Backoffice & OSS

Expanding the Video Market

iSuppli Study Sees Banner Market for VOD

by Jim Barthold

Fueled by new players like Apple and Amazon.com and an ever-expanding universe of delivery methods like IPTV, broadband Internet, fixed wireless and advanced satellite, iSuppli is predicting that the global video-on-demand market will grow to nearly $13 billion by 2010.

The industry analysts see 2006 as a “banner year for the VOD market” with $1.7 billion in revenues. Growth will really take off starting in 2008, however, as the additional delivery systems begin to mature and consumers become accustomed to getting their video content from what are now non- traditional sources. By 2010, the industry should be generating about $12.6 billion in revenue, the analysts said.

At least partially responsible for this growth will be the ability to download and burn content and the increasing breadth of consumer electronics equipment with IP connections, including mobile TV, the company said. This concentration on video echoes a keynote presentation at Fall VON where Ted Leonis, vice chairman of AOL and president of AOL Audience predicted that “video is changing everything for consumers and the way the industry is going” as part of a “people IP movement.”

IP video, he said, is just the latest part of an Internet that has evolved from utility-based applications such as e-mail, messaging and search to entertainment on demand with video as Web 2.0 begins to arrive.

Web 2.0 is the generalist term for the next generation of the Web that is evolving from a collection of disparate sites to a converged computing platform that delivers services such as video that replace desktop computing applications.

“Video makes everything better and Web 2.0 makes everything better,” Leonis said.

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