Asian Markets to Drive On-Demand TV Growth, Study Finds

While U.S. on-demand TV revenue is expected to expand 16 percent from 2012 to 2018, total revenues in the Asia-Pacific region will double.

On-demand TV revenue from movies and TV shows will grow to $6 billion by 2018, up 44 percent from $4.2 billion in 2012, according to a new study by U.K. market research firm, Digital TV Research.

Much of that growth will come from the developing markets of Asia. On-demand TV revenues in the Asia Pacific region will more than double between 2012 and 2018 to reach $1.46 billion. Asia Pacific’s proportion of global on-demand TV revenues will expand from 16 percent in 2012 to 24 percent in 2018.

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“The U.S. is undoubtedly the most sophisticated on-demand TV market, with a long-standing consumer acceptance of the concept,” said Simon Murray, the report’s author. “However, on-demand TV is growing fast outside the U.S. For instance, China will more than double its revenues between 2012 and 2018. Indian revenues will almost triple over the same period.”

Based on forecasts for 97 countries, the study found that On-demand TV generated just 2.3 percent of the $184 billion total pay TV revenues in 2012. But the on-demand proportion is expected to hit 2.9 percent of the projected $203 billion total in 2018.

North America and Western Europe together accounted for 73 percent of global on- demand TV revenues in 2012. Despite revenues growing by 20 percent in these regions, combined they will take only 61 percent of the global total by 2018, due to the more rapid expansion in Asia.