U.S. forecast to lead in VOD revenues
435 million homes hooked up to services
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Globally VOD and NVOD (near video-on-demand) are forecast to generate some $11.4 billion by 2011, with 435 million homes hooked up to services, according to a forecast by London-based consultancy Informa.
While the Asia Pacific region will account for 45% of on-demand subscribers by 2011, it will be responsible for only 12% of global revenue.
North America will generate 46% of revs, albeit from only 27% of subscribers.
Informa predicts that pay-per-view sports and staggered starts of movies will continue to dominate the on-demand sector in the short term, with on-demand programs eventually becoming more important.
"Until recently, the expectation was that technically superior VOD would quickly replace NVOD, but that hasn't happened," said Adam Thomas, author of Informa's "On-Demand TV" report. "Much of the VOD content available is free of charge and being used as a churn-reduction device.
"This strategy won't last forever, but in the meantime, the established NVOD business is being retained and developed while operators gradually ratchet up levels of paid-for VOD content."
In Europe the U.K. leads the on-demand market by a big margin, generating $480 million last year, almost double that of the second ranked territory, France, with $241 million.
