A new report from Informa Telecoms & Media forecasts Global revenue from on-demand TV products will top $6.9 billion for 2011, and says that number will double to $13.8 billion in 2016, despite a sputtering worldwide economy. The 2011 figure is 29 percent higher than revenues in 2010, Informa says, and have grown from just $1.4 billion in 2005, a nearly 400 percent increase.
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Cable continued to own the lion's share of on-demand revenue, and is expected to see $3.4 billion in sales in 2011, increasing 118 percent to $7.4 billion in 2016; On-demand revenues for IPTV platforms are expected to reach $835 million in 2011, or 12 percent of the total. Although this is still a low figure, it is a lot higher than the $29 million recorded as recently as 2005. IPTV also is expected to see the largest percentage increase in revenue, some 163 percent by 2016.
Satellite platforms are expected to lose share to both cable and telco products but will nonetheless see on-demand revenue growth in the range of 65 percent.
Informa said the increases take into account what is expected to be slow growth of subscription TV as well as increased competition from online TV platforms. In 2011, cable accounted for 50 percent of the on-demand market, satellite 38 percent and IPTV 12 percent. By 2016, cable is expected to grow to 53 percent, satellite 31 percent and IPTV 15 percent.
Some $2.6 billion of the 2011 revenues will come from North America, about 37 percent of the total. By 2016, even though its on-demand revenues will double and it will continue to be the largest contributor, it's expected to make up just 30 percent to the global total. APAC's revenues will pass those of Western Europe by 2012, rising from the current $1.4 million to $4 billion, driven by rapid growth in India, where revenues will increase from $527 million in 2011 to $1.6 billion in 2016.
- see this Informa report
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