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Asia Pacific drives on-demand TV growth

Revenues from on-demand movies and TV programmes will almost double by 2018, fuelled by rapid growth in the Asia Pacific, new research says – with IPTV on-demand TV revenues nearly doubling over the same period.

Digital TV Research predicts that revenues from on-demand TV will reach US$6 billion in 2018, up by 44% from US$4.2 billion in 2012.

On-demand TV generated just 2.3% of the US$184 billion total pay-TV revenues in 2012. The research suggests this will grow to 2.9% of a US$203 billion total in 2018.

The figures, based on forecasts for 97 countries, exclude revenues from other sources such as sports and adult, as well as SVOD packages and OTT services.

The research points out that the growth in on-demand TV revenues in some mature markets will not be enough to compensate for falling subscription revenues.

For instance, the US accounted for 37% of global on-demand TV revenues in 2012, but Digital TV Research says this proportion will fall to 30% by 2018 – despite its revenues climbing by 16%.

Report author Simon Murray said the US was undoubtedly the most sophisticated on-demand TV market, with a long-standing consumer acceptance of the concept.

“However, on-demand TV is growing fast outside the US. For instance, China will more than double its revenues between 2012 and 2018. Indian revenues will almost triple over the same period.”

The research predicts that on-demand TV revenues in Asia Pacific will more than double between 2012 and 2018, to US$1.457 billion. And Asia Pacific’s proportion of on-demand TV revenues will grow from 16% in 2012 to 24% in 2018.

Revenues “will rocket” between 2012 and 2018 in Asia Pacific (up by 113%), Eastern Europe (up by 89%) and Latin America (up by 129%)>

North America and Western Europe together accounted for 73% of global on-demand TV revenues in 2012. Despite revenues growing by 20%, the research predicts that the two regions’ combined revenue share will drop to 61% by 2018.

IPTV on-demand TV revenues will nearly double over the same period, rising to US$1 billion by 2018, says the research.

Digital cable on-demand TV revenues are forecast to increase by $1 billion between 2012 and 2018 to reach US$2.77 billion. Satellite on-demand TV revenues will also rise, but only by 22% over the same period to reach $1.79 billion.

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