Home | Sign up for newsletters!

About

Advanced Search

Current Issue: July 2007

Ovum raises VoD revenue forecast to US$12.7 bn for 2011

      

“After speaking to a lot of telcos in Western Europe and Eastern Europe toward the end of last year and seeing some of the initiatives taking place from the likes of France Telecom, Telefonica and FastWeb, I’m a lot more optimistic about VoD revenue growth,” says Aleksandra Bosnjak, content and media specialist at the Ovum consultancy.

Chart 1


Accordingly, Bosnjak has upped her projected worldwide annual user spending on VoD to US$12.7 bn for 2011. Last September, she had calculated the figure at US$9 bn by 2010. (The September 2006 forecast would have slated VoD revenue at around US$10 bn for 2011.)

VoD revenue, as defined by Bosnjak, is end-user spending on downloadable or streamed content. It does not include IPTV service bundles, pay per channels or free VoD (which is sponsored by advertising).

Different regions, different patterns

According to Bosnjak’s figures, cable operators in North America currently are generating the overwhelming majority of VoD revenue. For 2007, Bosnjak calculates that North America will account for US$2.1 bn out of a worldwide VoD revenue total of US$2.7 bn.

The Western and Eastern European markets, she says, will chip in with US$262 m for 2007, and the remainder will come from the Asia-Pacific region.

Of the North American total, Bosnjak calculates that cable operators account for 90 percent. In Western and Eastern Europe she says telcos will grab between a quarter and a third of end-user VoD spending in the region during 2007. She expects, however, that by 2011 Europe will have taken large strides to catch up with North America. “Europe as a whole is a promising market because, unlike in North America, cable has not reached mass scale,” she says. Bosnjak estimates that of the worldwide US$12.7 bn VoD revenue by 2011, North America will account for US$6.6 bn; Western and Eastern European markets will generate US$2.6 bn; and the Asia-Pacific region (which includes China and India in Ovum’s research) will have US$3.1 bn.

“Due to the population size and investment in broadband, Asia will come more to the fore,” Bosnjak says.

Telcos still on VoD back foot

Want to read the whole article?

A complete article view is available only to registered members.

Registration is FREE and offers great benefits.

Click here to register if you are not a registered member. Once registered, you gain access to telecommagazine.com.

Already registered? Click Here to Login >>

If you are already a registered member, but do not remember your username and/or password, click here.

The M2M Switch - turning the wireless business model upside down -- September 1, 2010

Vivendi raises 2010 goals after strong first-half results -- September 1, 2010

FCC cuts off free nationwide broadband potential indefinitely -- September 1, 2010

Shipments of Bluetooth, NFC, UWB, 802.15.4 and Wi-Fi ICs will increase 20% in 2010 -- September 1, 2010

3PAR claims widespread uptake for VMware 'vSphere' service -- August 31, 2010

Related articles:

Cianbro Corp. scales up with Mid-Maine Communications -- June 13, 2008

The media is in the message -- June 13, 2008
Crummy shows are crummy over IP, cable, broadcast, FiOS or satellite

IPTV: The time has come, ready or not -- June 13, 2008
Telcos need video to keep up with cable and satellite competition

Connecting the Ethernet island dots -- June 13, 2008
E-NNI efforts help scale growth of Ethernet services

M2M Zone Keep up with the latest in Machine-to-Machine Communications:

Read M2M Newsdesk
News, research, show coverage and more, covering the M2M industry.

Visit the M2M Zone
M2M Zone Seminars offer the latest information, directly from industry leaders and experts. The M2M Zone is a fixture at top-shelf trade shows including CeBIT and CTIA Wireless. Learn more about what the M2M Zone offers.


Horizon House Network
Microwave Journal
Wireless & RF News


BVD Electronic Publishing
Hosting & Development

Advertisement

©2010 Telecommunications Online & Horizon House Publications®.

 
Home | NewsGlobe | Events | Contact Us | Register | About Us | Advertise

All rights reserved. Privacy Policy.

Advertisement




Let the news come to you
Sign up for newsletters!