On-demand revenues predicted to rocket

Video-on-demand revenues will rocket to US$5.7 billion (€4 billion) by 2016, according to forecasts issued today by Digital TV Research. The 58% increase from the 2010 total of US$3.6 billion excludes sports, adult and subscription on-demand services.

By territory, the US and Italy will be the two countries that generate the most VOD revenue, with 2016 totals of US$1.8 billion and US$592 million respectively. China will usurp the UK as the third-placed revenue earner by 2016 with the country generating VOD revenues of US$509 million.

In 2016 roster of top ten VOD countries – by revenue generated – India and Russia make their first appearances. Spain and South Korea will be pushed out of the top ten.

Despite the projected increases, report author Simon Murray warned that VOD revenues will not completely offset operators’ losses in subs revenue: “Much emphasis has been placed on on-demand services making up the operators’ shortfall in declining TV subscription revenues as homes converted to bundled packages and as greater competition leads to lower fees,” he said. “On-demand TV revenues will grow, but not fast enough to compensate for this decline.

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