VOD revs set to hit $10 bil by 2012
909 million homes will have access
The report, published Friday, forecasts that 909 million homes will have access to VOD or near-VOD technology by 2012, equivalent to 78% of the world's TV households, as competition between rival platforms drives the roll-out of new services.
The report forecasts that North America and Europe will account for a combined 83% of global on-demand revenues by 2012, with North America leading the way with close to a 50% share.
Asia Pacific will account for more than half of on-demand homes by 2012, but will take less than 12% of global on-demand revenues.
The report also notes that a shift in the Hollywood studios' window strategies is helping the market.
In particular, this year studios will roll out more day and date VOD trials to test the effect of merging DVD and VOD release windows.
Operators are also pressuring studios to offer greater flexibility in their supply terms. They complain that the current pricing structure means that some 25% of movies have a negative margin, which could force operators to cut the size of their VOD libraries.
Last year VOD revenues amounted to $4.8 billion, according to Informa, with North America accounting for 56% of revenues.
In Europe, the U.K. is the on-demand leader, and is forecast to generate $677 million in 2012, with France and Germany some way behind in second and third places respectively.
