On demand video sector set for huge rise
Joseph O'Halloran ©RapidTVNews | 19-11-2010
New research from Informa Telecoms & Media is predicting that flying in the face of overall stagnation in TV subscriptions, by the end of 2010 global revenues from on demand video services will have risen by as much as 24% year on year to total $5.6 billon.
Furthermore, and despite the likely ongoing gloomy economic background over the coming years, one which already has seen cut backs in cable TV subscriptions in the US in particular, the analyst believes that on demand will maintain its solid growth and that by 2015, revenues will more than double to amount to $13.7 billion.
Indeed Informa predicts that the majority of on-demand revenues will continue to come from cable TV subs, accounting for just over half (51%) of the 2010 total of $2.9 billion. This proportion is expected to grow to 56%, representing $7.7 billion, by 2015 as subscribers continue to convert to digital, and therefore greater numbers have access to on-demand services.
DTH is predicted to be a loser in the platform shake up, with its market share dropping from 36% to 28% in the five years to 2015, resulting in a still healthy $3.8 billion. The report estimates that on-demand revenues for IPTV platforms will reach $683 million by the end of 2010, 12% of the total. This represents huge growth in the last five years when revenues were only $29 million in 2005. In five years time, IPTV on-demand revenues are likely to be in the region of $2.2 billion, 16% of the global total.
IPTV’s potential growth impressed Informa but the analyst questions how viable IPTV services would be as standalone services. It argues that there is a consensus that IPTV is a good way for telcos to retain and attract subs and to raise blended ARPU figures.
In terms of regions, the report shows that North America will contribute $2.2 billion, 38%, of total 2010 revenues across all platforms but that under pressure from the growing Asian markets will see its share slip to 29% in 2015 even though its on-demand revenues will nearly double. Asia Pacific’s revenues are anticipated to grow from $1.0 billion in 2010 to $3.7 billion in 2015, overtaking Western Europe in 2012.
