One-third of the world’s total TV households, or 350 million homes, will take video-on-demand or near-VOD services by 2010, according to a study from Informa Telecoms & Media.
The report, “On-Demand TV - Fourth Edition,” predicted that North America and Europe will account for a combined 86% of global on-demand revenues in 2010, with North America on top with a 44% share.
“So much of the content available through VOD is free-of-charge, and many of the more successful operators are looking to expand their free offerings,” said Simon Dyson, author of the report, in a prepared statement.
“Although this doesn’t generate much in the way of revenues at the moment, it adds value for subscribers and has become a really useful tool for reducing churn,” he added. “Within a few years, subscribers will be migrated to paid content, and then significant revenues will be generated.”