PPV-VoD generated $2.4 billion in 2005 U.S. revenues
Pay-per-View and VoD
generated nearly $2.4 billion in 2005 U.S. revenues via
consumer spending on cable TV, direct-broadcast satellite and embryonic
telco video, according
to Kagan Research. PPV Movies accounted for $568M; VoD
Movies, TV & SVoD brought in $492M; Events had $465M; and Adult
category accounted for $838M in 2005 revenues.
Revenues for mainstream
movies, TV programs and subscription-VOD fare will grow at a hefty 20%
compound annual growth rate (CAGR) in the next decade, according to Kagan
Research. Adult fare is expected to post a 6% CAGR and events 4.8% CAGR
over that same 2006-2016 span.
Subscription-VOD often
presents a pool of programming that consumers access via on-demand for a
monthly fee. Cablers and telco both face growing competition in on-demand
from mobile devices such as Apple's iTunes.
Price points for on-demand vary greatly. Kagan databook Cable
Futurecast 2006 notes adult programs are typically $8-$10
each on cable systems, while Hollywood movies are just $3-$5 each. The top
on-demand PPV events are more pricy, such as boxing and wrestling at
$34.95 and higher.
