European VOD revenues to hit €430m by 2013
By 2013 revenues from video-on-demand movies will reach $2.4 billion in the USA and €430 million in the leading five Western European countries, according to a new report from Futuresource Consulting.
Carl Hibbert, business consultant at Futuresource Consulting, said: “The rise of on-demand video content that can be accessed through a laptop, PC or mobile phone shows no signs of stopping, and with so much competition out there, the consumer is in the driving seat, demanding entertainment be delivered on their terms, whenever, wherever and however they please.
“But the pay-TV industry is fighting back, and looking to VOD to supplement its linear TV offering. As well as improving their consumer proposition, reducing customer churn and recalibrating their brand positioning, operators are using VOD as a tool for driving up the average revenue per user.”
He added: “Paid-for VOD is a small part of the market, but it is expanding, and that’s despite the glut of readily-available free and ‘catch up’ VoD. Growth opportunities are coming from the continued conversion of analogue to digital cable, the expansion of IPTV, and the introduction of hybrid services by satellite operators.
“As movie release windows shorten and VOD releases come on stream ‘day and date’ with DVD and Blu-ray we’re going to see more traction, but a number of studios are holding back, believing this may cannibalise their packaged media revenues.”
Improved electronic programme guides are also helping to boost VOD buy rates, making search and purchase easier, the report found.
Towards the end of last year, a report from Leichtman Research Group revealed that 63% of all US digital cable subscribers have ever used VOD, with 88% of them having watched an on-demand program or movie in the past month.