A new report from Futuresource Consulting argues consumers will be willing to pay extra for movies-on-demand services. The report runs counter to the current enthusiasm for the free content provided by operators that represents over 95% of viewing time.
Futuresource estimates that by 2013, transactional revenues from movies on demand alone will reach $2.4bn in the United States and €430m in the leading five Western European countries of the UK, France, Germany, Italy and Spain.
“Paid-for VOD is a small part of the market, but it is expanding, and that’s despite the glut of readily available free and ‘catch up’ VOD,” says Carl Hibbert, business Consultant, Futuresource. “Growth opportunities are coming from the continued conversion of analogue to digital cable, the expansion of IPTV, and the introduction of hybrid services by satellite operators.” Hibbert adds that while movie release windows are shortening, aided by day&date, some studios are continuing to hold back content, fearing VOD may cannibalise VOD revenues.