Asia Pacific Drives On-Demand TV Growth

London, UK, August 14, 2013--Based on forecasts for 97 countries, on-demand TV revenues from movies and TV  programs (and excluding revenues from other sources such as sports and adult and  also excluding SVOD packages and online TV & video (OTT)) will reach US$ 6.0 billion  in 2018, up by 44% from $4.2 billion in 2012 according to new research from Digital TV Research.

On-demand TV generated just 2.3% of the US$ 184 billion total pay TV revenues in 2012.  However, the on-demand proportion will grow to 2.9% of the US$ 203 billion total in 2018.  Growth in on-demand TV revenues in some mature markets will not be enough to  compensate for falling subscription revenues.

The US accounted for 37% of global on-demand TV revenues in 2012, but this  proportion will fall to 30% by 2018 – despite its revenues climbing by 16%.  Simon Murray, report author, said: “The US is undoubtedly the most sophisticated  on-demand TV market, with a long-standing consumer acceptance of the concept.  Furthermore, the US has the highest rates of cinema attendance per capita in the  world by some distance, which reveals a love of movie-watching.”He continued: “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.”

North America and Western Europe together accounted for 73% of global ondemand TV revenues in 2012. Despite revenues growing by 20%, these two regions  combined will take only 61% of the global total by 2018. Revenues in Asia Pacific (up by 113%), Eastern Europe (up by 89%) and Latin  America (up by 129%) will rocket between 2012 and 2018. On-demand TV revenues  in the Asia Pacific region will more than double between 2012 and 2018 to $1,457  million. Asia Pacific’s proportion of on-demand TV revenues will grow from 16% in  2012 to 24% in 2018.

Digital cable on-demand TV revenues are forecast to increase by US$ 1 billion between  2012 and 2018 to reach $2.77 billion. IPTV on-demand TV revenues will nearly  double over the same period to US$ 1.00 billion by 2018. Satellite on-demand TV  revenues will also rise, but only by 22% over the same period to reach US$ 1.79 billion –or nearly $1 billion lower than digital cable. Most of the digital terrestrial TV ondemand revenues will be confined to Western Europe, principally Italy.