Global Video On Demand Revenue To Reach $1.9bn By 2006

Video on-demand (VOD) will generate more than $1.9 billion in revenues worldwide by 2006, according to a new report from In-Stat/MDR.
As consumer-oriented VOD services over the Net become more pervasive, revenue generated by family-oriented VOD services will eventually surpass those of adult content sites, which currently dominate the web-based VOD market, says In-Stat.
“Consumers who have broadband internet connections represent a strong growth market for VOD services,” says Gerry Kaufhold, a principal analyst with In-Stat/MDR. “Adult content internet VOD services are way ahead of cable TV VOD deployments in terms of total subscribers and revenues. However, four new family-oriented internet VOD service efforts are underway: CinemaNow, Intertainer, MovieLink, and Movies.com.”
The report also found that by 2006, around 40% of worldwide consumers who have high-speed internet connections to their residences will be using ‘on demand’ services for which they pay monthly fees, bringing $1.9 billion to Hollywood film studios.
The US market has the lion’s share of consumer broadband connections deployed, and, by 2006, will represent over 7.6 million VOD users, generating over $820 million in revenues.
Asia, especially South Korea, Taiwan, Singapore, and others, will represent about 37% of worldwide VOD-over-internet subscribers by 2006, producing over $700 million for movie studios. Europe will provide about 15% of worldwide revenues by the same time and the rest of the world will bring in about 4.7%, according to the report.