On-Demand TV Set To Take Off, says Informa Media
According to a report released today by Informa Media, on-demand TV is ‘about to take off’ with revenues set to rise by over 500% by 2007.
| Global ‘On Demand’ TV Forecasts By Region | ||||
| Households (000) | ||||
| 2000 | 2001 | 2002 | 2007 | |
| Asia Pacific | 4,015 | 7,670 | 15,170 | 93,010 |
| Europe | 16,793 | 23,279 | 28,969 | 73,467 |
| North America | 25,610 | 33,994 | 44,477 | 98,943 |
| Latin America | 2,780 | 4,226 | 5,809 | 15,990 |
| Total | 49,197 | 69,169 | 94,425 | 281,410 |
| Revenues ($ million) | ||||
| 2000 | 2001 | 2002 | 2007 | |
| Asia Pacific | 123 | 220 | 380 | 1,889 |
| Europe | 583 | 958 | 1,265 | 3,257 |
| North America | 1,203 | 1,721 | 2,320 | 6,240 |
| Latin America | 81 | 139 | 212 | 762 |
| Total | 1,990 | 3,039 | 4,177 | 12,149 |
| Source: Informa Media Group, 02.04.02 | ||||
In 2000, just 49 million homes had access to on-demand movies and total revenue generated by this medium was $2 billion. In 2001, these totals grew to 94 million and $4 billion respectively.
Informa believes that the 2007 totals do not represent a ‘mature’ market and forecasts that take-up and revenue will continue to grow beyond 2007.
North America will account for 51% of on-demand revenue in 2007 but only 35% of homes. Europe will have over 73 million homes connected, less than 17 million took on-demand services in 2000.
Digital cable and DTH will dominate the market for the next five years with ‘near’ video on demand – staggered showings of movies. Beyond 2007, ‘true’ video on demand will become widespread with customers able to purchase movies as and when they wish to be delivered via cable digital, DTH or newer platforms still.
| Global Forecasts Summary By Platform | ||||
| 2000 | 2001 | 2002 | 2007 | |
| Households (000) | ||||
| Cable NVoD | 14,043 | 24,938 | 44,107 | 176,570 |
| DTH NVoD | 34,795 | 43,423 | 48,553 | 70,697 |
| Cable VoD | 0 | 147 | 465 | 16,645 |
| DSL VoD | 360 | 660 | 1,300 | 17,497 |
| Total | 49,197 | 69,169 | 94,425 | 281,410 |
| Revenues ($ million) | ||||
| Cable NVoD | 532 | 998 | 1,689 | 6,690 |
| DTH NVoD | 1,446 | 2,013 | 2,420 | 3,762 |
| Cable VoD | 0 | 7 | 22 | 916 |
| DSL VoD | 12 | 21 | 45 | 781 |
| Total | 1,990 | 3,039 | 4,177 | 12,149 |
| Source: Informa Media Group, 02.04.02 | ||||
Near video on demand (NVoD) cable homes will constitute 88% of total on-demand homes by 2007 and will generate 86% of total revenues. NVoD digital DTH will bring in 25% of homes and 31% of revenues. VoD cable subscriptions will reach 17.5 million homes, or 6% of the total, although these homes will account for only 8% of revenues. DSL VoD movie revenues will total $781 million.