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Report: U.S. and European On-demand Spending to Hit $1B by 2012

19 Mar, 2008 By: Chris Tribbey

United States and European annual spending on on-demand media will pass the $1 billion mark by 2012, with consumers increasingly using in-store on-demand options in addition to online offerings, according to a March 19 report from Screen Digest.

The U.K. research firm says that even though the home entertainment market looks to have peaked in most areas, retailers and content-rights owners can solve shelf-space issues and offer consumers more options with in-store on-demand options such as DVD-burning kiosks.

“Consumers will not only enjoy the benefits of a wider range of content and a greater choice of distribution outlets, but will also be able to pick and mix from a library of episodic content to create their own compilation DVDs,” a summary of the report reads.

Screen Digest believes current on-demand options, via cable, satellite and the Internet, will generate $33 million in spending this year. When in-store options become more prevalent and easier to use for the average customer, on-demand spending will really heat up, the firm said.

“The industry has an opportunity to establish a viable [on-demand] business, both in-store and online,” said Marie Bloomfield, analyst for Screen Digest. “Retailers, rights holders and consumers can all benefit from the on-demand retailing of a wide range of video content, and overall the industry has the potential to reap significant value from a well-executed on-demand strategy.

“This is particularly crucial as the growth in the DVD business has plateaued.”

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