A new research report from Informa Telecoms & Media says that by 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.
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.
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