The substantial deployment on internet video on demand (VOD) services in the US will not occur until 2005, according to report released this month by GartnerG2.
Web-based video on demand is very much being hyped as the next major development in broadband entertainment services in the US. Nevertheless, GartnerG2 predicts that its success is a way off and that even by 2005 only 2% of film distribution revenue will come from internet VOD.
GartnerG2’s research shows that 10% of the 106 million US households have broadband internet access. However, as of June 2001, only 2% of online adults had purchased a digital movie or video download in the three months prior to the survey. Three-quarters of those who had not used a PC to watch a downloaded movie said they were ‘not very’ or ‘not at all interested’ in doing so.
