Pay-per-view (PPV) sports continues to be the key driver of Pay TV revenue, according to recent research by Frost & Sullivan, although service providers are also starting to expand their library of movie content and catch-up TV content.
The research outfit’s ‘Global Trends in Video On-demand Technology’ report also found that in the short term, the 2016 Olympics are expected to provide a further boost to an already healthy Video On Demand (VOD) market.
In the longer term, the growing use of high-efficiency video coding (HEVC) and an expected shift away from traditional Pay TV towards pure Internet services are both set to impact transaction levels in cable, Internet Protocol television (IPTV) and direct-to-home (DTH).
To date, VOD market growth has been highest in the United States, the United Kingdom, France and Korea. In the future, growth is most expected from the BRIC nations and Eastern Europe. However, this growth in VOD and PPV is however dependent on the availability of broadband.
Overall, a robust VOD market is driving more service providers to invest in more widely accessible online video, in a bid to retain subscribers and improve viewer engagement.