Video-on-Demand (VoD) is expected to reach 66 million US households by the end of 2010, according to revised predictions from Magna Global.
Magna reveals that VoD enjoyed a 21% penetration rate at the end of 2005, with advertising revenues for the medium estimated to be around $50 million across the industry in the US.
Despite the industry hype, VoD usage remains low overall. A recent study from consumer research company, E-Poll, found that more than three-quarters of consumers surveyed rejected the idea of paying for content (see VoD Fails To Live Up To Expectations).
E-Poll asserts that VoD’s main appeal is that is allows users to watch feature-length movies at more convenient times. However, the Video on Demand: Attitudes and Opportunities report notes that VoD is not most viewers “first stop” after turning on their TV’s, in contrast to the interactive program guide which is considered an invaluable “go-to”.
However, Informa Telecoms and Media expect one-third of homes worldwide to be VoD enabled by 2010, generating $10.7 billion in revenues (see VoD To Reach One Third Of Homes Worldwide By 2010).
By the end of the decade Informa project 350 million homes to take VoD services, with North America taking 50% of revenues and accounting for more than half of VoD households.
The Asia Pacific region is forecast to have 125 million on-demand homes by 2010, overtaking the US as market leader, which is predicted to have 103 million on-demand homes by the same time.
The US leads VoD uptake with eMarketer estimating that there are 24 million VoD enabled homes, increasing to 47 million by 2007.
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