| Service providers are now eager to develop new business models for on-demand services. Comcast, for example, has had talks with some Hollywood studios about the possibility of delivering movies on demand on the same day they are released in theaters. Some executives project that multichannel video will eventually become all on-demand. This Market Intelligence Brief provides some current statistics on VOD usage, outlines the VOD strategies of the top multichannel video providers, and projects the growth of video-on-demand consumption over the next five years – and what that will mean in terms of revenue opportunities. We conclude that VOD will represent substantially less than half of all TV viewing per household on a monthly basis by 2012.
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Table of Contents
Introduction
Trends
-Cable
-Satellite
Projections
-Implications
About the Author
Also from Pike & Fischer
About Pike & Fischer’s Broadband Advisory Services
-Our Research Methodology
Table of Figures
Fig. 1: Comcast On Demand Views
Fig. 2: VOD Enabled Homes (in mil.)
Fig. 3: VOD Penetration
Fig. 4: Projected No. of Hours of VOD Viewing per Household (ave. per mo.)
Fig. 5: VOD as % of Total Monthly TV Viewing Time, per Household
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Americans’ Video-on-Demand Viewing to Average Nearly Two Hours Per Day by 2012, Pike & Fischer Report Concludes
SILVER SPRING, MD, September 25, 2007—Within the next five years, Americans will be spending more than a third of their daily TV-viewing time watching on-demand programs rather than regularly scheduled shows and events, according to a new forecast by Pike & Fischer.
In a new report on video-on-demand (VOD) usage, the Silver Spring, MD-based market research firm says that the majority of households in the U.S. will watch some form of on-demand content provided through cable, satellite TV or telephone company fiber-optic lines. And while the average monthly TV viewing time per household will remain relatively stable, the amount of that time viewing VOD will rise from 8.5% at the end of 2007 to about 38% by 2012, the report concludes. That translates into nearly two hours of VOD viewing per day.
According to Scott Sleek, author of the report, this trend will bring many new revenue opportunities for multi-channel video providers, particularly in the form of advertising sales.
“Cable companies in particular are identifying advertising as a key area of growth potential, since the addition of high-speed Internet and digital phone customers will eventually level off,” says Sleek, director of Pike & Fischer’s Broadband Advisory Services. “Video on demand will enable more targeted advertising, based on user profiles and viewing habits—the same way sites like Amazon.com operate today. That will make television an appealing marketing platform for advertisers.”
Pike & Fischer, a BNA company, offers a host of legal and business products covering the telecommunications industry. This new report, Video-on-Demand Usage: Projections & Implications, is priced at $499 and can be purchased at www.broadbandadvisoryservices.com. For analyst commentary or to request a briefing, contact Scott Sleek at 301-562-1530, ext. 291 / ssleek@pf.com.
For information about Pike & Fischer’s Broadband Advisory Services, visit www.broadbandadvisoryservices.com or contact Jonathan Wentworth Ping at 212-576-8741 / jping@pf.com.
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Scott Sleek
Scott Sleek, Director of Pike & Fischer's Broadband Advisory Services, oversees the day-to-day operations of our market research services and leads the development of analytical publications and briefings. As part of his duties, Scott serves as Managing Editor of our online newsletter Broadband Daily. Scott also oversees the development of all Research Reports & Briefs and manages the Trackers & Projections database. He regularly tracks subscriber growth, market penetration and revenue growth in the markets for high-speed Internet, packet-switched telephony, interactive TV, wireless data and other forms of broadband communications and entertainment. Scott also fields all requests for customized research and works closely with customers to fulfill their market data and analysis needs. Scott has more than 20 years of experience as a writer, editor and researcher. Contact Scott at 301-562-1530, x291 / ssleek@pf.com.
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