Video-on-demand to break $10bn barrier

Analysts are predicting that the next five years will see a huge increase in take-up for video-on-demand (VoD) services.

According to research from analyst house Informa Media and Telecoms, by the end of the decade, one third of the world's TV viewing households will be using VoD services.

The US is now the top consumer of VoD, the research said, accounting for 44 per cent of revenues between 63 million households, although it will cede its square-eyed position to the Asia Pacific region by 2010.

The next five years will see little change in VoD's business model, the analyst predicted, with on-demand movies and pay-per-view sports events remaining suppliers' models of choice. However, the new decade will see an explosion in 'true' VoD, where TV viewers can choose exactly what they want to watch at a time that suits them.

It's expected that for the foreseeable future, traditional delivery methods - such as cable and direct-to-home satellite TV - will rule the roost. However, a recent report from research firm Screen Digest suggests IPTV will see an increase in popularity.

The report found that in Europe, the number of IPTV subscribers increased by 66 per cent in the first half of this year and will account for around 10 per cent of pay TV by the end of the decade.