38% using VOD by 2011

[BGonaSTICK]

New research shows that by 2011, 435 million homes around the world will be using video-on-demand or near-video-on-demand services.

The report, from Informa Telecoms & Media, shows that 38% of the world’s TV households will be generating revenues of $11.4 billion for the VOD providers.

Of that number, Asia Pacific will account for nearly half those customers, with 45% of on-demand subscribers, but with lower price-points meaning the region generates only 12% of global revenues. North America, meanwhile, will take 46% of revenues, from only 27% of subscribers.

Pay-per-view for sports and near-video-on-demand (NVOD) staggered movies will continue to dominate the on-demand sector for the next few years.

Adam Thomas, author of the report, said: “Until recently the expectation was that technically superior VOD would quickly replace NVOD. But that hasn’t happened.”

He added: “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 the levels of paid-for VOD content."

In Europe, the UK remains the on-demand leader, generating $480 million in 2006, almost double the second ranked country France, with $241 million.

Source: Digital Spy