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Report: Asian Markets Driving On-Demand Growth

14 Aug, 2013 By: Chris Tribbey

Worldwide video-on-demand revenue from movies and episodic TV programming should reach $6 billion by 2018, up 44% from $4.2 billion in 2012, according to a new report.

The Digital TV Research report — which forecasts VOD revenue of 97 countries and excludes sports, adult, subscription VOD, online TV and video — points to countries in the Asia Pacific region as the area seeing the biggest growth in VOD.

“The U.S. is undoubtedly the most sophisticated on-demand TV market, with a longstanding consumer acceptance of the concept,” said Simon Murray, author of the report from Digital TV Research. “Furthermore, the U.S. has the highest rates of cinema attendance per capita in the world by some distance."

Meanwhile, Murray said on-demand TV is also growing fast outside the U.S., indicating China should more than double its VOD revenue between 2012 and 2018. Indian revenue will almost triple over the same period, according to the report.

In 2012 the U.S. accounted for more than $1.5 billion in VOD revenue, more than triple the No. 2 country (Italy at $466 million), and dwarfing the VOD revenue brought in by No. 3 China ($259 million). However, by 2018, China is forecasted to bring in $549 million in VOD revenue, good for No. 2 behind America’s $1.78 billion.

North America and Western Europe together accounted for 73% of global VOD TV revenue in 2012, but by 2018 that percentage will drop to 61%, with Asia Pacific’s proportion of VOD revenue up from 16% in 2012 to 24% in 2018.

Digital VOD TV revenue is expected to grow to $2.77 billion in 2018, while IPTV VOD TV revenue is expected to reach $1 billion.

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