VOD finally shows the money side

A new research report from Informa Telecoms & Media shows that in 2012, 909 million homes will have access to true video-on-demand (VOD) or near-video-on-demand (NVOD) technology, equivalent to 78% of the world’s TV households. These services will generate revenues of more than US$10 billion.

The sixth edition of Informa’s On-Demand TV & PVRs report forecasts that North America and Europe will account for a combined 83% of global on-demand revenues by 2012 – with North America leading the way with close to a 50% share. In 2007, North America accounted for 56% of revenues but only 25% of the world’s VOD/NVOD universe.

Asia Pacific will account for more than half of on-demand homes by 2012, but will take less than 12% of global on-demand revenues.

Global on-demand household forecasts by region

The Informa research has found that operators are continuing to demonstrate the importance of on-demand services, through ongoing investments in expensive upgrades to their networks in preparation for widespread on-demand activity. The fact that consumers are readily embracing digital TV and high-speed Internet also adds to the positive feeling. Telcos are also entering the entertainment arena via DSL and fibre.

Adam Thomas, author of the report, said: “While true VOD operators still use a free-content model to promote high customer awareness of the technology, there are now signs that these services are successfully converting users into revenue-generators. This is often at the expense of NVOD services, which are either being phased out, or reduced in size.’

In Europe, the UK is the on-demand leader, and is forecast to generate US$677 million in 2012, with France and Germany some way behind in second and third places respectively.

On-Demand TV – Sixth Edition is published by Informa Telecoms & Media, which produces several media business publications, including Television Business International, New Media Markets, Converging Media and TV International.