Video On Demand Revenue to Increase Dramatically Says Study

Posted Tue Jul 26, 2011 at 09:00 AM PDT by Dick Ward

By 2016, VOD revenue is expected to reach $5.7 billion.

A London research firm called Direct TV Research - not to be confused with DirecTV - estimates that VOD revenues will increase by 58 percent by the year 2016. That would put the total money brought in by on demand content at $5.7 billion.

In the US alone, the money brought in by VOD content is expected to be $1.8 billion with the next highest country, Italy, coming in at $592 million. The research firm states that this number doesn't include pay-per-view sports events or adult content - just the more traditional VOD offerings.

One particularly interesting piece of the study is that it seems free content doesn't incentivize customers like you might think. "There is little evidence to suggest that these free services actually encourage subscribers to pay for on-demand titles," writes analyst Simon Murray. "In fact, it may be harder to convince households to pay for on-demand services if they have become accustomed to receiving free on-demand titles."

Source: Home Media Magazine

See what people are saying about this story in our forums area, or check out other recent discussions.

Tags: Industry Trends, VOD (all tags)