MUMBAI: Video on Demand (VoD) delivered straight to the television is generating high levels of consumer interest, but little revenue with free content accounting for more than 95 per cent of the material being watched.
However, a new Pay-TV market report from Futuresource Consulting shows that consumers will pay extra for movies on demand delivered by their broadcaster or Pay TV operator. The report reveals that by 2013, transactional revenues from movies on demand alone will reach $2.4 billion in the US and 430 million Euros in the leading five Western European countries.
Futuresource business consultant Carl Hibbert says, “The rise of on-demand video content that can be accessed through a laptop, PC or mobile phone shows no signs of stopping and with so much competition out there, the consumer is in the driving seat, demanding entertainment be delivered on their terms, whenever, wherever and however they please. But the pay-TV industry is fighting back, and looking to VoD to supplement its linear TV offering."
Operators are using VoD as a tool for driving up the average revenue per user. “Paid-for VoD is a small part of the market, but it is expanding, and that’s despite the glut of readily-available free and ‘catch up’ VoD. Growth opportunities are coming from the continued conversion of analogue to digital cable, the expansion of IPTV, and the introduction of hybrid services by satellite operators. As movie release windows shorten and VoD releases come on stream ‘day and date’ with DVD and Blu-ray we’re going to see more traction, but a number of studios are holding back, believing this may cannibalise their packaged media revenues,” says Hibbert.
Improved electronic programme guides (EPGs) are also helping to boost VoD buy rates, making search and purchase easier, and in some cases allowing for personalised front ends. The next stage is the introduction of lifestyle-oriented TV homepages, which will help to filter and focus the colossal amount of live and on demand content available, ensuring the consumer is able to pinpoint and purchase relevant content as soon as it becomes available.
