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Study: Premium VOD to Drive Equipment Business to $591 Million by 2016

23 Aug, 2011 By: Chris Tribbey

With pay-TV operators preparing to offer premium VOD to subscribers, offering movies months before DVD, the availability of the new service should result in a 20% growth in the worldwide market for VOD equipment, according to a new report.

The data from ABI Research predicts the VOD equipment market will grow from $493 million in 2010 to $591 million in 2016.

“Premium VOD requires close cooperation of VOD server and content protection vendors,” said Sam Rosen, ABI senior analyst in digital home. “In the case of DirecTV’s premium VOD launch, Home Premiere, SeaChange worked to integrate watermarking technology by Civolution to help persuade Hollywood to release premium content to video on demand platforms.”

Pay-TV operators also are rolling out advanced, interactive advertising measures, which should add revenue, Rosen said.

“To date, most operators have been providing their free video-on-demand libraries only as a way to reduce subscriber churn, with the focus on attracting viewers,” he said. “Now, VOD system manufacturers are turning their attention to advanced advertising as a way for operators to sell ads in VOD streams.”

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