On-Demand TV Revenues to Soar 54 Percent

LONDON: The revenue from on-demand TV programs and movies is expected to reach $6 billion in 2017, up from the $3.9 billion reported in 2011, according to a new report from Digital TV Research.

The report, On-Demand TV Revenue Forecasts, estimates that the U.S. will contribute $1.8 billion to the 2017 total, representing 30 percent of the global pie. Italy will be in second place by 2017, with China in third.

In 2007, global on-demand revenue was just $2.3 billion. The U.S. contributed 46 percent of that.

Of the additional $3.7 billion to be added between 2007 and 2017, $1.2 billion will come from the Asia Pacific and $1 billion will come from Western Europe. The U.S. will add $750 million, with China contributing $520 million and Italy $327 million.

Digital cable is expected to generate $2.74 billion in 2017, representing 46 percent of the total. This is up from the $1.61 billion recorded last year. The U.S. will contribute $944 million in 2017, and China will be second with $418 million.

It is expected that IPTV on-demand revenues will overtake DTT this year to become the third largest on-demand revenue generator. IPTV on-demand revenues will reach $946 million by 2017. Western Europe will be the largest contributor, notably through Italy.

The report focuses on on-demand revenues from movies and TV programs, but excludes revenues from other sources such as sports and adult content and also excludes SVOD packages.