Asia Pacific to Drive On-Demand TV Growth

LONDON: Revenues from on-demand movies and TV programs are expected to reach $6 billion in 2018, up 44 percent from 2012, led mainly by the developing markets in Asia, according to Digital TV Research.

On-demand TV generated only 2.3 percent of the $184 billion total pay-TV revenues last year. However, this proportion is expected to grow to 2.9 percent of the $203 billion total in 2018.

The U.S. accounted for 37 percent of global on-demand TV revenues last year; this proportion is predicted to fall to 30 percent by 2018, despite revenues climbing 16 percent.

North America and Western Europe combined accounted for 72 percent of the global on-demand TV revenues in 2012. Even with revenues growing by 20 percent, these two regions together will only account for 61 percent of the global total by 2018.

Revenues in the Asia Pacific are predicted to jump 113 percent between 2012 and 2018, reaching $1.46 billion. The region’s proportion of on-demand TV revenues is forecast to grow from 16 percent in 2012 to 24 percent in 2018.

Eastern Europe will be up by 89 percent and Latin America by 129 percent.

Digital cable on-demand TV revenues are set to increase by $1 billion in the next five years, to reach $2.77 billion. IPTV on-demand TV revenues will nearly double, also to $1 billion. Satellite on-demand TV revenues are expected to rise, by 22 percent over the same period, to $1.79 billion.

Simon Murray, report author, said: “The U.S. is undoubtedly the most sophisticated on-demand TV market, with a long-standing consumer acceptance of the concept. Furthermore, the U.S. has the highest rates of cinema attendance per capita in the world by some distance, which reveals a love of movie-watching.”

He continued: “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.”

The On-Demand TV Revenue Forecasts report looks at on-demand revenues from movies and TV programs, excluding revenues from other sources such as sports and adult and also excluding SVOD packages and online TV and video (OTT).