NPD: iVOD and EST Revenue to Double by 20155 Dec, 2011 By: Erik Gruenwedel
The rise in Internet-enabled TV devices, including Blu-ray Disc players, is projected to double revenue from subscription video-on-demand and electronic sellthrough by 2015, according new data from NPD In-Stat.
Scottsdale, Ariz.-based In-Stat found that while about 17 million homes in the United States own either a connected TV or streaming media device, only a fraction of the homes access over-the-top, or OTT, video services such as Netflix and Hulu Plus. That said, streaming video transactions will reach nearly 1 billion by the end of the year.
Indeed, In-Stat said third-party SVOD services will continue to evolve and compete directly with pay-TV channels such as HBO, Showtime and Starz offering consumers additional home entertainment alternatives.
“OTT video is continuing to grow, overcoming the barriers of low device connect rates and cumbersome user interfaces,” says Keith Nissen, research director. “Even stronger growth of iVOD and EST video services is possible if device manufacturers and digital retailers can put together a simpler, plug-n-play solution for getting online video to the TV (web-to-TV). The proliferation of tablets is also contributing to OTT growth.”