Webnoize Research: VOD Projected to Generate $9 Billion in Annual Revenues

3 May, 2001 By: Hive News

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Video-on-demand (VOD) services have the potential to eclipse the current video rental market by creating a more convenient rental experience, ultimately generating over $9 billion in annual U.S. revenues, according to digital entertainment research firm Webnoize(http://www.webnoize.com).

"The Viability of Video On-Demand," a new Webnoize study,examines the future of VOD services. Looking at the costs of VOD infrastructure and the potential revenues of VOD systems, Webnoize finds that storage and delivery costs have fallen dramatically, making VOD services viable.

Strong demand for movie rentals enables cable operators to quicklyrecover VOD investments, and to offer the lucrative service on a large scale, according to the study.

"Viable VOD services signify the end of video rental stores as we know them," says Joel Karp, Webnoize researcher and author of the study. "VOD offers consumers all the benefits of movie rentals without a trip to therental store or annoying late fees."

Webnoize research findings include: annual revenue potential of VOD rental market; annual revenue potential of current regional VOD deployments; projected recovery time for VOD infrastructure costs; video rentals per VCR household; and the impact of VOD rentals on the traditional rental markets.

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