Skip to main content

Putting VOD into Perspective with DVD Share

Some suggest that video-on-demand (VOD) will eclipse the packaged media DVD in the foreseeable future, but Kagan Research forecasts that U.S. consumer spend on VOD by 2016 will still be smaller by a wide margin.

Kagan forecasts that U.S consumer spending on VOD and pay-per-view (PPV) will be one-quarter the consumer spend on U.S. home video in a decade. For years, VOD has been held out as the 'Next Great Thing' and it is steadily fulfilling that promise, but not as fast as some might expect.

Kagan attributes the measured pace to competition from digital video recorders, film distributors enforcing stringent digital rights management of their titles, cable TV's emphasis on free or flat-rate subscription VOD (SVOD), and technical constraints related to limited bandwidth.

Regardless, U.S. on-demand programming is forecast to grow at a hefty 12 percent compound annual growth rate (CAGR) over the next decade, reaching $8.7 billion by 2016. The CAGR for U.S. home video software at consumer spend will be under 3 percent over the same period, yet on a total dollar basis it still remains much larger.

The on-demand figures encompass VOD and PPV programs delivered by cable TV, satellite TV and Internet protocol TV being rolled out by telcos. But the figures exclude broadband video that typically does not deliver sharp full-screen pictures, and also excludes handheld devices.

Through the first six months of 2006, Kagan estimates cable TV is the biggest U.S. platform of true-VOD capable homes with nearly 26.2 million, or 86 percent of the 30.4 million digital cable households.

Kagan says that True-VOD gives users singular control to choose a start time, as well as stop and rewind. Near-VOD is less sophisticated, presenting the same title with multiple start times, but without a stop/rewind capability.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

AI Software Market will Reach $251 Billion

The growth in Artificial Intelligence (AI) software could lead to many benefits. As more organizations adopt AI, they may become more efficient, productive, and able to offer improved products and services. The global job market could also expand, with demand growing for roles like AI engineers and technicians. Plus, AI apps could enable breakthroughs in fields like healthcare, transportation, and energy. The worldwide AI software market will grow from $64 billion in 2022 to nearly $251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4 percent, according to the latest market study by International Data Corporation (IDC). AI Software Market Development The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software (excluding AI platforms). However, it does not include Generative AI (GenAI) platforms and applications, which IDC recent