83% of global on-demand revenues by 2012, with North America out front holding a share of close to 50%.
Last year, North America accounted for 56% of global VOD revenues but just 25% of worldwide VOD/NVOD users. The report forecasts that the Asia Pacific region will account for over half of on-demand homes by 2012 but take under 12% of global revenues.
On-demand revenue for Europe is predicted to rise from $1,559 million in 2007 to $3,305 million in 2012, whilst North America jumps from $2,684 million last year to $5,047 million in five years.
In Europe, the UK is the leading country for on-demand and is predicted to generate $677 million in 2012, with France and Germany some way behind in second and third places respectively. The Informa research adds that operators are continuing to demonstrate the importance of on-demand services by the fact that they are making ongoing investments in expensive upgrades to their networks in preparation for widespread on-demand activity.
“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,” said Adam Thomas, author of the report. “This is often at the expense of NVOD services, which are either being phased out, or reduced in size.”
Late last year, Informa reported that significant growth will result in 38.4 million IPTV homes by 2012 – or more than seven times as much as the figure at the end of 2006.
In 2006, IPTV worldwide generated revenues from subscriptions and VOD of less than US$1.5 billion. By 2012 Informa forecasts that this will reach US$14.7 billion, with US$13.6 billion coming from subscription revenues, and a further US$1.1 billion from VOD revenues (see IPTV To Be In 38.4m Homes Worldwide By 2012).
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