Video-on-demand (VOD) has established itself rapidly as a mainstay in pay-TV homes and will become an even faster growing entity for providers as it integrates over the top (OTT) streams.
In “On-demand Services Business Models: Video, Games & Over-the-Top – 2011 edition,” IMS Research estimates that at the end of 2010, 13.2% of the world’s digital pay-TV subscribers were requesting VOD content via their set-top box (STB). Furthermore the analyst forecasts that going forward this figure will increase rapidly so that the number of pay-TV households using VOD services will triple from 53.9 million at the end of 2010 to 157.3 million at the end of 2015. The current growth resulted in 2010 operators generating $4.3 billion in on-demand revenues, with traditional closed-network VOD accounting for 99.5% of this figure. IMS Research forecasts that in 2016, closed-network VOD’s share will decrease to 94% of total on-demand revenues generated by pay-TV operators globally. Commented Anna Hunt, principal analyst and report author: “There is much interest from pay-TV operators in new revenue streams, so games on-demand and OTT integration into set-tops are getting quite a bit of attention. Nevertheless, traditional VOD services offering TV shows and movies will continue to be the main drivers for growth in on-demand revenues.”
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