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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 worlds TV households. These services will generate revenues of more than US$10 billion.
The sixth edition of Informas 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
| VOD/NVOD Households(000) | 2007 | 2012 |
|---|---|---|
| Europe | 144,329 | 197,239 |
| North America | 159,578 | 193,813 |
| Rest of the World | 330,795 | 518,447 |
| Total | 634,702 | 909,499 |
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$677 million in 2012, with France and Germany some way behind in second and third places respectively.
Global on-demand revenue forecasts by region
| Revenues (US$ million) | 2007 | 2012 |
|---|---|---|
| Europe | 1,559 | 3,305 |
| North America | 2,684 | 5,047 |
| Rest of the World | 533 | 1,747 |
| Total | 4,776 | 10,099 |
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.
