Video-on-demand to reach $13 Billion by 2010 with 150 million active users

The video-on-demand (VoD) market, already seeing strong growth of over 40% growth in 2005 versus 2004, is on the verge of breakout, explosive growth in late 2007, according to iSuppli. By 2008, iSuppli predicts several developing trends will mature to drive VoD growth across cable, IPTV and broadband.

iSuppli projects the cable market will represent the strongest distribution channel for VoD on a revenue basis through 2010.

However, Broadband VoD will emerge as a serious competitor, trailing cable in revenue, but featuring much higher growth rates. IPTV VoD will round out the mix, while Direct-to-Home Satellite leverages alternative ‘near-VoD’ strategies to remain competitive. The overall global VoD market will grow from below $2 billion in 2006, to approach $13 Billion in 2010. By 2010, there will be nearly 150 million active VoD users/subscribers worldwide. (via Tekrati)
Among these trends maturing by 2008:
  • Strong global IPTV deployment, with telecom operators beyond initial technical hurdles and aggressively leveraging non-linear, interactive features to lure subscribers. Cable operators will be similarly competitive.
  • Growing availability of VoD movie content with more favorable release windows
  • New High Definition DVD recorders that will facilitate ‘download and burn’ purchases of movie content.
  • Readily available consumer electronics equipment with broadband IP connections, enabling broadband/Internet content to move to the TV via media home networks.
  • A growing market for mobile video and mobile TV, of which a substantial amount is downloaded via broadband and side-loaded to mobile phones.

The impacts of VoD could go well beyond remaking TV. VoD has the potential to replace a significant portion of the DVD rental and retail sales market, as well. As a result, the interests in VoD span a multitude of companies across many industries.

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