Some 435 million homes will have video on demand (VoD) or Near VoD (NVoD) services by 2011, according to a report from technology analysts Informa. The forecast predicts that VoD and NVoD's reach (to an equivalent of 38% of the world's TV households) will create revenues of $11.4bn.
The report argues that NVoD services from cable and satellite companies, which grant consumers the chance to view programme content across staggered screening times, as opposed to the VoD option of buying them when they want, will retain their dominance of the on-demand sector for the next few years. "Until recently the expectation was that technically superior VoD would quickly replace NVoD, but it hasn't happened," says Adam Thomas, author of the report.
Thomas argues that NVoD is being retained by operators as they develop paid-for VoD content. The popularity of DVR, which lends itself to NVoD systems, further adds to the impression that NVoD services "aren't going anywhere for some time".
NVoD and VoD services will be most popular in Asia Pacific, where the region will account for a 45% share of on-demand subscribers, although the biggest market will be in North America, with 46% of revenues projected from only 27% of subscribers. Having generated $480m in the sector, the UK is Europe's on-demand leader.