August 14, 2013 09.55 Europe/London By Chris Dziadul
Although North America and Western Europe together accounted for 73% of global on-demand TV revenues in 2012, their share will fall to 61% by 2018.
At the same time, according to the findings of a new report named On-Demand TV Revenue Forecasts, published by Digital TV Research Ltd, other regions will continue to drive growth, with revenues rising by 113% in Asia Pacific, 89% in Eastern Europe and 129% in Latin America between 2012-18.
Based on forecasts for 97 countries, on-demand TV revenues from movies and TV programmes (and excluding revenues from other sources such as sports and adult, and also excluding SVOD packages and online TV and video – OTT) will reach $6 billion in 2018, up by 44% from $4.2 billion in 2012.
Although on demand TV generated just 2.3% of the $184 billion total pay TV revenues in 2012, the on-demand proportion will grow to 2.9% of the $203 billion total in 2018.
Furthermore, growth in on-demand TV revenues in some mature markets will not be enough to compensate for falling subscription revenues. Although the US accounted for 37% of global on-demand TV revenues in 2012, but this proportion will fall to 30% by 2018, despite its revenues climbing by 16%.
Commenting on this, the report editor Simon Murray said: “The US is undoubtedly the most sophisticated on-demand TV market, with a long-standing consumer acceptance of the concept. Furthermore, the US has the highest rates of cinema attendance per capita in the world by some distance, which reveals a love of movie watching.
“However, on-demand TV is growing fast outside the US. For instance, China will more than double its revenues between 2012 and 2018. Indian revenues will almost triple over the same period.”
Digital cable on-demand TV revenues are forecast to increase by $1 billion between 2012 and 2018 to reach $2.77 billion. IPTV on-demand TV revenues will nearly double over the same period to $1.00 billion by 2018. Satellite on-demand TV revenues will also rise, but only by 22% over the same period to reach $1.79 billion, or nearly $1 billion lower than digital cable. Most of the digital terrestrial TV on-demand revenues will be confined to Western Europe, principally Italy.
The US will continue to occupy top spot in on demand revenues in 2018 ($1,785 million), with China swapping second spot with Italy (as of 2012) claiming $549 million.
For further details about the report, please contact Simon Murray, email@example.com; +44 20 8248 5051