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Video On Demand: $13B By 2010

By: David Utter

The global market for video on demand services could expand to as much as $13 billion by 2010, as several delivery systems drive its growth.

Video On Demand: $13B By 2010Market intelligence firm iSuppli predicted a sharp run-up in worldwide video on demand revenue over the next few years. DigiTimes illustrated iSuppli's figures, which show cable retaining its dominance of delivery systems, with broadband networks and IPTV following it in terms of VOD revenue.

Several market conditions should contribute to that global increase:

Global IPTV equipment deployment, a growing breadth of movie content, the ability to "download and burn" content, the increasing availability of consumer electronics equipment with IP connections and a rising mobile-phone television market will contribute to the rapid acceptance of VOD.

Such growth has interested a multitude of companies across many industries."This sets the stage for an epic battle among cable, satellite, IPTV and new broadband video operators," said Mark Kirstein, vice president of multimedia and content services at iSuppli.

"As users expect more interactivity and a greater personalization in their services, VOD is among the key technologies that will address the changing behavior of television audiences."

According to iSuppli, only about one-third of cable subscribers now have access to VOD, but those who do rate it as the most valuable feature of their overall pay television service. The next step for cable should be Subscription VOD (SVOD), an extension of premium channel services that iSuppli noted is offered by Comcast, Cox Communications, Charter Communications and Cablevision Systems.


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