Global VoD market to explode, says iSuppli

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The global market for video-on-demand services delivered via cable, internet protocol television (IPTV) networks and broadband is set to explode, according to latest research from US researcher iSuppli.

Having already grown by more than 40% in 2005 compared with 2004 the overall global VoD market will grow from below $2bn in 2006 to nearly $13bn in 2010. By then there will be nearly 150m active VoD users/subscribers worldwide, said iSuppli.

Driving VoD will be a combination of:

  • Strong global IPTV deployment, with telecom operators overcoming initial technical hurdles and aggressively leveraging non-linear, interactive features to lure subscribers. Cable operators will be similarly competitive.
  • Growing availability of VoD movie content with more favourable release windows
  • New high-definition DVD recorders that will facilitate 'download and burn' purchases of movie content
  • Readily available consumer electronics equipment with broadband IP connections, enabling broadband/internet content to move to the TV via media home networks
  • A growing market for mobile video and mobile TV, of which a substantial amount is downloaded via broadband and then loaded to mobile phones.

"VoD has the potential to replace a significant portion of the DVD rental and retail sales market," said iSuppli.

Cable will be the major VoD provider until 2010, but broadband VoD will emerge as a serious competitor "trailing cable in revenue, but featuring much higher growth rates".

Lovelace Consulting  |  19.09.2006

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