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.

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