[November 01, 2004] Combined Annual VoD and NVoD Revenue Will Increase Fivefold to Euro 2.2 Billion by 2008, Says Yankee Group LONDON --(Business Wire)-- Nov. 1, 2004 -- On-demand TV services from companies such as FastWeb and arrivo will account for a growing proportion of European pay-TV revenue in the next 3 to 5 years Video-on-demand (VoD) and its variants will account for an increasing proportion of digital TV revenue in Western Europe. However, according to the Yankee Group report, On-Demand TV, Part 1: VoD Will Grow Europe's Pay-TV Markets, but Not Much, VoD faces several challenges. For cable operators, these include digital upgrade costs and provision of customer-premises equipment. For satellite operators, the lack of a return path will prevent them from providing true VoD services. Most importantly, platform operators must recognize that VoD represents an enhancement of the digital TV value proposition rather than a core application, such as multichannel programming. As a result, although VoD in one form or another will become a must-have component of every digital TV offering, it will generate only a modest share of overall service revenue. "Both VoD and DVR will coexist as complementary options for digital TV customers," says Jonathan Doran, Yankee Group Broadband & Media Europe senior analyst. "Given the fact that substantial demand for true VoD remains unproven, many cable operators will also keep their options open by not committing to a single on-demand strategy, offering customers a choice of VoD, DVR or both. Broadband providers of digital TV services are likely to focus primarily on VoD or a combination of VoD and nDVR, given the sensitivity of content protection issues associated with redistribution and local storage of digital content delivered over IP networks. PRESS CONTACT For interviews, contact Jonathan Doran, [email protected] CORPORATE CONTACT Kimberly Vranas, director of marketing, press liaison, 617.880.0214, [email protected] THE YANKEE GROUP (http://www.yankeegroup.com) The Yankee Group is the global leader in communications & networking research and consulting. The company helps businesses understand the opportunities, risks and competitive pressures of developing, deploying and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America and Europe. [ Back To TMCnet.com's Homepage ]