Report: Premium Video Revenue to Top $277B by 20109 Mar, 2007 By: Erik Gruenwedel
Revenues from per-per-view, video-on-demand (VOD), downloads, mobile video and, to a lesser extent, DVD, are expected to surpass $277 billion by 2010, according to a study released by iSuppli Corp.
The El Segundo, Calif.-based research firm says with DVD sales potentially dropping as much as 20% in the next four years, pay-TV services and Internet Protocol Television (IPTV) spearheaded by cable and telecommunications companies will fill the void.
IPTV revenues are expected to increase to $23.5 billion by 2010 from $681 million in 2005.
“The pay-television industry is the 800-pound gorilla in the entertainment space,” said Frank Dickson, principal analyst for iSuppli. “The pay TV market is an established and lucrative one, representing about $120 billion in worldwide sales in 2006.
Dickson said the segment is currently dominated by direct-to-home satellite, digital and analog cable TV services, but telecom companies are entering the market with aggressively and likely will “spur an arms race in pay television.”