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Annual on-demand video revenue to reach $6 billion within 5 years

19 December 2007 15:17 by Rich "vurbal" Fiscus | 1 comment

Media analysts at SNL Kagan have released the results of a study called 'Video-On-Demand: A Strategic and Economic Analysis' in which they look at the growth and future of various on-demand technologies, and concludes that revenue will top $6 billion within another five years.

Technologies covered in the study include Video on Demand (VoD) and Pay-Per-View (PPV). Revenue per user for these and similar services from cable and satellite television providers, in addition to telcos and other computer/internet based sources. "We're starting to see factors align that can enable operators to translate the rise in on-demand traffic into more significant sales," said SNL Kagan senior analyst Ian Olgeirson in a statement.

Olgeirson also noted that this increase will necessarily be accompanied by new initiatives in advertising, which is what supports most on-demand video right now.

"Digital video is not only a competitive necessity for cable operators, but it also provides the foundation for future revenue growth," reads the report. It estimates that by 2011, the combined installed base of digital set-top boxes will be over 110 million.

Source: Ars Technica

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Discuss this article!
borhan9 (AfterDawn Addict) 28 December 2007 5:39
That is going to be some $$$ made there. VOD is the way of the future. If they create more leeway and flexibility in this market it will boom even more. [ + quote]