TV and film on demand market to soar in next five years

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A new report from Digital TV Research has found that the on demand market is set for huge growth to 2016 with revenues from on demand TV and film to reach $5.7 billion by 2016, a rise of 58% compared with 2010. What would make the growth even more impressive is the total does not even include revenues from adult, sports and subscription VOD services. Despite the fact that cable TV has been suffering a general decline of late and has faced great pressure from both DTH and over the top (OTT) video services, it is still expected to be the leading platform for on demand services by 2016, projected to amass $2.6 billion, what would amount to 73% growth. Next in line will be DTH with $1.7 billion, followed by IPTV and DTT. The report notes that on demand DTT services will struggle to take off in most places apart from Italy which will see a particular surge in on demand business and will maintain its position as the second biggest on demand market with $592 million by 2016, behind traditional on demand powerhouse, the US, which will will likley generate $1.83 billion of on demand revenues, a growth of 28%. Regionally, western Europe and the US will supply around two-thirds of on demand revenues by 2016, a fall from their four-fifths share in 2010. These regions' loss will be teh gain of Asia Pacific, especially China. Despite the boom, On-demand TV Forecasts author Simon Murray warned that the industry should not take riches for granted. He said: “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. On-demand TV revenues will grow, but not fast enough to compensate for this decline.”
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